Form 6-K
Table of Contents

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of May, 2016

Commission File Number: 001-12102

 

 

YPF Sociedad Anónima

(Exact name of registrant as specified in its charter)

 

 

Macacha Güemes 515

C1106BKK Buenos Aires, Argentina

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes  ¨            No   x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes  ¨            No   x

 

 

 


Table of Contents

YPF Sociedád Anonima

TABLE OF CONTENTS

ITEM

1 Translation of Condensed Interim Consolidated Financial Statements as of March 31, 2016 and Comparative Information.


Table of Contents
 

LOGO

SOCIEDAD ANONIMA

 

Condensed Interim Consolidated

Financial Statements as of March 31, 2016

and Comparative Information

 


Table of Contents

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2016 AND COMPARATIVE INFORMATION

 

Index    Page  

  Cover      1   

  Condensed interim consolidated statements of financial position      2   

  Condensed interim consolidated statements of comprehensive income      3   

  Condensed interim consolidated statements of changes in shareholders’ equity      4   

  Condensed interim consolidated statements of cash flow      6   

  Notes to the condensed interim consolidated financial statements:   
  1)   Basis of preparation of the condensed interim consolidated financial statements   
    a.   Basis of preparation      7   
    b.   Significant accounting policies      7   
    c.   Accounting estimates and judgments      7   
    d.   Comparative information      8   
  2)   Seasonality of operations      8   
  3)   Acquisitions and disposals      8   
  4)   Financial risk management and fair value measurements   
    a.   Financial risk      8   
    b.   Fair value measurements      9   
  5)   Segment information      9   
  6)   Financial instruments by category      10   
  7)   Analysis of the main accounts of the condensed interim consolidated financial statements   
    a.   Intangible assets      11   
    b.   Fixed assets      11   
    c.   Investments in companies      13   
    d.   Inventories      13   
    e.   Other receivables      14   
    f.   Trade receivables      14   
    g.   Cash and cash equivalents      14   
    h.   Provisions      15   
    i.   Income tax      16   
    j.   Loans      17   
    k.   Accounts payable      19   
    l.   Revenues      19   
    m.   Cost of sales      19   
    n.   Expenses      20   
    o.   Other operating results, net      21   
    p.   Financial results, net      21   
  8)   Investments in companies and joint operations      21   
  9)   Shareholders’ equity      25   


Table of Contents
  10)   Earnings per share      25   
  11)   Provisions for pending lawsuits, claims and environmental liabilities      25   
  12)   Contingent liabilities, contingent assets, contractual commitments, main regulations and other   
    a.   Contingent liabilities      27   
    b.   Contingent assets      28   
    c.   Contractual commitments      28   
    d.   Main regulations and other      28   
  13)   Balances and transactions with related parties      30   
  14)   Employee benefit plans and similar obligations      32   
  15)   Information required by regulatory authorities      32   
  16)   Assets and liabilities in currencies other than the Argentine peso      34   
  17)   Subsequent events      35   


Table of Contents

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA

Macacha Güemes 515 – Autonomous City of Buenos Aires, Argentina

FISCAL YEAR NUMBER 40

BEGINNING ON JANUARY 1, 2016

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2016 AND FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2016 AND COMPARATIVE INFORMATION

LEGAL INFORMATION

Principal business of the Company: exploration, development and production of oil, natural gas and other minerals and refining, transportation, marketing and distribution of oil and petroleum products and petroleum derivatives, including petrochemicals, chemicals and non-fossil fuels, biofuels and their components; production of electric power from hydrocarbons; rendering telecommunications services, as well as the production, industrialization, processing, marketing, preparation services, transportation and storage of grains and its derivatives.

Filing with the Public Register: Bylaws filed on February 5, 1991 under No. 404, Book 108, Volume “A”, Corporations, with the Public Registry of Buenos Aires City, in charge of Inspección General de Justicia (Argentine Registrar of Companies); and Bylaws in substitution of previous Bylaws, filed on June 15, 1993, under No. 5109, Book 113, Volume “A”, Corporations, with the above mentioned Registry.

Duration of the Company: through June 15, 2093.

Last amendment to the bylaws: April 29, 2016.(2)

Optional Statutory Regime related to Compulsory Tender Offer provided by Decree No. 677/2001 art. 24: not incorporated (modified by Law No. 26,831).

Capital structure as of March 31, 2016

(expressed in Argentine pesos)

 

– Subscribed, paid-in and authorized for stock exchange listing

   3 , 933,127,930(1) 

 

(1) Represented by 393,312,793 shares of common stock, Argentine pesos 10 per value and 1 vote per share.
(2) In process of registration with the Argentine Securities Commission and the Argentine Registrar of Companies

 

    MIGUEL ANGEL GUTIERREZ
    President

 

1


Table of Contents

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF MARCH 31, 2016 AND DECEMBER 31, 2015

(Amounts expressed in millions of Argentine Pesos, except shares and per share amounts expressed in Argentine Pesos, and as otherwise indicated – Note 1.b)

 

     Notes    March 31,
2016
    December 31,
2015
 

ASSETS

       

Noncurrent Assets

       

Intangible assets

   7.a      8,258        7,279   

Fixed assets

   7.b      307,964        270,905   

Investments in companies

   7.c      4,839        4,372   

Deferred income tax assets, net

   7.i      736        954   

Other receivables

   7.e      2,582        2,501   

Trade receivables

   7.f      378        469   
     

 

 

   

 

 

 

Total noncurrent assets

        324,757        286,480   
     

 

 

   

 

 

 

Current Assets

       

Inventories

   7.d      20,555        19,258   

Other receivables

   7.e      14,888        19,413   

Trade receivables

   7.f      30,756        22,111   

Investment in financial assets

   6      1,134        804   

Cash and cash equivalents

   7.g      26,163        15,387   
     

 

 

   

 

 

 

Total current assets

        93,496        76,973   
     

 

 

   

 

 

 

TOTAL ASSETS

        418,253        363,453   
     

 

 

   

 

 

 

SHAREHOLDERS’ EQUITY

       

Shareholders’ contributions

        10,389        10,349   

Reserves, other comprehensive income and retained earnings

        126,467        110,064   
     

 

 

   

 

 

 

Shareholders’ equity attributable to the shareholders of the parent company

        136,856        120,413   
     

 

 

   

 

 

 

Non-controlling interest

        (93     48   
     

 

 

   

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

        136,763        120,461   
     

 

 

   

 

 

 

LIABILITIES

       

Noncurrent Liabilities

       

Provisions

   7.h      45,014        39,623   

Deferred income tax liabilities, net

   7.i      49,399        44,812   

Taxes payable

        185        207   

Loans

   7.j      104,086        77,934   

Accounts payable

   7.k      633        625   
     

 

 

   

 

 

 

Total noncurrent liabilities

        199,317        163,201   
     

 

 

   

 

 

 

Current Liabilities

       

Provisions

   7.h      2,127        2,009   

Income tax liability

        1,587        1,487   

Taxes payable

        5,309        6,047   

Salaries and social security

        2,033        2,452   

Loans

   7.j      30,912        27,817   

Accounts payable

   7.k      40,205        39,979   
     

 

 

   

 

 

 

Total current liabilities

        82,173        79,791   
     

 

 

   

 

 

 

TOTAL LIABILITIES

        281,490        242,992   
     

 

 

   

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

        418,253        363,453   
     

 

 

   

 

 

 

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

    MIGUEL ANGEL GUTIERREZ
    President

 

2


Table of Contents

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2016 AND 2015

(amounts expressed in millions of Argentine Pesos, except shares and per share amounts expressed in Argentine Pesos, and as otherwise indicated – Note 1.b)

 

            For the three-month
period ended March 31,
 
     Notes      2016     2015  

Revenues

     7.l         46,934        34,702   

Cost of sales

     7.m         (40,131     (26,076
     

 

 

   

 

 

 

Gross profit

        6,803        8,626   
     

 

 

   

 

 

 

Selling expenses

     7.n         (3,045     (2,592

Administrative expenses

     7.n         (1,486     (1,198

Exploration expenses

     7.n         (454     (191

Other operating results, net

     7.o         (200     (176
     

 

 

   

 

 

 

Operating income

        1,618        4,469   
     

 

 

   

 

 

 

Income on investments in companies

     8         97        (38

Financial income

     7.p         9,121        1,774   

Financial loss

     7.p         (5,480     (2,274

Other financial results

     7.p         377        115   
     

 

 

   

 

 

 

Financial results, net

     7.p         4,018        (385
     

 

 

   

 

 

 
       
     

 

 

   

 

 

 

Net income before income tax

        5,733        4,046   
     

 

 

   

 

 

 

Income tax

     7.i         (4,878     (1,937
     

 

 

   

 

 

 

Net income for the period

        855        2,109   
     

 

 

   

 

 

 

Net income for the period attributable to:

       

– Shareholders of the parent company

        996        2,127   

– Non-controlling interest

        (141     (18

Earnings per share attributable to shareholders of the parent company basic and diluted

     10         2.54        5.42   

Other comprehensive income

       

Translation differences from investments in companies (1)

        (535     (83

Translation differences from YPF S.A. (2)

        15,942        2,514   
     

 

 

   

 

 

 

Total other comprehensive income for the period (3)

        15,407        2,431   
     

 

 

   

 

 

 

Total comprehensive income for the period

        16,262        4,540   
     

 

 

   

 

 

 

 

(1) Will be reversed to net income at the moment of the sale of the investment or full or partial reimbursement of the capital.
(2) Will not be reversed to net income.
(3) Entirely assigned to the parent company’s shareholders.

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

    MIGUEL ANGEL GUTIERREZ
    President

 

3


Table of Contents

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2016 AND 2015

(amounts expressed in millions of Argentine Pesos, except shares and per share amounts expressed in Argentine Pesos, and as otherwise indicated – Note 1.b)

 

     For the three-month period ended March 31, 2016  
     Shareholders’ contributions  
     Subscribed
capital
     Adjustment
to
contributions
     Treasury
shares
     Adjustment
to treasury
shares
     Share-
based
benefit
plans
     Acquisition
cost of
treasury
shares
    Share
trading
premium
    Issuance
premiums
     Total  

Amount at beginning of year

     3,922         6,083         11         18         67         (277     (115     640         10,349   

Accrual of share-based benefit plans

     —           —           —           —           40         —          —          —           40   

Other comprehensive income

     —           —           —           —           —           —          —          —           —     

Net income

     —           —           —           —           —           —          —          —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Amount at end of period

     3,922         6,083         11         18         107         (277     (115     640         10,389   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

     For the three-month period ended March 31, 2016  
     Reserves                   Equity attributable to        
     Legal      Future
dividends
     Investments      Purchase
of
treasury
shares
     Initial
IFRS
adjustment
     Other
comprehensive
income
    Retained
earnings
     Parent
company’s
shareholders
     Non-controlling
interest
    Total
shareholders’
equity
 

Amount at beginning of year

     2,007         5         21,264         440         3,648         78,115        4,585         120,413         48        120,461   

Accrual of share-based benefit plans

     —           —           —           —           —           —          —           40         —          40   

Other comprehensive income

     —           —           —           —           —           15,407        —           15,407         —          15,407   

Net income

     —           —           —           —           —           —          996         996         (141     855   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Amount at end of period

     2,007         5         21,264         440         3,648         93,522 (1)      5,581         136,856         (93     136,763   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

 

(1) Includes 96,924 corresponding to the effect of the translation of the financial statements of YPF S.A. and (3,402) corresponding to the effect of the translation of the financial statements of investments in companies with functional currency different to dollar, as detailed in Note 1.b.1 to the Annual Consolidated Financial Statements.

 

    MIGUEL ANGEL GUTIERREZ
    President

 

4


Table of Contents

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2016 AND 2015 (Cont.)

