YPF Sociedad Anónima (NYSE:YPF) Q3 2022 Earnings Conference Call November 10, 2022 8:30 AM ET

Company Participants

Pablo Calderone - Investor Relations

Pablo Iuliano - Chief Executive Officer

Alejandro Lew - Chief Financial Officer

Conference Call Participants

Walter Chiarvesio - Santander

Frank McGann - Bank of America

Marcelo Gumiero - Credit Suisse

Daniel Guardiola - BTG

Ezequiel Fernandez - Balanz

Operator

Ladies and gentlemen, good morning. My name is Abby and I will be your conference operator today. I would like to welcome everyone to the YPF Third Quarter 2022 Earnings Call.

[Operator Instructions] And I will now turn the conference over to Pablo Calderone. You may begin your conference.

Pablo Calderone

Good morning, ladies and gentlemen. This is Pablo Calderone, YPF IR Manager. Thank you for joining us today in our Third Quarter 2022 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 third quarter results. And finally, we will open up the call for questions.

Before we begin, I would like to draw your attention to our cash flow statement on Slide 2. Please take into consideration that our remarks 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 expectations contemplated by these remarks. Also, note the exchange rate using calculations to reach our main financial figures in U.S. dollars. 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 turn the call to Pablo. Please go ahead.

Pablo Iuliano

Thank you, Pablo and good morning to you all. Let me start highlighting that this was another robust quarter in which we continue delivering solid operational and financial results, remaining on track to meet our ambitious target for the year. We maintained healthy profitability levels, gaining further operating efficiency and consolidating the tremendous progress that has been achieved in our unconventional operations.

During the third quarter, total hydrocarbon production remained stable when compared to the previous quarter but has accumulated a very healthy growth of about 9% comparing the first 9 months of 2022 with the same period of last year. primarily as a result of very positive performance in our shale operations. Adjusted EBITDA remained strong, reaching the $1.5 billion quarterly mark for the second quarter in a row, representing an increase of 50% on a year-over-year basis. interannual improvement continues being the result of the increased hydrocarbon production levels, coupled with improving pricing across our business segments and partially offset by an increase in total OpEx, mostly driven by cost pressure in local currency that continue to run higher than the FX depreciation.