6-K
Table of Contents

 

 

 

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of May, 2015

Commission File Number: 001-12102

 

YPF Sociedad Anónima

(Exact name of registrant as specified in its charter)

Macacha Güemes 515

C1106BKK Buenos Aires, Argentina

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file

annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  X     Form 40-F          

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes                     No                 X     

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes                     No                X     

 

 

 

 

 


Table of Contents

YPF Sociedád Anonima

TABLE OF CONTENTS

ITEM

1             Translation of Condensed Interim Consolidated Financial Statements as of March 31, 2015 and Comparative Information.


Table of Contents

 

LOGO

 

SOCIEDAD ANONIMA

 

 

Condensed Interim Consolidated

 

Financial Statements as of March 31, 2015

 

and Comparative Information


Table of Contents

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2015

AND COMPARATIVE INFORMATION

 

 

  Index Page  

–   Cover

  1   

–   Condensed interim consolidated balance sheet

  2   

–   Condensed interim consolidated statements of comprehensive income

  3   

–   Condensed interim consolidated statements of changes in shareholders’ equity

  4   

–   Condensed interim consolidated statements of cash flow

  5   

–   Notes to the condensed interim consolidated financial statements

  6   

 1)    Basis of preparation of the condensed interim consolidated financial statements

 a)    Basis of preparation

  6   

 b)    Significant accounting policies

  6   

 c)    Accounting estimates and judgments

  7   

 d)    Comparative information

  7   

 2)    Seasonality of operations

  7   

 3)    Acquisitions and disposals

  7   

 4)    Financial risk management and fair value measurements

 a)    Financial risk

  7   

 b)    Fair value measurements

  8   

 c)    Fair value of financial assets and financial liabilities measured at amortized cost

  8   

 5)    Consolidated business segment information

  9   

6)    Analysis of the main accounts of the condensed interim consolidated financial statements

 a)    Intangible assets

  9   

 b)    Fixed assets

  10   

 c)    Investments in companies

  11   

 d)    Inventories

  11   

 e)    Other receivables

  11   

 f)    Trade receivables

  11   

 g)    Cash and cash equivalents

  12   

 h)    Provisions

  12   

 i)    Income tax

  12   

 j)    Loans

  14   

 k)   Accounts payable

  16   

 l)    Revenues

  16   

 m)   Cost of sales

  16   

 n)    Expenses

  17   

 ñ)    Other operating income, net

  17   

 7)    Investments in companies and joint ventures and other agreements

  17   


Table of Contents

 8)    Shareholders’ equity

  19   

 9)    Earnings per share

  19   

 10)  Provisions for pending lawsuits, claims and environmental liabilities

  19   

11)  Contingent liabilities, contingent assets, contractual commitments, main regulations and other

 a)    Contingent liabilities

  20   

 b)    Contingent assets

  20   

 c)    Contractual commitments, main regulations and other

  20   

 12)  Balances and transactions with related parties

  21   

 13)  Employee benefit plans and similar obligations

  22   

 14)  Information required by general resolution No. 629 of the CNV

  23   

 15)  Information required by general resolution No. 622 of the CNV

  23   

 16)  Investments in companies

  24   

 17)  Assets and liabilities in foreign currency

  25   

 18)  Subsequent events

  25   


Table of Contents

 

1

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

Macacha Güemes 515 – Ciudad Autónoma de Buenos Aires, Argentina

 

FISCAL YEAR NUMBER 39

BEGINNING ON JANUARY 1, 2015

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2015 AND FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2015 AND COMPARATIVE INFORMATION

LEGAL INFORMATION

Principal business of the Company: exploration, development and production of oil, natural gas and other minerals and refining, transportation, marketing and distribution of oil and petroleum products and petroleum derivatives, including petrochemicals, chemicals and non-fossil fuels, biofuels and their components; production of electric power from hydrocarbons; rendering telecommunications services, as well as the production, industrialization, processing, marketing, preparation services, transportation and storage of grains and its derivatives.

Date of registration with the Public Commerce Register: June 2, 1977.

Duration of the Company: through June 15, 2093.

Last amendment to the bylaws: April 14, 2010.

Optional Statutory Regime related to Compulsory Tender Offer provided by Decree No. 677/2001 art. 24: not incorporated (modified by Law No. 26,831).

 

Capital structure as of March 31, 2015

(expressed in Argentine pesos)

 

–  Subscribed, paid-in and authorized for stock exchange listing

  3,933,127,930 (1) 

(1) Represented by 393,312,793 shares of common stock, Argentine pesos 10 per value and 1 vote per share.

 

 

 

MIGUEL MATIAS GALUCCIO

President              


Table of Contents

 

2

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

 

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

Condensed interim consolidated balance sheet as of March 31, 2015 and December 31, 2014

(amounts expressed in millions of Argentine Pesos, except shares and per share amounts expressed in Argentine Pesos,

and as otherwise indicated – Note 1.b)

 

      Note          March 31,     
2015
      December 31,    
2014
 

ASSETS

Noncurrent Assets

Intangible assets

6.a   4,602              4,393           

Fixed assets

6.b   167,869              156,930           

Investments in companies

6.c   3,050              3,177           

Deferred income tax assets, net

6.i   261              244           

Other receivables

6.e   2,004              1,691           

Trade receivables

6.f   19              19           
     

 

 

    

 

 

 

Total noncurrent assets

  177,805              166,454           
     

 

 

    

 

 

 

Current Assets

Inventories

6.d   13,103              13,001           

Other receivables

6.e   7,740              7,170           

Trade receivables

6.f   11,687              12,171           

Cash and cash equivalents

6.g   11,039              9,758           
     

 

 

    

 

 

 

Total current assets

  43,569              42,100           
     

 

 

    

 

 

 

TOTAL ASSETS

      221,374                      208,554           
     

 

 

    

 

 

 

SHAREHOLDERS’ EQUITY

Shareholders’ contributions

  10,427              10,400           

Reserves, other comprehensive income and retained earnings

  66,788              62,230           
     

 

 

    

 

 

 

Shareholders’ equity attributable to the shareholders of the parent company

  77,215              72,630           

Non-controlling interest

  133              151           
     

 

 

    

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

  77,348              72,781           
     

 

 

    

 

 

 

LIABILITIES

Noncurrent Liabilities

Provisions

6.h   27,702              26,564           

Deferred income tax liabilities, net

6.i   19,283              18,948           

Taxes payable

  278              299           

Loans

6.j   41,912              36,030           

Accounts payable

6.k   571              566           
     

 

 

    

 

 

 

Total noncurrent liabilities

  89,746              82,407           
     

 

 

    

 

 

 

Current Liabilities

Provisions

6.h   2,316              2,399           

Income tax liability

  4,799              3,972           

Taxes payable

  2,543              1,411           

Salaries and social security

  1,424              1,903           

Loans

6.j   14,804              13,275           

Accounts payable

6.k   28,394              30,406           
     

 

 

    

 

 

 

Total current liabilities

  54,280              53,366           
     

 

 

    

 

 

 

TOTAL LIABILITIES

  144,026              135,773           
     

 

 

    

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

  221,374              208,554           
     

 

 

    

 

 

 

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

 

MIGUEL MATÍAS GALUCCIO

President              


Table of Contents

 

3

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

Condensed interim consolidated statements of comprehensive income for the three-month periods

ended March 31, 2015 and 2014

(amounts expressed in millions of Argentine Pesos, except shares and per share amounts expressed in Argentine Pesos,

and as otherwise indicated – Note 1.b)

 

        For the three-month periods    
ended March 31,
 
      Note     2015   2014  

Revenues

6.l   34,702           30,664        

Cost of sales

6.m   (26,076)          (23,016)       
     

 

 

    

 

 

 

Gross profit

  8,626           7,648        

Selling expenses

6.n   (2,592)          (2,204)       

Administrative expenses

6.n   (1,198)          (817)       

Exploration expenses

6.n   (191)          (197)       

Other operating income, net

6.ñ   (176)          (46)       
     

 

 

    

 

 

 

Operating income

  4,469           4,384        
     

 

 

    

 

 

 

Loss on investments in companies

7   (38)          (3)       

Financial income:

Gains (losses) on assets

Interests

  308           280        

Exchange differences

  (272)          (1,404)       

(Losses) gains on liabilities

Interests

  (2,002)          (1,568)       

Exchange differences

  1,581           7,275        
     

 

 

    

 

 

 

Net income before income tax

  4,046           8,964        
     

 

 

    

 

 

 

Current income tax

6.i   (1,619)          (139)       

Deferred income tax

6.i   (318)          (6,038)       
     

 

 

    

 

 

 

Net income for the period

  2,109           2,787        
     

 

 

    

 

 

 

Net income for the period attributable to:

 –    Shareholders of the parent company

  2,127           2,881        

 –    Non-controlling interest

  (18)          (94)       
Earnings per share attributable to shareholders of the parent company basic and diluted 9   5.42           7.34        

Other comprehensive income

Translation differences from investments in companies(2)

  (83)          (403)       

Translation differences from YPF S.A.(3)

  2,514           11,642        
     

 

 

    

 

 

 

Total other comprehensive income for the period(1)

  2,431           11,239        
     

 

 

    

 

 

 

Total comprehensive income for the period

  4,540           14,026        
     

 

 

    

 

 

 

 

(1)

Entirely assigned to the parent company’s shareholders.

(2)

Will be reversed to net income at the moment of the sale of the investment or full or partial reimbursement of the capital.

(3)

Will not be reversed to net income.

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

 

 

MIGUEL MATÍAS GALUCCIO

President              


Table of Contents

 

4

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

Condensed interim consolidated statements of changes in shareholders’ equity for the three-month periods ended March 31, 2015 and 2014

(amounts expressed in millions of Argentine Pesos, except shares and per share amounts expressed in Argentine Pesos,

and as otherwise indicated – Note 1.b)

 

    2015  
    Shareholders’ contributions  
      Subscribed  
capital
    Adjustment to
contributions
        Treasury    
shares
    Adjustment
to treasury
shares
    Share-based
 benefit plans 
    Acquisition cost
of treasury
shares
    Share trading
premium
    Issuance
  premiums  
          Total        
Balances at the beginning of the year     3,922               6,083               11              18            51                 (310)                (15)                640              10,400        
Accrual of share-based benefit plans     -               -               -              -            27                 -                  -                 -              27        
Other comprehensive income for the period     -               -               -              -            -                 -                  -                 -              -        

Net income

    -               -               -              -            -                 -                  -                 -              -        
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Balances at the end of the period     3,922               6,083               11              18            78                 (310)                (15)                640              10,427        
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    2015     2014  
    Reserves                 Equity attributable to              
      Legal       Future
  dividends  
      Investments      

 

Purchase of
treasury
shares

    Initial IFRS
 adjustment 
    Other
comprehensive
income
    Retained
  earnings  
   

 

Parent
company’s
 shareholders 

    Non-
 controlling 
interest
    Total
 shareholders’ 
equity
    Total
 shareholders’ 
equity
 
Balances at the beginning of the year     2,007          5                 12,854               320              3,648            34,363              9,033              72,630              151             72,781          48,240       
Accrual of share-based benefit plans     -          -                 -               -              -            -              -              27              -             27          14       
Other comprehensive income for the period     -          -                 -               -              -            2,431              -              2,431              -             2,431          11,239       

Net income

    -          -                 -               -              -            -              2,127              2,127              (18)            2,109          2,787       
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Balances at the end of the period     2,007          5                 12,854               320              3,648            36,794(1)          11,160              77,215              133             77,348          62,280       
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (1)

Includes 38,278 corresponding to the effect of the translation of the financial statements of YPF S.A. and (1,484) corresponding to the effect of the translation of the financial statements of investments in companies with functional currency different to dollar, as detailed in Note 1.b.1 to the annual consolidated financial statements.