(amounts expressed in millions of Argentine Pesos, except shares and per share amounts expressed in Argentine Pesos, and as otherwise indicated – Note 1.b)

 

    For the three-month period ended March 31, 2015  
    Shareholders’ contributions  
    Subscribed
capital
    Adjustment
to
contributions
    Treasury
shares
    Adjustment
to treasury
shares
    Share-
based
benefit
plans
    Acquisition
cost of
treasury
shares
    Share
trading
premium
    Issuance
premiums
    Total  

Amount at beginning of year

    3,922        6,083        11        18        51        (310     (15     640        10,400   

Accrual of share-based benefit plans

    —          —          —          —          27        —          —          —          27   

Other comprehensive income

    —          —          —          —          —          —          —          —          —     

Net income

    —          —          —          —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Amount at end of period

    3,922        6,083        11        18        78        (310     (15     640        10,427   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    For the three-month period ended March 31, 2015  
    Reserves                 Equity attributable to        
    Legal     Future
dividends
    Investments     Purchase
of
treasury
shares
    Initial
IFRS
adjustment
    Other
comprehensive
income
    Retained
earnings
    Parent
company’s
shareholders
    Non-controlling
interest
    Total
shareholders’
equity
 

Amount at beginning of year

    2,007        5        12,854        320        3,648        34,363        9,033        72,630        151        72,781   

Accrual of share-based benefit plans

    —          —          —          —          —          —          —          27        —          27   

Other comprehensive income

    —          —          —          —          —          2,431        —          2,431        —          2,431   

Net income

    —          —          —          —          —          —          2,127        2,127        (18     2,109   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Amount at end of period

    2,007        5        12,854        320        3,648        36,794 (1)      11,160        77,215        133        77,348   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Includes 38,278 corresponding to the effect of the translation of the financial statements of YPF S.A. and (1,484) corresponding to the effect of the translation of the financial statements of investments in companies with functional currency different to dollar, as detailed in Note 1.b.1 to the Annual Consolidated Financial Statements.

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

 

    MIGUEL ANGEL GUTIERREZ
    President

 

5


Table of Contents

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2016 AND 2015

(Amounts expressed in millions of Argentine Pesos, except shares and per share amounts expressed in Argentine Pesos, and as otherwise indicated – Note 1.b)

 

     For the three-month periods
ended March 31,
 
     2016     2015  

Operating activities:

    

Net income

     855        2,109   

Adjustments to reconcile net income to cash flows provided by operating activities:

    

Result on investments in companies

     (97     38   

Depreciation of fixed assets

     10,534        5,564   

Amortization of intangible assets

     153        69   

Consumption of materials and retirement of fixed assets and intangible assets, net of provisions

     1,183        592   

Charge on income tax

     4,878        1,937   

Net increase in provisions

     1,092        903   

Exchange differences, interest and other (1)

     (4,666     485   

Share-based benefit plan

     40        27   

Accrued insurance

     —          (511

Changes in assets and liabilities:

    

Trade receivables

     (7,966     388   

Other receivables

     4,518        (548

Inventories

     1,089        266   

Accounts payable

     878        1,015   

Taxes payables

     (760     1,111   

Salaries and social security

     (419     (479

Decrease in provisions due to payment/use

     (354     (393

Dividends received

     —          150   

Proceeds from collection of lost profit insurance

     607        —     

Income tax payments

     (740     (792
  

 

 

   

 

 

 

Net cash flows provided by operating activities

     10,825        11,931   
  

 

 

   

 

 

 

Investing activities:(2)

    

Acquisition of fixed assets and intangible assets

     (17,303     (15,628

Contributions and acquisitions of interests in companies and joint operations

     —          (2

Investments in financial assets

     (13     —     

Proceeds from collection of damaged property’s insurance

     355        —     
  

 

 

   

 

 

 

Net cash flows used in investing activities

     (16,961     (15,630
  

 

 

   

 

 

 

Financing activities:

    

Payments of loans

     (17,179     (4,632

Payments of interest

     (3,515     (1,379

Proceeds from loans

     36,603        10,784   

Contribution of Non-controlling interest

     50        —     
  

 

 

   

 

 

 

Net cash flows provided by financing activities

     15,959        4,773   
  

 

 

   

 

 

 
    
  

 

 

   

 

 

 

Translation differences provided by cash and cash equivalents

     953        207   
  

 

 

   

 

 

 
    
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     10,776        1,281   
  

 

 

   

 

 

 

Cash and cash equivalents at the beginning of year

     15,387        9,758   

Cash and cash equivalents at the end of period

     26,163        11,039   
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     10,776        1,281   
  

 

 

   

 

 

 

COMPONENTS OF CASH AND CASH EQUIVALENTS AT THE END OF PERIOD

    

- Cash

     22,927        9,893   

- Cash equivalents

     3,236        1,146   
  

 

 

   

 

 

 

TOTAL CASH AND CASH EQUIVALENTS AT THE END OF PERIOD

     26,163        11,039   
  

 

 

   

 

 

 

 

(1) Does not include exchange differences generated by cash and cash equivalents, which is exposed separately in the statement.
(2) The main investing and financing transactions that have not affected cash and cash equivalents correspond to:

 

     For the three-month periods
ended March 31,
 
     2016      2015  

Acquisition of fixed assets and concession extension easements not paid

     4,482         4,502   

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

 

 

    MIGUEL ANGEL GUTIERREZ
    President

 

6


Table of Contents

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation.

 

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2016 AND COMPARATIVE INFORMATION

(amounts expressed in millions of Argentine Pesos, except shares and per share amounts expressed in Argentine Pesos, and as otherwise indicated – Note 1.b)

 

1. BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

1.a) Basis of preparation

The condensed interim consolidated financial statements of YPF S.A. (hereinafter “YPF” or the “Company”) and its controlled companies (hereinafter and all together, the “Group”) for the three-month period ended March 31, 2016, are presented in accordance with International Accounting Standards (“IAS”) No. 34 “Interim Financial Reporting”. The adoption of the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) was determined by the Technical Resolution No. 26 (ordered text) issued by Argentine Federation of Professional Councils in Economic Sciences (“FACPCE”) and the Regulations of the Argentine Securities Commission (“CNV”).

Also, some additional information required by the Law 19,550 of Argentine Corporations and its amendments and/or regulations of the CNV, was included. Such information was included in the Notes to the mentioned condensed interim consolidated financial statements only to comply with regulatory requirements.

These condensed interim consolidated financial statements should be read in conjunction with the Annual Consolidated Financial Statements of the Group as of December 31, 2015 (“the Annual Consolidated Financial Statements”) prepared in accordance with IFRS.

These condensed interim consolidated financial statements were approved by the Board of Directors’ meeting and authorized to be issued on May 10, 2016.

These condensed interim consolidated financial statements corresponding to the three-month period ended on March 31, 2016 are unaudited. Management believes they include all necessary adjustments to fairly present the results of each period on a consistent basis with the Annual Consolidated Financial Statements. Results for the three-month period ended on March 31, 2016 do not necessarily reflect the proportion of the Group’s full-year results.

1.b) Significant Accounting Policies

The accounting policies adopted in the preparation of these condensed interim consolidated financial statements are consistent with those used in the preparation of the Annual Consolidated Financial Statements, except for the valuation policy for Income Tax detailed in Note 7.i). The most significant accounting policies are described in Note 1.b) to such Annual Consolidated Financial Statements.

Functional and reporting currency

As mentioned in Note 1.b.1 to the Annual Consolidated Financial Statements YPF has defined the U.S. dollar as its functional currency. In addition, according to General Resolution No. 562 of the CNV, YPF shall submit its financial statements in Argentine Pesos.

1.c) Accounting Estimates and Judgments

The preparation of financial statements at a certain date requires Management to make estimates and assessments affecting the amount of assets and liabilities recorded, contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual future results might differ from the estimates and assessments made as of the date of preparation of these condensed interim consolidated financial statements.

 

7


Table of Contents

In preparing these condensed interim consolidated financial statements, significant judgments made by Management in applying the Group’s accounting policies and the main sources of uncertainty were the same as those applied by the Group in the preparation of the Annual Consolidated Financial Statements, which are disclosed in Note 1.c) related to accounting estimates and judgments to those financial statements.

1.d) Comparative information

Amounts and other information corresponding to the year ended on December 31, 2015 and to the three-month period ended on March 31, 2015, are an integral part of the condensed interim consolidated financial statements previously mentioned and are intended to be read only in relation to these statements. Certain reclassifications have been made in order to present amounts comparatively with the current period.

 

2. SEASONALITY OF OPERATIONS

Historically, the Group’s results have been subject to seasonal fluctuations during the year, particularly as a result of the increase in natural gas sales during the winter. After the 2002 devaluation of the Argentine Peso, and as a consequence of the natural gas price freeze imposed by the Argentine government, the use of natural gas has been diversified, generating an increase in demand throughout the entire year. However, sales of natural gas are still typically higher in the winter to the residential sector of the Argentine domestic market, which has lower prices than other sectors of the Argentine market. Notwithstanding the foregoing, under the “Additional Injection Stimulus Program” regulation (see Note 11.d) to the Annual Consolidated Financial Statements), gas producing companies were invited to file with the Ministry of Energy and Mining (“MINEM”) before June 30th, 2013 projects to increase natural gas injection, in order to receive an increased price of US$ 7.50/MMBTU for all additional natural gas injected. These projects shall comply with the minimum requirements established in the aforementioned Program, and will be subject to approval by the MINEM, including a maximum term of five years, renewable at the request of the beneficiary, upon decision of the MINEM. If the beneficiary company in a given month does not reach the committed production increase, it will have to make up for such volumes not produced. The natural gas pricing program was incorporated into the Hydrocarbons Law, as modified by Law No. 27,007.

In view of the foregoing, seasonality of the Group operations is not significant.

 

3. ACQUISITIONS AND DISPOSALS

During the three-month period ended March 31, 2016, there have been no significant acquisitions or disposals.

 

4. FINANCIAL RISK MANAGEMENT AND FAIR VALUE MEASUREMENTS

4.a) Financial Risk

The Group’s activities are exposed to a variety of financial risk: market risk (including foreign currency risk, interest rate risk and price risk), credit risk, liquidity risk and capital risk. The Group maintains an organizational structure and systems that allow the identification, measurement and control of the risks to which it is exposed.

The condensed interim consolidated financial statements do not include all the information and disclosures on financial risk management; therefore, they should be read in conjunction with the Group’s Annual Consolidated Financial Statements.

There have been no changes in the risk management or risk management policies applied by the Group since the end of last year.

 

8


Table of Contents

4.b) Fair value measurements

Fair value measurements are described in Note 5 to the Annual Consolidated Financial Statements.

Between December 31, 2015 and March 31, 2016, there have been no significant changes in business or economic circumstances affecting the fair value of the Group’s financial assets and liabilities, either measured at fair value or amortized cost.

In addition, no transfer has occurred among the different hierarchies used to determine the fair value of the Group’s financial instruments.

 

5. SEGMENT INFORMATION

 

     Exploration
and Production
    Downstream     Corporate
and Other
    Consolidation
Adjustments(1)
    Total  

For the three-month period ended March 31, 2016

          

Revenues from sales

     5,897        40,500        537        —          46,934   

Revenues from intersegment sales

     23,433        433        1,661        (25,527     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues

     29,330        40,933        2,198        (25,527     46,934   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     4,441        (794     (526     (1,503     1,618   

Results on investments in companies

     —          97        —          —          97   

Depreciation of fixed assets

     9,096 (2)      1,290        148        —          10,534   

Acquisitions of fixed assets

     12,255        2,091        395        —          14,741   

Assets

     242,076        139,059        38,849        (1,731     418,253   

For the three-month period ended March 31, 2015

          

Revenues from sales

     3,039        31,325        338        —          34,702   

Revenues from intersegment sales

     15,536        553        1,274        (17,363     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenues

     18,575        31,878        1,612        (17,363     34,702   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     2,260        1,494        (548     1,263        4,469   

Results on investments in companies

     (1     (37     —          —          (38

Depreciation of fixed assets

     4,788        693        83        —          5,564   

Acquisitions of fixed assets(2)

     10,701        1,436        214        —          12,351   

As of December 31, 2015

          

Assets

     223,035        113,805        26,708        (95     363,453   

 

(1) Correspond to the elimination of income between segments of the YPF group.
(2) Includes depreciation of the provision for impairment of fixed assets.

There has been no change in the Group’s structure, its business segments or its financial reporting information criteria with respect to the Annual Consolidated Financial Statements. In addition, it should be noted that on March 15, 2016, the Gas and Energy Executive Vice-President Office was created, which shall be in charge of, among other things, natural gas sale and distribution, the management of their respective installations, and the generation of electric energy, both conventional and renewable. As of the date of these consolidated condensed interim financial statements, the Group is still in the process of determining the complete management scope of this new business unit; thus, its financial information as of March 31, 2016 has been shown under the Downstream and the Exploration and Production segments.

