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YPA S.A. REPORTS SECOND QUARTER 1993 RESULTS

                       (In millions of Pesos)(A)
                                          Second Quarter    First Half
                                            1992   1992    1993    1992
    Net income before special/
     unusual items                           152     85     222     149
    Special items relating to transformation  18     (0)    (11)     (0)
    Unusual & extraordinary gains/(losses)   (14)   (29)     24     (19)
    Total net income                         156     56     235     130
    Net income per share - pesos/share      0.44   0.16    0.66    0.37
        (A) -- one peso equals one U.S. dollar
    BUENOS AIRES, Argentina, Aug. 9 /PRNewswire/ -- PF Sociedad Anonima (NYSE: YPF) today reported second quarter 1993 earnings of 156 million pesos, up 178 percent from the 56 million pesos earned in the second quarter 1992.  Second quarter 1993 results included 18 million pesos of special non-recurring credits related to the company's transformation prior to privatization, and 14 million pesos of unusual and extraordinary expenses associated with the initial sale by the Government of Argentina of YPF shares to the public (see attached tables for details).  Excluding these special and unusual/extraordinary items associated with the privatization, second quarter earnings were $152 million, up 79 percent versus 1992.
    Second quarter 1993 net income also includes about 50 million pesos of expenses which the company expects to incur in each of the third and fourth quarters of 1993, but which are expected to be discontinued in 1994, relating to losses on the TOTAL contract, retiree health care costs and retraining expenses for dismissed workers.  Because of their recurring nature in 1993, these 50 million pesos of expenses are not reported as special or unusual and extraordinary items.
    For the first six months of 1993, total net income rose 80 percent to 235 million pesos compared to 130 million pesos in the first half of 1992.
    Commenting on the second quarter results, YPF President and Chief Executive Officer Jose Estenssoro said:
    "Despite lower crude prices, YPF earnings benefited from cost reductions and efficiency improvements.  Refining and Marketing showed profits compared with the sizable losses sustained in 1992 due to higher margins, lower headcount, and improved refining efficiency.  In Exploration and Production, lower lifting costs, lower exploration and depreciation expenses partly offset the decline in crude prices and production volumes.
    "Corporate expenses also decreased as a result of headcount reductions and other cost cutting measures. However, the major decline in the Corporate segment represents a direct allocation of administrative expenses to the  business segments to which such expenses correspond, a change made possible because of improvements in our management information systems.
    "We are pleased that in June, YPF signed an agreement with TOTAL Austral S.A. and its partners, providing the principal terms for converting an oil and gas service contract into a concession and restructuring a burdensome long-term gas purchase contract. In July, the board of directors of YPF and the boards of directors of the parties involved in the consortium ratified this preliminary agreement.  Losses under the TOTAL contract were 10 million pesos in the second quarter 1993.
    "Looking to the second half, improvements in transportation from the Neuquen basin allowed us to increase volumes from 289,000 barrels per day in April 1993 to 313 thousand barrels per day in June 1993. Continuing this program in the third quarter, together with intensifying our new drilling campaign in the Golfo San Jorge Basin, should provide higher production volumes in the second half of 1993. Furthermore, lifting costs should continue to decline.  In Refining and Marketing, we expect petroleum product volumes to remain at current levels and further gains in efficiency."
    SECOND QUARTER 1993 VERSUS SECOND QUARTER 1992
    Exploration And Production  (Upstream)
    Exploration and Production earnings in the second quarter 1993 decreased to 198 million pesos from 216 million pesos in second quarter 1992 primarily due to lower crude prices partly offset by lower production and exploration expenses.
    Compared to the second quarter 1992, crude production declined to 304,000 barrels per day from 308 thousand barrels per day while natural gas production fell  to 1299 million cubic feet per day from 1,321 million cubic feet per day last year . Production declined solely due to the sale of production properties that took place as part of the transformation of YPF prior to the company's privatization.  On a constant-properties basis, excluding properties sold, production in the second quarter 1993 increased by 10,000 barrels per day and by 55 million cubic feet per day from the second quarter 1992.
    Refining And Marketing  (Downstream)
    Refining and Marketing second quarter 1993 earnings improved to 14 million pesos versus a loss of 34 million pesos last year.  Results improved from refinery cost reduction programs, lower crude costs, and higher margins. YPF increased its margins versus levels in the first quarter 1993.
