YPF Sociedad Anónima Files 20-F Report for Fiscal Year Ended December 31, 2023

TL;DR

<b>YPF Sociedad Anónima has filed its 20-F report for FY2023, detailing financial adjustments, operational changes, and significant concessions agreements.</b>

AI Summary

YPF SOCIEDAD ANONIMA (YPF) filed a Foreign Annual Report (20-F) with the SEC on April 25, 2024. YPF Sociedad Anónima filed its annual 20-F report for the fiscal year ending December 31, 2023. The filing details various adjustments for inflation on inventories and intangible assets for subsidiaries with the peso as their functional currency. Significant investing and financing transactions not affecting cash and cash equivalents are outlined. The company's interest in the Aguada Pichana Oeste concession increased by 10% following an agreement with Total Austral S.A. and Pan American Energy LLC. The report includes provisions for doubtful receivables and trade receivables, net of employee income tax withholdings for share-based benefit plans.

Why It Matters

For investors and stakeholders tracking YPF SOCIEDAD ANONIMA, this filing contains several important signals. This filing provides a comprehensive overview of YPF's financial performance and operational status for the fiscal year 2023, crucial for investors assessing the company's health and future prospects. The report highlights specific operational changes, such as the increased stake in the Aguada Pichana Oeste concession, which could impact future production and revenue streams.

Risk Assessment

Risk Level: medium — YPF SOCIEDAD ANONIMA shows moderate risk based on this filing. The filing is a routine annual report, but the nature of the energy industry and potential regulatory changes in Argentina present ongoing risks.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 20-F to understand YPF's exposure to commodity price volatility and Argentine economic policies.

Key Numbers

• 20231231 — Fiscal Year End (Conformed Period of Report)
• 20240425 — Filing Date (Filed as of Date)
• 10% — Interest Increase (YPF's increased interest in Aguada Pichana Oeste)
• 5.6% — Interest Decrease (YPF's reduced interest in Aguada Pichana Este)

Key Players & Entities

• YPF SOCIEDAD ANONIMA (company) — Filer name
• Total Austral S.A. (company) — Partner in concession agreement
• Pan American Energy LLC (company) — Partner in concession agreement
• Province of Neuquén (company) — Approved concession agreement
• Decree No. 1,529/2023 (regulatory) — Related to concession agreement

FAQ

Risk Factors

• Inflation Adjustments [medium — financial]: The company makes adjustments for inflation on opening balances of inventories and intangible assets for subsidiaries with the peso as their functional currency.
• Concession Agreements [medium — operational]: Changes in concession interests, such as the increase in Aguada Pichana Oeste, can impact operational control and future production.
• Provisions for Receivables [low — financial]: The company includes provisions for doubtful receivables and trade receivables, indicating potential credit risks.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for financial statements.
• 2024-04-25: Filing Date — Date the 20-F report was officially submitted to the SEC.
• 2023-08-11: Concession Agreement Approval — Date Decree No. 1,529/2023 was issued, approving the exchange of interests in exploitation concessions.
• 2023-04-28: Shareholders' Meeting — Date a decision was made regarding retained earnings distribution.

Glossary

Other comprehensive income

Unrealized gains and losses that are not included in the net income of a company but are reported in a separate section of the income statement. (Relevant for understanding the impact of inflation adjustments on the company's overall financial position.)

Filing Documents

• d804823d20f.htm (20-F) — 10338KB
• d804823dex11.htm (EX-1.1) — 153KB
• d804823dex12.htm (EX-1.2) — 105KB
• d804823dex2.htm (EX-2) — 88KB
• d804823dex111.htm (EX-11.1) — 118KB
• d804823dex121.htm (EX-12.1) — 10KB
• d804823dex122.htm (EX-12.2) — 10KB
• d804823dex13.htm (EX-13) — 4KB
• d804823dex151.htm (EX-15.1) — 4KB
• d804823dex152.htm (EX-15.2) — 69KB
• d804823dex971.htm (EX-97.1) — 30KB
• g804823g0304235422361.jpg (GRAPHIC) — 1KB
• g804823g27c25.jpg (GRAPHIC) — 69KB
• g804823g43u27.jpg (GRAPHIC) — 3KB
• g804823sp5.jpg (GRAPHIC) — 2KB
• 0001193125-24-114066.txt (&nbsp;) — 46213KB
• ypf-20231231.xsd (EX-101.SCH) — 337KB
• ypf-20231231_cal.xml (EX-101.CAL) — 118KB
• ypf-20231231_def.xml (EX-101.DEF) — 1100KB
• ypf-20231231_lab.xml (EX-101.LAB) — 1580KB
• ypf-20231231_pre.xml (EX-101.PRE) — 1408KB
• d804823d20f_htm.xml (XML) — 13277KB