 

9


Table of Contents
6. FINANCIAL INSTRUMENTS BY CATEGORY

The tables below show the Group’s financial assets and liabilities measured at fair value as of March 31, 2016 and December 31, 2015, and their allocation to their fair value levels:

 

     As of March 31, 2016  

Financial assets

   Level 1      Level 2      Level 3      Total  

Investments in financial assets:

           

- Mutual funds

     846         —           —           846   

- Other financial assets

     288         —           —           288   

Cash and cash equivalents:

           

- Mutual funds

     907         —           —           907   
  

 

 

    

 

 

    

 

 

    

 

 

 
     2,041         —           —           2,041   
  

 

 

    

 

 

    

 

 

    

 

 

 
     As of December 31, 2015  

Financial assets

   Level 1      Level 2      Level 3      Total  

Investments in financial assets:

           

- Mutual funds

     340         —           —           340   

- Other financial assets

     464         —           —           464   

Cash and cash equivalents:

           

- Mutual funds

     774         —           —           774   
  

 

 

    

 

 

    

 

 

    

 

 

 
     1,578         —           —           1,578   
  

 

 

    

 

 

    

 

 

    

 

 

 

The Group has no financial liabilities at fair value through profit or loss.

Fair value of financial assets and financial liabilities measured at amortized cost

The estimated fair value of loans, considering unadjusted listed prices (Level 1) for Negotiable Obligations and interest rates offered to the Group (Level 3) in connection with the remainder of the loans, amounted to 136,079 and 106,336 as of March 31, 2016 and December 31, 2015, respectively.

The fair value of the following financial assets and financial liabilities do not differ significantly from their book value:

 

    Other receivables

 

    Trade receivables

 

    Cash and cash equivalents

 

    Accounts payable

 

10


Table of Contents
7. ANALYSIS OF THE MAIN ACCOUNTS OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

7.a) Intangible assets:

 

     March 31, 2016     December 31, 2015  

Net book value of intangible assets

     8,348        7,359   

Provision for impairment of intangible assets

     (90 )(1)      (80
  

 

 

   

 

 

 
     8,258        7,279   
  

 

 

   

 

 

 

 

(1) Includes 10 of translation.

Changes in Group’s intangible assets for the three-month period ended March 31, 2016 and comparative information are as follows:

 

    2016  
    Cost  

Main account

  At beginning of
year
    Increases     Translation
effect
    Decreases and
reclassifications
    At the end of
period
 

Service concessions

    9,527        134        1,209        3        10,873   

Exploration rights

    2,990        —          364        —          3,354   

Other intangibles

    4,260        29        535        64        4,888   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total 2016

    16,777        163        2,108        67        19,115   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total 2015

    10,289        142        318        —          10,749   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    2016     2015  
    Amortization                    

Main account

  At beginning of
year
    Increases     Translation
effect
    Decreases and
reclassifications
    At the end of
period
    Net book
value
03-31
    Net book
value

03-31
    Net book
value

12-31
 

Service concessions

    5,554        87        711        —          6,352        4,521        2,407        3,973   

Exploration rights

    155        —          1        —          156        3,198        1,877        2,835   

Other intangibles

    3,709        66        484        —          4,259        629        318        551   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total 2016

    9,418        153        1,196        —          10,767        8,348       
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

Total 2015

    5,896        69        182        —          6,147          4,602        7,359   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

7.b) Fixed assets:

 

     March 31,
2016
     December 31,
2015
 

Net book value of fixed assets

     311,439         274,122   

Provision for obsolescence of materials and equipment

     (860      (762

Provision for impairment of fixed assets

     (2,615      (2,455
  

 

 

    

 

 

 
     307,964         270,905   
  

 

 

    

 

 

 

 

11


Table of Contents

Changes in Group’s fixed assets for the three-month period ended March 31, 2016 and comparative information are as follows:

 

    2016  
    Cost  

Main account

  At beginning of
year
    Increases     Translation
effect
    Decreases and
reclassifications
    At the end of
period
 

Land and buildings

    13,949        1        1,696        430        16,076   

Mineral property, wells and related equipment

    458,066        139        58,926        10,707        527,838   

Refinery equipment and petrochemical plants

    69,429        —          8,862        4,550        82,841   

Transportation equipment

    3,650        3        432        58        4,143   

Materials and equipment in warehouse

    13,478        1,720        1,527        (2,109     14,616   

Drilling and work in progress

    76,803        12,537        9,585        (15,035     83,890   

Exploratory drilling in progress(2)

    3,647        285        412        (181     4,163   

Furniture, fixtures and installations

    5,603        2        697        6        6,308   

Selling equipment

    10,778        1        1,368        206        12,353   

Infrastructure for natural gas distribution

    2,931        36        —          4        2,971   

Electric power generation facilities

    1,573        —          —          97        1,670   

Other property

    8,291        17        955        (85     9,178   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total 2016

    668,198        14,741        84,460        (1,352     766,047   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total 2015

    392,399        12,351        12,017        (595     416,172   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    2016     2015  
    Depreciation                    

Main account

  At beginning of
year
    Increases     Translation
effect
    Decreases and
reclassifications
    At the end of
period
    Net book
value 03-31
    Net book
value 03-31
    Net book
value 12-31
 

Land and buildings

    5,920        79        720        —          6,719        9,357        5,432        8,029   

Mineral property, wells and related equipment

    324,922        9,170        41,523        (90     375,525        152,313 (1)      74,594 (1)      133,144 (1) 

Refinery equipment and petrochemical plants

    41,138        954        5,271        —          47,363        35,478        17,469        28,291   

Transportation equipment

    2,392        88        292        (2     2,770        1,373        686        1,258   

Materials and equipment in warehouse

    —          —          —          —          —          14,616        8,923        13,478   

Drilling and work in progress

    —          —          —          —          —          83,890        52,817        76,803   

Exploratory drilling in progress(2)

    —          —          —          —          —          4,163        2,393        3,647   

Furniture, fixtures and installations

    4,699        110        588        (9     5,388        920        560        904   

Selling equipment

    6,921        147        886        —          7,954        4,399        1,475        3,857   

Infrastructure for natural gas distribution

    1,181        31        —          2        1,214        1,757        1,712        1,750   

Electric power generation facilities

    1,283        32        —          —          1,315        355        347        290   

Other property

    5,620        76        667        (3     6,360        2,818        1,786        2,671   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total 2016

    394,076        10,687        49,947        (102     454,608        311,439       
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

Total 2015

    235,156        5,564        7,261        (3     247,978          168,194        274,122   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

(1) Includes 9,127, 6,345 and 8,435 of mineral property as of March 31, 2016 and March 31, and December 31, 2015, respectively.
(2) As of March 31, 2016, there are 53 exploratory wells in progress. During the three-month period then ended, 2 wells have been started and 7 wells have been charged to exploration expenses.

 

12


Table of Contents

The Group capitalizes the financial cost as a part of the cost of the assets. For the three-month periods ended on March 31, 2016 and 2015 the rate of capitalization was 12.38% and 12.24%, respectively, and the capitalized amount was 302 and 221 respectively, for the periods above mentioned.

Set forth below is the evolution of the provision for obsolescence of materials and equipment for the three-month periods ended on March 31, 2016 and 2015:

 

     For the three-month period
ended March 31,
 
     2016      2015  

Amount at beginning of year

     762         313   

Increase charged to expenses

     —           2   

Translation differences

     98         10   
  

 

 

    

 

 

 

Amount at end of period

     860         325   
  

 

 

    

 

 

 

Set forth below is the evolution of the provision for impairment of fixed assets for the three-month periods ended on March 31, 2016 and 2015:

 

     For the three-month period
ended March 31,
 
     2016      2015  

Amount at beginning of year

     2,455         —     

Decrease charged to income(1)

     (153      —     

Translation differences

     313         —     
  

 

 

    

 

 

 

Amount at end of period

     2,615         —     
  

 

 

    

 

 

 

 

(1) Included in the line “Depreciation of fixed assets” in Note 7.n).

7.c) Investments in companies:

 

     March 31,
2016
    December 31,
2015
 

Investments in companies

     4,851        4,384   

Provision for impairment of investments in companies

     (12     (12
  

 

 

   

 

 

 
     4,839 (1)      4,372 (1) 
  

 

 

   

 

 

 

 

(1) See Note 8.

7.d) Inventories:

 

     March 31,
2016
    December 31,
2015
 

Refined products

     10,992        10,709   

Crude oil and natural gas

     7,978        7,155   

Products in process

     198        169   

Construction works in progress for third parties

     133        85   

Raw materials, packaging materials and others

     1,254        1,140   
  

 

 

   

 

 

 
     20,555 (1)      19,258 (1) 
  

 

 

   

 

 

 

 

(1) As of March 31, 2016 and December 31, 2015, the fair value of the inventories does not differ significantly from their cost.

 

13


Table of Contents

7.e) Other receivables:

 

     March 31, 2016      December 31, 2015  
     Noncurrent      Current      Noncurrent      Current  

Trade

     —           959         —           928   

Tax credit and export rebates

     301         5,454         304         8,058   

Loans to clients and balances with related parties(1)

     333         2,581         297         2,366   

Collateral deposits

     327         1,153         318         895   

Prepaid expenses

     205         1,427         198         682   

Advances and loans to employees

     8         215         8         285   

Advances to suppliers and custom agents(2)

     —           1,552         —           3,147   

Receivables with partners in joint operations and other agreements

     1,231         1,037         1,118         1,881   

Insurance receivables (Note 12.b)

     —           —           —           808   

Miscellaneous

     191         550         271         402   
  

 

 

    

 

 

    

 

 

    

 

 

 
     2,596         14,928         2,514         19,452   

Provision for other doubtful accounts

     (14      (40      (13      (39
  

 

 

    

 

 

    

 

 

    

 

 

 
     2,582         14,888         2,501         19,413   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) See Note 13 for information about related parties.
(2) Includes, among others, advances to customs agents for the payment of taxes and import rights related to the imports of fuels and goods.

7.f) Trade receivables:

 

     March 31, 2016      December 31, 2015  
     Noncurrent      Current      Noncurrent      Current  

Accounts receivable and related parties(1)

     378         31,679         469         22,959   

Provision for doubtful trade receivables

     —           (923      —           (848
  

 

 

    

 

 

    

 

 

    

 

 

 
     378         30,756         469         22,111   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) See Note 13 for information about related parties.

Changes in the provision for doubtful trade receivables

 

     For the three-month period ended March 31,  
     2016      2015  
     Noncurrent      Current      Noncurrent      Current  

Amount at beginning of year

     —           848         7         866   

Increases charged to expenses

     —           19         —           244   

Decreases charged to income

     —           (9      —           (13

Amounts incurred due to utilization

     —           (1      —           —     

Exchange and translation differences, net

     —           66         (1      (1
  

 

 

    

 

 

    

 

 

    

 

 

 

Amount at the end of period

     —           923         6         1,096   
  

 

 

    

 

 

    

 

 

    

 

 

 

7.g) Cash and cash equivalents:

 

     March 31,
2016
     December 31,
2015
 

Cash

     22,927         13,920   

Short-term investments

     2,329         693   

Financial assets at fair value through profit or loss (Note 6)

     907         774   
  

 

 

    

 

 

 
     26,163         15,387   
  

 

 

    

 

 

 

 

14


Table of Contents

7.h) Provisions:

 

     For the three-month period ended March 31, 2016  
     Provision for pending
lawsuits and
contingencies
    Provision for
environmental liabilities
    Provision for
hydrocarbon wells
abandonment
obligations
    Provision
for pensions
    Total  
     Noncurrent     Current     Noncurrent     Current     Noncurrent     Current     Noncurrent     Current     Noncurrent     Current  

Amount at beginning of year

     10,375        149        1,620        1,400        27,380        429        248        31        39,623        2,009   

Increases charged to expenses

     242        8        174        —          715        —          3        —          1,134        8   

Decreases charged to income

     (44     (16     —          —          —          —          —          —          (44     (16

Amounts incurred due to payments/utilization

     (2     (14     —          (186     —          (146     —          (6     (2     (352

Exchange and translation differences, net

     910        2        188        64        3,527        54        32        4        4,657        124   

Reclassifications and other

     (24     24        (177     177        (147     147        (6     6        (354     354   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Amount at the end of period

     11,457        153        1,805        1,455        31,475        484        277        35        45,014        2,127   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     For the three-month period ended March 31, 2015  
     Provision for pending
lawsuits and
contingencies
    Provision for
environmental
liabilities
    Provision for
hydrocarbon wells
abandonment
obligations
    Provision
for pensions
    Total  
     Noncurrent     Current     Noncurrent     Current     Noncurrent     Current     Noncurrent     Current     Noncurrent     Current  

Amount at beginning of year

     7,014        851        1,269        1,145        18,087        376        194        27        26,564        2,399   

Increases charged to expenses

     312        41        69        —          374        —          3        —          758        41   

Decreases charged to income

     (68     (4     —          —          —          (63     —          —          (68     (67

Amounts incurred due to payments/utilization

     (30     (180     —          (157     —          —          —          (26     (30     (363

Exchange and translation differences, net

     159        8        26        12        506        76        6        2        697        98   

Reclassifications and other

     (171     171        (18     18        (4     (7     (26     26        (219     208   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Amount at the end of period

     7,216        887        1,346        1,018        18,963        382        177        29        27,702        2,316   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

15


Table of Contents

7.i) Income tax:

According to IAS 34, income tax expense is recognized in each interim period based on the best estimate of the effective income tax rate expected as of the year-end. Amounts calculated for income tax expense for the three-month period ended March 31, 2016 may have to be adjusted in subsequent periods if, based on new judgment elements, the estimate of the effective expected income tax rate changes.