 

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

MIGUEL MATIAS GALUCCIO

President              


Table of Contents

 

5

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

Condensed interim consolidated statements of cash flow for the three-month periods ended

March 31, 2015 and 2014

(amounts expressed in millions of Argentine Pesos, except shares and per share amounts expressed in Argentine Pesos,

and as otherwise indicated – Note 1.b)

 

     For the three-month periods
ended March 31,
 
               2015                          2014            

Cash flows from operating activities:

     

Net income

     2,109                   2,787             

Adjustments to reconcile net income to cash flows provided by operating activities:

     

Loss on investments in companies

     38                   3             

Depreciation of fixed assets

     5,564                   3,903             

Amortization of intangible assets

     69                   73             

Consumption of materials and retirement of fixed assets and intangible assets, net of provisions

     592                   988             

Income tax

     1,937                   6,177             

Net increase in provisions

     903                   604             

Exchange differences, interest and other (1)

     485                   (1,870)            

Share-based benefit plan

     27                   14             

Accrued insurance

     (511)                  (741)            

Changes in assets and liabilities:

     

Trade receivables

     388                   (1,996)            

Other receivables

     (548)                  (3,052)            

Inventories

     266                   380             

Accounts payable

     1,015                   (1,144)            

Taxes payables

     1,111                   1,598             

Salaries and social security

     (479)                  (196)            

Decrease in provisions due to payment/use

     (393)                  (744)            

Dividends from investments in companies

     150                   -             

Income tax payments

     (792)                  (69)            
  

 

 

    

 

 

 

Net cash flows provided by operating activities

     11,931                   6,715             
  

 

 

    

 

 

 

Cash flows used in investing activities:(2)

     

Acquisition of fixed assets and intangible assets

     (15,628)                  (11,816)            

Capital contributions to investments in companies

     (2)                  (85)            

Proceeds from sale of fixed assets and intangible assets

     -                   1,531             

Acquisition of participation in joint operations

     -                   (326)            

Acquisition of subsidiaries net of acquired cash and cash equivalents

     -                   (6,103)            

Proceeds from collection of damaged property’s insurance

     -                   608             
  

 

 

    

 

 

 

Net cash flows used in investing activities

     (15,630)                  (16,191)            
  

 

 

    

 

 

 

Cash flows provided by financing activities

     

Payments of loans

     (4,632)                  (2,143)            

Payments of interest

     (1,379)                  (939)            

Proceeds from loans

     10,784                   4,252             
  

 

 

    

 

 

 

Net cash flows provided by financing activities

     4,773                   1,170             
  

 

 

    

 

 

 
     
  

 

 

    

 

 

 

Translation differences generated by cash and cash equivalents

     207                   702             
  

 

 

    

 

 

 

Net increase (decrease) in cash and cash equivalents

     1,281                   (7,604)            
  

 

 

    

 

 

 

Cash and cash equivalents at the beginning of year

     9,758                   10,713             

Cash and cash equivalents at the end of period

     11,039                   3,109             
  

 

 

    

 

 

 

Net increase (decrease) in cash and cash equivalents

     1,281                   (7,604)            
  

 

 

    

 

 

 

COMPONENTS OF CASH AND CASH EQUIVALENTS AT THE END OF PERIOD

     

-    Cash

     9,893                   1,325             

-    Cash equivalents

     1,146                   1,784             
  

 

 

    

 

 

 

TOTAL CASH AND CASH EQUIVALENTS AT THE END OF PERIOD

     11,039                   3,109             
  

 

 

    

 

 

 

 

(1)

Does not include translation differences generated by cash and cash equivalents, which is exposed separately in the statement.

(2)

The main investing activities that have not affected cash and cash equivalents correspond to unpaid acquisitions of fixed assets and concession extension easements not paid for 4,502 and 3,306 for the three-month periods ended March 31, 2015 and 2014, respectively.

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

 

 

MIGUEL MATIAS GALUCCIO

President              


Table of Contents

 

6

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

Notes to the condensed interim consolidated financial statements for the three-month period ended March 31, 2015 and comparative information

(amounts expressed in millions of Argentine Pesos, except shares and per share amounts expressed in Argentine Pesos,

and as otherwise indicated – Note 1.b)

 

1.

BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

1.a) Basis of preparation

The condensed interim consolidated financial statements of YPF S.A. (hereinafter “YPF”) and its controlled companies (hereinafter and all together, the “Group” or the “Company”) for the three-month period ended March 31, 2015, are presented in accordance with International Accounting Standards (“IAS”) No. 34 “Interim Financial Reporting”. The adoption of the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) was determined by the Technical Resolution No. 26 (ordered text) issued by Argentine Federation of Professional Councils in Economic Sciences (“FACPCE”) and the Regulations of the Argentine Securities Commission (“CNV”). Additional information required by the Law 19,550 of Argentine Corporations and/or regulations of the CNV was included in the Notes to the mentioned condensed interim consolidated financial statements only to comply with regulatory requirements.

These Condensed Interim Consolidated Financial Statements should be read in conjunction with the Annual Consolidated Financial Statements of the Group as of December 31, 2014 (“the Annual Consolidated Financial Statements”) prepared in accordance with IFRS.

These condensed interim consolidated financial statements were approved by the Board of Directors’ meeting and authorized to be issued on May 7, 2015.

These Condensed Interim Consolidated Financial Statements corresponding to the three month period ended on March 31, 2015 are unaudited. Management believes they include all necessary adjustments to fairly present the results of each period on a consistent basis with the annual condensed interim consolidated financial statements. Results for the three month period ended on March 31, 2015 do not necessarily reflect the proportion of the Group’s full-year results.

1.b) Significant Accounting Policies

The accounting policies adopted in the preparation of these condensed interim consolidated financial statements are consistent with those used in the preparation of the annual consolidated financial statements of the Company as of December 31, 2014, except for the valuation policy for Income Tax detailed in Note 6.i). The most significant accounting policies are described in Note 1 to such annual consolidated financial statements.

New standards issued

The standards, interpretations and related amendments published by the IASB and endorsed by the FACPCE and the CNV which have been applied by the Company as from the year beginning on January 1, 2015, are the following:

 

   

Annual improvements to IFRS (2010-2012 cycle) modify several standards, including amendments to IAS 16 (Property, Plant and Equipment), IAS 24 (Related Party Disclosures), IAS 38 (Intangible Assets), IFRS 2 (Shared-based Payment), IFRS 3 (Business Combinations) and IFRS 8 (Operating Segments), IFRS 13 (Fair Value Measurement).

 

   

Annual improvements to IFRS (2011-2013 cycle) modify several standards, including amendments to IAS 40 (Investment Property), IFRS 1 (First-time Adoption of International Financial Reporting Standards), IFRS 3 (Business Combinations) and IFRS 13 (Fair Value Measurement).

The aforementioned adoption of standards, interpretations and related amendments did not have significant impact on these condensed interim consolidated financial statements.


Table of Contents

 

7

 

Functional and reporting currency

As it was mentioned in Note 1.b.1 to the annual consolidated financial statements YPF has defined the U.S. dollar as its functional currency. In addition, according to General Resolution No. 562 of the CNV, YPF shall submit its financial statements in Argentine Pesos.

1.c) Accounting Estimates and Judgments

The preparation of financial statements at a certain date requires the Management to make estimates and assessments affecting the amount of assets and liabilities recorded, contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual future results might differ from the estimates and assessments made at the date of preparation of these condensed interim consolidated financial statements.

In the preparation of these Condensed Interim Consolidated Financial Statements, significant judgments made by Management in applying the Group’s accounting policies and the main sources of uncertainty were the same as those applied by the Group in the preparation of the Annual Consolidated Financial Statements for the year ended December 31, 2014, which are disclosed in Note 1.c) “Accounting estimates and judgements” to those financial statements.

1.d) Comparative information

Amounts and other information corresponding to the year ended on December 31, 2014 and to the three-month period ended on March 31, 2014, are an integral part of the condensed interim consolidated financial statements previously mentioned and are intended to be read only in relation to these statements. Certain reclassifications have been made in order to present amounts comparatively with the current period.

2. SEASONALITY OF OPERATIONS

Historically, YPF’s results have been subject to seasonal fluctuations during the year, particularly as a result of the increase of natural gas sales during the winter. After the 2002 devaluation and as a consequence of the natural gas price freeze imposed by the Argentine government, the use of this fuel has diversified, generating an increase in its long-term demand throughout the year. However, sales of natural gas are still typically higher in the winter to the residential sector of the Argentine domestic market, the prices for which are lower than other sectors of the Argentine market. Notwithstanding the foregoing, on February 14, 2013, Resolution 1/2013 of the Commission was published in the Official Gazette. This Resolution formally creates the “Natural Gas Additional Injection Stimulus Program.” Under this regulation, gas producing companies were invited to file with the Commission before June 30th, 2013 projects to increase natural gas injection, in order to receive an increased price of U.S.$7.50/mmBtu for all additional natural gas injected. These projects shall comply with minimum requirements established in Resolution 1/2013, and will be subject to consideration approval by the Commission, including a maximum term of five years, renewable at the request of the beneficiary, upon decision of the Commission. If the beneficiary company in a given month does not reach the committed production increase it will have to make up for such volumes not produced. During 2014, the natural gas pricing program was incorporated into the Hydrocarbons Law, as modified by Law No. 27,007. In view of the foregoing, seasonality of YPF’s operations is not significant.

3. ACQUISITIONS AND DISPOSALS

During the three-month period ended March 31, 2015, no significant acquisitions or disposals have taken place.

4. FINANCIAL RISK MANAGEMENT AND FAIR VALUE MEASUREMENTS

4.a. Financial Risk

The Company’s activities are exposed to a variety of financial risk: market risk (including foreign currency risk, interest rate risk and price risk) credit risk, liquidity risk and capital risk.

The Condensed Interim Consolidated Financial Statements do not include all the information and disclosures on financial risk management; therefore they should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2014.

There have been no changes in the risk management or risk management policies applied by the Company since the end of last year.


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8

 

4.b. Fair value measurements

IFRS 9 defines the fair value of a financial instrument as the amount for which an asset could be exchanged, or a financial liability settled, between knowledgeable, willing parties in an arm’s length transaction. All financial instruments recognized at fair value are allocated to one of the valuation hierarchy levels of IFRS 7. This valuation hierarchy provides for three levels.

In the case of Level 1, valuation is based on unadjusted quoted prices in active markets for identical financial assets or liabilities that the Company can refer to at the end of the period. A market is deemed active if transactions take place with sufficient frequency and in sufficient quantity for price information to be available on an ongoing basis. Since a quoted price in an active market is the most reliable indicator of fair value, this should always be used if available. Financial instruments assigned by the Company to this level comprise investments in listed mutual funds, which results for the three-month periods on March 31, 2015 and 2014, are disclosed under “Interest income” in the condensed interim consolidated statements of comprehensive income.

