SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of November, 2021

Commission File Number: 001-12102

YPF Sociedad Anónima

(Exact name of registrant as specified in its charter)

Macacha Güemes 515

C1106BKK Buenos Aires, Argentina

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒                Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ☐                No ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ☐                No ☒

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021

AND COMPARATIVE INFORMATION (UNAUDITED)

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

CONTENT

 

Note		Description		Page
		Glossary of terms			1
		Legal Information			2
		Consolidated statements of financial position			3
		Consolidated statements of comprehensive income			4
		Consolidated statements of changes in shareholders’ equity			5
		Consolidated statements of cash flow			7
		Notes to the condensed interim consolidated financial statements:
1		General information, structure and organization of the business of the Group			8
2		Basis of preparation of the consolidated financial statements			9
3		Seasonality of operations			12
4		Acquisitions and dispositions			13
5		Financial risk management			13
6		Segment information			14
7		Financial instruments by category			16
8		Intangible assets			16
9		Property, plant and equipment			17
10		Right-of-use assets			20
11		Investments in associates and joint ventures			20
12		Inventories			22
13		Other receivables			22
14		Trade receivables			22
15		Cash and cash equivalents			23
16		Provisions			23
17		Income Tax			24
18		Taxes payable			25
19		Salaries and social security			25
20		Lease liabilities			25
21		Loans			26
22		Other liabilities			28
23		Accounts payable			28
24		Revenues			28
25		Costs			31
26		Expenses by nature			31
27		Other net operating results			32
28		Net financial results			32
29		Investments in joint operations			33
30		Shareholders’ equity			33
31		Earnings per share			33
32		Issues related to Maxus Entities			34
33		Contingent assets and contingent liabilities			34
34		Contractual commitments			36
35		Main regulations and other			37
36		Balances and transactions with related parties			42
37		Employee benefit plans and similar obligations			45
38		Assets and liabilities in currencies other than the Peso			46
39		Subsequent events			47

1

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

GLOSSARY OF TERMS

 

Term		Definition
AESA		Subsidiary A-Evangelista S.A.
AFIP		Argentine Tax Authority
Associate		Company over which YPF has significant influence as provided for in IAS 28
BCRA		Central Bank of the Argentine Republic
BNA		Banco de la Nación Argentina
BO		Official Gazette of the Argentine Republic
CAMMESA		Compañía Administradora del Mercado Mayorista Eléctrico S.A.
CDS		Associate Central Dock Sud S.A.
CGU		Cash-Generating Units
CIMSA		Subsidiary Compañía de Inversiones Mineras S.A.
CNDC		Argentine Antitrust Authority
CNV		Argentine Securities Commission
CPI		Consumer price index
CSJN		Argentine Supreme Court
CT Barragán		Joint venture CT Barragán S.A.
Eleran		Subsidiary Eleran Inversiones 2011 S.A.U.
ENARGAS		Argentine National Gas Regulatory Authority
FACPCE		Argentine Federation of Professional Councils in Economic Sciences
FASB		Financial Accounting Standards Board
Group		YPF and its subsidiaries
GPA		Associate Gasoducto del Pacífico (Argentina) S.A.
IAS		International Accounting Standard
IASB		International Accounting Standards Board
IEASA (former ENARSA)		Integración Energética Argentina S.A. (former Energía Argentina S.A.)
IFRIC		International Financial Reporting Interpretations Committee
IFRS		International Financial Reporting Standard
Joint venture		Company jointly owned by YPF as provided for in IFRS 11
JO		Joint operation
LGS		Argentine General Corporations Law No. 19,550 (T.O. 1984), as amended
LNG		Liquified natural gas
LPG		Liquefied Petroleum Gas
MEGA		Joint Venture Company Mega S.A.
MEGSA		Mercado Electrónico del Gas S.A.
Metroenergía		Subsidiary Metroenergía S.A.
Metrogas		Subsidiary Metrogas S.A.
MINEM		Former Ministry of Energy and Mining (Ministerio de Energía y Minería)
MMBtu		Million British thermal units
NO		Negotiable Obligations
Oiltanking		Associate Oiltanking Ebytem S.A.
Oldelval		Associate Oleoductos del Valle S.A.
OLCLP		Joint Venture Oleoducto Loma Campana – Lago Pellegrini S.A.
OPESSA		Subsidiary Operadora de Estaciones de Servicios S.A.
OTA		Associate Oleoducto Trasandino (Argentina) S.A.
OTC		Associate Oleoducto Trasandino (Chile) S.A.
PEN		National Executive Branch
Peso		Argentine Peso
Profertil		Joint Venture Profertil S.A.
Refinor		Joint Venture Refinería del Norte S.A.
RTI		Integral Tariff Review
SE		Secretariat of Energy
SEE		Secretariat of Electric Energy
SEC		U.S. Securities and Exchange Commission
SGE		Government Secretariat of Energy
SRH		Hydrocarbon Resources Secretariat
Subsidiary		Company controlled by YPF in accordance with the provisions of IFRS 10
TFN		National Fiscal Tribunal
Termap		Associate Terminales Marítimas Patagónicas S.A.
TSEP		Transportation system entry point
UHaF		Under-Secretariat of Hydrocarbons and Fuels
US$		U.S. dollar
US$/Bbl		U.S. dollar per barrel
Y-GEN I		Joint venture Y-GEN Eléctrica S.A.U.
Y-GEN II		Joint venture Y-GEN Eléctrica II S.A.U.
YPF Brasil		Subsidiary YPF Brasil Comercio Derivado de Petróleo Ltda.
YPF Chile		Subsidiary YPF Chile S.A.
YPF EE		Joint venture YPF Energía Eléctrica S.A.
YPF Gas		Associate YPF Gas S.A.
YPF Holdings		Subsidiary YPF Holdings, Inc.
YPF International		Subsidiary YPF International S.A.
YPF or the Company		YPF Sociedad Anónima
YPF Ventures		Subsidiary YPF Ventures S.A.U.
YTEC		Subsidiary YPF Tecnología S.A.
WEM		Wholesale Electricity Market