The reconciliation of pre-tax income included in the condensed interim consolidated statement of comprehensive income, at the statutory tax rate, to the income tax as disclosed in the condensed interim consolidated statements of comprehensive income for the three-month periods ended March 31, 2016 and 2015, respectively, is as follows:

 

     For the three-month period
ended March 31,
 
     2016     2015  

Net income before income tax

     5,733        4,046   

Statutory tax rate

     35     35
  

 

 

   

 

 

 

Statutory tax rate applied to net income before income tax

     (2,007     (1,416

Effect of the valuation of fixed assets and intangible assets measured in functional currency

     (9,108     (1,183

Exchange differences

     7,585        983   

Effect of the valuation of inventories measured in functional currency

     (1,027     (150

Income (loss) from investments in companies

     34        (13

Miscellaneous

     (355     (158
  

 

 

   

 

 

 

Income tax expense

     (4,878     (1,937
  

 

 

   

 

 

 

The Group did not recognize deferred income tax assets amounting to 5,048 and 4,373 as of March 31, 2016 and December 31, 2015, respectively, of which 2,287 and 2,041 corresponds to taxable temporary differences not recoverable and 2,761 and 2,332 corresponds to tax loss carry forwards from a foreign subsidiary, since they do not meet the recognition criteria set forth under IFRS. From the tax loss carry forwards mentioned above, as of March 31, 2016, 1,144 will be due as from 2017, 1,587 as from 2032 and 30 have an indefinite due date.

The composition of the Group’s deferred income tax assets and liabilities as of March 31, 2016 and December 31, 2015 is as follows:

 

     March 31,
2016
     December 31,
2015
 

Deferred tax assets

     

Nondeductible provisions and other liabilities

     3,436         3,093   

Tax loss carryforward and other tax credits

     5,728         3,236   

Miscellaneous

     70         83   
  

 

 

    

 

 

 

Total deferred tax assets

     9,234         6,412   
  

 

 

    

 

 

 

Deferred tax liabilities

     

Fixed assets

     (52,736      (45,393

Miscellaneous

     (5,161      (4,877
  

 

 

    

 

 

 

Total deferred tax liabilities

     (57,897      (50,270
  

 

 

    

 

 

 

Net deferred tax liability

     (48,663      (43,858
  

 

 

    

 

 

 

As of March 31, 2016 and December 31, 2015, 736 and 954, respectively, have been classified as deferred income tax assets and 49,399 and 44,812, respectively, as deferred income tax liabilities arising from the deferred income tax net balance of each individual company that take part in these condensed interim consolidated financial statements.

As of March 31, 2016 and December 31, 2015, the factors that generated charges under “Other comprehensive income” did not generate temporary differences subject to income tax.

 

16


Table of Contents

7.j) Loans:

 

               March 31 , 2016     December 31 , 2015  
     Interest rate (1)    Maturity    Noncurrent     Current     Noncurrent      Current  

Argentine pesos:

               

Negotiable obligations

   21.06 – 32.60%    2016-2024      19,475        3,096        19,280         2,050   

Loans

   15.25 – 32.25%    2016-2020      2,597 (3)      1,192 (3)      1,224         1,104   

Account overdraft

   33.00 – 36.00%    2016      —          1,884        —           4,425 (5) 
        

 

 

   

 

 

   

 

 

    

 

 

 
           22,072        6,172        20,504         7,579   
        

 

 

   

 

 

   

 

 

    

 

 

 

Currencies other than the Argentine peso:

               

Negotiable obligations (2)(4)

   1.29 – 10.00%    2016-2028      73,603        11,121        52,651         9,981   

Exports pre-financing

   3.50 – 7.20%    2016-2018      2,051        5,432        1,039         3,680   

Imports financing

   4.00 – 6.81%    2016-2017      —          5,307        —           4,736   

Loans

   2.50 – 7.98%    2016-2021      6,360        2,880        3,740         1,841   
        

 

 

   

 

 

   

 

 

    

 

 

 
           82,014        24,740        57,430         20,238   
        

 

 

   

 

 

   

 

 

    

 

 

 
           104,086        30,912        77,934         27,817   
        

 

 

   

 

 

   

 

 

    

 

 

 

 

(1) Annual interest rate as of March 31, 2016.
(2) Disclosed net of 569 and 1,349, corresponding to YPF’s outstanding Negotiable Obligations repurchased through open market transactions as of March 31, 2016 and December 31, 2015, respectively.
(3) Includes 2,210 corresponding to loans granted by Banco Nación Argentina, of which 210 accrue a fixed interest rate of 15% until March 2016 and then accrue variable interest of BADLAR plus a spread of 4 percentage points and 2,000 accrue variable interest of BADLAR plus a spread of 4 percentage points with a maximum lending interest rate of the overall portfolio of Banco Nación. See Note 13.
(4) Includes 10,921 and 9,970 as of March 31, 2016 and December 31, 2015, respectively, of face value negotiable obligations, to be cancelled in Argentine pesos at the prevailing exchange rate according to the terms of the issued series.
(5) Includes 1,926 of accounts overdrafts granted by Banco Nación Argentina. See Note 13.

The breakdown of the Group’s borrowings for the three-month period ended March 31, 2016 and 2015 is as follows:

 

     For the three-month periods ended
March 31,
 
     2016      2015  

Amount at beginning of year

     105,751         49,305   

Proceeds from loans

     36,603         10,784   

Payments of loans

     (17,179      (4,632

Payments of interest

     (3,515      (1,379

Accrued interest (1)

     3,674         1,565   

Exchange and translation differences, net

     9,664         1,073   
  

 

 

    

 

 

 

Amount at the end of period

     134,998         56,716   
  

 

 

    

 

 

 

 

(1) Includes capitalized financial costs, as mentioned in Note 7.b).

 

17


Table of Contents

Details regarding the Negotiable Obligations of the Group are as follows:

 

                                   March 31, 2016      December 31, 2015  

Month

  Year    Face value      Ref.   Class    Interest rate(3)     Maturity      Noncurrent      Current      Noncurrent      Current  

YPF

                         

-  

  1998    US$ 15       (1) (6)   —      Fixed     10.00     2028         56         9         49         3   

October and December

  2012    US$ 552       (2) (4) (5) (6) (8)   Class X    Fixed     6.25     2016         —           8,184         —           7,258   

November and December

  2012    $ 2,110       (2) (4) (6) (8)   Class XI    BADLAR plus 4.25%     30.06     2017         —           2,193         1,055         1,129   

December and March

  2012/3    $ 2,828       (2) (4) (6) (8)   Class XIII    BADLAR plus 4.75%     31.81     2018         2,828         30         2,828         25   

April

  2013    $ 2,250       (2) (4) (6) (8)   Class XVII    BADLAR plus 2.25%     27.30     2020         2,250         104         2,250         91   

April

  2013    US$ 89       (2) (5) (6)   Class XIX    Fixed     1.29     2017         1,304         3         1,156         3   

June

  2013    $ 1,265       (2) (4) (6)   Class XX    BADLAR plus 2.25%     29.20     2020         1,265         14         1,265         12   

July

  2013    US$ 92       (2) (5) (6)   Class XXII    Fixed     3.50     2020         710         183         630         162   

October

  2013    US$ 150       (2) (6)   Class XXIV    Libor plus 7.50%     7.82     2018         776         530         802         471   

December, February and December

  2013/5    US$ 862       (2)   Class XXVI    Fixed     8.88     2018         12,470         314         11,057         33   

April and February

  2014/5    US$ 1,325       (2)   Class XXVIII    Fixed     8.75     2024         19,411         835         17,212         364   

March

  2014    $ 500       (2) (6) (8)   Class XXIX    BADLAR     26.47     2020         500         9         500         7   

June

  2014    $ 465       (2) (6)   Class XXXII    BADLAR plus 3.2%     23.92     2016         —           —           —           157   

June

  2014    US$ 66       (2) (5) (6)   Class XXXIII    Fixed     2.00     2017         —           647         287         574   

September

  2014    $ 1,000       (2) (6) (8)   Class XXXIV    BADLAR plus 0.1%     25.00     2024         1,000         5         1,000         56   

September

  2014    $ 750       (2) (4) (6)   Class XXXV    BADLAR plus 3.5%     28.40     2019         750         5         750         49   

February

  2015    $ 950       (2) (8) (6)   Class XXXVI    BADLAR plus 4.74%     28.06     2020         950         37         950         95   

February

  2015    $ 250       (7) (2) (6)   Class XXXVII    BADLAR plus 3.49%     28.49     2017         —           260         250         9   

April

  2015    $ 935       (2) (4) (6)   Class XXXVIII    BADLAR plus 4.75%     30.42     2020         935         137         935         55   

April

  2015    US$ 1,500       (2)   Class XXXIX    Fixed     8.50     2025         21,844         324         19,369         1,111   

July

  2015    $ 500       (2)   Class XL    BADLAR plus 3.49%     27.85     2017         500         29         500         26   

September

  2015    $ 1,900       (2)(8)   Class XLI    BADLAR     24.90     2020         1,900         10         1,900         112   

September

  2015    $ 1,697       (2) (4)   Class XLII    BADLAR plus 4%     28.90     2020         1,697         11         1,697         119   

October

  2015    $ 2,000       (2) (8)   Class XLIII    BADLAR     21.06     2023         2,000         188         2,000         83   

December

  2015    $ 1,400       (2)   Class XLIV    BADLAR plus 4.75%     31.25     2018         1,400         26         1,400         25   

March

  2016    $ 150       (2)   Class XLV    BADLAR plus 4%     30.60     2017         150         4         —           —     

March

  2016    $ 1,350       (2) (4)   Class XLVI    BADLAR plus 4%     32.60     2021         1,350         34         —           —     

March

  2016    US$ 1,000       (2)   Class XLVII    Fixed     8.50     2021         14,650         28         —           —     

Metrogas

                            

January

  2013    US$ 177         Series A-L    Fixed     8.88     2018         2,177         64         1,906         2   

January

  2013    US$ 18         Series A-U    Fixed     8.88     2018         205         —           183         —     
                   

 

 

    

 

 

    

 

 

    

 

 

 
                   93,078         14,217         71,931         12,031   
                

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Corresponds to the 1997 M.T.N. Program for US$1,000 million.
(2) Corresponds to the 2008 M.T.N. Program for US$ 8,000 million.
(3) Interest rate as of March 31, 2016.
(4) The ANSES and/or the Fondo Argentino de Hidrocarburos have participated in the primary subscription of these negotiable obligations, which may, at the discretion of the respective holders, be subsequently traded in the securities market where these negotiable obligations are authorized to be traded.
(5) The payment currency of these Negotiable Obligations is the Argentine peso at the Exchange rate applicable under the terms of the series issued.
(6) As of the date of issuance of these condensed interim consolidated statements, the Group has fully complied with the use of proceeds disclosed in the pricing supplements.
(7) Until the course of twelve months since the date of issuance and liquidation to a fixed nominal annual rate of 25.75%; and then and until the date of maturity of the negotiable obligations to a variable nominal annual rate of BADLAR plus 3.49%.
(8) Negotiable Obligations classifying as productive investment, computable as such for purposes of subsection 35.8.1, paragraph K of General Regulations applicable to Insurance Activities issued by the Argentine Insurance Supervision Bureau.