In the case of Level 2, fair value is determined by using valuation methods based on inputs directly or indirectly observable in the market. If the financial instrument concerned has a fixed contract period, the inputs used for valuation must be observable for the whole of this period. The Company has not valued financial instruments under this category.

In the case of Level 3, the Group uses valuation techniques not based on inputs observable in the market. This is only permissible insofar as no market data are available. The inputs used reflect the Group’s assumptions regarding the factors which market players would consider in their pricing. The Group uses the best available information for this, including internal company data. The Company has not valued financial instruments under this category.

The Company’s Finance Division has a team in place in charge of estimating valuation of financial assets required to be reported in the financial statements, including the fair value of Level-3 instruments. The team directly reports to the Chief Financial Officer (“CFO”). The CFO and the valuation team discuss the valuation methods and results upon the acquisition of an asset and, if necessary, on a quarterly basis, in line with the Group’s quarterly reports.

According to the Company’s policy, transfers among the several categories of valuation hierarchies are recognized when occurred, or when there are changes in the prevailing circumstances requiring the transfer.

Between December 31, 2014 and March 31, 2015, there have been no significant changes in business or economic circumstances affecting the fair value of the Company’s financial assets and liabilities (either measured at fair value or amortized cost).

In addition, no transfer has occurred among the different hierarchies used to determine the fair value of the Company’s financial instruments.

4.c. Fair value of financial assets and financial liabilities measured at amortized cost

The estimated fair value of loans, considering unadjusted listed prices (Level 1) for Notes and interest rates offered to the Company (Level 3) in connection with the remainder of loans, at the end of the period or year, as applicable, amounted to 60,795 and 53,108 as of March 31, 2015 and December 31, 2014, respectively.

The fair value of the following financial assets and financial liabilities do not differ significantly from their book value:

 

  -

Other receivables

  -

Trade receivables

  -

Cash and equivalents

  -

Accounts payable

  -

Provisions


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9

 

5. CONSOLIDATED BUSINESS SEGMENT INFORMATION

There has been no change in the Company’s structure, its business segments or its financial reporting information criteria with respect to the annual consolidated financial statements.

 

     Exploration and
Production
  Downstream   Corporate
and Other
  Consolidation
Adjustments(1)
  Total

For the three month period ended March 31, 2015

                    

Revenues from sales

       3,039         31,325         338         -         34,702  

Revenues from intersegment sales

       15,536         553         1,274         (17,363 )       -  
    

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Revenues

       18,575                31,878         1,612         (17,363 )       34,702  
    

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Operating income (loss)

       2,260         1,494         (548 )       1,263         4,469  

Loss on investments in companies

       (1 )       (37 )              -         -         (38 )

Depreciation of fixed assets

       4,788         693         83         -         5,564  

Acquisitions of fixed assets

       10,701         1,436         214         -         12,351  

Assets

       130,062         74,701               18,003         (1,392 )         221,374  

For the three month period ended March 31, 2014

                    

Revenues from sales

       1,385         29,144         135         -         30,664  

Revenues from intersegment sales

       13,534         427         897         (14,858 )       -  
    

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Revenues

                   14,919         29,571         1,032         (14,858 )               30,664  
    

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

   

 

 

 

Operating income (loss)

       3,013         2,453         (354 )             (728 )       4,384  

Loss on investments in companies

       (3 )                   -         -         -         (3 )  

Depreciation of fixed assets

       3,301         547         55         -         3,903  

Acquisitions of fixed assets (2)

       8,603         999         120         -         9,722  

For the year ended December 31, 2014

                    

Assets

       126,228         68,509         16,356         (2,539 )       208,554  

 

(1)

Correspond to the elimination of income between segments of the group.

(2)

Investments in fixed assets net of increases corresponding to Apache Group in Argentina at acquisition date (see Note 13 of the annual consolidated financial statements) and Puesto Hernández joint operations contract at acquisition date of the additional interest (see Note 5 of the annual consolidated financial statements).

6. ANALYSIS OF THE MAIN ACCOUNTS OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

6.a) Intangible assets:

 

     2015
     Cost

Main account

   Amounts at
beginning
of year
   Increases    Translation
effect
  Net decreases,
reclassifications
and transfers
   Amounts at
the end

of period

Service concessions

           5,707              139                  180         -                            6,026        

Exploration rights

           1,975              -                  54         -                            2,029        

Other intangibles

           2,607              3                  84         -                            2,694        
    

 

 

 

    

 

 

 

    

 

 

 

   

 

 

 

    

 

 

 

Total 2015

        10,289           142               318       -                         10,749        
    

 

 

 

    

 

 

 

    

 

 

 

   

 

 

 

    

 

 

 

Total 2014

        6,597                   350                       1,464                              10                         8,421        
    

 

 

 

    

 

 

 

    

 

 

 

   

 

 

 

    

 

 

 

 

     2015    2014
     Amortization               

Main account

   Accumulated
at beginning
of year
   Net decreases,
reclassifications
and transfers
    Depreciation 
rate
   Increases    Translation
effect
   Accumulated
at the end

of period
   Net book
value

03-31
   Net book
value

03-31
     Net book  
value

12-31
Service concessions              3,475                -                      4-5%             36                  108                3,619                2,407               1,724                 2,232      

Exploration rights

             150                -                      -                 2                  -                152                1,877               1,203                   1,825      

Other intangibles

             2,271                -                          7-33%           31                  74                2,376                318               323               336      
    

 

 

      

 

 

           

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Total 2015

          5,896             -                     69               182             6,147                  4,602           
    

 

 

      

 

 

           

 

 

      

 

 

      

 

 

      

 

 

           

Total 2014

          4,151                         1                           73                     946                   5,171                   3,250              4,393      
    

 

 

      

 

 

           

 

 

      

 

 

      

 

 

           

 

 

      

 

 

 

The Company does not have intangible assets with indefinite useful lives as of March 31, 2015 and December 31, 2014.


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10

 

6.b)

Fixed assets:

 

             March 31,        
2015
        December 31,    
2014
 

Net book value of fixed assets

     168,194                    157,243               

Provision for obsolescence of materials and equipment

     (325)                   (313)              
  

 

 

   

 

 

 
     167,869                    156,930               
  

 

 

   

 

 

 

 

    2015  
    Cost  
Main account   Amounts at
    beginning of    
year
        Increases             Translation    
effect
    Net decreases,
  reclassifications  
and transfers
        Amounts at    
the end

of period
 

Land and buildings

    9,084               3                266               11                      9,364         

Mineral property, wells and related equipment

    265,376               603                8,353               3,177                      277,509         

Refinery equipment and petrochemical plants

    42,081               7                1,316               194                      43,598         

Transportation equipment

    2,160               1                62               -                      2,223         

Materials and equipment in warehouse

    8,241               1,899                242               (1,459)                     8,923         

Drilling and work in progress

    45,051               9,181                1,300               (2,715)                     52,817         

Exploratory drilling in progress(3)

    1,781               627                55               (70)                     2,393         

Furniture, fixtures and installations

    3,314               4                102               100                      3,520         

Selling equipment

    5,520               -                175               187                      5,882         

Infrastructure for natural gas distribution

    2,888               14                -               76                      2,978         

Electric power generation facilities

    1,567               -                -               (20)                     1,547         

Other property

    5,336               12                146               (76)                     5,418         
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total 2015

    392,399               12,351                12,017               (595)                     416,172         
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total 2014

    258,603               16,087                56,188               (1,023)                     329,855         
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    2015     2014  
    Depreciation                    

Main account

  Accumulated  
at beginning
of year
    Net decreases,
 reclassifications 
and transfers
      Depreciation  
rate
        Increases        Translation 
effect
    Accumulated
at the end

of period
      Net book 
value

03-31
    Net book
value

03-31
    Net book
value

12-31
 
Land and buildings     3,779            -                 2%                  48                105            3,932            5,432             5,023             5,305        
Mineral property, wells and related equipment     192,170            -                 (1)                   4,755                5,990            202,915            74,594(2)         61,306 (2)         73,206(2)    
Refinery equipment and petrochemical plants     24,842            -                 4-5%                  509                778            26,129            17,469             15,219             17,239        
Transportation equipment     1,455            (3)                4-20%                46                39            1,537            686             554             705        
Materials and equipment in warehouse     -            -                 -                     -                -            -            8,923             6,899             8,241        
Drilling and work in progress     -            -                 -                     -                -            -            52,817             28,393             45,051        
Exploratory drilling in progress(3)     -            -                 -                     -                -            -            2,393             1,454             1,781        
Furniture, fixtures and installations     2,817            -                 10%                  61                82            2,960            560             313             497        
Selling equipment     4,215            -                 10%                  61                131            4,407            1,475             1,330             1,305        
Infrastructure for natural gas distribution     1,186            -                 2-5%                  28                52            1,266            1,712             1,612             1,702        
Electric power generation facilities     1,171            -                 5-7%                28                1            1,200            347             454             396        
Other property     3,521            -                 10%                  28                83            3,632            1,786             2,153             1,815        
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total 2015

    235,156            (3)                    5,564                7,261            247,978              168,194            
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

     

Total 2014

    164,941            -                   3,903                36,301            205,145              124,710             157,243        
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

(1)

Depreciation has been calculated according to the unit of production method.

(2)

Includes 6,345, 5,039 and 6,343 of mineral property as of March 31, 2015 and March 31, and December 31, 2014, respectively.

(3)

As of March 31, 2015, there are 59 exploratory wells in progress. During the three month periods then ended, 9 wells were drilled and 5 wells were charged to exploratory expenses.

As described in Note 1.b.6 to the annual consolidated financial statements, YPF capitalizes the financial cost as a part of the cost of the assets. For the three month periods ended on March 31, 2015 and 2014 the rate of capitalization were 12.24% and 11.86%, respectively, and the capitalized amount were 221 and 132, respectively, for the periods above mentioned.


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11

 

Set forth below is the evolution of the provision for obsolescence of materials and equipment for the three month periods ended on March 31, 2015 and 2014:

 

     For the three month period
ended March 31,
 
             2015                      2014          

Amount at beginning of year

     313                 166             

Increase charged to expenses

     2                 -             

Decreases charged to income

     -                 (4)            

Amounts incurred

     -                 (26)            

Translation differences

     10                 31             
  

 

 

    

 

 

 

Amount at end of period

     325                 167             
  

 

 

    

 

 

 
6.c)  Investments in companies:  
         March 31,    
2015
         December 31,    
2014
 

Investments in companies (Note 16)

     3,062                 3,189               

Provision for reduction in value of investments in companies

     (12)                (12)              
  

 

 

    

 

 

 
     3,050                 3,177               
  

 

 

    

 

 

 
6.d) Inventories:  
         March 31,    
2015
         December 31,    
2014
 

Refined products

     7,660                 7,720           

Crude oil and natural gas

     4,079                 4,187           

Products in process

     120                 99           

Construction works in progress

     457                 271           

Raw materials and packaging materials

     787                 724           
  

 

 

    

 

 

 
     13,103(1)              13,001(1)        
  

 

 

    

 

 

 

(1)   As of March 31, 2015 and December 31, 2014, the fair value of the inventories does not differ, significantly, from their cost.

