YPF celebrates 30 years of listing on Wall Street: dividend payment and investment strategy for the years to come

From New York, USA – Special Envoy. YPF, the flagship oil company, celebrated on Wall Street its 30 years of listing on the New York Stock Exchange, the NYSE. He did so with lunch in one of the charming halls of the traditional New York Stock Exchange building, in front of bankers, investment fund representatives, oil industry analysts and other guests.

During the “YPF Day”, an investment plan for this year of 5,000 million dollars was announced.

Then the company’s top management will perform the traditional “closing bell”, the ringtone with which the day round of the stock index ends.

Although during the week there was speculation about the presence of the Minister of Economy Sergio Massafinally it was not gambling. After closing the debt swap in pesos with the banks, the man from Tigrense participated in the event through a live video call from the YPF tower of Puerto Madero.

Negotiations with the Fund prevented its presence on Wall Street, assured Massa, who confirmed that heThe company will present a dividend payment proposal at the next general meeting, which had not happened since 2019.

“We have enormous potential and the opportunity is now,” said the minister and referred to the exploitation of the new Palermo Aike cueca (for unconventional hydrocarbons in Santa Cruz), which is estimated at one third of Vaca Muerta, with a horizon of 10,000 million barrels of oil equivalent. “In four years, we can exceed one million barrels per day and 30% more than gas than today,” he said.

He also talked about a new oil pipeline to Chile, with an investment of 200 million dollars, the Oldeval extension and the Vaca Muerta Sur “pipe” to the Atlantic. He assured that the total investment in the gas pipelines will be 4,000 million dollars with an export capacity of 10,000 million dollars. He also referred to the second part of the Néstor Kirchner pipeline, with a disbursement of 3,400 million dollars, and the investments to export LNG, through the association between YPF and Patronas, with a potential initial investment of 10,000 millions of dollars.

The presentation by the company was responsible for Pablo Gonzalez, President of YPF; the CEO, Pablo Iuliano; and of Alexander Lew, the company’s chief financial officer. Also present in the auditorium were the Ambassador to the United States, Jorge Arguello; the energy secretary, Flavia Royon; the president of ENARSA, Augustin Gerezthere VSArlos Raymond Argentinian representative to the OAS, among others.

González made a brief introduction where he reviewed the record figures of the company’s balance sheet, which was presented yesterday and the company presented as “historic” and one of the three best in the history of the business. They recorded an EBITDA of $5 billion, 27% more than the previous year; record net income of over $2.2 billion; and reserves of 1.2 billion barrels of oil equivalent, the highest figure since 2015 and 4% higher than the previous year.

Vaca Muerta’s operation is central to the company’s positive numbers and future prospects.

“It’s a year of growth”, REMARK. “We have gas reserves for 170 years at this level of consumption. This is why we are leading an associative approach to export LNG to the world. We are waiting for the macro law to be sent to Congress, to continue the work with Petronas. The work of lawyers and accountants ends and that of engineers begins. We will export 25 million tons per year, 460 ships, at the peak of the project. For this we will build another gas pipeline,” said the president, who also gave details of the Palermo Aike basin, for which he said they were “looking for partners” and from where some perfd, 6 million barrels of oil equivalent can be exploited.

Although González noted that the company’s share has risen 130% in one year, amid a day of steep declines for global markets, the company’s paper saw steep declines of up to 7 .7%.

“The figures indicate that we are increasing production. We have gone from a conventional production in decline to an operation that marks the future of Argentina”, underlined the boss of the company.

According to Iuliano, the general plan of the company will consist of 3 general stages. Between 2023 and 2035, focus on the monetization of traditional hydrocarbons (Vaca Muerta and development of off the coast); between 2027 and 2050, in the monetization of natural gas and LNG and, between 2030 and 2050, do so with a focus on the revenues that will come from liquid hydrogen, lithium and other clean energies.

Lew gave details of the company’s investment, which is programmed at 5,000 million dollars. Of this amount, $2.3 billion will go to shale; 1,300 million USD to conventional hydrocarbons; 1,100 million USD to the sector of downstream, the sale of fuels; and USD 300 million to “others”.

Regarding production, YPF plans to double oil production and increase gas production by 30% in the next five years. Compared to this year, the business will see 8% growth in the year, compared to 2022, but the increase in shale It will be 30%. Including natural gas, the company’s total will grow by 3%, while gas shale15 percent.

At the end of the presentation, analysts asked questions about the operation and the company’s future plans. When one inquired about the risks to Argentina’s economy, with high inflation and the possibility of devaluation, Lew pointed to the firm’s strong position, without giving further details.

There were also questions about lithium and hydrogen. YPF will soon inaugurate in San Juan, via its subsidiary YPF Luz, the Zonda solar park. Some 500 million dollars will be invested there. Without a doubt, this is one of the great new challenges for the industry, and one in which Argentina also has great potential.

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