 

18


Table of Contents

7.k) Accounts payable:

 

     March 31, 2016      December 31, 2015  
     Noncurrent      Current      Noncurrent      Current  

Trade and related parties(1)

     177         38,785         204         38,782   

Investments in companies with negative shareholders’ equity

     —           1         —           1   

Extension of concessions

     348         422         340         412   

Guarantee deposits

     8         462         8         467   

Miscellaneous

     100         535         73         317   
  

 

 

    

 

 

    

 

 

    

 

 

 
     633         40,205         625         39,979   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) For more information about related parties, see Note 13.

7.l) Revenues:

 

     For the three-month periods ended
March 31,
 
     2016      2015  

Sales(1)

     48,418         35,959   

Revenues from construction contracts

     140         102   

Turnover tax

     (1,624      (1,359
  

 

 

    

 

 

 
     46,934         34,702   
  

 

 

    

 

 

 

 

(1) Includes 5,230 and 2,452 for the three-month periods ended on March 31, 2016 and 2015, respectively, associated with revenues related to the natural gas additional injection stimulus program created by Resolution 1/2013 of the Ex-Planning and Strategic Coordination Commission of the National Plan of Hydrocarbons Investment.

7.m) Cost of sales:

 

     For the three-month periods ended
March 31,
 
     2016      2015  

Inventories at beginning of year

     19,258         13,001   

Purchases for the period

     9,828         6,535   

Production costs

     29,214         19,275   

Translation effect

     2,386         368   

Inventories at end of period

     (20,555      (13,103
  

 

 

    

 

 

 

Cost of sales

     40,131         26,076   
  

 

 

    

 

 

 

 

19


Table of Contents

7.n) Expenses:

 

     For the three-months periods ended March 31,  
     2016     2015  
     Production
costs(3)
     Administrative
expenses
    Selling
expenses
     Exploration
expenses
     Total     Total  

Salaries and social security taxes

     2,013         566        341         63         2,983        2,577   

Fees and compensation for services

     204         336 (2)      90         17         647        519   

Other personnel expenses

     671         55        25         11         762        599   

Taxes, charges and contributions

     355         76        687         —           1,118 (1)      1,089 (1) 

Royalties, easements and canons

     4,340         —          6         8         4,354        2,764   

Insurance

     179         10        83         —           272        259   

Rental of real estate and equipment

     1,225         8        117         —           1,350        847   

Survey expenses

     —           —          —           123         123        17   

Depreciation of fixed assets

     10,169         143        222         —           10,534        5,564   

Amortization of intangible assets

     94         50        9         —           153        69   

Industrial inputs, consumable materials and supplies

     1,348         9        21         3         1,381        855   

Operation services and other service contracts

     2,297         80        169         27         2,573        1,840   

Preservation, repair and maintenance

     3,685         82        59         10         3,836        3,152   

Unproductive exploratory drillings

     —           —          —           188         188        107   

Transportation, products and charges

     1,605         3        1,024         —           2,632        1,874   

Provision for doubtful trade receivables

     —           —          10         —           10        231   

Publicity and advertising expenses

     —           37        25         —           62        69   

Fuel, gas, energy and miscellaneous

     1,029         31        157         4         1,221        824   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total 2016

     29,214         1,486        3,045         454         34,199     
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

Total 2015

     19,275         1,198        2,592         191           23,256   
  

 

 

    

 

 

   

 

 

    

 

 

      

 

 

 

 

(1) Includes approximately 223 and 234 corresponding to hydrocarbon export withholdings for the three-month periods ended March 31, 2016 and 2015, respectively.
(2) Includes 40 of YPF’s Directors and Statutory Auditor’s fees and remunerations for all concepts. On April 29, 2016, the General Ordinary and Extraordinary Shareholder’s meeting of YPF decided to ratify fees of 140 for the 2015 year and decided to approve as fees and remunerations for all concepts in advance for the 2016 year the sum of approximately 127.
(3) The expense recognized in the condensed interim consolidated statements of comprehensive income related to research and development activities during the three-month periods ended March 31, 2016 and 2015 amounted to 70 and 51, respectively.

 

20


Table of Contents

7.o) Other operating results, net:

 

     For the three-month periods ended
March 31,
 
     2016      2015  

Lawsuits

     (182      (129

Construction incentive(1)

     28         —     

Miscellaneous

     (46      (47
  

 

 

    

 

 

 
     (200      (176
  

 

 

    

 

 

 

 

(1) Corresponds to the incentive to Argentine manufacturers of capital goods received by A-Evangelista S.A. under the provisions of Executive Order No. 379/2001 of the Argentine Ministry of Economy, for the three-month periods ended March 31, 2016 and 2015.

7.p) Financial results, net:

 

     For the three-month periods ended
March 31,
 
     2016      2015  

Financial income

     

Interest income

     328         193   

Exchange differences

     8,793         1,581   
  

 

 

    

 

 

 

Total financial income

     9,121         1,774   
  

 

 

    

 

 

 

Financial loss

     

Interest loss

     (4,027      (1,542

Financial accretion

     (724      (460

Exchange differences

     (729      (272
  

 

 

    

 

 

 

Total financial loss

     (5,480      (2,274
  

 

 

    

 

 

 

Other financial results

     

Fair value gains on financial assets at fair value through profit or loss

     89         115   

Gains on derivative financial instruments

     288         —     
  

 

 

    

 

 

 

Total other financial results

     377         115   
  

 

 

    

 

 

 

Other financial results, net

     4,018         (385
  

 

 

    

 

 

 

 

8. INVESTMENTS IN COMPANIES AND JOINT OPERATIONS

The Group does not participate in subsidiaries with a significant non-controlling interest. Furthermore, no investments in companies or joint operations are deemed individually material.

The following table shows in aggregate, considering that none of the companies are individually material, the amount of investments in companies and joint ventures as of March 31, 2016 and December 31, 2015:

 

     March 31,
2016
     December 31,
2015
 

Amount of investments in affiliated companies

     1,361         1,248   

Amount of investments in joint ventures

     3,490         3,136   

Provision for impairment of investments in companies

     (12      (12
  

 

 

    

 

 

 
     4,839         4,372   
  

 

 

    

 

 

 

Investments in companies with negative shareholders’ equity are disclosed in “Accounts payable”.

The main changes that affected the amount of the investments previously mentioned, during the three-month periods ended on March 31, 2016 and 2015, are the following:

 

     For the three-month periods
ended on March 31,
 
     2016      2015  

Amount at the beginning of year

     4,372         3,177   

Acquisitions and contributions

     —           2   

Results from investments in companies and joint ventures

     97         (38

Translation difference

     370         59   

Distributed dividends

     —           (150
  

 

 

    

 

 

 

Amount at the end of period

     4,839         3,050   
  

 

 

    

 

 

 

 

21


Table of Contents

The following table shows the main magnitudes of net results from the Group’s investments in companies, calculated according to the equity method, for the three-month periods ended on March 31, 2016 and 2015. YPF has made adjustments, where applicable, to the amounts reported by such companies in order to conform the accounting principles used by such companies to those used by the Group:

 

     Affiliated companies      Joint ventures  
     2016      2015      2016      2015  

Net income (loss)

     91         24         6         (62

Other comprehensive income

     19         3         351         56   
  

 

 

    

 

 

    

 

 

    

 

 

 

Comprehensive income for the period

     110         27         357         (6
  

 

 

    

 

 

    

 

 

    

 

 

 

Additionally, the Group participates in joint operations and other agreements which give the Group a contractually established percentage of the rights to the assets and obligations governed by the contracts. Interests in such joint operations have been consolidated line by line on the basis of the mentioned interest over the assets, liabilities, income and expenses related to each contract. Interests in joint operations have been calculated based upon the latest available financial statements as of the end of each year, taking into consideration significant subsequent events and transactions as well as available management information.

The exploration and production joint operations and other agreements in which YPF participates allocate hydrocarbon production to each partner based on its ownership interest, consequently such hydrocarbons are commercialized directly by the partners recognizing each of them the corresponding economic effects.

The assets and liabilities as of March 31, 2016 and December 31, 2015, and main magnitude of results for the three-month periods ended on March 31, 2016 and 2015 of the joint operations and other agreements are detailed below:

 

     March 31,
2016
     December 31,
2015
 

Noncurrent assets

     56,783         47,322   

Current assets

     859         944   
  

 

 

    

 

 

 

Total assets

     57,642         48,266   
  

 

 

    

 

 

 

Noncurrent liabilities

     5,247         4,593   

Current liabilities

     6,632         6,391   
  

 

 

    

 

 

 

Total liabilities

     11,879         10,984   
  

 

 

    

 

 

 
     For the three-month periods
ended March 31,
 
     2016      2015  

Production cost

     4,599         4,170   

Exploration expenses

     207         80   

 

22


Table of Contents

The following table shows the investments in companies:

 

   

Information of the issuer

 
   

Description of the Securities

            Last Financial Statements
Available
       

Name and Issuer

 

Class

  Face
Value
    Amount    

Main Business

 

Registered Address

  Date     Capital
stock
    Results     Equity     Holding in
Capital Stock
 

Controlled companies:(9)

               

YPF International S.A.(7)

  Common   Bs. 100        66,897      Investment   La Plata 19, Santa Cruz de la Sierra, República de Bolivia     03-31-16        13        2        23        100.00

YPF Holdings Inc.(7)

  Common   US$ 0.01        810,614      Investment and finance   10333 Richmond Avenue I, Suite 1050, TX, U.S.A.     12-31-15        11,874        (894     (3,927     100.00

Operadora de Estaciones de Servicios S.A.

  Common   $ 1        163,701,747      Commercial management of YPF’s gas stations   Macacha Güemes 515, Buenos Aires, Argentina     03-31-16        164        108        704        99.99

A-Evangelista S.A.

  Common   $ 1        307,095,088      Engineering and construction services   Macacha Güemes 515, Buenos Aires, Argentina     03-31-16        307        40        829        100.00

YPF Servicios Petroleros S.A.

  Common   $ 1        50,000      Wells perforation and/or reparation services   Macacha Güemes 515, Buenos Aires, Argentina     03-31-16        —   (8)      39        116        100.00

Metrogas S.A.

  Common   $ 1        398,419,700      Providing the public service of natural gas distribution   Gregorio Aráoz de Lamadrid 1360, Buenos Aires, Argentina.     03-31-16        569        (587     (1,354     70.00

YPF Energía Eléctrica S.A.

  Common   $ 1        30,006,540      Exploration, development, industrialization and marketing of hydrocarbons, and generation, transportation and marketing of electric power   Macacha Güemes 515, Buenos Aires, Argentina     03-31-16        30        164        1,319        100.00

YPF Chile S.A.(7)

  Common      —          50,968,649      Lubricants and aviation fuels trading and hydrocarbons research and exploration   Villarica 322; Módulo B1, Qilicura, Santiago     03-31-16        669        9        1,184        100.00

YPF Tecnología S.A.

  Common   $ 1        234,291,000      Investigation, development, production and commercialization of technologies, knowledge, goods and services   Macacha Güemes 515, Buenos Aires, Argentina     03-31-16        459        40        644        51.00

YPF Europe B.V.(7)

  Common   US$  0.01        15,660,437,309      Investment and finance   Prins Bernardplein 200, 1097 JB, Amsterdam, Holanda     03-31-16        2,294        34        2,474        100.00

YSUR Argentina Investment S.à r.l.(7)

  Common   US$ 1        20,001      Investment  

13-15, Avenue de la Lierté,

L-1931, Luxemburgo

    12-31-15        —   (8)      —   (8)      5,008        100.00

YSUR Argentina Corporation(7)

  Common   US$ 1        10,000,001      Investment   Boundary Hall, Cricket Square P.O. Box 1111 George Town, Grand Cayman, Cayman Islands KY1-1102     12-31-15        147        —   (8)      363        100.00

YSUR Petrolera Argentina
S.A.(7)

  Common   $ 1        634,284,566      Exploration, extraction, exploitation, storage, transportation, industrialization and marketing of hydrocarbons, as well as other operations related thereto.   Tucumán 1, P. 12, Buenos Aires, Argentina     03-31-16        634        33        497        100.00

 

23


Table of Contents
    03-31-2016     12-31-2015  
                               

Information of the issuer

       
    Description of the Securities                         Last Financial Statements
Available
             

Name and
Issuer

  Class   Face
Value
    Amount     Book
value(3)
    Cost (2)    

Main Business

 

Registered Address

  Date     Capital
stock
    Results     Equity     Holding in
Capital
Stock
    Book
Value(3)
 

Joint ventures:

                     

Compañía Mega S.A.(7) (6)

  Common   $ 1        244,246,140        1,446        —        Separation, fractionation and transportation of natural gas liquids   San Martín 344, P. 10º, Buenos Aires, Argentina     12-31-15        643        988        2,048        38.00     1,277   

Profertil S.A.(7)

  Common   $ 1        391,291,320        1,635        —        Production and marketing of fertilizers   Alicia Moreau de Justo 740, P. 3, Buenos Aires, Argentina     12-31-15        783        (505     453        50.00     1,452   

Refinería del Norte S.A.

