YPF SA (ADR) (NYSE:YPF) Doubles Q1 Profit


Dallas, Texas 05/12/2014 (FINANCIALSTRENDS) –YPF SA (YPF), is Argentina’s largest company, and said its Q1 profit had more than doubled on the higher oil & gas production. The net income rose to 2.88Bpesos ($360M s, or 7.34 pesos/  share, in the reported quarter from 1.26B pesos, or 3.2 pesos/ year earlier, said the company in a statement to the regulator in Argentina.  The company topped the average analysts’ projections 5.68 pesos/ share.

 New strategic plan

 The President Cristina Fernandez de Kirchner government also gave Repsol SA-bonds with the market value of $4.67B for the YPF-nationalization. Since expropriation, YPF has secured a venture with the Chevron Corp. to now jointly develop part of the Vaca Muerta, which is a  Connecticut-sized formation located in southern Argentina and is considered the 2nd largest shale-gas deposit in the world & the 4th -largest shale-oil field that  helped it boost crude &  gas production.

 Daniel Gonzalezs said that they have hired consultants to help them produce the new strategic plan that will be used in the future. YPF SA (ADR) (NYSE:YPF)’s chief financial officer, Gonzalez, told investors on an earnings-conference call that he cannot provide an estimate of actually when they will come up with the new plan as they are just starting with the process. Gonzalez had declined to provide the well costs for this shale area and said that it will be also provided in the future.

 The Dispute

 The company & the Neuquen province have now agreed to extend up until 2048 a concession that represents 3% of the Vaca Muerta where it is jointly-developing the shale with Chevron. YPF will also need to re-negotiate the other Vaca Muerta concessions with the owner-Neuquén province. There currently is a dispute between YPF SA (ADR) (NYSE:YPF)’s & the provinces, especially with Neuquen, where the Vaca Muerta is located, and this is now affecting the company’s shares.

rovided in the future.

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