Edgar Filing: YPF SOCIEDAD ANONIMA

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Form 6-K

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 November, 2018

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 ☒ 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 ☒

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 ☒

YPF Sociedad Anónima

TABLE OF CONTENTS

ITEM

1 Translation of Consolidated Results Q3 2018.

YPF S.A.

Consolidated Results

Q3 2018


		Consolidated Results Q3 2018

CONTENT


1. MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q3 2018			3
2. ANALYSIS OF RESULTS FOR Q3 2018			4
3. ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q3 2018			7
3.1 UPSTREAM			7
3.2 DOWNSTREAM			10
3.3 GAS AND ENERGY			13
3.4 CORPORATE AND OTHER			14
3.5 RELATED COMPANIES			14
4. LIQUIDITY AND SOURCES OF CAPITAL			14
5. TABLES AND NOTES			16
5.1 CONSOLIDATED STATEMENT OF INCOME			17
5.2 CONSOLIDATED BALANCE SHEET			18
5.3 CONSOLIDATED STATEMENT OF CASH FLOW			19
5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION			20
5.5 MAIN FINANCIAL MAGNITUDES IN U.S. DOLLARS			21
5.6 MAIN PHYSICAL MAGNITUDES			22


		Consolidated Results Q3 2018

Adj. EBITDA for Q3 2018 was Ps 36.8 billion, 116.0% higher than Q3 2017.


Q3		Q2		Q3		Var.%				Jan-Sep		Jan-Sep		Var.%
2017		2018		2018		Q3 18 / Q3 17				2017		2018		2018 / 2017
	66,034		93,034		121,188		83.5	%	Revenues (Million Ps)		183,199		290,045		58.3	%
	3,050		1,746		12,685		315.9	%	Operating income (Million Ps)		11,027		31,785		188.2	%
	246		1,508		13,207		5268.7	%	Net income (Million Ps)		710		20,701		2815.6	%
	17,043		24,782		36,821		116.0	%	Adj. EBITDA (Million Ps)		50,046		98,095		96.0	%
	17,043		24,782		36,821		116.0	%	Recurring Adj. EBITDA		50,046		86,115		72.1	%
	0.24		5.08		33.50		14047.5	%	Earnings per share (Ps per Share)		0.84		54.05		6335.2	%
	15,903		19,338		27,232		71.2	%	Capital Expenditures (Million Ps)		40,882		61,444		50.3	%

Adjusted EBITDA = Operating Income + Depreciation and Impairment of Property, Plant and Equipment and Intangible Assets + Amortization of Intangible Assets + Unproductive Exploratory Drillings.

Recurring Adjusted EBITDA: It is Adjusted EBITDA excluding the profit from the revaluation of YPF S.A.‘s investment in YPF Energía Eléctrica (YPF EE) for Ps 12.0 billion in Q1 2018.

(Amounts are expressed in billions of Argentine pesos, except where indicated)

1. MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q3 2018

•

Revenues for Q3 2018 were Ps 121.2 billion, 83.5% higher than Q3 2017.

•

Operating income for Q3 2018 was Ps 12.7 billion, 315.9% higher than Q3 2017.

•

Net income for Q3 2018 was a gain of Ps 13.2 billion compared to net income of Ps 0.2 billion recorded for Q3 2017.

•

Hydrocarbon production for Q3 2018 was 529.1 Kboed, 4.3% lower than Q3 2017.

•

Refinery processing levels in the Downstream business segment for Q3 2018 were 87.7%, 4.6% lower than Q3 2017.

•

Capital expenditures in property, plant and equipment for Q3 2018 were Ps 27.2 billion, 71.2% higher than Q3 2017.


		Consolidated Results Q3 2018

2. ANALYSIS OF RESULTS FOR Q3 2018

Revenues for Q3 2018 were Ps 121.2 billion, 83.5% higher than Q3 2017, due primarily to the following factors:

•

Diesel revenues increased Ps 18.6 billion, 89.6% higher than Q3 2017, due to a 74.3% increase in diesel mix average prices and an 8.8% increase in sales volumes. Sales volumes of Infinia Diesel, a premium diesel product, increased by 16.4%;

•

Gasoline revenues increased Ps 10.4 billion, 69.7% higher than Q3 2017, due to a 64.9% increase in gasoline mix average prices and a 2.9% increase in sales volumes.

