Argentina’s state-owned oil and gas company, YPF (NYSE:YPF), reported a 69% year-on-year jump in Q4 net profit to $464 million, driven by higher production and prices. Revenues rose by 24% to $4.65 billion during the quarter. The company’s Q4 crude oil production increased 3% quarter-on-quarter to 232,000 barrels per day, while natural gas output fell 7% due to lower seasonal demand.
YPF attributed its strong Q4 performance to the average benchmark Brent crude oil prices of $88.60 per barrel during the quarter. However, Q4 operating costs spiked by 29% year-on-year, primarily due to foreign exchange effects on the Argentine peso and global inflation.
For the full year 2022, YPF reported a record annual net profit of $2.2 billion, a 27% increase in EBITDA to nearly $5 billion, and a 7% increase in total annual production to 503,000 barrels of oil equivalent per day.
YPF CEO Sergio Affronti attributed the company’s strong performance to a “relentless focus on execution and cost discipline, combined with an improved external environment, which has allowed us to optimize production and capitalize on higher prices.”
The company has also been focusing on reducing its debt, which currently stands at $6.6 billion. In December, YPF announced a debt restructuring plan that included a debt-for-equity swap and the issuance of new debt. The company’s debt reduction efforts have been positively received by credit rating agencies, with Moody’s upgrading its outlook on YPF to stable from negative in January.
YPF’s shares have risen more than 70% over the past year, outperforming the S&P 500 Energy Index, which has gained about 50% during the same period. The company’s strong Q4 results and record annual net profit are expected to further boost investor confidence in the company’s long-term growth prospects.
