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YPF S.A. REPORTS THIRD QUARTER 1993 RESULTS

 BUENOS AIRES, Argentina, Nov. 3 /PRNewswire/ -- YPF Sociedad Anonima (NYSE: YPF) announced third quarter 1993 earnings of 158 million pesos, an increase of 144 million pesos from the 14 million pesos earned in the third quarter 1992. Included in third quarter 1993 net income were 19 million pesos of unusual and extraordinary expenses associated with employee terminations and asset writedowns (see attached tables for details). Excluding these unusual and extraordinary items, third quarter profits were 177 million pesos, up nearly fourfold versus 1992.
 Third quarter 1993 net income also includes costs (losses on the TOTAL contract, retiree health care costs and retraining expenses for workers to be dismissed) which the company expects to incur in the fourth quarter of 1993, but which are expected to be discontinued in early 1994. These costs are 36 million pesos in the third quarter 1993. Because of their recurring nature in 1993, these 36 million pesos of expenses are not reported as special or unusual and extraordinary items shown above.
 For the first nine months of 1993, total net income rose 172 percent to 394 million pesos compared to 145 million pesos in the first nine months of 1992.
 Third Quarter Nine Months
 1993 1992 1993 1992
 Million Pesos (A)
 Net income before special/unusual
 items 177 45 400 195
 Special items relating to
 transformation 0 0 (11) 0
 Unusual & extraordinary (19) --- --- ---
 gains/(losses) --- (31) 5 (50)
 Total net income 158 14 394 145
 Net income per share
 -- pesos/share 0.44 0.04 1.12 0.41
 (A) One peso equals one U.S. dollar
 YPF President and Chief Executive Officer, Jose Estenssoro said:
 "Once again, quarterly earnings reached record high levels. This was accomplished despite the fall in crude oil prices. The improved performance further demonstrates the positive effect of our continued corporate restructuring and higher production of crude oil and natural gas. Crude oil production increased due to transportation debottlenecking and additional drilling, and natural gas production rose due to higher winter gas sales.
 "Refining and Marketing results benefited from lower crude oil prices and operating costs.
 "For the fourth quarter, we expect crude oil production to rise to about 340 thousand barrels per day and cost cutting benefits to continue."
 QUARTERLY COMPARISON
 EXPLORATION AND PRODUCTION (Upstream)
 Despite a $4.00 per barrel decline in average crude oil realizations and slightly higher exploration expenses, third quarter 1993 Exploration and Production earnings of 218 million pesos are about level with the 221 million pesos earned in third quarter 1992 as a result of higher crude production and lower costs.
 Crude production rose to 327 thousand barrels per day from 317 thousand barrels per day in last year's third quarter, while average lifting costs for both crude oil and natural gas fell to $3.61 per barrel from $4.18 a year ago.
 Third quarter natural gas production fell to 1,386 million cubic feet per day from 1,492 million cubic feet per day last year mainly due to the sale of production properties that occurred as part of YPF's transformation prior to privatization and partly due to lower demand.
 In the third quarter 1993, on a constant-properties basis, excluding properties sold, crude oil production increased by 20 thousand barrels per day and natural gas production declined by 36 million cubic feet per day from the 1992 third quarter.
 Compared to second quarter 1993 earnings of 199 million pesos, third quarter Exploration and Production profits improved from higher crude oil production, higher seasonal winter gas volumes and lower costs. This more than offset the $1.55 per barrel fall in crude oil realizations.
 REFINING AND MARKETING (Downstream)
 Third quarter 1993 Refining and Marketing earnings climbed to 38 million pesos versus losses of 55 million pesos last year. Performance improved due to lower crude costs, cost reduction programs, lower depreciation and reduced salary expenses.
 In September 1993, YPF reduced sales prices for diesel oils and regular gasoline. Nonetheless, compared to second quarter profits of 14 million pesos, strong third quarter refining margins caused current quarter Refining and Marketing earnings to more than double.
 CORPORATE
 Third quarter 1993 Corporate expenses declined to 29 million pesos from 68 million pesos last year as a result of lower headcount and a reclassification of expenses. Retroactive to January 1, 1993, certain expenses formerly charged to Corporate are now charged to Exploration and Production, Refining and Marketing, and Other Expenses. These reclassified expenses are about 24 million pesos per quarter.
 OTHER EXPENSES
 Third quarter 1993 Other Expenses of 14 million pesos include: A) 17 million pesos of employee and retiree health care costs and, B) 9 million pesos of re-training expenses for dismissed employees. These costs are expected to be discontinued in early 1994. Also included in Other Expenses is a 16 million pesos reversal of a 1992 bad debt provision. The money now has been recovered.
 FINANCIAL AND HOLDING INCOME/(LOSSES)
 Financial and Holding losses were 22 million pesos versus losses of 17 million pesos a year ago. In September, YPF swapped US$330 million of yen borrowing into dollar-denominated debt. Because of the yen's increasing value, losses on this yen debt were 49 million pesos during the first nine months 1993.
 INCOME AND ASSETS TAX
 During the third quarter 1993, YPF accrued 14 million pesos for the assets tax. YPF was exempt from this tax in the first half 1993 and exempt during 1992.