•

Natural gas revenues increased Ps 8.5 billion, 73.8% higher than Q3 2017, due to higher average prices while sales volumes remained stable year over year;

•

Retail natural gas revenues (residential and small business and companies) increased Ps 3.5 billion, 101.3% higher than Q3 2017, mainly driven by YPF’s controlled company Metrogas S.A. (“Metrogas”), which recorded a 122.0% increase in prices, partially offset by a 3.9% decrease in volumes sold through its distribution network;

•

Fuel oil revenues in the Argentine domestic market decreased Ps 0.7 billion, 85.1% lower than Q3 2017, due to a 91.6% decrease in sales volumes to power generation plants which was partially offset by a 78.0% increase in prices;

•

Remaining domestic sales increased Ps 9.8 billion, 114.2% higher than Q3 2017. We highlight the higher sales of LPG that increased 153.5%, jet fuel by 127.9%, of petrochemical products by 76.2%, coal by 189.8%, fertilizers by 86.4% and lubricants by 44.1%, in each case mainly due to the higher prices of these products and the larger traded volumes of virgin naphtha;

•

Export revenues increased by Ps 5.1 billion, 84.5% higher than Q3 2017. This was primarily due to a Ps 2.6 billion or 161.0% increase in jet fuel sales, due to higher average sales prices measured in Argentine pesos of 154.2% and a 2.7% increase in the volumes sold. Exports of petrochemical products increased by Ps 0.9 billion or 110.2% due to higher sales volumes and prices. Petroleum coal exports were also recorded for Ps 0.7 billion, which had not been registered in Q3 2017.

Cost of sales for Q3 2018 was Ps 96.0 billion, 71.1% higher than Q3 2017. This includes a 63.2% increase in production costs, substantially affected by the increase in depreciations, and a 115.5% increase in purchases. Cash costs, which include costs of production and purchases but exclude depreciation and amortization, increased by 84.1%. This increase was driven by the following factors:

Costs of production:

•

Depreciation of property, plant and equipment increased Ps 8.8 billion, 66.7% higher than Q3 2017, due to an increase in the value of assets based on their valuation in U.S. dollars, which is the functional currency of the Company;


		Consolidated Results Q3 2018

•

Lifting costs increased Ps 5.6 billion, 51.3% higher than Q3 2017, reflecting a 61.2% increase in the unit indicator in Argentine peso terms, weighted by the lower production of the period;

•

Royalties and other production related costs increased Ps 4.9 billion, 108.5% higher than Q3 2017. Of this increase, Ps 3.7 billion was related to an increase in royalties for crude oil production, and Ps 1.1 billion was related to an increase in royalties for natural gas production, due to higher wellhead values of these products, which are set in U.S. dollars;

•

Transportation costs increased Ps 1.1 billion, 47.1% higher than Q3 2017, primarily due to increases in rates and higher transported volumes;

•

Refining costs increased Ps 0.5 billion, 18.5% higher than Q3 2017, due primarily to higher costs for repair and maintenance services, for the consumption of materials, spare parts and other supplies, reflecting a 24.3% increase in the unit indicator in Argentine peso terms, weighted by the lower volumes processed during the period.

Purchases:

•

Fuel imports increased Ps 8.1 billion, 722.1% higher than Q3 2017, mainly due to imports of premium diesel and gasoline due to higher volumes and higher international prices of these products, also considering the devaluation occurred during the period;

•

Crude oil purchases from third parties increased Ps 4.0 billion, 67.7% higher than Q3 2017, due to a 131.4% increase in the average purchase price from third parties in Argentine peso terms. This increase in the purchase price was mainly due to the increase in the international reference price, and considering the devaluation of the Argentine peso against the U.S. dollar, partially offset by a decrease in purchased volumes of approximately 27.5%;

•

Purchases of natural gas from other producers for resale in the retail distribution segment (residential and small businesses and industries) increased Ps 2.9 billion, 138.0% higher than Q3 2017 due to an increase in the purchase prices of approximately 145.1%, partially offset by a decrease in volumes purchased of 2.9%;

•

Biofuel purchases increased Ps 1.7 billion, 37.1% higher than Q3 2017, due to higher FAME and ethanol biofuel prices of 53.3% and 21.2%, respectively, and a 1.7% increase in volumes purchased of ethanol biofuel, partially offset by lower volumes purchased of FAME of 2.3%;

•

Fertilizer purchases for resale increased Ps 1.3 billion, 204.6% higher than Q3 2017, driven by a 135.6% increase in purchase prices and a 29.3% increase in volumes purchased.