Forward-looking statements

Forward-looking statements 3 Conversion table 3 Oil and Gas terms 4 Abbreviations 5 PART I 6

Identity of Directors, Senior Managers and Advisers

ITEM 1. Identity of Directors, Senior Managers and Advisers 6

Offer statistics and expected timetable

ITEM 2. Offer statistics and expected timetable 6

Key information

ITEM 3. Key information 6

Information on the Company

ITEM 4. Information on the Company 17 History and development of YPF S.A. 17 Overview 19 Business strategy 19 Business organization 20 Upstream 21 Downstream 32 Gas and Power 40 Seasonality 43 Research and development 43 Competition 44 Sustainability 44 Climate change and energy transitions 50 Safety 52 Insurance 53 Property, plant and equipment 54 Argentine legal and regulatory framework 54

Unresolved staff comments

ITEM 4A. Unresolved staff comments 54

Operating and financial review and prospects

ITEM 5. Operating and financial review and prospects 55 Financial information 55 Business Segment reporting 55 Factors affecting our operations 55 Macroeconomic conditions 55 57 Operating profit or loss 59 Liquidity and capital resources 64 Research and development, patents and licenses 68 Trend information 68 Policy and regulatory developments in Argentina 68 Critical accounting policies and estimates 68

Directors, Senior Management and Employees

ITEM 6. Directors, Senior Management and Employees 69 Management of the Company 69 Board of Directors 69 Board of Directors' Committees 77 Senior Management 83 Independence of the members of our Board of Directors and Audit Committee 84 Compliance with the NYSE Listing Standards on Corporate Governance 85 Supervisory Committee 85 Our people 87

Major shareholders and related party transactions

ITEM 7. Major shareholders and related party transactions 90 Related party transactions 90 Argentine Law concerning related party transactions 90

Financial information

ITEM 8. Financial information 91

Financial Statements

Financial Statements 91 1 Table of Contents

Legal proceedings

Legal proceedings 91 Dividend policy 91 Significant changes 91

The offer and listing

ITEM 9. The offer and listing 91 Shares and ADSs 91 Anti-Money laundering and counter terrorism financing regulations 92 Law No. 27,401 on corporate criminal liability 94

Additional information

ITEM 10. Additional information 94 Capital Stock 94 Memorandum and articles of association 95 Directors 95 Shareholders' meetings 96 Preemptive and accretion rights 97 Liquidation rights 98 Redemption and withdrawal rights 98 Voting 98 Certain provisions relating to acquisitions of shares 99 Dividends 101 Material contracts 102 Exchange rates 102 Exchange regulations 102 Taxation 113 Access to public information 119 Documents on display 119 Foreign Investment Legislation 119

Quantitative and qualitative disclosures about market risk

ITEM 11. Quantitative and qualitative disclosures about market risk 120 Foreign currency exposure 120 Interest rate exposure 120 Hydrocarbons price exposure 120

Description of securities other than equity securities

ITEM 12. Description of securities other than equity securities 120 American Depositary Shares 120 PART II 122

Defaults, dividend arrearages and delinquencies

ITEM 13. Defaults, dividend arrearages and delinquencies 122

Material modifications to the rights of security holders and use of proceeds

ITEM 14. Material modifications to the rights of security holders and use of proceeds 122

Controls and procedures

ITEM 15. Controls and procedures 122 ITEM 16. 123

Audit Committee Financial Expert

ITEM 16A. Audit Committee Financial Expert 123

Code of Ethics

ITEM 16B. Code of Ethics 123

Principal accountant fees and services

ITEM 16C. Principal accountant fees and services 124

Exemptions from the listing standards for Audit Committees

ITEM 16D. Exemptions from the listing standards for Audit Committees 125

Purchases of equity securities by the issuer and affiliated purchasers

ITEM 16E. Purchases of equity securities by the issuer and affiliated purchasers 125

