YPF Sociedad Anónima (NYSE:YPF) Q1 2023 Earnings Conference Call May 12, 2023 9:00 AM ET

Company Participants

Pablo Calderone - Investor Relations Manager

Alejandro Lew - CFO

Pablo Iuliano - CEO

Sergio Massa - Economy Minister

Conference Call Participants

Walter Chiarvesio - Santander

Carlos Moraes - Morgan Stanley

Paula La Greca - TPCG

Luis Carvalho - UBS

Marcelo Gumiero - Credit Suisse

Ezequiel Fernandez - Balanz

Operator

Ladies and gentlemen thank you for standing by. At this time I would like to welcome everyone to the YPF First Quarter 2023 Earnings Webcast. [Operator Instructions]. It’s now my pleasure to turn today’s call over to Pablo Calderone, Investor Relations Manager. Sir, please go ahead.

Pablo Calderone

Good morning ladies and gentlemen, this is Pablo Calderone YPF, IR Manager. Thank you for joining us today in our first quarter 2023 earnings call. This presentation will be conducted by our CEO, Pablo Iuliano, and our CFO, Alejandro Lew. During the presentation, we will go through the main aspects and events that explain our first quarter results, and finally, we will open up the call for questions.

Before we begin, I would like to draw your attention to our customary statement on slide 2. Please take into consideration that our remark today and answer to your questions may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to be materially different from the expectation contemplated by industry remarks. Our financial figures are stated in accordance with IFRS, but during the call, we might discuss some non-IFRS measures such as adjusted EBITDA.

I will now tell the call to Pablo. Please, Pablo, go ahead.

Pablo Iuliano

Thank you, Pablo, and good morning to you all. We are glad to report a solid beginning of the year across our operational and financial metrics, where our total hydrocarbon production continued with a positive trend, bringing to market over 511,000 barrels of oil equivalent per day, representing an increase of 2% on a sequential basis and 1% when compared with the same period of 2022.

Moreover, I would like to highlight the evolution of our crude oil production, we just commented during our strategic outlook presented a few weeks ago, is the focus of our short-term growth strategy recording a 3% sequential increase and a robust 7% inter-annual expansion.

Adjusted EBITDA remains strong in the quarter, surpassing once again the $1 billion mark, expanding 12% from the previous quarter and 5% on a year-over-year basis. Sequential improvements come as a result of higher hydrocarbon production and higher processing levels at our refineries, accompanied also by lower OpEx, partially offset by lower realization prices of our refinery products when compared to the previous quarter.