Selling expenses for Q3 2018 were Ps 7.1 billion, 51.9% higher than Q3 2017. This was driven primarily by increases in transport expenses, primarily due to higher volumes sold and higher rates paid for domestic transport of fuels, as well as higher charges for depreciation of fixed assets, higher personnel expenses, higher charges in allowances for bad debt and environmental contingencies and higher taxes on banks debits and credits.

Administration expenses for Q3 2018 were Ps 3.7 billion, 68.8% higher than Q3 2017. The increase was principally due to higher personnel expenses, higher IT costs, many of which are dollarized, higher charges related to institutional advertising and higher depreciation of fixed assets.


		Consolidated Results Q3 2018

Exploration expenses for Q3 2018 were Ps 1.1 billion, 224.0% higher than Q3 2017 mainly due to higher negative results from unproductive exploratory drilling and higher expenses on geological and geophysical studies.

Other operating results, net, for Q3 2018 was a loss of Ps 0.6 billion, compared to a gain of Ps 0.3 billion for Q3 2017 driven by higher charges in the provision for judicial contingencies, which had recorded certain reversals in Q3 2017.

Financial results for Q3 2018 were a gain of Ps 25.5 billion compared to a loss of Ps 2.5 billion in Q3 2017. This change was primarily driven by a positive foreign exchange effects on net liabilities in Argentine peso terms of Ps 30.0 billion, generated by the depreciation of the Argentine peso in Q3 2018 compared to Q3 2017 when the devaluation of the local currency had been substantially lower. Higher interest expenses of Ps 2.8 billion were also recorded in Q3 2018 due to higher average indebtedness, measured in Argentine pesos, compared to Q3 2017.

Income tax expense for Q3 2018 reached Ps 23.4 billion compared to the resulting expense of Ps 0.8 billion in Q3 2017. This difference is mainly due to the higher negative charge of Ps 22.4 billion for deferred tax recorded in both periods, resulting from the effects of the exchange rate movements in both periods, as previously mentioned.

Net income for Q3 2018 was a gain of Ps 13.2 billion, compared to a gain of Ps 0.2 billion in Q3 2017.

Capital expenditures in property, plant and equipment in Q3 2018 were Ps 27.2 billion, 71.2% higher than Q3 2017.


		Consolidated Results Q3 2018

3. ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q3 2018

3.1 UPSTREAM


Q3 2017		Q2 2018		Q3 2018		Var.% Q3 18 / Q3 17				Jan-Sep 2017		Jan-Sep 2018		Var.% 2018/2017
	360		2,868		12,215		3293.1	%	Operating income (Million Ps)		375		17,231		4494.9	%
	29,935		46,308		63,466		112.0	%	Revenues (Million Ps)		84,318		148,478		76.1	%
	227.2		226.3		227.5		0.1	%	Crude oil production (Kbbld)		226.5		227.1		0.3	%
	48.6		41.6		26.9		-44.6	%	NGL production (Kbbld)		51.5		38.4		-25.5	%
	44.1		44.0		43.7		-1.0	%	Gas production (Mm3d)		44.6		43.8		-1.9	%
	553.2		544.6		529.1		-4.3	%	Total production (Kboed)		558.8		541.0		-3.2	%
	334		464		1,082		224.0	%	Exploration costs (Million Ps)		1,760		1,869		6.2	%
	12,499		16,099		22,547		80.4	%	Capital Expenditures (Million Ps)		31,852		51,679		62.2	%
	11,483		19,689		18,946		65.0	%	Depreciation (Million Ps)		31,497		54,935		74.4	%
									Realization Prices
	51.4		64.6		64.3		25.0	%	Crude oil prices in domestic market Period average (USD/bbl)		52.3		64.6		23.5	%
	4.92		4.89		4.76		-3.3	%	*Average gas price ()** (USD/Mmbtu)		4.93		4.80		-2.6	%

(*)	The average price of gas for Q2 2018 has been recalculated. The price for Q3 2018 is preliminary.

Operating income for the Upstream business segment for Q3 2018 was Ps 12.2 billion, compared to Ps 0.4 billion in Q3 2017.

Revenues were Ps 63.5 billion for Q3 2018, 112.0% higher than Q3 2017, primarily due to the following factors:

•

Crude oil revenues totaled Ps 42.7 billion, 131.8% or Ps 24.3 billion higher than Q3 2017. The average realization price for crude oil in Q3 2018 increased by 25.0% to US$64.3/bbl. Crude oil volumes transferred between segments increased 1.0%, while those sold to third parties decreased by 14.0%;

•

Natural gas revenues reached Ps 21.0 billion, 79.2% or Ps 9.3 billion higher than Q3 2017. The average realization price for natural gas in Q3 2018 decreased 3.3% to US$4.76/Mmbtu while natural gas volumes remained stable compared to Q3 2017. However, prices in terms of pesos increased 79.7% YoY, resulting in the increase of revenues.