    In addition, the sale of YPF interests in the San Lorenzo, Campo Duran and Dock Sud refineries in the fourth quarter 1992 and first quarter 1993 removed marginal capacity from the system and resulted in lower depreciation charges.  These positive factors were partly offset by the allocation to Refining and Marketing of about 16 million pesos of expenses previously charged to Corporate.
    Petroleum product sales declined, reflecting the loss of refining throughput from the sale of the three refineries.
    Corporate
    Administrative expenses declined to 2 million pesos during the second quarter 1993 from 61 million pesos in the same period 1992, mainly due to a change in expense allocation policy. Certain administrative expenses formerly charged to Corporate are now being charged to Exploration and Production, Refining and Marketing, and Other Expenses.
    This change has been made retroactive to Jan. 1, 1993. As a result in the second quarter 1993, 48 million pesos of expense have been reclassified from Corporate and Other and allocated to other segments. Of the 48 million pesos, 24 million pesos correspond to second quarter 1993 charges and 24 million pesos are retroactive adjustments to correct the first quarter 1993 to the same
basis.   (The 48 million pesos have been charged in the second quarter as follows: Exploration and Production - 9 million pesos; Refining and Marketing - 16 million pesos; Other Expenses - 23 million pesos).
    Other Expenses
    Second quarter 1993 Other Expenses of 45 million pesos, which include 23 million pesos charged from Corporate, are mainly categorized as: 1) 17 million pesos of employee and retiree health care costs,  2) 12 million pesos of re-training expenses for dismissed employees, and 3) an 11 million peso increase in the provision for bad debt expense. These costs are expected to be discontinued in 1994.  Other Expenses in the second quarter 1993 increased primarily due to the absence of a positive reserve adjustment in the second quarter 1992 and the unusually low level of health care plan costs last year.  Other Expenses also increased from the allocation of expenses previously charged to corporate.
    Financial And Holding Income/(Losses)
    Financial and holding losses declined 35 million pesos to 16 million pesos mainly due to 21 million pesos in holding gains on the company's portfolio of Republic of Argentina debt consolidation bonds (BOCONES), which appreciated in the second quarter 1993.
    YPF is currently negotiating to reduce its yen exposure through either hedging or by converting the yen-denominated debt into dollars.
    Income And Assets Tax
    During the second quarter 1993, YPF reversed its first quarter 1993 accrual of 21 million pesos for the assets tax as a result of the Government of Argentina's recent decision to exempt from the tax those companies in the process of privatization. YPF will be subject to this tax in the third quarter and beyond, until  the company exhausts its existing tax loss carryforwards at which time the company will begin to pay Argentine corporate income tax at the statutory rate of 30 percent in lieu of such assets tax.
    As of Dec. 31, 1992, the company has estimated that its tax loss carryforwards amounted to 1,389 million pesos expiring through 1997.
    FIRST HALF 1993 VERSUS FIRST HALF 1992
    Excluding special and unusual items, first half 1993 earnings of 222 million pesos rose 49 percent compared to 1992.  The special and unusual items include non-recurring  charges relating to the transformation of YPF prior to privatization, expenses associated with the initial public offering of YPF shares by the Government of Argentina, and gains from the disposal of the Allen-Puerto Rosales pipeline, the main terminal at Puerto Rosales, and the San Lorenzo and Dock Sud refineries. Not reported as special or unusual and extraordinary items are approximately 100 million pesos of expenses relating to losses on the TOTAL contract, retiree health care costs and re-training expenses for dismissed workers. The company expects to incur in the second half of 1993, a similar amount of such expenses.
    Exploration And Production  (Upstream)
    Compared to the first six months of 1992, 1993 exploration and production earnings declined 5 percent to 356 million pesos due to sharply lower crude prices and volumes partly offset by lower production and exploration expenses.  Average lifting costs per barrel declined from $4.14 per barrel in 1992 to an average of $3.88 in the first half of 1993.
    Production from properties retained and not sold as part of the transformation increased 3 percent from 286,000 barrels per day in second quarter 1992 for crude oil  and increased 5 percent from 1,169 million cubic feet per day for natural gas.
    Refining And Marketing (Downstream)
    Refining and Marketing earnings improved in the first half from 45 million pesos of losses in 1992 to 19 million pesos of profit in 1993, principally from refinery improvements, headcount reductions, other cost containment measures and profits associated with YPF's new LPG and petrochemical businesses.
   Corporate
   Corporate decreased primarily as a result of the reallocation of certain administrative expenses to other segments and lower expenses.