2

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

LEGAL INFORMATION

Legal address

Macacha Güemes 515 – Ciudad Autónoma de Buenos Aires, Argentina

Fiscal year number 45

Beginning on January 1, 2021

Principal business of the Company

The Company’s purpose shall be to perform, on its own, through third parties or in association with third parties, the study, exploration, development and production of oil, natural gas and other minerals and refining, marketing and distribution of oil and petroleum products and direct and indirect petroleum derivatives, including petrochemicals, chemicals, including those derived from hydrocarbons, and non-fossil fuels, biofuels and their components, as well as production of electric power from hydrocarbons, through which it may manufacture, use, purchase, sell, exchange, import or export them. It shall also be the Company’s purpose to render, directly, through a subsidiary or in association with third parties, telecommunications services in all forms and modalities authorized by the legislation in force after applying for the relevant licenses as required by the regulatory framework, as well as the production, industrialization, processing, commercialization, conditioning, transportation and stockpiling of grains and products derived from grains, as well as any other activity complementary to its industrial and commercial business or any activity which may be necessary to attain its objective. In order to fulfill these objectives, the Company may set up, become associated with or have an interest in any public or private entity domiciled in Argentina or abroad, within the limits set forth in the Bylaws.

Filing with the Public Registry

Bylaws filed on February 5, 1991 under No. 404, Book 108, Volume A, Sociedades Anónimas, with the Public Registry of Buenos Aires City, in charge of the Argentine Registrar of Companies (Inspección General de Justicia); and Bylaws in substitution of previous Bylaws, filed on June 15, 1993, under No. 5,109, Book 113, Volume A, Sociedades Anónimas, with the above mentioned Registry.

Duration of the Company

Through June 15, 2093.

Last amendment to the Bylaws

April 30, 2021 registered with the Argentine Registrar of Companies (Inspección General de Justicia) on August 5, 2021 under No. 12,049, Book 103 of Corporations.

Capital structure

393,312,793 shares of common stock, Pesos 10 par value and 1 vote per share.

Subscribed, paid-in and authorized for stock exchange listing (in Pesos)

3,933,127,930

PABLO GERARDO GONZÁLEZ

President                    

3

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF SEPTEMBER 30, 2021 AND DECEMBER 31, 2020 (UNAUDITED)
(Amounts expressed in millions of Pesos)

 

		Notes				September 30, 2021				December 31, 2020
ASSETS
Noncurrent Assets
Intangible assets			8				43,197				39,119
Property, plant and equipment			9				1,562,586				1,379,527
Right-of-use assets			10				46,049				44,081
Investments in associates and joint ventures			11				135,146				107,112
Deferred income tax assets, net			17				2,115				2,629
Other receivables			13				19,797				14,657
Trade receivables			14				4,208				8,531
Investment in financial assets			7				14,188				—
Total noncurrent assets							1,827,286				1,595,656
Current Assets
Assets held for disposal							99				494
Inventories			12				137,999				100,137
Contract assets			24				1,069				871
Other receivables			13				45,612				34,369
Trade receivables			14				159,322				108,146
Investment in financial assets			7				40,466				28,934
Cash and cash equivalents			15				61,498				54,618
Total current assets							446,065				327,569
TOTAL ASSETS							2,273,351				1,923,225
SHAREHOLDERS’ EQUITY
Shareholders’ contributions							10,457				10,385
Reserves, other comprehensive income and retained earnings							767,343				666,845
Shareholders’ equity attributable to shareholders of the parent company							777,800				677,230
Non-controlling interest							7,472				6,165
TOTAL SHAREHOLDERS’ EQUITY							785,272				683,395
LIABILITIES
Noncurrent Liabilities
Provisions			16				228,015				186,488
Deferred income tax liabilities, net			17				210,994				119,609
Income tax liability			17				3,184				3,571
Taxes payable			18				205				215
Salaries and social security			19				3,562				3,860
Lease liabilities			20				25,689				24,172
Loans			21				630,995				527,575
Other liabilities			22				931				2,961
Accounts payable			23				1,496				710
Total noncurrent liabilities							1,105,071				869,161
Current Liabilities
Provisions			16				8,617				6,133
Contract liabilities			24				17,425				6,824
Income tax liability			17				1,632				740
Taxes payable			18				18,871				15,764
Salaries and social security			19				19,655				14,934
Lease liabilities			20				22,597				22,098
Loans			21				107,734				150,731
Other liabilities			22				5,139				9,062
Accounts payable			23				181,338				144,383
Total current liabilities							383,008				370,669
TOTAL LIABILITIES							1,488,079				1,239,830
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY							2,273,351				1,923,225