  Common   $ 1        45,803,655        407        —        Refining   Maipú 1, P. 2º, Buenos Aires, Argentina     12-31-15        92        (6     874        50.00     405   
       

 

 

   

 

 

                 

 

 

 
          3,488        —                        3,134   
       

 

 

   

 

 

                 

 

 

 

Affiliated companies:

                     

Oleoductos del Valle S.A.

  Common   $ 10        4,072,749        140(1 )      —        Oil transportation by pipeline   Florida 1, P. 10º, Buenos Aires, Argentina     03-31-16        110        37        384        37.00     126 (1) 

Terminales Marítimas Patagónicas S.A.

  Common   $ 10        476,034        70        —        Oil storage and shipment   Av. Leandro N. Alem 1180, P. 11º, Buenos Aires, Argentina     12-31-15        14        42        255        33.15     70   

Oiltanking Ebytem S.A.

  Common   $ 10        351,167        171        —        Hydrocarbon transportation and storage   Terminal Marítima Puerto Rosales – Provincia de Buenos Aires, Argentina.     03-31-16        12        43        178        30.00     150   

Gasoducto del Pacífico (Argentina) S.A.

  Preferred   $ 1        15,579,578        25        —        Gas transportation by pipeline   San Martín 323, P.13°, Buenos Aires, Argentina     12-31-15        156        54        229        10.00     23   

Central Dock Sud S.A.

  Common   $ 0.01        11,869,095,145        167        136      Electric power generation and bulk marketing   Pasaje Ingeniero Butty 220, P.16°, Buenos Aires, Argentina     12-31-15        1,231        469        1,614        10.25 %(5)      152   

Inversora Dock Sud S.A.

  Common   $ 1        355,270,303        527        445      Investment and finance   Pasaje Ingeniero Butty 220, P.16°, Buenos Aires, Argentina     12-31-15        829        329        1,166        42.86     484   

Oleoducto Trasandino (Argentina) S.A.

  Preferred   $ 1        12,135,167        28        —        Oil transportation by pipeline   Macacha Güemes 515, P.3º, Buenos Aires, Argentina     12-31-15        34        24        87        36.00     25   

Other companies:

                         

Other(4)

      —          —          235        135                   —          —          —          —          220   
       

 

 

   

 

 

                 

 

 

 
          1,363        716                      1,250   
       

 

 

   

 

 

                 

 

 

 
          4,851        716                      4,384   
       

 

 

   

 

 

                 

 

 

 

 

(1) Holding shareholder´s equity, net of intercompany profits.
(2) Cost net of cash dividends and stock redemption.
(3) Holding in shareholders’ equity plus adjustments to conform to YPF accounting methods.
(4) Includes Gasoducto del Pacífico (Cayman) Ltd., A&C Pipeline Holding Company, Poligás Luján S.A.C.I.,Oleoducto Transandino (Chile) S.A., Bizoy S.A., Civeny S.A., Bioceres S.A., Lestery S.A. and YPF Gas S.A.
(5) Additionally, the Company has a 29.99% indirect holding in capital stock through Inversora Dock Sud S.A.
(6) As stipulated by shareholders’ agreement, joint control is held in this company by shareholders.
(7) The U.S. dollar has been defined as the functional currency of this company.
(8) No value is disclosed as the carrying value is less than 1.
(9) Additionally consolidated Compañía Minera de Argentina S.A., YPF Services USA Corp, YPF Perú S.A.C., YPF Brasil Comercio Derivado de Petróleo Ltda, Wokler Investment S.A., YPF Colombia S.A.S., Miwen S.A., Eleran Inversiones 2011 S.A.U., Lestery S.A., YSUR Argentina Holdings S.à r.l., Compañía de Inversiones Mineras S.A. and Energía Andina S.A.

 

24


Table of Contents
9. SHAREHOLDERS’ EQUITY

On April 29, 2016, the General Ordinary and Extraordinary Shareholders’ meeting was held, which approved the financial statements of YPF for the year ended December 31, 2015 and additionally decided the following in relation to the distribution of earnings: (a) to allocate the amount of 50 to a reserve for future acquisition of YPF shares under the “performance and bonus program” mentioned in the Director’s report, giving the Board of Directors the opportunity to acquire shares when it considers it convenient and to comply with the commitments assumed and to be assumed in relation with the mentioned program; (b) to allocate the amount of 3,640 to constitute a reserve for investment in accordance with article 70, paragraph 3 of Law 19,550 of Argentine Corporations and its amendments; and (c) to allocate the amount of 889 to a reserve for future dividends, empowering the Board of Directors to determine when to make a payment so long as it occurs before the end of the present fiscal year.

 

10. EARNINGS PER SHARE

The following table shows the net income and the number of shares that have been used for the calculation of the basic earnings per share:

 

     For the three-month periods
ended on March 31,
 
     2016      2015  

Net income

     996         2,127   

Average number of shares outstanding

     392,101,191         392,352,241   

Basic and diluted earnings per share

     2.54         5.42   

Basic and diluted earnings per share are calculated as shown in Note 1.b.13 to the Annual Consolidated Financial Statements.

 

11. PROVISIONS FOR PENDING LAWSUITS, CLAIMS AND ENVIRONMENTAL LIABILITES

Provisions for pending lawsuits, claims and environmental liabilities are described in Note 10 to the Annual Consolidated Financial Statements.

As of March 31, 2016, the Group has accrued pending lawsuits, claims and contingencies which are probable and can be reasonably estimated, amounting to 11,610.

In relation to environmental obligations, and in addition to the hydrocarbon wells abandonment legal obligations for 31,959, as of March 31, 2016, the Group has accrued 3,260 corresponding to environmental remediation, which evaluations and/or remediation works are probable and can also be reasonably estimated, based on the Group’s existing remediation program.

Developments during the three-month period ended March 31, 2016, concerning the most significant pending lawsuits and contingencies are described below.

 

  With respect to the AES Uruguaiana Emprendimientos S.A. (“AESU”) and Transportadora Gas del Mercosur S.A. (“TGM”) arbitration proceedings and the writ of nullity filed on February 2, 2016 by AESU and Companhía do Gas do Estado do Rio Grande do Sul (“SULGAS”), on February 23, 2016, the Court of Appeals denied the motion “in limine”. AESU and SULGAS filed a motion before the Supreme Court against this denial, which was communicated to YPF on March 31, 2016. On the same date, the Court of Appeals rejected the motion to appeal before the Supreme Court filed by TGM on February 2, 2016.

 

25


Table of Contents

On April 26, 2016, Division IV of the Court of Appeals denied the motion filed by AESU and SULGAS and passed a new resolution declaring the nullity and ineffectiveness of all proceedings filed by the parties until then and by the Arbitration Tribunal regarding the “second stage” of the Arbitration, on the basis that they lacked legal grounds. In turn, the resolution recalls the legal order arising from Section 34, subsection 5, paragraph b, of the Argentine Civil and Commercial Code of Procedures (“CPCCN”, by its acronym in Spanish), advising the Arbitration Tribunal that it may not issue any resolution regarding the second stage of the arbitration, including a final award on damages, and also advising AESU, SULGAS and TGM that any of their respective acts to that end or any act of the Arbitration Tribunal that might involve them, in violation of the above referred judgment, shall be evaluated by such Court Division in the exercise of the powers vested on it by the CPCCN as process manager (section 45 and related sections). In addition, this Division ordered to notify the Arbitration Tribunal and the International Arbitration Secretary’s Office for the International Chamber of Commerce (“ICC”), advising them that the Arbitration Tribunal is not in a position to issue an award in accordance with applicable law.

This resolution was communicated by YPF to the Arbitration Tribunal, the parties and the ICC. On the same date but following this notification, YPF was given notice of the damages arbitration award issued by a majority of the Arbitration Tribunal, whereby the Company was ordered to pay damages of US$185 million to AESU, for the early termination of the gas export contract in 2009, and on account of the delivery or pay penalty, and of US$ 319 million to TGM on account of the principal invoices amount, irrevocable contributions and damages for the early termination of the transportation contract.

On May, 2, 2016, YPF filed with the ICC and the Arbitration Tribunal the relevant writ of nullity against the said arbitration award. On the same date, it also filed a writ of nullity before Division IV of the Federal Contentious Administrative Tribunal, and in an auxiliary manner filed a reconsideration motion from denial of appeal.

On May 4, 2016, the Arbitration Tribunal passed a resolution resolving that it would refrain from issuing a decision regarding the writ of nullity filed by YPF. Considering this resolution a dismissal of the writ of nullity, on May 5, 2016, YPF filed before Division IV of the Federal Contentious Administrative Tribunal a motion for reconsideration against the decision rendered by the Arbitration Tribunal to deny the writ of nullity filed by the Company.

 

  In connection with the complaint filed by Asociación Unión de Usuarios y Consumidores against YPF, the Company filed an appeal against the relevant judgment, which was admitted with staying effect. Plaintiff also filed an appeal against the judgment and both parties filed their respective appellate briefs, which were answered. On April 4, 2016, the file was raised to the Court of Appeals. The updated judgement amount as of the date of these consolidated condensed interim financial statements amounts to approximately 536 plus legal costs.

 

  As to the administrative environmental issues related to the lower 8 miles of the Passaic River, on March 4, 2016, the U.S. Environmental Protection Agency (“EPA”) issued the Record of Decision (“ROD”) for the lower 8.3 miles of the Passaic River, which is a part of the Diamond Alkali Superfund Site - Essex and Hudson Counties, New Jersey. The ROD selects the so-called Alternative 3 as the remedy for the removal of contaminated sediments with an estimated cost of US$1.382 billion (net present value at a 7% rate).

The ROD requires the removal of 3.5 million cubic yards of sediment from the lower 8.3 miles of the Passaic River by bank-to-bank dredging, to a depth of approximately 5 to 30 feet in the federal navigation channel from mile 0 to mile 1.7, and approximately 2.5 feet in the remaining areas of the lower 8.3 miles of the Passaic River. A two-foot thick cap will be installed over the dredged areas. Contaminated segments will be transported to disposal sites outside the state. The EPA estimates the whole project will take approximately 11 years, including one year for negotiations among potentially responsible parties, three to four years for project design and six years for its implementation.

 

26


Table of Contents

On March 31, 2016, the EPA notified all potentially responsible parties, including Occidental Chemical Corporation (“OCC”), of the liabilities relating to the 8.3 miles area of the Passaic River relating to the ROD. In the same notice, the EPA stated that it expected OCC (against whom Maxus is litigating a dispute over indemnity) to prepare the remediation plan design and that it would send a second letter with an administrative proposal to this end, which was received by counsel to OCC, Maxus Energy Corporation (“Maxus”) and Tierra Solutions Inc. (“TS”) on April 26, 2016.

OCC, Maxus and TS are holding discussions with EPA to define their participation in a potential negotiation aimed at taking part in the design of EPA’s proposed remediation plan, taking into account that the ROD has identified over one hundred potentially responsible parties and eight contaminants of concern, many of which have not been generated at the Lister Site. Currently, Maxus is evaluating the situation resulting from the issuance of the ROD by the EPA, as well as its subsequent associated letters. Therefore, as of the date of issuance of these consolidated condensed interim financial statements, the conclusion stated in the consolidated annual financial statements as of December 31, 2015 has not been modified.

