The liberal economist who won the presidential election on Sunday said that plans to privatize several state companies, including YPF, as part of its strategy to limit the State’s participation in the market and to clean up public accounts.
“As long as these structures are rationalized, they are put to create value so that they can be sold in a very beneficial way for Argentines”Milei said in a radio interview.
The Argentine State nationalized 51% of the oil company more than a decade ago from the Spanish company Repsol. Of the total of these actions, 49% are in the hands of the provinces, which are also owners of the country’s hydrocarbon resources.
YPF, the largest oil company in Argentina, leads the development activity of the Vaca Muerta formation, the second unconventional gas reserve in the world and the fourth oil reserve, which is the size of Belgium. The wealth beneath its soil would allow the country to become a net energy exporter at a time when the world’s demand increases.
YPF shares rise 40% on Wall Street
YPF shares on the United States stock market rose 39.5% on the day to US$14.95, exceeding US$15 billion in market value. The Buenos Aires stock market did not operate this Monday due to a national holiday.
Is about an unprecedented daily increase since the company began operating on the stock market in 1993 after being privatized, according to data collected by Ámbito.
“The state oil and gas company YPF is having the best performance thanks to the increasing likelihood of privatization and international price parity”said Trevor Yates, an analyst at Global “While a lower country risk premium should reduce its cost of capital and, in turn, increase production growth profile in the medium and long term”he added.
The company reported losses of US$137 million in the third quarter, compared to gains of US$693 million in profits in the same period of 2022, affected by a drop in local fuel prices in dollars and increased expenses.
“As for YPF, we are still trying to see all the businesses or activities where it participates and which ones should be concentrated on. But we are in a preliminary stage”a source from Milei’s team, who asked not to be identified, told Reuters.
Source: Ambito
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