Change in registrant's certifying accountant

ITEM 16F. Change in registrant's certifying accountant 125

Corporate governance

ITEM 16G. Corporate governance 125

Mine Safety Disclosure

ITEM 16H. Mine Safety Disclosure 125

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

ITEM 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 125

Insider trading policies

ITEM 16J. Insider trading policies 125

Cybersecurity

ITEM 16K. Cybersecurity 125 PART III 127

Financial Statements

ITEM 17. Financial Statements 127

Financial Statements

ITEM 18. Financial Statements 127

Exhibits

ITEM 19. Exhibits 127 2 Table of Contents Presentation currency The presentation currency of the Audited Consolidated Financial Statements included in this annual report is the U.S. dollar. Effective 2022, the Company changed its presentation currency from Argentine peso to U.S. dollar, which is the Company's functional currency, that is, the currency of the primary economic environment in which the Company operates. In addition, as required by Argentine regulations, we separately submit our audited consolidated financial statements expressed in Argentine pesos with the Comisin Nacional de Valores (Argentine National Securities Commission, or "CNV"), which can be found at the CNV's website, www.argentina.gob.ar/cnv, and on Form 6-K furnished to the U.S. Securities and Exchange Commission ("SEC") on March 14, 2024. The audited consolidated financial statements expressed in Argentine pesos are prepared by YPF for statutory, legal and regulatory purposes. For more details, see Note 2.b.1) to the Audited Consolidated Financial Statements. References YPF Sociedad Annima is a stock corporation organized under the laws of the Republic of Argentina ("Argentina"). As used in this annual report "YPF", "the Company", "we", "our" and "us" refer to YPF Sociedad Annima and its controlled companies (unless the context indicates otherwise) or, if the context requires, its predecessor companies. "YPF Sociedad Annima" and "YPF S.A." refer to YPF Sociedad Annima only. "Repsol" and "Repsol YPF" refer to Repsol S.A. (formerly named "Repsol YPF S.A."), and its affiliates and consolidated companies. In this annual report references to "dollars", "U.S. dollars", "U.S. dollar" or "US

Forward-looking statements

Forward-looking statements This annual report, including any documents incorporated by reference, contains statements that we believe constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements regarding the intent, belief or current expectations of us and our management, including statements with respect to trends affecting our financial condition, financial ratios, results of operations, business, strategy, geographic concentration, reserves, future hydrocarbon production volumes and our ability to satisfy our long-term sales commitments from future supplies available to us, our ability to pay dividends in the future and to service our outstanding debt, dates or periods in which production is scheduled or expected to come on-stream, as well as our plans with respect to capital expenditures, business, strategy, geographic concentration, cost savings, discount rates, investments and dividends payout policies. These statements are not a guarantee of future performance and are subject to material risks, uncertainties, changes and other factors which may be beyond our control or may be difficult to predict. Accordingly, our future financial condition, prices, financial ratios, results of operations, business, strategy, geographic concentration, production volumes, oil and gas reserves, capital expenditures, cost savings, investments and ability to meet our long-term sales commitments or pay dividends or service our outstanding debt could differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, currency fluctuations, foreign exchange controls, inflation, the domestic and international prices for crude oil and its derivatives, the ability to realize cost reductions and operating efficiencies without unduly disrupting business operations, replacement of hydrocarbon reserves, environme

Risk factors

Risk factors The risks and uncertainties described below are those known by us as of the date of this annual report. However, such risks and uncertainties may not be the only ones that we could face. Additional risks and uncertainties not presently known to us or that we currently consider immaterial may also impair our business operations, financial condition and results of operations. The risks described below should be read together and in conjunction with the detailed discussions contained elsewhere in this annual report. Further background and measures that we use when assessing various risks are set out in the remaining sections of this annual report. You should carefully consider the risks described below, as well as the other information in this annual report, before making an investment decision in us. Our business, financial condition and results of operations could be materially and adversely affected by any of these risks. Risks relating to Argentina The Argentine Republic owns 51% of the shares of YPF S.A. The Argentine Republic owns 51% of the shares of YPF S.A. and, consequently, the Argentine government is able to decide all matters requiring approval by a majority of shareholders, including the election of the majority of the members of the YPF S.A.'s Board of Directors. We cannot assure you that decisions taken by our controlling shareholder would not differ from your interests as a shareholder (including the pricing policy of all our main products) and thus affect our operational decisions. Presidential elections take place in Argentina every four years and legislative elections every two years, resulting in the partial renewal of both chambers of the National Congress. The result of presidential as well as legislative mid-term and full-term elections may lead to changes in government policies that impact upon YPF S.A. On November 19, 2023, final turn of the presidential elections were held, and Javier Milei was elected President of Ar

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View this 20-F filing on SEC EDGAR