The oil company also reported that its earnings decreased by 54.2% year-on-year in the fourth quarter, $247 million. YPF revenues totaled US$3,620 million in the period, 59.5% more than those reported between October and December 2020.
YPF remarked that “in the fourth quarter the company invested US$908 million, 30% higher than the previous quarter and by 2022, US$3.7 billion will be invested, which represents an increase of more than 40% compared to 2021.”
Later, the oil company specified that “the investment plan will be focused again on the Upstream, which will concentrate an investment of US$2.8 billion. Within that value, 1.6 billion will be specifically allocated to the development of unconventional activity.”
Additionally, the company plans to invest “us$700 million in the downstreammainly in the works to readjust the refineries to the new fuel specifications by lowering the sulfur content and projects aimed at the evacuation of crude oil from Vaca Muerta”.
The company emphasized that “it is estimated increase annual hydrocarbon production by 8% compared to 2021, which will mean the highest organic growth in the last 25 years. Said growth is largely leveraged by the strong impulse of production in Vaca Muerta, which will grow more than 40% in the year.”
In relation to what was executed the previous year, YPF pointed out that “the total production of hydrocarbons remained stable for the first time after 5 years of consecutive falls.” YPF closed the last quarter with an increase of almost 9% in oil and 12% in gas compared to the same period in 2020.”
Activity in unconventional hydrocarbons currently represents more than a third of the company’s consolidated production. The production of unconventional crude showed a growth of 62% in the last quarter compared to the same quarter of the previous year, while the production of unconventional gas doubled in the same period.
Additionally, in 2021 the largest number of horizontal wells was completed since the development of Vaca Muerta began 10 years ago.
The company stressed that “the investments, the results obtained and the efficiency achieved during 2021, allowed YPF to substantially improve its reserves that exceeded 1,100 million barrels of oil equivalents, the highest figure in five years and 24% higher than the previous year. The reserve replacement rate stood at 229%, the highest historical mark recorded in the last 20 years.
In the fourth quarter, sales were approximately 7% higher than in the pre-pandemic stage. Refinery processing levels recovered throughout the year, reaching a utilization rate of 84.7% in the last quarter of the year.
During 2021, the company’s adjusted EBITDA reached US$3,839 million, more than doubling the profitability of 2020 and 6% higher than the pre-pandemic levels of 2019. The margin on sales was 29%, the highest in the last 5 years.
Finally, YPF stressed that “in financial matters, free cash flow was positive for the seventh consecutive quarter, accumulating US$882 million in the year, which allowed the company’s net debt to be reduced, which was at the lowest level since 2015 and achieved a healthy net debt ratio of 1.6 times in relation to adjusted EBITDA”.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