    OTHER OPERATING HIGHLIGHTS
    Total Contract
    In June 1993, YPF signed a preliminary agreement with TOTAL Austral S.A. and its partners, providing the principal terms for converting an oil and gas service contract relating to the Austral Basin into a concession and for  restructuring a burdensome long-term gas-purchase contract. In July, the Board of YPF and the Boards of Directors of the parties involved in the consortium ratified this preliminary agreement. Implementing this agreement is expected to result in a partial reversal of the loss reserve which was established to account for the present value of the anticipated future losses under the old contract.
    The agreement will be implemented after the execution of appropriate legal documentation, final approval by the boards of directors of the various parties and approval of the Argentine Government.
    Natural Gas Deregulation
    In July, the Argentine Government confirmed that natural gas prices will continue to be regulated until June 1994 at $0.97 per million BTU. The Law provides that price deregulation will occur no later than that time.
    Marketing Concessionaire Program
    Under the retail marketing Concessionaire Program, YPF has now awarded three of the six concessions to independent third parties: Cordoba (the most significant district outside the Province of Buenos Aires), Cuyo and Santa Fe. The concessionaires will contribute capital for upgrading, modernizing and expanding YPF-branded retail service stations which are under the control of independent operators.
    New Businesses
    As a result of the Gas del Estado privatization in fourth quarter 1992, YPF received in the second quarter 1993 as cancellation of Gas del Estado accounts receivable, a natural gas liquids recovery plant and delivery plant that will allow YPF  to sell propane and butane to distributors. Second quarter LPG sales increased as a result.
    In April 1993, YPF also agreed to acquire the producing assets and certain liabilities of the former Petroquimica General Mosconi (PGM). PGM produces MTBE, aromatics, and oxoalcohols. The acquisition should lead to increased sales of higher margin petrochemicals.
    Headcount Reductions
    The number of employees declined to 9,700 at June 30, 1993, compared with 10,600 on March 31,1993 and 19,300 on June 30, 1992.
    Average number of shares outstanding for all periods is 353,000,000.
    The attached unaudited financial statements are prepared in accordance with Argentine GAAP.
                          YPF SOCIEDAD ANONIMA
                                     Income Statement
                                   Second Quarter      Six Months
                                  1993    1992      1993     1992
    Domestic Sales                 839     839     1,603     1,563
    Export  Sales                  158     139       342      282
    Total Sales                    997     978     1,945    1,845
    Purchased crude oil, natural
     gas and products             (132)   (125)     (328)   (213)
    Operating expenses            (426)   (428)     (801)   (846)
    Depreciation, depletion
     & amortization               (134)   (165)     (267)   (316)
    Exploration expenses           (17)   (30)       (39)    (47)
    Selling expenses               (76)   (48)      (135)    (94)
    Administrative expenses (A)     (2)    (61)      (55)   (123)
    Operating Income               210     121       320     206
    Other expenses                 (45)     15       (72)    (13)
    Financial and holding
     income/(losses)               (16)    (51)      (37)    (44)
    Unusual and extraordinary
      gains/(losses)               (14)    (29)       24      (19)
    Net Income before income
     and assets tax                135     56        235      130
    Income and assets tax           21      0          0        0
    Net Income                     156     56        235      130
      Earnings by Business Segment
    Exploration and Production     198    216        356      374
    Refining and Marketing          14    (34)        19      (45)
    Corporate(A)                    (2)   (61)       (55)    (123)
    Operating Income               210    121        320      206
    Other Expenses                 (45)    15        (72)     (13)
    Financial and holding
     income/(losses)               (16)   (51)       (37)     (44)
    Unusual and extraordinary
     gains/(losses)                (14)   (29)        24      (19)
    Net Income before income
      and assets tax               135     56        235      130
    Income and assets tax           21      0          0        0
    Net Income                     156     56        235      130
    (A) -- Net of 24 per quarter reclassified to Exploration and Production,Refining and Marketing, and Other Expenses
    Special Non-Recurring Items relating to Transformation/Privatization
                                   (Millions of Pesos)
                                     1993                   1992
                                2nd Qtr.  1st Qtr    2nd Qtr.  1st Qtr
    Refining and Marketing
     Institutional advertising    (3)       (3)         0         0
    Corporate and Others
     Consultant fees --
      transformation               0        (5)         0         0
    Income and Assets Tax
     Assets tax                   21       (21)         0         0
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Publication:PR Newswire
Date:Aug 9, 1993
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