6.e) Other receivables:

 

  March 31, 2015   December 31, 2014  
 

 

  Noncurrent  

 

 

      Current      

 

 

  Noncurrent  

 

 

      Current      

 

Trade

  -               297              -               664           

Tax credit, export rebates and production incentives

  124              1,012              130              1,066           

Trust contributions - Obra Sur

  43              19              56              22           

Loans to clients and balances with related parties(1)

  275              56              231              53           

Collateral deposits

  450              496              528              435           

Prepaid expenses

  15              964              39              451           

Advances and loans to employees

  7              283              7              299           

Advances to suppliers and custom agents(2)

  -              1,889              -              2,224           

Receivables with partners in Joint Operations

  709              1,041              612              764           

Insurance receivables (Note 11.b)

  -              1,620              -              1,068           

Miscellaneous

  393              167              95              227           
  

 

 

    

 

 

    

 

 

    

 

 

 
  2,016              7,844              1,698              7,273           

Provision for other doubtful accounts

  (12)             (104)             (7)             (103)          
  

 

 

    

 

 

    

 

 

    

 

 

 
        2,004                    7,740                    1,691                    7,170           
  

 

 

    

 

 

    

 

 

    

 

 

 

(1)   See Note 12 for additional information about related parties.
(2)   Includes among others, advances to customs agents for the payment of taxes and import rights related to the imports of fuels and other products.

 
6.f) Trade receivables:  
  March 31, 2015   December 31, 2014  
 

 

  Noncurrent  

 

 

      Current      

 

 

  Noncurrent  

 

 

      Current      

 

Accounts receivable and related parties(1)

  25              12,783              26              13,037           

Provision for doubtful trade receivables

  (6)             (1,096)             (7)             (866)          
  

 

 

    

 

 

    

 

 

    

 

 

 
  19              11,687              19              12,171           
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

See Note 12 for additional information about related parties.


Table of Contents

 

12

 

Changes in the provision for doubtful trade receivables

 

  For the three month period ended March 31,  
  2015   2014  
     Noncurrent            Current            Noncurrent            Current        

Amount at beginning of year

  7                 866             6                  652            

Increases charged to expenses

  -                 244             -                  7            

Increases from acquisition

  -                 -             -                  116            

Decreases charged to income

  -                 (13)            -                  (4)           

Amounts incurred

  -                 -             -                  4            

Translation differences

  (1)                (1)            2                  38            
  

 

 

    

 

 

    

 

 

    

 

 

 

Amount at the end of period

  6                 1,096             8                  813            
  

 

 

    

 

 

    

 

 

    

 

 

 

6.g) Cash and cash equivalents:

 

         March 31,    
2015
       December 31,  
2014
 

Cash

     9,893                 6,731             

Short-term investments

     885                 1,492             

Financial assets at fair value through profit or loss

     261                 1,535             
  

 

 

    

 

 

 
  11,039              9,758             
  

 

 

    

 

 

 

6.h) Provisions:

 

  Provision for pending
lawsuits and
contingencies
  Provision for
environmental liabilities
  Provision for
hydrocarbon wells
abandonment obligations
  Provision
for pensions
 
    Noncurrent       Current       Noncurrent       Current       Noncurrent       Current       Noncurrent       Current    

Amount as of December 31, 2014

  7,014             851           1,269             1,145           18,087             376           194             27          

Increases charged to expenses

  312             41           69             -           374             -           3             -          

Decreases charged to income

  (68)            (4)          -             -           -             (63)          -             -          

Amounts incurred

  (30)            (180)          -             (157)          -             -           -             (26)         

Translation differences

  159             8           26             12           506             76           6             2          

Reclassifications and other

  (171)            171           (18)            18           (4)            (7)          (26)            26          
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Amount as of March 31, 2015

  7,216             887           1,346             1,018           18,963             382           177             29          
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  Provision for pending
lawsuits and
contingencies
  Provision for
environmental liabilities
  Provision for
hydrocarbon wells
abandonment

obligations
  Provision
for pensions
 
  Noncurrent   Current   Noncurrent   Current   Noncurrent   Current   Noncurrent   Current  

Amount as of December 31, 2013

  5,020             159           764             926           13,220             289           168             22          

Increases charged to expenses

  274             3           37             -           313             -           2             -          

Decreases charged to income

  (10)            (14)          -             -           -             -           -             -          

Increase from subsidiaries acquisition

  26             -           21             2           724             14           -             -          

Amounts incurred

  (10)            (532)          -             (108)          (40)            (51)          -             (3)         

Translation differences

  678             16           123             60           1,589             38           33             8          

Increase from joint operation interest acquisition

  -             -           -             -           364             101           -             -          

Reclassifications and other

  (538)            538           (37)            37           -             -           -             -          
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Amount as of March 31, 2014

  5,440             170           908             917           16,170             391           203             27          
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

6.i) Income tax:

According to IAS 34, income tax expense is recognized in each interim period based on the best estimate of the effective income tax rate expected as of the year-end. Amounts calculated for income tax expense for the three-month period ended March 31, 2015 may have to be adjusted in subsequent periods if, based on new judgement elements, the estimate of the effective expected income tax rate changes.


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13

 

The calculation of the income tax expense accrued for the three month periods ended March 31, 2015 and 2014 is as follows:

 

     For the three month period
ended March 31,
 
               2015                          2014            

Current income tax

     (1,619)                  (139)           

Deferred income tax

     (318)                  (6,038)           
  

 

 

    

 

 

 
     (1,937)                  (6,177)           
  

 

 

    

 

 

 

The reconciliation of pre-tax income included in the condensed interim consolidated statement of comprehensive income, at the statutory tax rate, to the income tax as disclosed in the condensed interim consolidated statements of comprehensive income for the three month periods ended March 31, 2015 and 2014, respectively, is as follows:

 

     For the three month period
ended March 31,
 
               2015                          2014            

Net income before income tax

     4,046                   8,964             

Statutory tax rate

     35%                   35%             
  

 

 

    

 

 

 

Statutory tax rate applied to net income before income tax

     (1,416)                  (3,137)            

Effect of the valuation of fixed assets and intangible assets measured in functional currency

     (1,183)                  (6,337)            

Exchange differences

     983                   4,123             

Effect of the valuation of inventories measured in functional currency

     (150)                  (646)            

Loss from investments in companies

     (13)                  (1)            

Non-taxable income- Law No. 19,640 (Tierra del Fuego)

     3                   2             

Miscellaneous

     (161)                  (181)            
  

 

 

    

 

 

 

Income tax expense

     (1,937)                  (6,177)            
  

 

 

    

 

 

 

The Company did not recognize deferred income tax assets amounting to 3,493 and 3,511 as of March 31, 2015 and December 31, 2014, respectively, from which 1,888 and 1,953 corresponds to taxable temporary differences not recoverable and 1,605 and 1,558 corresponds to tax loss carry forwards from a foreign subsidiary, since they do not meet the recognition criteria set forth under IFRS. From the tax loss carry forwards above mentioned, as of March 31, 2015, 1,576 will expire between the years 2017 and 2032 and 29 have an indefinite due date.

The composition of the Company’s deferred income tax assets and liabilities as of March 31, 2015 and December 31, 2014, is as follows:

 

         March 31,    
2015
         December 31,    
2014
 

Deferred tax assets

     

Nondeductible provisions and other liabilities

     2,596                2,479            

Tax loss and other tax credits

     229                222            

Miscellaneous

     19                17            
  

 

 

    

 

 

 

Total deferred tax assets

     2,844                2,718            
  

 

 

    

 

 

 

Deferred tax liabilities

     

Fixed assets

     (19,726)               (19,250)           

Miscellaneous

     (2,140)               (2,172)           
  

 

 

    

 

 

 

Total deferred tax liabilities

     (21,866)               (21,422)           
  

 

 

    

 

 

 

Net deferred tax liability

     (19,022)               (18,704)           
  

 

 

    

 

 

 

As of March 31, 2015 and December 31, 2014, 261 and 244, respectively, have been classified as deferred income tax assets and 19,283 and 18,948, respectively, as deferred income tax liabilities arising from the deferred income tax net balance of each individual company that take part in these Condensed Interim Consolidated Financial Statements.

As of March 31, 2015 and December 31, 2014, the causes that generated charges in “Other comprehensive income” did not generate temporary differences subject to income tax.


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14

 

6.j) Loans:

 

    Interest rate (1)     March 31, 2015   December 31, 2014  
  Principal
    maturity    
  Noncurrent         Current         Noncurrent         Current      

Negotiable obligations in Argentine Pesos

20.26-26.00% 2015-2024   11,905            2,018            10,858            2,329         

Negotiable obligations in foreign currency(2)(4)

0.10-10.00% 2015-2028   27,307            1,739            22,472            1,257         

Exports prefinancing in foreign currency

4.00-7.25% 2015   -            2,652            -            2,428         

Imports financing in foreign currency

4.26-7.05% 2015   -            2,786            -            2,848         

Loans in Argentine Pesos(3)

15.00-26.00%   2015-2018     1,049            1,746            847            637         

Loans in foreign currency

2.00-6.38% 2015-2019   1,651            1,563            1,853            1,378         

Account overdraft

18.00-20.25% 2015   -            2,300            -            2,398         
       

 

 

    

 

 

    

 

 

    

 

 

 
  41,912            14,804            36,030            13,275         
       

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

Annual interest rate as of March 31, 2015.

(2)

Disclosed net of 264 and 252, corresponding to YPF’s outstanding Negotiable Obligations repurchased through open market transactions as of March 31, 2015 and December 31, 2014, respectively.

(3)

Includes 1,482 corresponding to loans granted by Banco Nación Argentina, of which 315 accrue fixed interest rate of 15% until December 2015 and then accrue variable interest of BADLAR plus a spread of 4 percentage points and 1,167 accrue variable interest of BADLAR plus a spread of 4 percentage points with a maximum lending interest rate of the overall portfolio of Banco Nación. See additionally Note 12.

(4)

Includes 7,351 and 7,129 as of March 31, 2015 and December 31, 2014, respectively, of face value negotiable obligations, to be cancelled in argentine pesos at the prevailing exchange rate according to terms of issued series.

The breakdown of the Company’s borrowings as of March 31, 2015 and 2014 is as follows:

 

         For the three month periods    
ended March 31,
 
     2015      2014  

Amount at beginning of year

     49,305                  31,890            

Proceeds from loans

     10,784                  4,252            

Payments of loans

     (4,632)                 (2,143)           

Payments of interest

     (1,379)                 (939)           

Accrued interest

     1,565                  1,555            

Exchange differences and translation, net

     1,073                  4,055            
  

 

 

    

 

 

 

Amount at the end of period

     56,716                  38,670            
  

 

 

    

 

 

 

On February 5, 2015 the General Shareholder’s Meeting of YPF approved an increase of the amount of the Global Medium - Term Notes (“M.T.N.”) Program of the Company for US$ 3,000 million, for a total maximum nominal outstanding amount at any time of the Program of US$ 8,000 million or its equivalent in other currencies.

In February 2015, the Company issued Additional Negotiable Obligations of Class XXVI and XXVIII for an amount of US$ 175 million and US$ 325 million, respectively. The Additional Class XXVI shall accrue interest at an annual nominal fixed rate of 8.875% with the principal amount falling due in 2018. The Additional Class XXVIII shall accrue interest at an annual nominal fixed rate of 8.75% and the principal maturing expires between 2022 and 2024.