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

PABLO GERARDO GONZÁLEZ

President                    

4

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE-MONTH AND THREE-MONTH PERIOD ENDED SEPTEMBER 30, 2021 AND 2020 (UNAUDITED)
(Amounts expressed in millions of Pesos, except per share information, expressed in Pesos)

 

						For the nine-month period ended September 30,								For the three-month period ended September 30,
		Notes				2021				2020				2021				2020
Net income
Revenues			24				904,321				481,713				353,558				173,485
Costs			25				(722,825	)			(455,089	)			(275,354	)			(162,353	)
Gross profit / (loss)							181,496				26,624				78,204				11,132
Selling expenses			26				(73,335	)			(53,402	)			(27,369	)			(16,358	)
Administrative expenses			26				(31,559	)			(23,276	)			(11,522	)			(9,144	)
Exploration expenses			26				(1,926	)			(5,074	)			(963	)			(4,218	)
Impairment of property, plant and equipment and intangible assets			9				—				(58,834	)			—				(1,405	)
Other net operating results			27				2,955				11,827				3,286				(3,496	)
Operating profit / (loss)							77,631				(102,135	)			41,636				(23,489	)
Income from equity interests in associates and joint ventures			11				10,913				8,250				4,358				4,530
Financial income			28				57,035				73,874				15,374				22,251
Financial loss			28				(97,633	)			(101,200	)			(29,862	)			(33,386	)
Other financial results			28				17,482				14,467				6,535				3,685
Net financial results			28				(23,116	)			(12,859	)			(7,953	)			(7,450	)
.
Net profit / (loss) before income tax							65,428				(106,744	)			38,041				(26,409	)
Income tax			17				(90,966	)			(7,285	)			(15,070	)			(8,923	)
Net (loss) / profit for the period							(25,538	)			(114,029	)			22,971				(35,332	)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Translation differences from subsidiaries, associates and joint ventures							(5,762	)			(6,279	)			(1,251	)			(2,189	)
Result from net monetary position in subsidiaries, associates and joint ventures (1)							14,452				6,242				4,694				2,480
Items that may not be reclassified subsequently to profit or loss:
Translation differences from YPF							118,653				145,234				23,338				45,888
Other comprehensive income for the period							127,343				145,197				26,781				46,179
.
Total comprehensive income for the period							101,805				31,168				49,752				10,847
Net (loss) / income for the period attributable to:
Shareholders of the parent company							(24,583	)			(113,884	)			22,500				(35,466	)
Non-controlling interest							(955	)			(145	)			471				134
Other comprehensive income for the period attributable to:
Shareholders of the parent company							125,081				143,962				26,084				45,685
Non-controlling interest							2,262				1,235				697				494
Total comprehensive income for the period attributable to:
Shareholders of the parent company							100,498				30,078				48,584				10,219
Non-controlling interest							1,307				1,090				1,168				628
Earnings per share attributable to shareholders of the parent company:
Basic and diluted			31				(62.60	)			(290.13	)			57.33				(90.29	)

 

(1)	Result associated to subsidiaries, associates and joint ventures with the Peso as functional currency. See accounting policy in Note 2.b.1 to the annual consolidated financial statements.

Accompanying notes are an integral part of these condensed interim consolidated financial statements

PABLO GERARDO GONZÁLEZ

President                    

5

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2021 AND 2020 (UNAUDITED)
(Amounts expressed in millions of Pesos)

 

