YPF's Q1 2025 Earnings Call: Key Contradictions on CapEx, LNG Projects, and Financial Strategy

CapEx guidance and investment strategy, LNG project status and FID timelines, divestment of mature assets and financial impact, inflation and currency pressures, and LNG project timeline are the key contradictions discussed in YPF's latest 2025Q1 earnings call.



Strong Financial Performance and EBITDA Growth:
- YPF Sociedad Anónima recorded a significant level of adjusted EBITDA of $1.24 billion, marking a 48% sequential growth.
- The increase was driven by improved refining and marketing margins, aligning prices with international parties and enhancing operational efficiency metrics.

Shale Oil Production and Drilling Achievements:
- Shale oil production saw a 31% increase year-over-year, representing 55% of total oil production.
- This growth was supported by record drilling performance and notable achievements such as the fastest unconventional drilling speed of 551 meters per day.

Divestment of Mature Fields and Financial Impact:
- The divestment of mature fields impacted Q1 results, including an adjusted EBITDA loss of $106 million and a one-off cash flow loss of $230 million net of proceeds.
- The impact was offset by increased prices of fuels and other refined products, as well as OpEx savings from the partial sale of mature fields.

LNG Projects and Export Pipeline Developments:
- The company's LNG projects advanced, with Southern Energy (SESA) securing a 20-year agreement for a 2.45 MTPA floating LNG plant, expected to be operational in 2027.
- The agreements provide YPF with a strategic position in LNG export, with YPF owning a 25% equity stake in SESA and a commitment of 27.5% gas production.