Likewise, Negotiable Obligations Class XXXVI and XXXVII were issued for an amount of 950 and 250, respectively. Class XXXVI shall accrue interest at a variable interest rate, with the principal amount maturing in 2020. Class XXXVII shall accrue an annual nominal fixed interest rate of 25.75% for the first twelve months, and thereafter shall be variable, with the repayment of principal expiring in 2017.


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15

 

Details regarding the Negotiable Obligations of the Company are as follows:

 

(in millions)         Book value  
Issuance  

 

        March 31, 2015   December 31, 2014  
Month   Year       Principal  
value
    Class

Interest rate(3)

    Principal  
maturity
Noncurrent     Current     Noncurrent     Current    
    - YPF:
-   1998      US$ 15     (1) (6)              - Fixed   10.00%     2028   61          5           62          2       
September   2012      $ 1,200     (2) (4) (6) Class VIII BADLAR plus 4%   24.31%     2015   -          405           -          809       
October and
December
  2012      US$ 552     (2)(4)(5)(6) Class X Fixed   6.25%     2016   4,836          60           4,690          59       
November and
December
  2012      $ 2,110     (2) (4) (6) Class XI BADLAR plus 4.25%   24.30%     2017   2,110          66           2,110          70       
December and
March
  2012/3      $ 2,828     (2) (4) (6) Class XIII BADLAR plus 4.75%   25.15%     2018   2,828          23           2,828          23       
April   2013      $ 2,250     (2) (4) (6) Class XVII BADLAR plus 2.25%   22.20%     2020   2,250          83           2,250          89       
April   2013      US$ 59     (2) (5) (6) Class XVIII Fixed   0.10%     2015   -          517           -          502       
April   2013      US$ 89     (2) (5) (6) Class XIX Fixed   1.29%     2017   780          2           757          2       
June   2013      $ 1,265     (2) (4) (6) Class XX BADLAR plus 2.25%   22.61%     2020   1,265          11           1,265          11       
July   2013      US$ 73     (2) (5) (6) Class XXII Fixed   3.50%     2020   531          110           515          107       
October   2013      US$ 124     (2) Class XXIV LIBOR plus 7.50%   7.73%     2018   773          319           825          311       
October   2013      $ 300     (2) (6) Class XXV BADLAR plus 3.24%   23.21%     2015   -          313           -          314       
December and
February
  2013/5      US$ 751     (2) Class XXVI Fixed   8.88%     2018   6,585          166           4,899          16       
March   2014      $ 500     (2) (6) Class XXIX BADLAR   20.26%     2020   500          7           500          7       
March   2014      $ 379     (2) (6) Class XXX BADLAR plus 3.50%   23.78%     2015   -          384           -          384       
April and February   2014/5      US$ 1,325     (2) Class XXVIII Fixed   8.75%     2024   11,615          237           8,501          180       
June   2014      $ 201     (2) (6) Class XXXI Variable(7)   26.00%     2015   -          205           -          205       
June   2014      $ 465     (2) Class XXXII BADLAR plus 3.20%   23.48%     2016   -          472           155          316       
June   2014      US$ 66     (2) (5) Class XXXIII Fixed   2.00%     2017   389          194           563          1       
September   2014      $ 1,000     (2) Class XXXIV BADLAR plus 0.10%   20.27%     2024   1,000          4           1,000          54       
September   2014      $ 750     (2) (4) Class XXXV BADLAR plus 3.50%   23.67%     2019   750          4           750          47       
February   2015      $ 950     (2) Class XXXVI BADLAR plus 4.74%   25.49%     2020   950          33           -          -       
February   2015      $ 250     (2) (8) Class XXXVII BADLAR plus 3.49%   25.75%     2017   250          8           -          -       
    - MetroGAS:
January   2013      US$ 177     Series A-L Fixed   8.875%     2018   1,239          34           1,186          1       
January   2013      US$ 18     Series A-U Fixed   8.875%     2018   125          4           120          -       
    - GASA:
March   2013      US$ 57     Series A-L Fixed   8.875%     2015   368          91           347          76       
March   2013      US$    (9) Series A-U Fixed   8.875%     2016   7          -           7          -       
               

 

 

   

 

 

   

 

 

   

 

 

 
  39,212          3,757           33,330          3,586       
               

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

Corresponds to the 1997 M.T.N. Program for US$1,000 million.

(2)

Corresponds to the 2008 M.T.N. Program expanded on February 2015 up to US$8,000 million.

(3)

Interest rate as of March 31, 2015.

(4)

The ANSES and/or the Argentine Hydrocarbons Fund have participated in the primary subscription of these negotiable obligations, which may at the discretion of the respective holders, be subsequently traded in the securities market where these negotiable obligations are authorized to be traded.

(5)

The payment currency of these Negotiable Obligations is the Argentine Peso at the Exchange rate applicable under the terms of the series issued.

(6)

As of the date of issuance of these financial statements, the Company has fully complied with the use of proceeds disclosed in the pricing supplements.

(7)

Accrue an annual variable interest rate equivalent to the sum of a floor interest rate of 20% plus a spread related to YPF’s total hydrocarbons production (natural gas, oil-condensate and gasoline), according to the information of the National Secretariat of Energy with a maximum interest rate of 26%.

(8)

Until the course of twelve months since the date of issuance and liquidation to a fixed nominal annual rate of 25.75%; and from the course of twelve months since the date of issuance and liquidation and until the date of maturity of the negotiable obligations to a variable nominal annual rate of BADLAR plus 3.49%.

(9)

The expiration date of the original capital is December 2015, with the possibility of being extended to December 2016, if certain conditions are fulfilled (see Note 2.i to the annual consolidated financial statements).


Table of Contents

 

16

 

6.k) Accounts payable:

 

     March 31, 2015      December 31, 2014  
     Noncurrent      Current      Noncurrent      Current  

Trade and related parties(1)

     78               26,672               66               28,331       

Investments in companies with negative shareholders’ equity

     -               2               -               2       

Extension of Concessions

     341               349               332               884       

Miscellaneous

     152               1,371               168               1,189       
  

 

 

    

 

 

    

 

 

    

 

 

 
             571                     28,394                       566                     30,406       
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1)

For more information about related parties, see additionally Note 12.

6.l) Revenues:

 

     For the three month periods
ended March 31,
 
     2015      2014  

Sales(1)

     35,959                31,852          

Revenues from construction contracts

     102                6          

Turnover tax

     (1,359)               (1,194)         
  

 

 

    

 

 

 
           34,702                      30,664          
  

 

 

    

 

 

 

 

(1)

Includes 2,452 and 1,564 for the three month period ended on March 31, 2015 and 2014, respectively, associated with revenues related to the natural gas additional injection stimulus program created by Resolution 1/2013 of the Planning and Strategic Coordination Commission of the National Plan of Hydrocarbons Investment.

The table below details information related to the construction contracts as of March 31, 2015 and 2014:

 

            Contracts in progress  
     Revenues of
the period
     Costs incurred
plus accumulated
recognized profits
     Advances
received
     Retentions  

2015

             102                     571                                 -                             -               
  

 

 

    

 

 

    

 

 

    

 

 

 

2014

     6                                 2,359                                 452                             -               
  

 

 

    

 

 

    

 

 

    

 

 

 

6.m) Cost of sales

 

     For the three month periods
ended March 31,
 
     2015      2014  

Inventories at beginning of year

     13,001                9,881          

Purchases for the period

     6,535                7,853          

Production costs

     19,275                14,783          

Translation effect

     368                2,089          

Inventories at end of period

         (13,103)                   (11,590)         
  

 

 

    

 

 

 

Cost of sales

     26,076                23,016          
  

 

 

    

 

 

 


Table of Contents

 

17

 

6.n) Expenses

 

     For the three months periods ended March 31,  
     2015      2014  
     Production
costs
     Administrative
expenses
     Selling
expenses
     Exploration
expenses
     Total      Total  
  

 

 

    

 

 

    

 

 

 

Salaries and social security taxes

     1,808               467                     263             39                 2,577            1,814      

Fees and compensation for services

     159               301(2)                  58             1                 519            437      

Other personnel expenses

     507               58                     25             9                 599            427      

Taxes, charges and contributions

     400               52                     637             -                 1,089(1)         1,332(1)   

Royalties and easements

     2,751               -                     4             9                 2,764            2,041      

Insurance

     225               19                     14             1                 259            140      

Rental of real estate and equipment

     749               5                     93             -                 847            651      

Survey expenses

     -               -                     -             17                 17            43      

Depreciation of fixed assets

     5,380               67                     117             -                 5,564            3,903      

Amortization of intangible assets

     37               26                     4             2                 69            73      

Industrial inputs, consumable materials and supplies

     834               5                     16             -                 855            723      

Operation services and other service contracts

     1,656               54                     130             -                 1,840            1,857      

Preservation, repair and maintenance

     3,052               54                     40             6                 3,152            2,256      

Unproductive exploratory drillings

     -               -                     -             107                 107            68      

Transportation, products and charges

     1,055               2                     817             -                 1,874            1,535      

Provision for doubtful trade receivables

     -               2                     235             -                 237            3      

Publicity and advertising expenses

     -               60                     9             -                 69            81      

Contractual commitments

     17               -                     -             -                 17            23      

Fuel, gas, energy and miscellaneous

     645               26                     130             -                 801            594      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total 2015

     19,275                       1,198                     2,592             191                   23,256         
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total 2014

         14,783               817                         2,204                     197                      18,001      
  

 

 

    

 

 

    

 

 

    

 

 

       

 

 

 

 

(1)

Includes approximately 234 and 484 corresponding to hydrocarbon export withholdings for the three month periods ended March 31, 2015 and 2014, respectively.

(2)

Includes 40 of YPF’s Directors and Statutory Auditor’s fees and remunerations for all concepts. On April 30, 2015, the General Ordinary and Extraordinary Shareholder’s meeting of YPF decided to ratify fees for the year 2014 for 123 and decided to approve as fees and remunerations for all concepts in advance for the year 2015 the sum of approximately 146.

The expense recognized in the statement of comprehensive income related to research and development activities during the three month periods ended March 31, 2015 and 2014 amounted to 51 and 30, respectively.

6.ñ) Other operating income, net

 

     For the three month periods
ended March 31,
 
     2015      2014  

Lawsuits

     (129)                 (90)           

Miscellaneous

     (47)                 44            
  

 

 

    

 

 

 
             (176)                         (46)           
  

 

 

    

 

 

 

7. INVESTMENTS IN COMPANIES AND JOINT VENTURES AND OTHER AGREEMENTS

YPF does not participate in subsidiaries with significant non-controlling interest. Furthermore, no investments in companies or joint ventures are deemed individually material.

The following table shows in aggregate, considering that none of the companies are individually material, the amount of investments in companies and joint ventures as of March 31, 2015 and December 31, 2014:

 

     March 31,
2015
     December 31,
2014
 

Amount of investments in companies

     782                757          

Amount of investments in joint ventures

     2,280                2,432          

Provision for reduction in value of holdings in companies

     (12)               (12)         
  

 

 

    

 

 

 
           3,050                      3,177          
  

 

 

    

 

 

 

Investments in companies with negative shareholders’ equity are disclosed in “Accounts payable”.


