SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Argentina’s state-owned oil producer YPF reported Q4 net profits of $539mn and a loss of ~$1.1bn for the full year. Revenues decreased by 32% YoY on the back of a decrease in fuels’ sales during the year. Demand for refined products dropped, driving a volume decrease of 30% in gasoline and 11% in diesel. Capex fell 56% in 2020 to $1.55bn while it stood at $538mn in Q4, up 109% QoQ and down 45% YoY. The company managed to reduce net debt by $488mn in the year to $7.08bn with cash and short term investments at $994mn. Total debt was at $8.07bn, down over 8% YoY. Crude oil realization price averaged $40/bbl, 24% down from the previous year. During the earnings call, they noted that during the fourth quarter, they recorded a reversal of an impairment charge of over $820mn, leading to positive operating income with the cumulative figure for the year at a loss of $911mn. “2020 was marked by the impact of the unexpected COVID-19 outbreak and the drop in oil prices,” the firm said.

Recently S&P downgraded and then later upgraded YPF in a few days to CCC+ based on the completion of the debt exchange of most of its foreign currency debt. YPF’s dollar bonds were lower – its 8.5% 2029s were down 1.8 to 63.9 and its 8.75% 2024s were lower by 1.8 to 79.9.

For the full story, click here

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