Argentina’s oil company YPF reported 1Q2021 losses of $25mn despite higher revenues of $2.64bn, up 16.6% QoQ, but below the $2.8bn forecast. In 2020, YPF reported losses of $1.098bn. YPF said that revenues improved due to a general increase in volumes and prices of local sales and exports. Local demand for naphtha and diesel remains 6% below 1Q2019, they said. YPF reported that revenues fell 5.2% YoY in dollars, explained by a reduction in both crude oil and natural gas production, which was partially offset by higher prices on both products. Crude oil revenues decreased 5.7% YoY as production contracted 7.8%, despite the 3.1% recovery in prices in dollar terms. Natural gas revenues decreased 10.3% as production fell 16.8%, which was partially offset by a 4.5% increase in prices due to the new GasAR Plan. Unconventional crude production grew 20%, based on results obtained by the Loma Campana, La Amarga Chica and Bandurria Sur fields.
YPF also reported it was able to fully resume activity in the upstream business, which reached a record of 34 horizontal wells completed in a quarter within unconventional activity (gas and oil), out of a total of 48 wells in all its operating fields. Operating costs decreased by 21% YoY in all segments. YPF ended the quarter with positive free cash flow (FCF), reducing net debt levels by $324mn, $888mn below Q1 2020 and reaching its lowest level since 2015.