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The main changes that affected the amount of the investments previously mentioned, during the three-month periods ended on March 31, 2015 and 2014, are the following:

 

     For the three-month periods
ended on March 31,
 
     2015      2014  

Amount at the beginning of year

             3,177                               2,124             

Acquisitions and contributions

     2                       85             

Loss from investments in companies and joint ventures

     (38)                      (3)            

Dividends distributed

     (150)                      -              

Translation difference

     59                       340             

Reclassification of investments in companies with negative shareholders’ equity

     -                       6             
  

 

 

    

 

 

 

Amount at the end of period

     3,050                       2,552             
  

 

 

    

 

 

 

Note 16 provides information of investments in companies.

The following table shows the main magnitudes of income (expenses) from the investments in companies, calculated according to the equity method, for the three-month periods ended on March 31, 2015 and 2014. YPF has made adjustments, where applicable, to the amounts reported by such companies in order to conform the accounting principles used by such companies to those used by YPF:

 

     Affiliated
companies
     Joint ventures  
         2015              2014              2015              2014      

Net income

     24              (68)            (62)            65        

Other comprehensive income

     3              14             56             326        
  

 

 

    

 

 

    

 

 

    

 

 

 

Comprehensive income for the period

     27              (54)            (6)            391        
  

 

 

    

 

 

    

 

 

    

 

 

 

Additionally, the Company participates in Joint Operations which give to the Company a percentage contractually established over the rights of the assets and obligations that emerge from the contracts. Interest in such Joint Operations have been consolidated line by line on the basis of the mentioned interest over the assets, liabilities, income and expenses related to each contract.

The assets and liabilities as of March 31, 2015 and December 31, 2014, and expenses for the three-month periods ended on March 31, 2015 and 2014 of the Joint Operations and other agreements are as follows:

 

             March 31,        
2015
           December 31,      
2014
 

Noncurrent assets

     24,426                     21,275                 

Current assets

     835                     1,233                 
  

 

 

    

 

 

 

Total assets

     25,261                     22,508                 
  

 

 

    

 

 

 

Noncurrent liabilities

     3,043                     2,897                 

Current liabilities

     4,579                     4,404                 
  

 

 

    

 

 

 

Total liabilities

     7,622                     7,301                 
  

 

 

    

 

 

 
                 For the three-month periods             
ended March 31,
 
     2015      2014  

Production cost

     4,170                       1,710                 

Exploration expenses

     80                       18                 


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8. SHAREHOLDERS’ EQUITY

On April 30, 2015, a General Ordinary and Extraordinary Shareholders’ meeting was held, which has approved the financial statements of YPF for the year ended December 31, 2014 and additionally decided the following in relation with the distribution of earnings of fiscal year ended as of December 31, 2014: (i) to appropriate the amount of 120 to a reserve for future acquisition of YPF shares under the “performance and bonus program” mentioned in the Director’s report of the annual consolidated financial statements, giving to the Board of Directors the opportunity to acquire shares when it considers it convenient and to comply with the commitments assumed and to be assumed in relation with the mentioned program; (ii) to appropriate the amount of Ps 8,410 million to constitute a reserve for investment in accordance with the article 70, third paragraph of the Law No. 19,550 of Argentine Corporations as amended; and (iii) the appropriation to a reserve for future dividends in an amount of Ps 503 million, empowering the Board of Directors to determine the opportunity of payment which should not exceed the end of the present fiscal year.

9. EARNINGS PER SHARE

As of the date of issuance of these condensed interim consolidated financial statements, YPF has not issued equity instruments that give rise to potential ordinary shares (considering the Company’s intention of setting the share based benefit plans through treasury shares purchase), as a result, the calculation of diluted earnings per share coincides with the basic earnings per share.

The following table shows the net income and the number of shares that have been used for the calculation of the basic earnings per share:

 

     For the three-month periods
ended on March 31,
     2015    2014

Net income

   2,127    2,881

Average number of shares outstanding

       392,352,241            392,394,963    

Basic and diluted earnings per share

   5.42    7.34

Basic and diluted earnings per share are calculated as shown in Note 1.b.14 to the annual consolidated financial statements as of December 31, 2014.

10. PROVISIONS FOR PENDING LAWSUITS, CLAIMS AND ENVIROMENTAL LIABILITES

Provisions for pending lawsuits, claims and environmental liabilities are described in Note 3 to the annual consolidated financial statements for the year ended December 31, 2014. As of March 31, 2015, the Company has accrued pending lawsuits, claims and contingencies which are probable and can be reasonably estimated, amounting to 8,103. Developments during the three-month period ended March 31, 2015, concerning more significant pending lawsuits and contingencies are described below.

In relation to environmental obligations, and in addition to the hydrocarbon wells abandonment legal obligations for 19,345, as of March 31, 2015, the Company has accrued 2,364 corresponding to environmental remediation, which evaluations and/or remediation works are probable and can also be reasonably estimated, based on the Company’s existing remediation program.

With respect to arbritation with AES Uruguaiana Emprendimientos S.A. (“AESU”), on April 24, 2015, the Arbitration Tribunal resolved to resume the arbitration process and invited the parties to discuss the continuation of arbitration and to file with the Arbitration Tribunal a joint or separate proposal on steps to be followed. Such decision was notified by YPF to the Federal Court of Appeals hearing Administrative Litigation matters on April 27, 2015, since the precautionary measure suspending the arbitration process ordered by the latter is still in force.

In relation to the Passaic River litigation initiated by New Jersey Department of Environmental Protection (“DEP”) against YPF, YPF Holding Inc. and other subsidiaries, on alleged contamination caused by dioxin and other hazardous substances from Newark plant and alleged contamination of lower Passaic River, scheduled dates were changed by “Case Management Order XXVI” dated March 9, 2015. As to the Motion for Summary Judgement, a decision thereon is expected to be rendered during the last quarter of 2015. In April 2015, Judge Garry J. Furnari was appointed as new judge in the case in replacement for Judge Lombardi, who retired in February 2015 and who was replaced for a short term by Judge Beacham.


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11.    CONTINGENT LIABILITIES, CONTINGENT ASSETS, CONTRACTUAL COMMITMENTS, MAIN REGULATIONS AND OTHERS

Contingent liabilities, contingent assets, contractual commitments, main regulations and others are described in Note 11 to the annual consolidated financial statements for the year ended December 31, 2014. Developments during the three-month period ended March 31, 2015 concerning the above are detailed below.

 

a)

Contingent Liabilities

Concerning court claims brought by the Asociación de Superficiarios de la Patagonia (“ASSUPA”) against concessionaires of the areas of the Northwest Basin, currently all terms to file answers have been stayed by reason of a request from the Company. In addition, Panamerican Energy filed a motion to disqualify the judge hearing the case and therefore, court proceedings were referred to Federal Court No. 2 sitting in Salta for a decision thereon to be rendered.

 

b)

Contingent Assets

 

 

La Plata Refinery:

Regarding Coke A and Topping C units at YPF’s facilities in La Plata refinery, YPF continues with the procedure to recover the damages regarding its loss against the insurance company.

The period under which compensation for the loss was calculated, extended until January 16, 2015. Analysis of damages up to such date are being conducted by the Company.

During the three-month period ended on March 31, 2015, a gain of 511, was recorded in the statement of Comprehensive income, under the captions Revenues and Cost of sales, depending on the nature of the claimed concept.

 

 

Cerro Divisadero:

Concerning the fire that affected the facilities of the Oil Treatment plant of Cerro Divisadero in Mendoza, the Company has selected a reconstruction project after analyzing several technological options and, as of the date of these condensed interim consolidated financial statements, the Company is working on the selection of suppliers and vendors to commence initial works.

 

c)

Contractual commitments, main regulations and others

 

Liquid hydrocarbons regulatory requirements

Dated February 3, 2015, the Argentine Republic Official Gazette published the text of Resolution No. 14/2015 passed by the Commission for Planning and Coordination of the Strategy for the National Plan of Investment in Hydrocarbons that created the Crude Oil Production Promotion Program under which beneficiary companies are awarded an economic compensation, payable in pesos, for an amount equivalent to up to three U.S. dollars per barrel for the total production of each beneficiary company, provided that its quarterly production of crude oil is higher or equal to the production taken as basis for such program. Basis production is defined as the total production of crude oil by beneficiary companies corresponding to the fourth quarter of 2014, expressed in barrels per day. The beneficiary companies that have met the demands of all refineries authorized to operate in the country and direct part of their production to the foreign market may receive an additional economic compensation of two or three U.S. dollars for each barrel of exported crude oil, depending on the level of exported volume achieved.

 

Agreements of project investments

 

   

With respect to the Investment Agreement executed by and between the Company and subsidiaries of Chevron Corporation for joint exploitation of unconventional hydrocarbons in the province of Neuquén, in Loma Campana area, during the three-month period ended March 31, 2015, the Company and Compañía de Hidrocarburo No Convencional S.R.L. (“CHNC”) have conducted operations, among which purchases of gas and crude oil by YPF for 804 can be mentioned. These operations are formalized based on general and regulatory market conditions. The net balance payable to CHNC as of March 31, 2015 amounts to 841.


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21

 

   

As of March 31, 2015, the Company has received the first tranches of the operation with Dow Europe Holding B.V. and PBB Polisur S.A. by reason of the joint exploitation of an unconventional gas pilot project in the province of Neuquén for an amount of US$ 90 million, which was recorded under “Loans” in the condensed interim consolidated balance sheet. On April 29, 2015, the Company received an additional amount of US$ 30 million, then totaling US$ 120 million as of issuance of these condensed interim consolidated financial statements.

 

   

Concerning the Investment Project Agreement (the “Agreement”) entered into on December 10, 2014, by and between the Company and Petronas E&P Argentina S.A., an affiliate of Petronas, for the joint development of a Shale oil pilot project in “La Amarga Chica” area in the province of Neuquen, the agreement provides for an exclusivity period to negotiate and execute a series of final agreements, which will become effective once a series of conditions precedents are complied with. It should be noted that on May 4, 2015, such conditions necessary for the Pilot Plan to become operative in 2015 were met.

12. BALANCES AND TRANSACTIONS WITH RELATED PARTIES

The Company enters into operations and transactions with related parties according to general market conditions, which are part of the normal operation of the Company with respect to their purpose and conditions.

The information detailed in the tables below shows the balances with joint ventures and affiliated companies as of March 31, 2015 and December 31, 2014 and transactions with the mentioned parties for the three-month period ended March 31, 2015 and 2014.

 

  March 31, 2015       December 31, 2014                           
  Trade
  receivables    
  Other    
 receivables    
   Accounts    
 payable    
      Trade    
 receivables    
  Other    
 receivables    
    Accounts  
payable
 
  Current     Current         Current             Current          Current        Current  

Joint ventures:

Profertil S.A.

  82          2          10                     56              3              16         

Compañía Mega S.A. (“Mega”)

  316          8          50             528              7              40         

Refinería del Norte S.A. (“Refinor”)

  125          -          17             145              -              11         

Bizoy S.A.

  2          1          -             4              -              -         
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   
  525          11          77             733              10              67         
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

Affiliated companies:

Central Dock Sud S.A.

