Region:
Argentina
Category:
Economy

YPF: hydrocarbon production grew 10.7%

Region:
Argentina
Category:
Economy
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In the first quarter this year, total hydrocarbon production of YPF increased 10.7% over the same period in 2013, an increase of the net production of oil and gas by 6.8% and 18.5% respectively

The petroleum presiding Miguel Galuccio reported that in the first quarter of the year invested $ 9,722 million, representing an increase of 127% from $ 4,282 million in the third quarter of 2013. This figure does not include the expenditures made for the acquisition of Apache assets and 38.5% of Puesto Hernández to Petrobras Argentina SA totaling $ 6,524 million. The effort of productive activity focused on recovering the yields of the main areas through the production efficiency of conventional fields (+5.9% +11.2% in oil and gas). In unconventional, progress in the development of the Vaca Muerta formation with the drilling of over 50 wells in the first quarter and an average quarterly production of 18,600 barrels per day.

This level of production and investment is also reflected in the 69 rig count YPF are there today, with a growth of 176% over the same quarter of 2012. Moreover, these results are correlated to higher payments of royalties arising growth in volumes produced, in the first quarter of 2014 reached $ 1,904 million. Thus, its activity, YPF improved tax revenues of the provinces only for the royalties by 58% over the same quarter last year.

Financial results for the first quarter: In terms of financial results, operating income reached $ 4,384 million, representing an increase of 73.1%; while net profit was $ 2,881 million, 129% higher. In addition, EBITDA (earnings before interest, taxes, depreciation and amortization) was $ 8,360 million, up 76.3% from the same period of 2013. Revenues for the first quarter of 2014 totaled $ 30,664 million (+64, 6%), and cash flow reached $ 6,715 million (+78,1%). These results were approved by the Board of the company in a meeting today and submitted to the Stock Buenos Aires and New York.

Upstream results: In the first quarter, the total production of YPF increased 10.7% from the same quarter last year, up 6.8% on 18.5% oil and natural gas. Upstream investments totaled $ 8,603 million, 135.4% higher than the same period last year, and impact positively on operating income in both conventional and unconventional. Investments in the Neuquen basin, especially in Loma La Lata, Sierra Negra and Catriel Chihuido are highlighted in the production of conventional oil, and continued investment in the areas of Behr and Clover Springs in the San Jorge Gulf basin, in the province of Chubut.

Also important activities in Santa Cruz, in the areas Los Perales, Cañadón Yatel, Canyon of the Escondida and Las Heras, and progress in the activity in Mendoza blocks north. In turn, during the first quarter of 2014, in the development of tight gas formation Lajas were drilled and 10 wells hooked and average natural gas production was 2.8 million cubic meters per day. In unconventional YPF drilled over 50 wells. The company has 19 drilling rigs and workover 8 assets with an average quarterly production of 18,600 barrels per day. The exploration is one of the cornerstones of Upstream activity. In the first quarter 10 exploration wells and 3 workovers of the investments in the Neuquen, Cuyo and San Jorge Gulf basin is completed.

Downstream results: The company stressed that continues to consolidate its position in the market for fuel sales. Net sales for the first quarter grew 61.9% on-year variation, both by higher volumes shipped and better prices. In particular, it highlights the growth of gasoline sales, up 6 percent. Meanwhile, investments increased 67.6% and reached $ 999 million.

traslation: Belén Zapata