YPF posts first-half 2023 profit of $721 million despite difficult economy

Aug. 21, 2023
Despite declining revenues and high inflation in Argentina, state-owned oil company YPF had robust profits amid expansion.

Argentine state company YPF SA recorded first-half 2023 net profit of $721 million, down 33.1% compared with the same period in 2022, the result of a combination of Argentine inflation and the partial freezing of fuel prices.

Despite the low gasoline prices in Argentina—among the lowest in Latin America—domestic fuel sales still made up 57% of the company's revenues. However, both YPF’s earnings before interest, taxes, and depreciation (EBITDA) and overall results decreased compared with the previous year, with the company attributing the trend to "a slight fall in local fuel prices in dollars and higher pressures on costs" related to inflation, wages, and currency devaluation.

In March, YPF said it aims to double its oil production and increase gas production by 30% over the next 5 years. The company invested $2.65 billion in first-half 2023, a 60% increase compared with the year-ago period. In its second-quarter earnings report, the company reaffirmed its full year investment plan, which is expected to exceed $5 billion and focus primarily on the Vaca Muerta shale formation in Neuquén basin.

Argentina resumed crude oil exports to Chile after 18 years through a contract signed in May with its National Petroleum Co. (ENAP) and increased its oil production year-over-year.

YPF's total hydrocarbon production in second-quarter 2023 was 513,000 boe/d. Oil production averaged 241,000 b/d, a year-on-year increase of 7%, while gas extraction remained stable at 36.5 million cu m/day.