The YPF tower in Puerto Madero.
The latest YPF price increase is unusual. The state-majority oil company shifted its prices a day after its competitors. In this way, he is freed from the obligation to take initiative and mark the path that others will take. “You still areWe need to work to reduce the disparity in international equality, which is about 25%”, said Sergio Affronti, CEO of YPF, at a conference with investors and stock analysts.
Fuel sales represent 50% of YPF’s total revenue. In recent months, the company has increased its fuel costs by 20%. While the official dollar price -which was picked up by the YPF- was moving less, it had an improvement in dollars of 13%.
The company is always attentive to new increases, but it does so “taking into account the delicate balance that must be maintained in our sector and the impact of our decisions on customers and their ability to pay fuel costs locally macroeconomic context ”said the executive.
The increased demand for diesel means the company needs it perform more imports. “We’re having fewer biofuels in our blends. That also requires a larger amount of average import in terms of imports. We end up importing 13% of the fuels we sell, which represents a decrease compared to 15% (of imports to total sales), but it is at a higher level than 7%, which is our historical average ”, says Affronti.
Demand is “stable” and close to pre -pandemic levels, specifically in the first quarter of 2019. YPF incurs “small losses” when it sends some fuel (such as diesel) to its pumps, which are “offset by price increases in the wholesale segment, specifically resale and resale of aviation fuels ”, according to its authorities.
The possibility of Linking Vaca Muerta to Buenos Aires is exciting in the energy sector. But the construction of the gas pipeline is not governed by the YPF, but by the state-owned IEASA. The Minister of Economy, Martín Guzmán, thinks that -after the gas pipeline- the next step could be the construction of a liquefied gas export terminal.
“There are opportunities in liquefied gas (LNG)but we are still a few years from there, and from the materialization of an LNG plant ”, according to Alejandro Lew, CFO (Finance Director) of YPF. “As you know (N. de la R: in reference to the analysts who asked questions), it will take several years to build (a terminal) and I would say that it is a very challenging project in terms of the capital it require, “he assured.
YPF is doing some engineering analysis and preliminary analysis, but this is a long -term project. “We believe that the development of an LNG processing terminal is an interesting opportunity for the country and for YPF. And it will certainly add opportunities to monetize the attractive resources we have, specifically in Vaca Muerta, of natural gas that we can export to global markets, ”he said.“ But it is very difficult to predict one. definitely time for that project. “
Source: Clarin