 

  In connection with the Passaic River litigation, in which the New Jersey Department of Environmental Protection (“DEP”) holds with YPF, YPF Holdings Inc. and other controlled companies, with respect to the contamination of the lower Passaic River with dioxin and other hazardous substances discharged by the Newark plant, the parties appealed the recommendations of the Special Judge to Judge Furnari (presiding Judge of the legal proceedings) on February 16, 2016, who, nevertheless, adopted the Special Masters’s recommendations in their entirety. In addition, discovery of all relevant evidence having been completed, the acting Judge issued Case Management Order XXVIII, which sets forth, among other procedural deadlines, June 20, 2016 as the date for the commencement of the trial.

On April 25, 2016, all the parties moved to request permission to file interlocutory appeals and a stay of the litigation during the appellate proceedings. Maxus filed a motion requesting permission to appeal the ruling granting summary judgment to OCC against Maxus, which held that Maxus is liable under the stock purchase and sale agreement for all obligations under, or arising from, the Lister Site, even if attributable to OCC’s own acts. YPF filed a motion requesting permission to appeal the ruling denying its motion for summary judgment seeking a decision indicating that OCC may not use allegedly fraudulent transfers which are prescribed as a basis for its alter ego claims against YPF. OCC filed only one motion, appealing the ruling that granted to Repsol the motion for summary judgment, whereby all claims against Repsol were dismissed. OCC did not appeal the rulings that (a) denied OCC’s motion to file additional cross claims; (b) denied OCC’s motion for a declaratory judgment regarding future costs; and (c) denied OCC’s motion for summary judgment seeking a dismissal of Repsol’s Spill Act contribution claim against OCC (all of the foregoing without prejudice to reserving the right to file post-trial motions of appeal on these issues).

 

12. CONTINGENT LIABILITIES, CONTINGENT ASSETS, CONTRACTUAL COMMITMENTS, MAIN REGULATIONS AND OTHERS

Contingent liabilities, contingent assets, contractual commitments, main regulations and others are described in Note 11 to the Annual Consolidated Financial Statements.

Developments during the three-month period ended March 31, 2016 concerning the above are detailed below.

a) Contingent Liabilities

 

  No new significant contingent liabilities have been identified for the three-month period ended March 31, 2016 and no changes in valuations of contingent liabilities existing as of December 31, 2015 have been made.

 

27


Table of Contents

b) Contingent Assets

 

  Cerro Divisadero:

Concerning the fire that damaged the facilities of the Crude Oil Treatment Plant of Cerro Divisadero in Mendoza, as of December 31, 2015 the claim settlement proceedings were concluded, with the final settlement amount agreed at US$ 122 million, of which US$ 45 million was related to property damage and US$ 77 million was related to production losses, for which a US$ 60 million advance had already been received as of such date. During the three-month period ended March 31, 2016, the Company received the second and final payment of US$ 62 million.

c) Contractual commitments

 

  Agreements for project investments

 

    With respect to the Investment Project Agreement executed by and between the Company and subsidiaries of Chevron Corporation with the objective of the joint exploitation of unconventional hydrocarbons in the province of Neuquén, in the Loma Campana area, during the three-month period ended March 31, 2016, the Company and Compañía de Hidrocarburo No Convencional S.R.L. (“CHNC”) have completed transactions, including the purchases of gas and crude oil by YPF for 1,531. These transactions were completed under general and regulatory market conditions. The net balance payable to CHNC as of March 31, 2016 amounts to 808.

d) Main regulations and others

 

  Natural gas regulatory requirements

YPF previously appealed ENARGAS Resolution No. 1410/2010, approving the “Procedure for Gas Requests Confirmations and Control”. On December 9, 2015 ENARGAS rejected YPF’s challenge to such resolution. YPF is now evaluating its future course of action.

On April 1, 2016 the following resolutions were issued:

 

  (1) Resolution No. 28/2016 passed by the Ministry of Energy and Mining, which, among other things:

 

    Sets the new prices for natural gas at the Transportation System Entry Points (“TSEPs”), broken up by basin and user category, and provides discounts to those Residential Users reducing their consumption by fifteen percent (15%) or more as compared to the same period of the previous year, taking effect for consumption starting from April 1, 2016.

 

    Sets the new Propane Gas Prices for Undiluted Propane Gas distribution, as well as provides discounts to those Residential Users recording a savings in their consumption equal to or higher than fifteen percent (15%) compared to the same period of the previous year.

 

    Instructs the ENARGAS to adapt the Registry of Persons Exempt from the Argentine Government Policy of Subsidy Reallocation through which ENARGAS adopts for Residential Users the Eligibility Criteria to benefit from a “Social Tariff”, with a one hundred percent (100%) discount on the Natural Gas price or the Propane Gas price consumed by such users.

 

    Revokes resolutions passed by the former Ministry of Federal Planning, Public Investment and Services under Section 6 of Executive Order No. 2.067/2008 and Section 7 of Resolution No. 1.451/2008 of the Ministry, related to the assessment of tariff charges, to which end it instructs ENARGAS to take the necessary measures to cease applying those charges in the bills issued to users.

 

  (2) Resolution No. 34/2016 passed by the Ministry of Enegry and Mining, which, among other things:

 

    Sets the new prices at TSEPs for natural gas supply to Compressed Natural Gas (CNG) stations, taking effect for consumption starting from April 1.

 

    Provides that from May 1, natural gas for CNG supply stations will be acquired by distributors.

 

28


Table of Contents
  Main rules applicable to the activities of Metrogas:

On February 24, 2016, within the framework of the process for renegotiating public services contracts provided by Law No. 25,561 and supplementary regulations, Metrogas entered into a Temporary Agreement with the Ministry of Energy and Mining and the Ministry of Economy and Public Finance whereby a provisional tariff regime is established for the collection of higher revenues than those collected under the Temporary Agreement of 2014 and ENARGAS Resolution No. I/2407/2012 issued on November 27, 2012.

The new Temporary Agreement establishes an interim tariff regime effective from April 1, 2016, consisting of the readjustment of tariffs with due regard to the necessary guidelines for service continuity and common criteria with the other distribution licensees, and to the tariff regulations, including changes in the gas price at the transportation entry point.

The Temporary Agreement further provides that, between its execution date and December 31, 2016, the parties shall reach an agreement related to the modalities, time periods and timing for the execution of the Memorandum of Agreement for Comprehensive Contractual Renegotiations.

In addition, Resolution No. 31/2016 issued by the Ministry of Energy and Mining orders ENARGAS to conduct a Comprehensive Tariff Review which shall be concluded within a maximum term of one year from March 29, 2016.

On April 4, 2016, ENARGAS Resolution No. 3726/2016 was published in the Argentine Official Gazette whereby a new tariff scheme applicable to Metrogas users was approved, effective from April 1, 2016. Under ENARGAS Resolution No. 3726/2016, new tariffs are additionally established for residential users recording a saving in their consumption equal to or higher than fifteen percent (15%) compared to the same period of the previous year and also tariffs applicable to users registered with the registry established under ENARGAS Resolution No. I-2.905/2015 as amended by section 5 of Resolution No. 28/2016 issued by the Ministry of Energy and Mining (social tariff).

As to the social tariff set out in Resolution No. 28/2016 issued by the Ministry of Energy and Mining, as of the date of these financial statements, the Registry of Persons Exempt from the Argentine Government Policy of Subsidy Reallocation has not been adapted.

Finally, Resolution No. 3726/2016 issued by ENARGAS establishes that Metrogas may not distribute dividends without previously providing evidence to ENARGAS of full compliance with the Mandatory Investment Plan, which concerning Metrogas amounts to 715.

In addition, Metrogas anticipates an agreement with the Argentine Government concerning the guidelines contained in the Annex to the 2016 Temporary Agreement related to the modalities, time periods and timelines of the execution of the Memorandum of Agreement for Comprehensive Contractual Renegotiations, so as to facilitate the restructuring of the economic-financial standing.

 

  Regulatory framework for the electric power industry:

 

    Law No. 27,191, amending Law No. 26,190 on Argentina’s Scheme for Promotion of Use of Energy Renewable Sources intended for Electricity Production, binds Large Users to incorporate at least 8% of energy from renewable sources into their electric power usage by December 31, 2017.

 

    Federal Executive Order No. 531/2016 (Regulations of Law No. 27,191), dated March 31, 2016. Among other things, this Executive Order establishes that before December 31, 2017, users shall provide evidence of execution of self and joint generation contracts or projects. Upon examining compliance with the purposes of the Law, should there be energy shortage, a penalty shall be imposed, but no further details are provided.

 

    Resolution No. 22/2016 issued by the Energy Secretariat dated March 30, 2016. Pursuant to this Resolution, the Energy Secretariat amended SE Resolution 482/2015 and adjusted tariff components collected by generators who have adhered to SE Resolutions Nos. 95/2013, 529/14 and 482/2015. The resolution modifies remunerative components of financial transactions reatroactively to February 2016.

 

29


Table of Contents
    Resolution No. 41/2016 issued by the Ministry of Energy and Mining dated April 13, 2016. It was published to update seasonal reference prices of power and energy recognized by CAMMESA for electricity generation from economic transactions starting from May 2016.

 

    Resolution No. 21/2016 issued by the Energy Secretariat published on March 22. This resolution calls generators, self-generators and joint generators interested in bidding on a new capacity of thermal power generation and associated electricity production, undertaking to be available in the Wholesale Electricity Market during summer (2016/2017 and 2017/2018) and winter 2017.

 

13. BALANCES AND TRANSACTIONS WITH RELATED PARTIES

The Group enters into operations and transactions with related parties according to general market conditions, which are part of the normal operation of the Group with respect to their purpose and conditions.

The information detailed in the tables below shows the balances with joint ventures and affiliated companies as of March 31, 2016 and December 31, 2015 and transactions with the mentioned parties for the three-month periods ended March 31, 2016 and 2015.

 

     March 31, 2016      December 31, 2015  
     Other
receivables
     Trade
receivables
     Accounts
payable
     Other
receivables
     Trade
receivables
     Accounts
payable
 
     Current      Current      Current      Current      Current      Current  

Joint ventures:

                 

Profertil S.A.

     100         142         42         110         209         35   

Compañía Mega S.A.

     16         425         105         12         481         381   

Refinería del Norte S.A.

     —           236         14         —           125         11   

Bizoy S.A.

     4         —           —           4         —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     120         803         161         126         815         427   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Affiliated companies:

                 

Central Dock Sud S.A.

     —           387         —           —           194         —     

YPF Gas S.A.(1)

     19         161         32         33         98         44   

Oleoductos del Valle S.A.

     —           —           69         —           —           56   

Terminales Marítimas Patagónicas S.A.

     —           —           42         —           —           44   

Oleoducto Trasandino (Argentina) S.A.

     —           —           4         —           —           2   

Oleoducto Trasandino (Chile) S.A.

     1         —           —           1         —           —     

Gasoducto del Pacífico (Argentina) S.A.

     4         —           28         4         —           27   

Oiltanking Ebytem S.A.

     —           —           74         —           —           45   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     24         548         249         38         292         218   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     144         1,351         410         164         1,107         645   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     For the three-month period ended on March 31,  
     2016      2015  
     Revenues      Purchases and
services
     Revenues      Purchases and
services
 

Joint ventures:

           

Profertil S.A.

     283         77         144         26   

Compañía Mega S.A.

     556         120         400         58   

Refinería del Norte S.A.

     340         37         191         20   
  

 

 

    

 

 

    

 

 

    

 

 

 
     1,179         234         735         104   
  

 

 

    

 

 

    

 

 

    

 

 

 

Affiliated companies:

           

Central Dock Sud S.A.

     230         —           138         —     

YPF Gas S.A.(1)

     98         8         —           —     

Oleoductos del Valle S.A.

     —           93         —           48   

Terminales Marítimas Patagónicas S.A.

     —           83         —           48   

Oleoducto Trasandino (Argentina) S.A.

     —           6         —           6   

Gasoducto del Pacífico (Argentina) S.A.

     —           42         —           24   

Oiltanking Ebytem S.A.

     —           93         —           42   
  

 

 

    

 

 

    

 

 

    

 

 

 
     328         325         138         168   
  

 

 

    

 

 

    

 

 

    

 

 

 
     1,507         559         873         272   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) Disclosed balances and transactions since the date of the acquisition of interest.