 YPF will be subject to this tax in the fourth 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 December 31, 1992, the company's tax loss carryforwards amounted to 1,389 million pesos which may be carried forward until the end of 1997.
 YEAR-TO-DATE COMPARISON
 Excluding special and unusual items, earnings in the first nine months of 1993 jumped 105 percent to 400 million pesos. Reported nine months results of 394 million pesos include 6 million pesos of special and unusual charges which are detailed in the attached tables.
 Included in nine months earnings are approximately 136 million pesos of expenses relating to losses on the TOTAL contract, retiree health care costs and re-training expenses for dismissed workers which the company expects to discontinue in early 1994.
 EXPLORATION AND PRODUCTION (Upstream)
 Compared to the first nine months of 1992, 1993 Exploration and Production earnings declined 4 percent to 575 million pesos primarily due to sharply lower crude prices partly offset by reduced costs. Average lifting costs per barrel declined from $4.18 per barrel in 1992 to an average of $3.79 in the first nine months of 1993.
 Production from properties retained and not sold as part of the transformation increased 5 percent from 292 thousand barrels per day in the first nine months 1993 for crude oil and increased 2 percent from 1,258 million cubic feet per day for natural gas.
 REFINING AND MARKETING (Downstream)
 Refining and Marketing earnings improved in the first nine months 1993 to 57 million pesos from losses of 100 million pesos in 1992. Lower crude costs, refinery improvements, headcount reductions, other cost containment measures and profits associated with YPF's new LPG and petrochemical businesses contributed to better performance.
 CORPORATE
 Corporate expenses decreased by 107 million pesos primarily as a result of the reclassification of certain administrative expenses to other operating segments and lower personnel and administrative expenses.
 OTHER OPERATING HIGHLIGHTS
 Senior Management Changes
 On November 1, 1993, Antonio Allegretta, Vice President, Downstream, was commissioned to attend, for one year, advanced management courses in the United States. Eduardo Petazze, Vice President, Upstream is replacing Mr. Allegretta as Vice President, Downstream. Also, effective November 1, 1993, Marcelo D. Guiscardo replaces Mr. Petazze as Vice President, Upstream. Prior to joining YPF, Mr. Guiscardo was an executive with Exxon Corporation in the U.S.
 Marketing Concessionaire Program
 Under the retail marketing concessionaire program, YPF awarded two additional concessions (Northeast, Northwest) bringing to five the total number awarded.
 Headcount Reductions
 The number of employees declined to 8,700 at September 30, 1993, compared to 9,700 on June 30, 1993 and 16,100 on September 30, 1992.
 Average number of shares outstanding for all periods is 353,000,000. The following unaudited financial statements are prepared in accordance with Argentine GAAP.
 YPF S.A.
 Income Statement
 Million Pesos Third Quarter Nine Months
 1993 1992 1993 1992
 Domestic sales 855 912 2,455 2,465
 Export sales 187 128 538 426
 Total Sales 1,042 1,040 2,993 2,891
 Purchased crude oil and products (150) (241) (377) (390)
 Purchased natural gas (35) (30) (93) (41)
 Operating expenses (356) (351) (1204) (1254)
 Depreciation, depletion &
 amortization (138) (196) (406) (513)
 Exploration expenses (19) (10) (58) (57)
 Selling expenses (88) (46) (223) (140)
 Administrative expenses (29) (68) (84) (191)
 Operating Income 227 98 548 305
 Other expenses (14) (36) (86) (49)
 Financial and holding
 income/(losses) (22) (17) (59) (61)
 Unusual and extraordinary
 gains/(losses) (19) (31) 5 (50)
 Net Income before income and
 assets tax 172 14 408 145
 Income and assets tax (14) 0 (14) 0
 Net Income 158 14 394 145
 EARNINGS BY BUSINESS SEGMENT
 Exploration and Production 218 221 575 596
 Refining and Marketing 38 (55) 57 (100)
 Corporate (29) (68) (84) (191)
 Operating Income 227 98 548 305
 Other Expenses (14) (36) (86) (49)
 Financial and holding
 income/(losses) (22) (17) (59) (61)
 Unusual and extraordinary
 gains/(losses) (19) (31) 5 (50)
 Net Income before income and
 assets tax 172 14 408 145
 Income and assets tax (14) 0 (14) 0
 Net Income 158 14 394 145


Special Non-Recurring Items Related To Transformation/Privatization
 Million Pesos 1993 1992
 30 20 10 30 20 10
 Refining and Marketing
