Argentina’s YPF sees fourth-quarter profit dip by more than half

The headquarters of Argentina’s state energy company YPF is seen in Buenos Aires, Argentina February 10, 2021. REUTERS/Matias Baglietto

March 3 (Reuters) – Argentine state oil company YPF (YPFD.BA) on Thursday posted a $247 million net profit in the fourth quarter 2021, a 54% drop compared to the year-ago period.

The company said profit was hurt by high international prices that could not be fully passed onto local customers. However, revenue grew from some of its main petroleum products like naphtha, natural gas and gasoil.

YPF, which leads the development of the South American country’s massive Vaca Muerta shale formation, posted fourth-quarter revenue of $3.62 billion, a 60% jump year-on-year.

The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose more than three-fold to $834 million.

“Local demand for fuels in (the fourth quarter) increased above pre-pandemic levels, with growth in local sales of gasoline and diesel of 7.2% and 6.9%, respectively, consolidating a better-than-expected annual recovery,” the company said in its report.

Reporting by Carolina Pulice, Nicolas Misculin, Eliana Raszewski and Noe Torres; Editing by David Alire Garcia and Lisa Shumaker

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