Argentina's YPF Q2 profit slumps nearly 90% on lower fuel prices
Argentina's state-controlled energy company YPF reported a nearly 90% drop in Q2 net profit to $58 million, impacted by lower fuel prices. Revenues fell 6% to $4.64 billion, with adjusted EBITDA at $1.12 billion, down 7% year-on-year. Brent crude prices averaged $67 per barrel, contributing to a 10% decline in upstream sales. The results come amid a legal battle over YPF's ownership following a U.S. court ruling related to a $16.1 billion judgment from a 2012 expropriation.
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By Natalia Siniawski
Aug 7 (Reuters) - Argentina’s state-controlled energy company YPF (YPFDm.BA) on Thursday reported a nearly 90% plunge in second-quarter net profit to $58 million, dragged down by lower fuel prices.
Revenues dropped 6% from a year earlier to $4.64 billion, as softer prices for refined products and lower seasonal demand for naphtha weighed on sales.
YPF’s performance is a critical indicator for Argentina’s economy, which is relying on the Vaca Muerta formation in its push to become a net energy exporter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) – a key measure of profitability – came in at $1.12 billion for the April-June period, down 7% from a year earlier.
Analysts polled by LSEG had on average expected an adjusted EBITDA of $1.17 billion from revenues of $4.49 billion.
Benchmark Brent crude prices averaged $67 per barrel in the second quarter, down from $75 in the previous three months and $85 a year earlier.
The weaker Brent prices, alongside reduced conventional output after YPF sold off mature fields, dragged down upstream sales by some 10%.
Downstream sales, which declined 6%, were also hit by lower fuel prices, though strong diesel and agricultural demand helped to partially offset the drop.
The results come as Argentina faces a major legal battle after a U.S. judge ordered the government to hand over its 51% stake in YPF to partially satisfy a $16.1 billion judgment tied to a 2012 expropriation of a stake from Spain’s Repsol (REP.MC) .