		For the nine-month period ended September 30, 2021
		Shareholders’ contributions
		Subscribed capital				Adjustment to contributions				Treasury shares				Adjustment to treasury shares				Share-based benefit plans				Acquisition cost of treasury shares				Share trading premium				Issuance premiums				Total
Balance at the beginning of the fiscal year			3,926				6,088				7				13				(144	)			502				(647	)			640				10,385
Accrual of share-based benefit plans (3)			—				—				—				—				292				—				—				—				292
Settlement of share-based benefit plans (2)			5				7				(5	)			(7	)			343				(995	)			432				—				(220	)
As decided by the Shareholders´ Meeting on April 30, 2021 (4)			—				—				—				—				—				—				—				—				—
Other comprehensive income			—				—				—				—				—				—				—				—				—
Net loss			—				—				—				—				—				—				—				—				—
Balance at the end of the period			3,931				6,095				2				6				491				(493	)			(215	)			640				10,457
		Reserves																								Equity attributable to
		Legal				Future dividends				Investments				Purchase of treasury shares				Other comprehensive income				Retained earnings				Shareholders of the parent company				Non-controlling interest				Total shareholders’ equity
Balance at the beginning of the fiscal year			2,007				3,700				8,934				550				721,303				(69,649	)			677,230				6,165				683,395
Accrual of share-based benefit plans (3)			—				—				—				—				—				—				292				—				292
Settlement of share-based benefit plans (2)			—				—				—				—				—				—				(220	)			—				(220	)
As decided by the Shareholders´ Meeting on April 30, 2021 (4)			—				(3,700	)			(8,934	)			(550	)			—				13,184				—				—				—
Other comprehensive income			—				—				—				—				125,081				—				125,081				2,262				127,343
Net loss			—				—				—				—				—				(24,583	)			(24,583	)			(955	)			(25,538	)
Balance at the end of the period			2,007				—				—				—				846,384	(1)			(81,048	)			777,800				7,472				785,272

 

(1)

Includes 852,145 corresponding to the effect of the translation of the financial statements of YPF and, (44,454) corresponding to the effect of the translation of the financial statements of investments in subsidiaries, associates and joint ventures with functional currencies other than the U.S. dollar and 38,693 corresponding to the recognition of the result for the net monetary position of subsidiaries, associates and joint ventures with the Peso as functional currency, as detailed in Note 2.b.1. to the annual consolidated financial statements.

(2)	Net of employees’ income tax withholdings related to the share-based benefit plans.

(3)	See Note 37.

(4)	See Note 30.

PABLO GERARDO GONZÁLEZ

President

6

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2021 AND 2020 (UNAUDITED) (Cont.)
(Amounts expressed in millions of Pesos)

 

		For the nine-month period ended September 30, 2020
		Shareholders’ contributions
		Subscribed capital				Adjustment to contributions				Treasury shares				Adjustment to treasury shares				Share-based benefit plans				Acquisition cost of treasury shares				Share trading premium				Issuance premiums				Total
Balance at the beginning of the fiscal year			3,924				6,085				9				16				117				177				(396	)			640				10,572
Accrual of share-based benefit plans (3)			—				—				—				—				368				—				—				—				368
Settlement of share-based benefit plans (2)			4				7				(4	)			(7	)			(670	)			714				(217	)			—				(173	)
As decided by the Shareholders´ Meeting on April 30, 2020 (4)			—				—				—				—				—				—				—				—				—
Other comprehensive income			—				—				—				—				—				—				—				—				—
Net loss			—				—				—				—				—				—				—				—				—
Balance at the end of the period			3,928				6,092				5				9				(185	)			891				(613	)			640				10,767
		Reserves																								Equity attributable to
		Legal				Future dividends				Investments				Purchase of treasury shares				Other comprehensive income				Retained earnings				Shareholders of the parent company				Non-controlling interest				Total shareholders’ equity
Balance at the beginning of the fiscal year			2,007				2,500				44,255				500				516,786				(34,071	)			542,549				5,550				548,099
Accrual of share-based benefit plans (3)			—				—				—				—				—				—				368				—				368
Settlement of share-based benefit plans (2)			—				—				—				—				—				—				(173	)			—				(173	)
As decided by the Shareholders´ Meeting on April 30, 2020 (4)			—				1,200				(35,321	)			50				—				34,071				—				—				—
Other comprehensive income			—				—				—				—				143,962				—				143,962				1,235				145,197
Net loss			—				—				—				—				—				(113,884	)			(113,884	)			(145	)			(114,029	)
Balance at the end of the period			2,007				3,700				8,934				550				660,748	(1)			(113,884	)			572,822				6,640				579,462

 

(1)

Includes 673,379 corresponding to the effect of the translation of the financial statements of YPF and, (35,970) corresponding to the effect of the translation of the financial statements of investments in subsidiaries, associates and joint ventures with functional currencies other than the U.S. dollar and 23,339 corresponding to the recognition of the result for the net monetary position of subsidiaries, associates and joint ventures with the Peso as functional currency, as detailed in Note 2.b.1. to the annual consolidated financial statements.

(2)	Net of employees’ income tax withholdings related to the share-based benefit plans.

(3)	See Note 37.

(4)	See Note 29 to the annual consolidated financial statements.

