Argentina's YPF Q2 profit slumps nearly 90% on lower fuel prices
Revenues dropped 6% from a year earlier to $4.64 billion, as softer prices for refined products and lower seasonal demand for naphtha weighed on sales.
YPF's performance is a critical indicator for Argentina's economy, which is relying on the Vaca Muerta formation in its push to become a net energy exporter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) – a key measure of profitability – came in at $1.12 billion for the April-June period, down 7% from a year earlier.
Analysts polled by LSEG had on average expected an adjusted EBITDA of $1.17 billion from revenues of $4.49 billion.
Benchmark Brent crude, opens new tab prices averaged $67 per barrel in the second quarter, down from $75 in the previous three months and $85 a year earlier.
The weaker Brent prices, alongside reduced conventional output after YPF sold off mature fields, dragged down upstream sales by some 10%.
Downstream sales, which declined 6%, were also hit by lower fuel prices, though strong diesel and agricultural demand helped to partially offset the drop.
The results come as Argentina faces a major legal battle after a U.S. judge ordered the government to hand over its 51% stake in YPF to partially satisfy a $16.1 billion judgment tied to a 2012 expropriation of a stake from Spain's Repsol (REP.MC), opens new tab.
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