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YPF SA (YPF) Q4 2024 Earnings Call Highlights: Record Shale Oil Production and Strategic Debt ...

In This Article:

  • Revenue: $19.3 billion in 2024, marking an 11% annual increase.

  • Adjusted EBITDA: $4.7 billion in 2024, reflecting a 15% annual increase.

  • Net Income: $2.4 billion gain in 2024, compared to a loss of $1.3 billion in 2023.

  • Net Debt: Increased to $7.4 billion, a 9% increase from 2023.

  • Net Leverage Ratio: Reduced to 1.6 times.

  • Free Cash Flow: Negative $760 million in 2024.

  • Oil Export Revenues: Nearly tripled to $1 billion in 2024.

  • Crude Oil Production: 257,000 barrels per day, a 6% annual growth.

  • Shale Oil Production: 122,000 barrels per day in 2024, a 26% increase from 2023.

  • Refining and Marketing EBITDA Margin: $13.7 per barrel, a 24% improvement compared to 2023.

  • Investments: $5 billion in 2024, a 5% reduction compared to 2023.

  • Lifting Costs: $15.6 per barrel of oil equivalent in 2024.

  • Natural Gas Production: 37.4 million cubic meters per day, a 3% increase in 2024.

Release Date: March 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • YPF SA (NYSE:YPF) achieved a 26% increase in shale oil production in 2024, reaching 122,000 barrels per day, aligning with their annual target.

  • The company successfully issued a nine-year unsecured international bond for $1.1 billion at a yield of 8.5%, improving its debt profile.

  • YPF SA (NYSE:YPF) reduced the gap to import parity in fuel prices from 20% in 2023 to just 2% in 2024, aligning local prices with international standards.

  • The company reported a 15% annual increase in adjusted EBITDA, reaching $4.7 billion, driven by higher revenues and hydrocarbon production.

  • YPF SA (NYSE:YPF) achieved a record high in refinery processing levels, exceeding 300,000 barrels per day in 2024, with a utilization rate of 92%.

Negative Points

  • YPF SA (NYSE:YPF) reported a negative free cash flow of $760 million in 2024, impacted by mature fields and severe weather in Patagonia.

  • The company faced a $300 million negative EBITDA from mature fields and an $85 million impact from Patagonia weather conditions.

  • Fourth-quarter revenues were down 10% sequentially, primarily due to lower seasonal gas sales and international reference prices.

  • YPF SA (NYSE:YPF) experienced a net loss of $284 million in the fourth quarter, attributed to lower EBITDA, impairment, and one-off costs related to mature fields.

  • Fuel sales volumes decreased by 7% in 2024, mainly due to exceptionally high demand in 2023 driven by low prices.

Q & A Highlights

Q: How confident is YPF in achieving the 180,000 barrels per day target by Q4 2026 for Vaca Muerta shale expansion? A: Horacio Marin, CEO, expressed confidence in meeting the target by Q4 2026, citing the efficiency and production capabilities of YPF, as well as the support from partners and low tariffs.