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

PABLO GERARDO GONZÁLEZ

President

7

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2021 AND 2020 (UNAUDITED)
(Amounts expressed in millions of Pesos)

 

		For the nine-month period ended September 30,
		2021				2020
Cash flows from operating activities
Net loss			(25,538	)			(114,029	)
Adjustments to reconcile net loss to cash flows provided by operating activities:
Income from equity interests in associates and joint ventures			(10,913	)			(8,250	)
Depreciation of property, plant and equipment			202,975				133,947
Depreciation of right-of-use assets			14,074				13,382
Amortization of intangible assets			3,485				2,409
Retirement of property, plant and equipment and intangible assets and consumption of materials			22,706				17,422
Charge on income tax			90,966				7,285
Net increase in provisions			17,978				23,694
Impairment of property, plant and equipment and intangible assets			—				58,834
Exchange differences, interest and other			25,155				8,930
Share-based benefit plans			292				368
Accrued insurance			—				(3,189	)
Result from debt exchange			(1,855	)			2,097
Result from financial instruments exchange			—				(1,330	)
Result from the assignment of areas			(1,499	)			(12,233	)
Result from sale of assets held for disposal			(5,549	)			—
Changes in assets and liabilities:
Trade receivables			(25,352	)			18,510
Other receivables			(5,912	)			9,147
Inventories			(19,551	)			(929	)
Accounts payable			5,799				(25,353	)
Taxes payables			1,275				2,042
Salaries and social security			304				5,270
Other liabilities			(6,339	)			212
Decrease in provisions included in liabilities due to payment/use			(4,127	)			(1,919	)
Contract assets			(265	)			(256	)
Contract liabilities			10,815				1,922
Dividends received			3,794				2,494
Proceeds from collection of profit loss insurance			515				3,034
Income tax payments			(387	)			(2,164	)
Net cash flows from operating activities (1) (2)			292,846				141,347
Investing activities: (3)
Acquisition of property, plant and equipment and intangible assets			(158,792	)			(81,880	)
Proceeds from sales of financial assets			30,512				30,885
Payments from purchase of financial assets			(51,287	)			(28,841	)
Interests received from financial assets			3,696				15
Proceeds from sales of interest in areas and sale of assets			3,010				13,867
Net cash flows used in investing activities			(172,861	)			(65,954	)
Financing activities: (3)
Payments of loans			(123,080	)			(129,668	)
Payments of interests			(47,674	)			(47,941	)
Proceeds from loans			76,823				102,684
Payments of leases			(20,971	)			(15,470	)
Payments of interests in relation to income tax			(47	)			(608	)
Net cash flows used in financing activities			(114,949	)			(91,003	)
Translation differences on cash and cash equivalents			1,844				9,151
Net Increase / (Decrease) in cash and cash equivalents			6,880				(6,459	)
Cash and cash equivalents at the beginning of the fiscal year			54,618				66,100
Cash and cash equivalents at the end of the period			61,498				59,641
Net Increase / (Decrease) in cash and cash equivalents			6,880				(6,459	)

 

(1)	Does not include exchange differences generated by cash and cash equivalents, which are disclosed separately in this statement.

(2)	Includes 8,654 and 8,537 for the nine-month period ended September 30, 2021 and 2020, respectively, for payment of short-term leases and of the variable charge of leases related to the underlying asset use or performance.

(3)	The main investing and financing transactions that have not affected cash and cash equivalents correspond to:

 

		For the nine-month period ended September 30,
		2021				2020
Unpaid acquisitions of property, plant and equipment and concession extension liabilities			21,380				8,489
Additions of right-of-use assets			14,225				4,245
Capitalization of depreciation of right-of-use assets			2,987				2,830
Capitalization of financial accretion for lease liabilities			850				707

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

8

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)
(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

 

1.	GENERAL INFORMATION, STRUCTURE AND ORGANIZATION OF THE BUSINESS OF THE GROUP

General information

YPF Sociedad Anónima (“YPF” or the “Company”) is a stock corporation (Sociedad Anónima) incorporated under the laws of the Argentine Republic, with a registered office at Macacha Güemes 515, in the City of Buenos Aires.

YPF and its subsidiaries (the “Group”) form the leading energy group in Argentina, which operates a fully integrated oil and gas chain with leading market positions across the domestic Upstream and Downstream segments.

Structure and organization of the economic Group

The following chart shows the organizational structure, including the main companies of the Group, as of September 30, 2021:

 

 

(1)	Held directly and indirectly.

(2)	See Note 3 to the annual consolidated financial statements.

(3)	See Note 34.h to the annual consolidated financial statements.

9

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

 

1.	GENERAL INFORMATION, STRUCTURE AND ORGANIZATION OF THE BUSINESS OF THE GROUP (Cont.)

 

Organization of the business

As of September 30, 2021, the Group carries out its operations in accordance with the following structure:

 

•

Upstream;

 

•

Gas and Power;

 

•

Downstream;

 

•

Central administration and others, which covers the remaining activities not included in the previous categories.

Activities covered by each business segment are detailed in Note 6.

Almost all operations, properties and clients are located in Argentina. However, the Group also holds participating interests in exploratory areas in Bolivia and production areas in Chile. The Group also sells lubricants and derivatives in Brazil and Chile.

 

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

2.a) Basis of preparation

The condensed interim consolidated financial statements of YPF for the nine-month period ended September 30, 2021 are presented in accordance with International Accounting Standard (“IAS”) No. 34 “Interim Financial Reporting”. These condensed interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements of the Group as of December 31, 2020 (the “annual consolidated financial statements”) presented in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

Moreover, some additional information required by the LGS 19,550 and/or CNV’s regulations have been included.