 Institutional
 advertising 0 (3) (3) 0 0 0
 Corporate and Others
 Consultant fees-
 transformation 0 0 (5) 0 0 0
 Income and Assets Tax
 Assets Tax 0 21 (21) 0 0 0
 Total Special Items 0 18 (29) 0 0 0
 Unusual And Extraordinary Gains/(Losses)
 Million Pesos 1993 1992
 30 20 10 30 20 10
 Employee terminations (13) 0 0 (29) 0 0
 Write down of assets (6) 0 0 1 (34) (5)
 Gain on asset 0 0 38 0 0 51
 sales/assignment
 Write down of trade
 receivables 0 0 0 (2) (3)(10)
 Investment adjustments due
 to transfer to
 Argentina Government 0 0 0 0 7 0
 Initial public offering
 expenses 0 (14) 0 0 0 0
 Other extraordinary 0 0 0 (1) 1 (26)
 Total Unusual &
 Extraordinary
 Gains/(Losses) (19) (14) 38 (31)(29) 10
 Operating Highlights
 Third Quarter Nine Months
 1993 1992 1993 1992
 Operating Data
 Net liquids delivered
 (thousand barrels daily-mbd) 327 317 306 305
 Net natural gas production
 (/FAS69) (millions of cubic
 feet daily - mmcfd) 1,386 1,492 1,282 1,351
 Third parties crude oil
 sales-mbd 57 16 48 25
 Natural gas sales-mmcfd 2,079 2,125 1,915 1,784
 Refinery crude oil runs-bd 299014 339509 295372 328508
 Petroleum product sales-bd
 Gasolines 87,186 88,419 85,789 84,676
 Diesel 107716 117214 109257 114793
 Jet fuel & kerosene 20,738 21,266 17,216 17,235
 Fuel Oil 8,007 41,904 11,102 32,997
 LPG 45,835 27,097 39,407 24,279
 Other 39,451 42,904 41,300 37,514
 Total 308933 338804 304071 311494
 AVERAGE SALES PRICES
 Crude oil - $/B 13.90 17.93 15.07 16.86
 Natural gas - $/mcf 1.00 1.03 1.02 1.00
 CAPITAL AND EXPLORATION
 EXPENDITURES
 Million pesos
 Exploration & Production (A) 178 187 619 423
 Refining & Marketing (B) 41 17 334 98
 Other (10) 0 6 2
 Total 209 204 959 523
 ARGENTINE ECONOMIC INDICATORS
 GDP percent (Year) (C) N/A N/A 6.00 8.70
 Inflation wholesale price
 index percent 0.34 2.25 2.42 5.90
 Average exchange rate - nominal 0.99 0.99 0.99 0.99
 Pesos per USDollar
 (A) Includes 211 in gas plants acquired from Gas del Estado in nine
 months 1993
 (B) Includes 189 in plants acquired from Petroquimica General
 Mosconi and Gas del Estado in nine months 1993
 (C) Source: Economic Ministry -- Estimated
 Year (by quarter NA)
 Balance Sheet
 Million Pesos September 30
 1993 1992
 ASSETS
 Current Assets
 Cash 81 58
 Investments 86 25
 Trade Receivables 439 889
 Other Receivables 335 104
 Inventories 380 428
 Total Current Assets 1,321 1,504
 Noncurrent Assets
 Trade Receivables 324 599
 Other Receivables 207 42
 Investments 102 7
 Fixed Assets 5,301 5,422
 Total Noncurrent Assets 5,934 6,070
 Total Assets 7,255 7,574
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current Liabilities
 Accounts Payable 493 504
 Loans 304 293
 Salaries and Social Security 46 94
 Taxes Payable 138 234
 Reserves 90 298
 Dividends Payable 141 0
 Total Current Liabilities 1,212 1,423
 Noncurrent Liabilities
 Accounts Payable 46 84
 Loans 405 378
 Taxes Payable 345 406
 Reserves 489 552
 Total Noncurrent Liabilities 1,285 1,420
 Shareholders' Equity 4,758 4,731
 Total Liabilities and
 Shareholders' Equity 7,255 7,574
 Statement Of Cash Flow
 Million Pesos Nine Months
 1993 1992
 OPERATING ACTIVITIES
 Net Income 394 145
 Adjustments
 Unusual and extraordinary
 (gains)/losses (5) 50
 Loss (Income) from long-term
 investments (3) (3)
 Depreciation of fixed assets 422 525
 Book value of assets retired 243 161
 Dry hole expenses 2 13
 Reserve for contingencies, losses on
 contracts (50) (29)
 Decrease in allowance for employee
 terminations (199) (213)
 (Increase)/decrease in working
 capital (297) (248)
 Net cash flow from investing activities 507 401
 INVESTING ACTIVITIES
 Capital expenditures (559) (523)
 Acquisition of noncurrent (56) 0
 investments
 Proceeds from asset sales 87 203
 Net sales of marketable securities 392 (7)
 Dividends received 0 5
 Net cash flow from investing activities (136) (322)
 FINANCING
 Proceeds from loans 400 163
 Repayment of loans (588) (286)
 Dividends paid (101) 0
 Net cash flow from financing activities 289 (123)
 Increase (decrease) in cash and cash
 equivalents 82 (44)
 Cash and cash equivalents at the
 beginning of year/period 77 113
 Cash and cash equivalents at the end of
 year/period 159 69
 -0- 11/3/93
 /CONTACT: Darial R. Sneed, in New York, 212-572-6344, or Eugenio Vacs, in Buenos Aires, 541-326-4839, both for YPF S.A./
 (YPF)


CO: YPF Sociedad Anonima ST: IN: OIL SU: ERN

MP -- NY022 -- 0096 11/03/93 11:17 EST
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