 

30


Table of Contents

Additionally, in the normal course of business, and taking into consideration that YPF is the main oil and gas company in Argentina, its client/suppliers’ portfolio encompasses both private sector entities as well as national, provincial and municipal public sector entities. As required by IAS 24 “Related party disclosures”, the most important major transactions mentioned above are:

 

    CAMMESA: the provision of fuel oil, which is destined to thermal power plants, and the revenues and purchases of energy (the operations of sale and purchase for the three-month period ended on March 31, 2016 amounted to 5,052 and 446, respectively, and on March 31, 2015 amounted to 3,168 and 287, respectively, while the net balance as of March 31, 2016 and December 31, 2015 was a trade receivable of 3,096 and 1,960, respectively);

 

    ENARSA: rendering of services in the regasification projects of liquified natural gas in Escobar and Bahía Blanca and the purchase of natural gas and crude oil (the operations for the three-month period ended on March 31, 2016, amounted to 477 and 35, respectively, and on March 31, 2015 amounted to 365 and 9, respectively, while the net balance as of March 31, 2016 and December 31, 2015 was a trade receivable of 123 and a trade payable of 135, respectively);

 

    Aerolíneas Argentinas S.A. and Austral Líneas Aéreas Cielos del Sur S.A.: the provision of jet fuel (the operations for the three-month periods ended on March 31, 2016 and 2015, amounted to 642 and 538, respectively, while the net balance as of March 31, 2016 and December 31, 2015 was a trade receivable of 346 and 255, respectively);

 

    Ministry of Energy and Mining: the benefits of the incentive scheme for the Additional Injection of natural gas, (the operations for the three-month periods ended on March 31, 2016 and 2015, amounted to 5,230 and 2,452, respectively, while the net balance as of March 31, 2016 and December 31, 2015 was a trade receivable of 15,105 and 9,859, respectively) and for the crude oil production incentive program (the operations for the three-month periods ended on March 31, 2016 and 2015 amounted to a trade receivable of 1,988 and 1,961, respectively, while no other transaction existed for the three-month periods ended on March 31, 2016 and 2015); and the temporary economic assistance to Metrogas (the net balance as of March 31, 2016 and December 31, 2015 was a trade receivable of 149; while no other transaction existed for the three-month periods ended on March 31, 2016 and 2015);

 

    Ministry of Transport: the compensation for providing gas oil to the public transport of passengers at a differential price (the operations for the three-month periods ended on March 31, 2016 and 2015, amounted to 1,053 and 799, respectively, while the net balance as of March 31, 2016 and December 31, 2015 was a trade receivable of 488 and 412, respectively);

 

    Industry Secretariat: incentive for domestic manufacturing of capital goods, for the benefit of A-Evangelista S.A. (the operations for the three-month period ended on March 31, 2016 amounted to 28 and no other transaction existed for the three-month period ended on March 31, 2015, while the net balance as of March 31, 2016 and December 31, 2015 was a trade receivable of 27).

Such transactions are generally based on medium-term agreements and are provided according to general market and/or regulatory conditions, as applicable.

Additionally, the Group has entered into certain financing and insurance transactions with entities related to the national public sector, as defined in IAS 24. Such transactions consist of certain financial transactions that are described in Note 7.j) of these condensed interim financial statements, and transactions with Nación Seguros S.A. related to certain insurance policies contracts, and in connection therewith, to the reimbursement from the insurance coverage for the incident mentioned in Note 11.b) to the Annual Consolidated Financial Statements and in Note 12.b) of these condensed interim consolidated financial statements.

 

31


Table of Contents

Furthermore, in relation to the investment agreement signed between YPF and Chevron subsidiaries, YPF has an indirect non-controlling interest in CHNC with which YPF carries out transactions in connection with the mentioned investment agreement. See Note 11.c) to the Annual Consolidated Financial Statements and Note 12.c) of these condensed interim consolidated financial statements.

The table below discloses the compensation for the Company’s key management personnel, including members of the Board of Directors and vice president managers with executive functions appointed by the Board of Directors, for the three-month periods ended March 31, 2016 and 2015:

 

     2016(1)      2015(1)  

Short-term employee benefits(2)

     42         41   

Share-based benefits

     9         14   

Post-retirement benefits

     2         1   
  

 

 

    

 

 

 
     53         56   
  

 

 

    

 

 

 

 

(1) Includes the compensation for YPF’s key management personnel which developed their functions during the mentioned periods.
(2) Do not include Social Security contributions for 9 and 9 for the three-month periods ended on March 31, 2016 and 2015, respectively.

 

14. EMPLOYEE BENEFIT PLANS AND OTHER OBLIGATIONS

Note 1.b.10 to the Annual Consolidated Financial Statements describes the main characteristics and accounting treatment for benefit plans implemented by the Group. The charges recognized during the three-month periods ended on March 31, 2016 and 2015 are as follows:

 

  i. Retirement plan:

The total charges recognized under the Retirement Plan amounted to approximately 26 and 16 for the three-month periods ended on March 31, 2016 and 2015, respectively.

 

  ii. Performance Bonus Programs and Performance evaluation:

The amount charged to expenses related to the Performance Bonus Programs was 320 and 233 for the three-month periods ended on March 31, 2016 and 2015, respectively.

 

  iii. Share-based benefit plan:

The amounts recognized in net income in relation with the Share-based Plans, which are disclosed according to their nature, amounted to 40 and 27 for the three-month periods ended on March 31, 2016 and 2015, respectively.

 

15. INFORMATION REQUIRED BY REGULATORY AUTHORITIES

 

a) CNV General Resolution No. 622

 

  i. Pursuant to section 1, Chapter III, Title IV of such resolution, there follows a description of the notes to the condensed interim consolidated financial statements containing information required under the Resolution in the form of exhibits.

 

Exhibit A – Fixed Assets   Note 7.b) Fixed Assets
Exhibit B – Intangible assets   Note 7.a) Intangible assets
Exhibit C – Investments in companies   Note 8 Investments in companies and joint operations
Exhibit D – Other investments   Note 6 Financial instruments by category
Exhibit E – Provisions  

Note 7.f) Trade receivables

Note 7.e) Other receivables

Note 7.c) Investments in companies

Note 7.b) Fixed Assets

Note 7.h) Provisions

Exhibit F – Cost of goods sold and services rendered   Note 7.m) Cost of sales
Exhibit G – Assets and liabilities in foreign currency   Note 16 Assets and liabilities in currencies other than the Argentine peso

 

32


Table of Contents
  ii. On March 18, 2015, the Company was registered with the CNV under the category “Settlement and Clearing Agent and Trading Agent - Own account”, record No. 549. Considering the Company’s business, and the CNV Rules and its Interpretative Criterion No. 55, the Company shall not, under any circumstance, offer brokerage services to third parties for transactions in markets under the jurisdiction of the CNV, and it shall also not open operating accounts to third parties to issue orders and trade in markets under the jurisdiction of the CNV.

Besides, in accordance with the provisions of Section VI, Chapter II, Title VII of the CNV Rules and its Interpretative Criterion No. 55, the Company’s equity exceeds the minimum required equity under such rules, which is 15, while the minimum required counterparty capital, which is 3, is comprised of 11,618,762 units of the mutual fund known as Fondo Común de Inversión Compass Ahorro - Clase B, with settlement upon redemption in 24 hours; the Company’s units total value as of March 31, 2016 amounted to 20.

 

b) CNV General Resolution No. 629

Due to General Resolution No. 629 of the CNV, the Company informs that supporting documentation of YPF’s operations, which is not in YPF’s headquarters, is stored in the following companies:

 

    Adea S.A. located in Barn 3 – Route 36, Km. 31.5 – Florencio Varela – Province of Buenos Aires.

 

    File S.R.L., located in Panamericana and R.S. Peña – Blanco Encalada – Luján de Cuyo –Province of Mendoza.

 

33


Table of Contents

16. ASSETS AND LIABILITIES IN CURRENCIES OTHER THAN THE ARGENTINE PESO

 

     March 31, 2016      December 31, 2015  
     Amount in
currencies other
than the
Argentine peso
     Exchange rate(1)      Total      Amount in
currencies other
than the
Argentine peso
     Exchange rate(1)      Total  

Noncurrent Assets

                 

Other receivables

                 

US Dollar

     40         14.60         584         46         12.94         595   

Real

     10         4.10         41         10         3.31         33   
        

 

 

          

 

 

 

Total noncurrent assets

           625               628   
        

 

 

          

 

 

 

Current Assets

                 

Trade receivables

                 

US Dollar

     266         14.60         3,884         307         12.94         3,973   

Chilean peso

     12,416         0.02         248         16,971         0.02         339   

Real

     28         4.10         115         15         3.31         50   

Other receivables

                 

US Dollar

     226         14.60         3,300         407         12.94         5,267   

Euro

     6         16.61         100         6         14.07         84   

Real

     5         4.10         21         7         3.31         23   

Chilean peso

     23         0.02         —           27         0.02         1   

Yens

     119         0.13         15         119         0.11         13   

Cash and equivalents

                 

US Dollar

     1,606         14.60         23,448         1,009         12.94         13,056   

Chilean peso

     764         0.02         15         502         0.02         10   

Real

     —           4.10         —           4         3.31         13   
        

 

 

          

 

 

 

Total current assets

           31,146               22,829   
        

 

 

          

 

 

 

Total assets

           31,771               23,457   
        

 

 

          

 

 

 

Noncurrent Liabilities

                 

Provisions

                 

US Dollar

     2,801         14.70         41,175         2,774         13.04         36,173   

Loans

                 

US Dollar

     5,579         14.70         82,006         4,403         13.04         57,417   

Real

     2         4.14         8         4         3.35         13   

Accounts payable

                 

US Dollar

     33         14.70         485         37         13.04         482   
        

 

 

          

 

 

 

Total noncurrent liabilities

           123,674               94,085   
        

 

 

          

 

 

 

Current Liabilities

                 

Provisions

                 

US Dollar

     79         14.70         1,161         80         13.04         1,043   

Taxes payable

                 

Real

     5         4.10         21         6         3.31         20   

Chilean peso

     903         0.02         18         1,077         0.02         22   

Salaries and social security

                 

US Dollar

     6         14.70         88         7         13.04         91   

Real

     2         4.14         8         2         3.35         7   

Chilean peso

     371         0.02         7         423         0.02         8   

Loans

                 

US Dollar

     1,669         14.70         24,534         1,543         13.04         20,121   

Real

     50         4.14         206         35         3.35         117   

Accounts payable

                 

US Dollar

     1,768         14.70         25,990         1,877         13.04         24,476   

Euro

     21         16.76         352         26         14.21         369   

Chilean peso

     223         0.02         4         1,283         0.02         26   

Real

     11         4.14         46         14         3.35         47   

Yens

     20         0.13         3         29         0.11         3   
        

 

 

          

 

 

 

Total current liabilities

           52,438               46,350   
        

 

 

          

 

 

 

Total liabilities

           176,112               140,435   
        

 

 

          

 

 

 

 

(1) Exchange rate in pesos as of March 31, 2016 and December 31, 2015 according to Banco Nación Argentina.

 

34


Table of Contents

17. SUBSEQUENT EVENTS

On April 29, 2016, a General Ordinary and Extraordinary Shareholders’ Meeting was held, which approved the financial statements of YPF for the fiscal year ended December 31, 2015 and the distribution of earnings (see Note 9). In addition, it approved an increase in the amount of the Global Medium - Term Notes Program of the Company by US$ 2,000 million, for a total maximum nominal outstanding amount at any time of the Program of US$ 10,000 million or its equivalent in other currencies.

In April 2016, the Company issued Series XLVIII and XLIX Negotiable Obligations in an amount of US$ 46 million and 535 million, respectively. Series XLVIII Negotiable Obligations shall accrue interest at a fixed rate with a principal amount maturing in 2020. Series XLIX Negotiable Obligations shall accrue interest at a variable rate (BADLAR) with a principal amount maturing in 2020.

As of the date of the issuance of these condensed interim consolidated financial statements, there are no other significant subsequent events that require adjustments or disclosure in the condensed interim consolidated financial statements of the Group as of March 31, 2016 which were not already considered in such consolidated financial statements according to IFRS.

 

    MIGUEL ANGEL GUTIERREZ
    President

 

35


Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    YPF Sociedad Anónima
Date: May 18, 2016     By:  

/s/ Diego Celaá

    Name:   Diego Celaá
    Title:   Market Relations Officer