These condensed interim consolidated financial statements were approved by the Board of Directors’ meeting and authorized to be issued on November 9, 2021.

These condensed interim consolidated financial statements corresponding to the nine-month period ended on September 30, 2021 are unaudited. The Company´s Management believes they have included all necessary adjustments to reasonably present the results of each period on a basis consistent with the audited annual consolidated financial statements. Net Loss for the nine-month period ended on September 30, 2021 does not necessarily reflect the proportion of the Group’s full-year Net Loss or Profit.

2.b) Significant Accounting Policies

The most significant accounting policies are described in Note 2.b to the annual consolidated financial statements.

The accounting policies adopted in the preparation of these condensed interim consolidated financial statements are consistent with those used in the preparation of the annual consolidated financial statements, except for the valuation policy for income tax detailed in Note 17.

Functional and presentation currency

As mentioned in Note 2.b.1. to the annual consolidated financial statements, YPF has defined the U.S. dollar (“dollar”) as its functional currency. Additionally, according to CNV Resolution No. 562, YPF must present its financial statements in Argentinian Pesos (“pesos”).

10

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

 

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

 

Effects of the translation of investments in subsidiaries, associates and joint ventures with a functional currency corresponding to a hyperinflationary economy

The results and financial position of subsidiaries with the Peso as functional currency were translated into dollars by the following procedures: all amounts (i.e., assets, liabilities, stockholders’ equity items, expenditures and revenues) were translated at the exchange rate effective at the closing date of the financial statements, except for comparative amounts, which were presented as current amounts in the financial statements of the previous fiscal year (i.e., these amounts were not adjusted to reflect subsequent variations in price levels or exchange rates). Thus, the effect of the restatement of comparative amounts was recognized in other comprehensive income.

These criteria were also implemented by the Group for its investments in associates and joint ventures.

Adoption of new standards and interpretations effective as of January 1, 2021

The Group has adopted all new and revised standards and interpretations, issued by the IASB, relevant to its operations which are of mandatory and effective application as of September 30, 2021, as specified in Note 2.b.26 to the annual consolidated financial statements.

Standards and interpretations issued as from January 1, 2021 by the IASB whose implementation is not mandatory as of the closing of these condensed interim consolidated financial statements and, therefore, have not been adopted by the Group

 

•

Amendments to IAS 8 – Definition of accounting estimates

In February 2021, the IASB issued amendments to IAS 8, related to the definition of accounting estimates, effective for fiscal years beginning on or after January 1, 2023, on changes in accounting policies and estimates occurring as of such date, allowing for their early application.

The amendments include the definition of the concept of accounting estimates in order to help entities to distinguish between accounting policies and accounting estimates - as the previous definition was interrelated to the definition of accounting policy and could lead to an error - defining accounting estimates as “monetary amounts in financial statements that are subject to measurement uncertainty”.

The IASB clarifies that changes in accounting estimates are accounted for prospectively, and if such changes are based both on new information which was not available when the previous measurements were made, as well as changes affecting the variables used in such estimate, they should not be treated as the correction of an error.

The Group anticipates the implementation of such amendments will not significantly affect its financial statements.

 

•

Amendments to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies

In February 2021, the IASB issued the following amendments to IAS 1, related to material accounting policies, applicable to fiscal years beginning on or after January 1, 2023, allowing their early application:

 

•

The term significant accounting policies is replaced with material accounting policies.

 

•

Guidance and explanatory guidance are added to help entities identify the material accounting policies required to be disclosed.

 

•

Accounting policies may be material, regardless of the magnitude of the amounts involved, and therefore, the nature of such policies, as well as certain conditions, such as whether they are related to the full understanding of another accounting policy deemed material, should be analyzed.

 

•

If the entity discloses accounting policies deemed immaterial, such disclosure should not lead to confusion.

The Group anticipates the implementation of these amendments will not significantly affect its financial statements.

11

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

 

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

 

•

Amendments to IFRS 16 – Reductions in lease payments related to COVID-19 as from June 2021

In March, 2021, the IASB issued amendments applicable to fiscal periods beginning on or after 1 April, 2021, allowing their early implementation.

A lessee may decide to account for changes in lease payments as a consequence of COVID-19 pandemic arising from rent reductions in the same way it would account for the change applying IFRS 16, as if such change were not a lease modification.

This option exclusively applies to rent reductions only as a direct consequence of the COVID-19 pandemic and provided they meet the following conditions:

(i) any change in lease payments results in revised consideration for the lease that is substantially the same, or lower than, the consideration for the lease immediately preceding the change;

(ii) any reduction in lease payments affects only payments originally due until June 30, 2022 (for example, a rent reduction would meet this condition if it results in reduced lease payments until June 30, 2022 and increased lease payments beyond June 30, 2022); and

(iii) there is no significant change in the terms and conditions of the lease.

The Group expects the implementation of these amendments will have no significant impact on its financial statements.

 

•

Amendments to IAS 12 – Deferred tax related to assets and liabilities arising from a single transaction

On May 2021, the IASB issued amendments to IAS 12 related to the initial recognition of the deferred tax in transactions in which an asset and a liability are simultaneously recognized, which are applicable to fiscal years beginning on or after January 1, 2023.