  246          -          -             89              -              -         

Oleoductos del Valle S.A.

  -          -          34             -              -              33         

Terminales Marítimas Patagónicas S.A.

  -          2          20             -              -              28         

Oleoducto Trasandino (Argentina) S.A.

  -          -          2             -              -              2         

Gasoducto del Pacífico (Argentina) S.A.

  -          6          15             -              6              7         

Oiltanking Ebytem S.A.

  -          -          27             -              -              25         
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   
  246          8          98             89              6              95         
 

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   
  771          19          175             822              16              162         
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

  For the three-month period ended on March 31,                                                
  2015     2014
      Revenues       Purchases
 and services 
        Revenues       Purchases
 and services  
    Interest gain  
(lost), net

Joint ventures:

Profertil S.A.

  144             26              58              41             -

Mega

  400             58              728              54             -

Refinor

  191             20              163              39             -

Bizoy S.A.

  -             -              5              -             -
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 
  735             104              954              134             -
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

Affiliated companies:

Central Dock Sud S.A.

  138             -              117              -             6

Oleoductos del Valle S.A.

  -             48              -              51             -

Terminales Marítimas Patagónicas S.A.

  -             48              -              47             -

Oleoducto Trasandino (Argentina) S.A.

  -             6              -              3             -

Gasoducto del Pacífico (Argentina) S.A.

  -             24              -              21             -

Oiltanking Ebytem S.A.

  -             42              -              34             -
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 
  138             168              117              156             6
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 
  873             272              1,071              290             6
 

 

 

   

 

 

     

 

 

   

 

 

   

 

 

Additionally, in the normal course of business, and taking into consideration that YPF is the main oil and gas company in Argentina, its client/suppliers’ portfolio encompasses both private sector entities as well as national, provincial and municipal public sector entities. As required by IAS 24 “Related party disclosures”, among the major transactions above mentioned the most important are:


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CAMMESA: the provision of fuel oil, which is destined to thermal power plants, and the purchases of energy (the operations of sale and purchase for the three month period ended on March 31, 2015 amounted to 3,168 and 287, respectively, and on March 31, 2014 amounted to 1,695 and 180, respectively, while the net balance as of March 31, 2015 and December 31, 2014 was a trade receivable of 1,198 and 1,010, respectively);

 

 

   

ENARSA: rendering of regasification service in the regasification projects of GNL in Escobar and Bahía Blanca and the purchase of natural gas to ENARSA, imported by the mentioned company from Bolivia and crude oil (the operations for the three month period ended on March 31, 2015, amounted to 365 and 9, respectively, and on March 31, 2014 amounted to 302 and 240, respectively, while the net balance as of March 31, 2015 and December 31, 2014 was a trade receivable of 277 and 192, respectively);

 

   

Aerolíneas Argentinas S.A. and Austral Líneas Aéreas Cielos del Sur S.A.: the provision of jet fuel (the operations for the three month periods ended on March 31, 2015 and 2014, amounted to 538 and 558, respectively, while the net balance as of March 31, 2015 and December 31, 2014 was a trade receivable of 154 and 183, respectively),

 

   

Department of Federal Planning Investment and Services: the benefits of the incentive scheme for the Additional Injection of natural gas, among others, (the operations for the three month periods ended on March 31, 2015 and 2014, amounted to 2,452 and 1,564, respectively, while the net balance as of March 31, 2015 and December 31, 2014 was a trade receivable of 3,784 and 3,390, respectively);

 

   

Argentine Secretariat of Domestic Commerce: the compensation for providing gas oil to public transport of passengers at a differential price (the operations for the three month periods ended on March 31, 2015 and 2014, amounted to 799 and 657, respectively, while the net balance as of March 31, 2015 and December 31, 2014 was a trade receivable of 145 and 244, respectively).

Such transactions are generally based on medium-term agreements and are provided according to general market or regulatory conditions, as applicable.

Additionally, the Company has entered into certain financing and insurance transactions with entities related to the national public sector, as defined in IAS 24. Such transactions consist of certain financial transactions that are described in Note 6.j) of these condensed interim financial statements, and transactions with Nación Seguros S.A. related to certain insurance policies contracts, and in connection therewith, to the reimbursement from the insurance coverage for the incident occurred in Refinería La Plata in April, 2013 (for further detail see Note 11.b).

Furthermore, in relation to the investment agreement signed between YPF and Chevron subsidiaries, YPF has an indirect non-controlling interest in CHNC with which YPF carries out transactions in connection with the above mentioned investment agreement (for further detail see Note 11.c).

The table below discloses the compensation for the Company’s key management personnel, including members of the Board of Directors and vice presidents (managers with executive functions appointed by the Board of Directors), for the three-month periods ended March 31, 2015 and 2014:

 

             2015(1)        

 

             2014(1)        

 

 

Short-term employee benefits

     50                 31           

Share-based benefits

     14                 10           

Post-retirement benefits

     1                 1           
  

 

 

    

 

 

 
     65                 42           
  

 

 

    

 

 

 

 

(1)

Includes the compensation for YPF’s key management personnel which developed their functions during the mentioned periods.

13. EMPLOYEE BENEFIT PLANS AND OTHER OBLIGATIONS

Note 1.b.10 to the annual consolidated financial statements describes the main characteristics and accounting treatment for benefit plans implemented by the Company. The charges recognized during the three-months period ended on March 31, 2015 and 2014 are as follows:

 

i.

Retirement plan:

The total charges recognized under the Retirement Plan amounted to approximately 16 and 12 for the three month periods ended on March 31, 2015 and 2014, respectively.


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23

 

ii.

Performance Bonus Programs:

The amount charged to expense related to the Performance Bonus Programs was 233 and 174 for the three month periods ended on March 31, 2015 and 2014, respectively.

 

iii.

Share-based benefit plan:

The amounts recognized in net income in relation with the Share-based Plans, which are disclosed according to their nature, amounted to 27 and 14 for the three month periods ended on March 31, 2015 and 2014, respectively.

14. INFORMATION REQUIRED BY GENERAL RESOLUTION NO. 629 OF THE CNV

Due to General Resolution No. 629 of the CNV, the Company informs that supporting documentation of YPF’s operations, which is not in YPF’s headquarters, is stored in the following companies:

 

Adea S.A. located in Barn 3 – Route 36, Km. 31.5 – Florencio Varela – Province of Buenos Aires.

 

File S.R.L., located in Panamericana and R.S. Peña – Blanco Escalada – Luján de Cuyo –Province of Mendoza.

15. INFORMATION REQUIRED BY GENERAL RESOLUTION NO. 622 OF THE CNV

 

a)

Pursuant to section 1, Chapter III, Title IV of such resolution, there follows a detail of the notes to the condensed interim consolidated financial statements containing information required under the Resolution in the form of exhibits.

 

Exhibit A – Fixed Assets

 

Note 6.b) Fixed Assets

Exhibit B – Intangible assets

 

Note 6.a) Intangible assets

Exhibit C – Investments in companies

 

Note 16 Investments in companies

Exhibit D – Other investments

 

N/A

Exhibit E– Provisions

 

Note 6.f) Trade receivables

Note 6.e) Other receivables

Note 6.b) Fixed Assets

Note 6.c) Investments in companies

Note 6.h) Provisions

Exhibit F – Cost of goods sold and services rendered

 

Note 6.m) Cost of sales

Exhibit G – Assets and liabilities in foreign currency

 

Note 17 Assets and liabilities in foreign currency

 

b)

Minimum Shareholders’ equity and liquid counterparty

In compliance with the CNV General Resolution No. 622, the Minimum Shareholders’ equity required to act as Settlement and Clearing Agent is 3.5, and the minimum liquid counterparty required is 1.75. The previously mentioned amount is covered as of December 31, 2014 by the accounting balance of 29 recorded in the general ledger account identified in YPF records with number 5731204362 (denominated “BANCO DE GALICIA, EXTRACTO C/C – ARP”). As of March 31, 2015, Shareholders’ equity exceeds the minimum required by the controlling agency.


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16. INVESTMENTS IN COMPANIES

a) Consolidated companies

 

  2015    
     

Information of the issuer

 
  Description of the Securities       Last Financial Statements Available      

Name and Issuer

Class   Face Value   Amount  

Main Business

Registered Address

Date     Capital    
Stock
    Income (Loss)       Equity        Holding in Capital 
Stock
 

Controlled companies:(9)

YPF International S.A.(7)

  Common      Bs. 100            2,535,114    Investment Calle La Plata 19, Santa Cruz de la Sierra, República de Bolivia 03-31-2015   319           1   13           99.99%           

YPF Holdings Inc.(7)

  Common      US$ 0.01            810,614    Investment and finance 10333 Richmond Avenue I, Suite 1050, TX, USA 03-31-2015   7,105             (91)   (2,294)      100.00%           

Operadora de Estaciones de Servicios S.A.

  Common      $      1            163,701,747    Commercial management of YPF’s gas stations Macacha Güemes 515, Buenos Aires, Argentina 03-31-2015   164           88   643         99.99%           

A-Evangelista S.A.

  Common      $      1            307,095,088    Engineering and construction services Macacha Güemes 515, Buenos Aires, Argentina 03-31-2015   307           13   538         100.00%           

YPF Servicios Petroleros S.A.

  Common      $      1            50,000    Wells perforation and/or reparation services Macacha Güemes 515, Buenos Aires, Argentina 12-31-2011   -(8)           30   39         100.00%           

YPF Inversora Energética S.A.

  Common      $      1            67,608,000    Investment Macacha Güemes 515, Buenos Aires, Argentina 03-31-2015   76           (116)   (707)      100.00%           

YPF Energía Eléctrica S.A.

  Common      $      1            30,006,540    Exploration, development, industrialization and marketing of hydrocarbons, and generation, transportation and marketing of electric power

Macacha Güemes 515,

Buenos Aires, Argentina

03-31-2015   30           78   771         100.00%           

YPF Chile S.A.(10)

  Common      -        -            50,968,649    Lubricants and aviation fuels trading and hydrocarbons research and exploration Villarica 322, Módulo B1, Quilicura, Santiago 03-31-2015   403           (7)   602         100.00%           

YPF Tecnología S.A.

  Common      $      1            98,991,000    Investigation, development, production and commercialization of technologies, knowledge, goods and services. Macacha Güemes 515, Buenos Aires, Argentina 03-31-2015   194           23   375         51.00%           

YPF Europe B.V. (7)

  Common      US$   0.01          15,660,437,309    Investment and finance Prins Bernardplein 200, 1097 JB, Amsterdam, Holanda 12-31-2014   1,331           81   1,416         100.00%           

YSUR Argentina Investment S.à.r.l.(7)

  Common      US$       1          20,001    Investment

13-15, Avenue de la Lierté,

L-1931, Luxemburgo

12-31-2014   -(8)           (1,631)   2,906         100.00%           

YSUR Argentina Corporation (7)

  Common      US$       1          10,000,001    Investment Boundary Hall, Cricket Square P.O. Box 1111 George Town, Grand Cayman, Cayman Islands KY1-1102 12-31-2014   85              (382)   252         100.00%           

YSUR Petrolera Argentina
S.A.(7)

  Common      $        1          634,284,566    Exploration, extraction, exploitation, storage, transportation, industrialization and marketing of hydrocarbons, as well as other operations related thereto. Tucumán 1, P. 12, Buenos Aires, Argentina 03-31-2015   634                   (2)   362         100.00%           

b) Companies valued using the equity method

 

  2015      
                   

Information of the issuer

  December 31,
2014
 
  Description of the Securities               Last Financial Statements Available      

Name and Issuer

Class Face Value   Amount   Book Value(3)     Cost(2)      

Main Business

Registered Address

Date   Capital
Stock
  Income (Loss)       Equity       Holding in
    Capital Stock    
  Book Value(3)  

Joint Ventures:

Compañía Mega
S.A.(6)(7)

Common $ 1        244,246,140      814        -        Separation, fractionation and transportation of natural gas liquids San Martín 344, P. 10º, Buenos Aires, Argentina   12-31-2014      643          204          1,060          38.00%          778       

Profertil S.A.(7)

Common $ 1        391,291,320      1,093        -        Production and marketing of fertilizers Alicia Moreau de Justo 740, P. 3°, Buenos Aires, Argentina   12-31-2014      783          490          1,448          50.00%          1,231       

Refinería del Norte S.A.