The amendments introduce an exception to the initial recognition exemption, with specifications on how entities should account for the income tax and the deferred tax in transactions in which the initial recognition of assets and liabilities give rise, at the same time, to equal amounts of taxable and deductible temporary differences. Therefore, in transactions where an asset and a liability are recognized, for example in relation to leases and abandonment or decommissioning obligations, the deferred tax generated by such transactions should be recognized.

The Group is analyzing possible effects of the implementation of these amendments could have on its financial statements.

2.c) Accounting Estimates and Judgments

The preparation of financial statements at a certain date requires Management to make estimates and assessments affecting the amount of assets and liabilities recorded, contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual future results might differ from the estimates and assessments made as of the date of preparation of these condensed interim consolidated financial statements.

In preparing these condensed interim consolidated financial statements, significant estimates and judgments were made by Management in applying the Group’s accounting policies and the main sources of uncertainty were consistent with those applied by the Group in the preparation of the annual consolidated financial statements, which are disclosed in Notes 2.b and 2.c to the annual consolidated financial statements.

12

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

 

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

 

Considerations concerning COVID-19 and the current economic environment

Since the beginning of 2020, the world experienced the outbreak of a virus that causes potentially deadly respiratory infections (COVID-19), which has adversely affected demand for refined products in geographical areas where the most relevant measures were implemented to control the virus’ spread, which caused a lower global demand for refined products and an abnormally high volatility in this commodity.

Since the third quarter of 2020, the country resumed partially its social and economic activities, and therefore, the demand for fuels, which had significantly declined at the beginning of the pandemic, increased. For the month of September 2021, based on the recovery of activity, the sales volume of gasoline and diesel are at similar levels to those prior to the pandemic.

During the reporting period, restrictions on mobility and certain activities continued to be relaxed, as the vaccination plan against COVID-19 on the population progressed and infections were reduced. Nonetheless, due to the uncertainties inherent to the scale and duration of the COVID-19 pandemic and the measures implemented to contain its spread, it is not reasonably possible to estimate the final impact this pandemic will have on the world’s economy and its financial markets, on Argentina’s economy, and consequently, on the Group’s comprehensive results, cash flows and financial position of the Group, or its effect on access to debt markets, the contractual position with certain counterparties (including as a result of events of force majeure or other similar events under the Group’s contracts), among others.

As mentioned above, the valuation of certain assets and liabilities is subject to a higher level of uncertainty, which is why the current economic context was considered in the evaluation of estimates and accounting judgments described in Note 2.c to the annual consolidated financial statements.

The Management of the Company has contemplated the impact of COVID-19 and the current economic environment when preparing these consolidated financial statements and continues to consider it appropriate to adopt the going-concern basis of accounting for their presentation and valuation.

2.d) Comparative information

Amounts and other information corresponding to the year ended on December 31, 2020 and to the nine-month period ended on September 30, 2020 are an integral part of these condensed interim consolidated financial statements and are intended to be read only in relation to these financial statements. Likewise, certain additional disclosures of non-significant information have been made.

 

3.	SEASONALITY OF OPERATIONS

Historically, the Group’s results have been subject to seasonal fluctuations throughout the year, particularly as a result of the increase in natural gas sales during the winter driven by the increased demand in the residential segment. Therefore, the Group is subject to seasonal fluctuations in its sales volumes and sales prices, with higher natural gas sales in winter at a higher price.

13

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

 

4.	ACQUISITIONS AND DISPOSITIONS

 

•

Assignment of CAN 100 exploration permit (offshore)

As mentioned in Note 3 to the annual consolidated financial statements, in January 2021, YPF and Shell Argentina S.A. (“Shell Argentina”) and Equinor and Shell Argentina, executed the agreements under which YPF and Equinor transferred to Shell Argentina a 15% interest in CAN 100 area, respectively, YPF maintaining a 35% interest in each area. The effectiveness of such agreements was subject to certain precedent conditions, including the approval of the assignments by the SE, which were authorized by the SE on April 23, 2021. This assignment required Shell Argentina’s payment of the outstanding price amounting to US$ 5 million, which was received by YPF.

 

5.	FINANCIAL RISK MANAGEMENT

The Group’s activities expose it to a variety of financial risks: market risk (including foreign currency risk, interest rate risk, and price risks), credit risk and liquidity risk. Within the Group, risk management functions are conducted in relation to financial risks associated to financial instruments to which the Group is exposed during a certain period or as of a specific date.

During the nine-month period ended September 30, 2021, there were no significant changes in the administration or risk management policies implemented by the Group as described in Note 4 to the annual consolidated financial statements.

 

•

Liquidity risk management

Most of the Group’s loans contain market-standard covenants for contracts of this nature, which include financial covenants in respect of the Group’s leverage ratio and debt service coverage ratio, and events of defaults triggered by materially adverse judgements, among others. See Notes 15, 31 and 32 to the annual consolidated financial statements. The Group monitors compliance with covenants on a quaterly basis.