Common $ 1        45,803,655      374        -        Refining Maipú 1, P. 2º, Buenos Aires, Argentina   12-31-2014      92          290          868          50.00%          423       
       

 

 

   

 

 

                 

 

 

 
  2,281        -          2,432       
       

 

 

   

 

 

                 

 

 

 

Affiliated Companies:

Oleoductos del Valle S.A.

Common $ 10        4,072,749      111   (1)    -        Oil transportation by pipeline Florida 1, P. 10°, Buenos Aires, Argentina   03-31-2015      110          14          310          37.00%          99     (1) 

Terminales Marítimas Patagónicas S.A.

Common $ 10        476,034      68        -        Oil storage and shipment Av. Leandro N. Alem 1180, P.11°, Buenos Aires, Argentina   12-31-2014      14          40          213          33.15%          71       

Oiltanking Ebytem
S.A.(7)

Common $ 10        351,167      105        -        Hydrocarbon transportation and storage Terminal Marítima Puerto Rosales – Provincia de Buenos Aires, Argentina   03-31-2015      12          24          149          30.00%          88       

Gasoducto del Pacífico (Argentina) S.A.

Preferred $ 1        15,579,578      23        -        Gas transportation by pipeline San Martín 323, P. 13º, Buenos Aires, Argentina   12-31-2014      156          60          232          10.00%          14       

Central Dock Sud S.A.

Common $ 0.01        11,869,095,147      103        136        Electric power generation and bulk marketing Pasaje Ingeniero Butty 220, P. 16°, Buenos Aires, Argentina   12-31-2014      1,231          50          1,146          10.25%     (5)    110       

Inversora Dock Sud S.A.

Common $ 1        355,270,303      333        445        Investment and finance Pasaje Ingeniero Butty 220, P. 16°, Buenos Aires, Argentina   12-31-2014      829          103          837          42.86%          336       

Oleoducto Trasandino (Argentina) S.A.

Preferred $ 1        12,135,167      22        -        Oil transportation by pipeline Macacha Güemes 515, P. 3°, Buenos Aires, Argentina   12-31-2014      34          14          62          36.00%          22       

Other companies:

Others (4)

- - -        17        126        - -   -      -          -          -          -          17       
       

 

 

   

 

 

                 

 

 

 
  782        707          757       
       

 

 

   

 

 

                 

 

 

 
  3,063        707          3,189       
       

 

 

   

 

 

                 

 

 

 

 

(1)

Holding in shareholders’ equity, net of intercompany profits.

(2)

Cost net of cash dividends and stock reduction.

(3)

Holding in shareholders’ equity plus adjustments to conform to YPF accounting methods.

(4)

Includes Gasoducto del Pacífico (Cayman) Ltd., A&C Pipeline Holding Company, Poligás Luján S.A.C.I.,Oleoducto Transandino (Chile) S.A., Bizoy S.A., Civeny S.A. and Bioceres S.A.

(5)

Additionally, the Company has a 29.99% indirect holding in capital stock through Inversora Dock Sud S.A.

(6)

As stipulated by shareholders’ agreement, joint control is held in this company by shareholders.

(7)

The U.S. dollar has been defined as the functional currency of this company.

(8)

No value is disclosed as the carrying value is less than 1.

(9)

Additionally consolidated Compañía Minera de Argentina S.A, YPF Services USA Corp., Compañía de Inversiones Mineras S.A., YPF Perú SAC., YPF Brasil Comercio Derivado de Petróleo Ltd., Wokler Investment S.A., YPF Colombia S.A., Eleran Inversiones 2011 S.A.U., Lestery S.A., Miwen S.A., YSUR Argentina Holdings S.à.r.l. and Energía Andina S.A.

(10)

The Chilean peso has been defined as the functional currency of this Company.


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25

 

17. ASSETS AND LIABILITIES IN FOREIGN CURRENCY

 

Account

Foreign currency and amount   Exchange rate        
in pesos        
as of 03-31-15        
    Value in pesos  
  as of 03-31-15  
 
  12-31-2014   03-31-2015  

Noncurrent Assets

Trade receivables

BRL   5            BRL   5              2.71        (1)        14           

Other receivables

US$   73            US$   63              8.72        (1)        549           
BRL   6            BRL   6              2.71        (1)        16           
               

 

 

 

Total noncurrent assets

  579           
               

 

 

 

Current Assets

Trade receivables

US$   341            US$   312              8.72        (1)        2,721           
CLP           11,043            CLP           7,896              0.01        (1)        79           
BRL   24            BRL   21              2.71        (1)        57           

Other receivables

US$   473            US$   394              8.72        (1)        3,436           
  3              6              9.36        (1)        56           
BRL   3            BRL   5              2.71        (1)        14           
CLP   4,344            CLP   3,274              0.01        (1)        33           
JPY   128            JPY   119              0.07        (1)        8           

Cash and equivalents

US$   647            US$   1,053              8.72        (1)        9,182           
CLP   -            CLP   1,033              0.01        (1)        10           
               

 

 

 

Total current assets

  15,596           
               

 

 

 

Total assets

  16,175           
               

 

 

 

Noncurrent Liabilities

Provisions

US$   2,785            US$   2,828              8.82        (2)        24,943           

Loans

US$   2,861            US$   3,283              8.82        (2)        28,958           

Accounts payable

US$   55            US$   55              8.82        (2)        485           
               

 

 

 

Total noncurrent liabilities

  54,386           
               

 

 

 

Current Liabilities

Provisions

US$   177            US$   168              8.82        (2)        1,482           

Loans

US$   920            US$   983              8.82        (2)        8,674           
BRL   16            BRL   24              2.73        (2)        66           

Salaries and social security

US$   3            US$   1              8.82        (2)        9           
BRL   2            BRL   2              2.73        (2)        5           
CLP   -            CLP   252              0.01        (2)        3           

Accounts payable

US$   2,015            US$   1,713              8.82        (2)        15,109           
  24              22              9.48        (2)        209           
CLP   6,387            CLP   6,576              0.01        (2)        66           
BRL   11            BRL   7              2.73        (2)        19           

Taxes payable

BRL   -            BRL   3              2.73        (2)        8           
CLP   -            CLP   1,075              0.01        (2)        11           
               

 

 

 

Total current liabilities

  25,661           
               

 

 

 

Total liabilities

  80,047           
               

 

 

 

 

(1)

Buying exchange rate.

(2)

Selling exchange rate.

18. SUBSEQUENT EVENTS

On April 30, 2015, a General Ordinary and Extraordinary Shareholders’ Meeting was held (see Note 8).

In April 2015, the Company issued Class XXXVIII and Class XXXIX Negotiable Obligations in the amount of 935 million and US$ 1,500 million, respectively. Class XXXVIII Negotiable Obligations will accrue interest at a variable rate (Badlar plus 4.75%) and principal will mature in 2020. Class XXXIX Negotiable Obligations will accrue interest at a fixed nominal annual rate of 8.5% and principal will mature in 2025.

YPF understands a complaint was filed on April 8, 2015 by Petersen Energía Inversora, S.A.U. and Petersen Energía, S.A.U. (together, “Petersen”), a former shareholder of YPF´s Class D shares, against the Argentine Republic and YPF S.A. in the United States District Court for the Southern District of New York. In principle, litigation is being conducted by the bankruptcy trustee of the aforesaid companies by reason of a liquidation process pending in a Spanish bankruptcy court. The complaint contains claims related to the expropriation of the controlling interest of Repsol in YPF by the Argentine Republic in 2012, alleging that it would have triggered an obligation by the Argentine Republic to make a purchase offer to the remaining shareholders. The claims appear to be primarily based on allegations that the expropriation violated contractual obligations


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 in the prospectus for YPF´s initial public offering and in YPF´s bylaws, and seeks unspecified damages. In addition, the company understands that they have attempted to serve notice of the complaint to YPF in the USA. The Company considers that such service is not valid. Based on available information related to the complaint, the Company believes that the claims brought against it, have no merit and will vigorously defend its interests. Finally, as of the date of issuance of these condensed interim consolidated financial statements, YPF has no element in possession that may permit a potential weighting of the impact of this claim on the Company.

On April 8, 2015, Resolution ENARGAS 3249/2015 was published in the Official Gazette. This resolution repeal sections 3 and 4 of Resolution ENARGAS 2407/2012, by reason of which MetroGAS was bound to (i) deposit fixed funds collected per invoice in the trust created to such end, where MetroGAS is trustor and Nación Fideicomisos S.A. trustee, and (ii) submit a plan of investments in consolidation and expansion works to annual approval. Furthermore, said Resolution ENARGAS 3249/2015 repealed Resolution ENARGAS 2767/2013 which timely modified the deposit and settlement mechanism related to fixed charges per invoice by distinguishing works due to follow-up protocol procedures from works for development certification. Consequently, by reason of the enactment of Resolution ENARGAS 3249/2015, effective from April 1, 2015, fixed amounts per invoice established under Resolution ENARGAS 2407/2012 that MetroGAS continues to invoice and collect shall not be allocated to the Management and Financial Trust created with Nación Fideicomisos, but -on the contrary- such amounts shall be allocated by MetroGAS exclusively to activities related to the expansion and reliability of systems, operating and maintenance works contributing towards compliance with rules and regulations under the “Gas Code of Argentina – NAG for its acronym in Spanish” and to commercial and administrative activities in connection with an efficient customer service within the service rendering area, and at least 30% of such fixed amounts shall be allocated to investments in system expansion within the framework of an investment plan to be approved by ENARGAS.

On May 7, 2015, the transfer from Repsol Butano S.A. to YPF of the shares representing the 33.997% of YPF Gas S.A. interest and the transfer from Repsol Trading S.A. to YPF of the 17.79% of Oleoducto Trasandino Chile interest became effective.

As of the date of the issuance of these condensed interim consolidated financial statements, there are no other significant subsequent events that require adjustments or disclosure in the condensed interim consolidated financial statements of the Company as of March 31, 2015, which were not already considered in such consolidated financial statements according to IFRS.

 

 

 

 

MIGUEL MATÍAS GALUCCIO

 

President


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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

YPF Sociedad Anónima

Date: May 15, 2015

By:

      /s/ Diego Celaá

Name:

  Diego Celaá

Title:

  Market Relations Officer