As of September 30, 2021, the Group is in compliace with its covenants.

Additionally, it should be noted that, under the terms and conditions of the loans that our subsidiary Metrogas has taken, the debt and interest service coverage ratio would not have been complied with, which could have accelerated the maturities of these financial liabilities. However, the financial creditors formally accepted to waive Metrogas from complying with the contractual obligation related to such financial ratios, as of September 30, 2021.

Furthermore, in terms of liquidity, it should be noted that YPF has a committed credit line as a new source of additional financing.

14

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

 

6.	SEGMENT INFORMATION

The different segments in which the Group is organized take into consideration the different activities from which the Group obtains income and incurs expenses. The aforementioned organizational structure is based on the way in which the highest decision-making authority analyzes the main financial and operating magnitudes for making decisions about resource allocation and performance assessment also considering the Group’s business strategy.

 

•

Upstream

The Upstream segment carries out all activities relating to the exploration, development and production of oil and natural gas.

Revenue is generated from (i) the sale of produced crude oil to the Downstream segment and, marginally, from its sale to third parties; (ii) the sale of produced gas to the Gas and Power segment.

 

•

Gas and Power

The Gas and Power segment generates revenue from the development of activities relating to: (i) the natural gas transport and commercialization and LNG transport and commercialization (until the six-month period ended as of June 30, 2020) to third parties and the Downstream segment, (ii) the commercial and technical operation of the LNG regasification terminal in Escobar, by hiring a regasification vessel, and (iii) natural gas distribution.

In addition to the proceeds derived from the sale of natural gas to third parties and the intersegment, which is then recognized as a “purchase” to the Upstream segment, and including stimulus plans for natural gas production in force (see Note 34.g to the annual consolidated financial statements), Gas and Power segment accrues a fee in its favor with the Upstream segment to carry out such commercialization.

 

•

Downstream

The Downstream segment develops activities relating to: (i) crude oil refining and petrochemical production, (ii) commercialization of refined and petrochemical products obtained from such processes, (iii) logistics related to the transportation of crude oil to refineries and the transportation and distribution of refined and petrochemical products to be marketed in the different sales channels.

It obtains its income from the marketing mentioned in item (ii) above, which is developed through the Retail, Industry, Agro, LPG, Chemicals and Lubricants and Specialties businesses.

It incurs in all expenses relating to the aforementioned activities, including the purchase of crude oil from the Upstream segment and third parties and the natural gas to be consumed in the refinery and petrochemical industrial complexes from the Gas and Power segment.

 

•

Central Administration and Others

It covers other activities, not falling into the aforementioned categories, nor do they constitute reportable business segments, mainly including corporate administrative expenses and assets and construction activities.

Sales between business segments were made at internal transfer prices established by the Group, which generally seek to approximate market prices.

Operating profit and assets for each segment have been determined after consolidation adjustments.

15

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

 

YPF SOCIEDAD ANONIMA NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

 

6.	SEGMENT INFORMATION (Cont.)

 

		Upstream				Gas and Power				Downstream				Central Administration and Others				Consolidation Adjustments (1)				Total
For the nine-month period ended September 30, 2021
Revenues from sales			4,920				148,937				737,186				21,128				(7,850	)			904,321
Revenues from intersegment sales			391,431				11,877				3,728				31,906				(438,942	)			—
Revenues			396,351				160,814				740,914				53,034				(446,792	)			904,321
Operating profit / (loss)			22,068				927				72,735				(10,693	)			(7,406	)			77,631
Income from equity interests in associates and joint ventures			—				6,767				4,146				—				—				10,913
Depreciation of property, plant and equipment			163,588	(2)			1,996				31,716				5,675				—				202,975
Impairment of property, plant and equipment			—				—				—				—				—				—
Acquisition of property, plant and equipment			137,072				1,391				23,110				3,745				—				165,318
Assets			1,017,552				264,145				814,878				184,283				(7,507	)			2,273,351
For the nine-month period ended September 30, 2020
Revenues from sales			2,439				93,193				381,454				9,458				(4,831	)			481,713
Revenues from intersegment sales			211,495				6,275				2,469				18,423				(238,662	)			—
Revenues			213,934				99,468				383,923				27,881				(243,493	)			481,713
Operating profit / (loss)			(86,188	)			(8,389	)			(3,915	)			(15,685	)			12,042				(102,135	)
Income from equity interests in associates and joint ventures			—				5,315				2,935				—				—				8,250
Depreciation of property, plant and equipment			102,025	(2)			1,327				25,168				5,427				—				133,947
Impairment of property, plant and equipment and intangible assets			58,695				62				—				77				—				58,834
Acquisition of property, plant and equipment			48,062				3,862				12,935				3,534				—				68,393
As of December 31, 2020
Assets			914,257				209,225				646,589				152,816				338				1,923,225

 

(1)	Corresponds to the elimination among segments of the YPF Group.

(2)	Includes depreciation of charges for impairment of property, plant and equipment.