Hydrocarbon production for Q3 2018 was 529.1 Kboed, 4.3% lower than Q3 2017. Crude oil production for Q3 2018 remained essentially stable at 227.5 Kbbld. Natural gas production for Q3 2018 was 43.7 Mm3d, 1.0% lower than Q3 2017 due to the lower demand in the quarter. NGL production for Q3 2018 was 26.9 Kbbld, 44.6% lower than Q3 2017, negatively affected by the temporary stoppage of Compañía MEGA.


		Consolidated Results Q3 2018

With respect to development activity, 95 wells were put in production in Q3 2018, including the shale and tight wells mentioned below.

Hydrocarbon production in shale areas, net to YPF, for Q3 2018 totaled 57.5 Kboed, 58.3% higher than Q3 2017. This includes 23.6 Kbbld of crude oil, 4.8 Kbbld of NGL and 4.6 Mm3d of natural gas. During Q3 2018, 19 wells were put in production targeting the Vaca Muerta formation, for a total of 659 wells, including 12 active drilling rigs and 11 workovers.

With respect to tight development, net production in Q3 2018 reached a total of 13.0 Mm3d of natural gas, plus 3.3 Kbbld of NGL and 5.7 Kbbld of crude oil, of which 89.0% comes from YPF operated areas. During Q3 2018, 19 new wells were put into production, 9 in Estación Fernández Oro, 4 in Río Neuquén, 2 in Rincón del Mangrullo, 2 in Aguada Toledo – Sierra Barrosa, 1 in Al Norte de la Dorsal, and 1 in Octógono.

Operating costs for Q3 2018 were Ps 49.8 billion, 67.6% higher than Q3 2017 (excluding exploration expenses), mainly due to the following:

•

Depreciation of property, plant and equipment increased by Ps 7.5 billion, 64.9% higher than Q3 2017, primarily due to an increase in the value of assets based on their valuation in U.S. dollars, which is the functional currency of the Company;

•

Lifting costs increased Ps 5.6 billion, 51.3% higher than Q3 2017, reflecting a 61.2% increase in the unit indicator in Argentine peso terms, weighted by the lower production of the period;

•

Transportation costs related to production (truck, pipelines and polyducts in deposit) increased Ps 0.5 billion, 61.4% higher than Q3 2017.

It is noteworthy that the exploratory investment for Q3 2018 was 879.1% higher than Q3 2017, totaling Ps 1.5 billion. Exploration expenses for Q3 2018 were Ps 1.1 billion, increasing 224.0% compared to Ps 0.3 billion for Q3 2017. This variation was mainly due to a Ps 0.4 billion increase in negative results from unproductive exploratory wells in Q3 2018 compared to Q3 2017. Expenses for the development of geological and geophysical studies increased by Ps 56 million between Q3 2018 and Q3 2017.

In Q3 2018, the results of this segment also included higher charges in the provision for judicial contingencies, which had recorded certain reversals in Q3 2017.

Unit cash costs in U.S. dollars decreased 3.5% to US$19.8/boe for Q3 2018 from US$20.6/boe for Q3 2017, including taxes of US$6.6/boe and US$5.8/boe, respectively. In turn, the average lifting cost for YPF in Q3 2018 was US$10.5/boe, 16.5% lower than US$12.6/boe for Q3 2017.


		Consolidated Results Q3 2018

CAPEX

Capital expenditures for the Upstream business segment for Q3 2018 were Ps 22.5 billion, 80.4% higher than Q3 2017.

Of these capital expenditures, 71.4% were invested in drilling and workover activities, 20.0% in facilities, 8.2% in exploration and the remaining 0.4% in other activities of the Upstream business segment.

In the Neuquina basin area, activities for Q3 2018 were focused on the development of the Loma Campana, Estación Fernandez Oro, El Orejano, La Amarga Chica, Rincón del Mangrullo, Río Neuquén, Chachahuen, Octógono, Punta Barda, Filo Morado and Loma La Lata blocks. Activity continues with the pilots targeting Vaca Muerta in the following blocks: Rincón del Mangrullo, La Ribera, Bajo del Toro and Aguada de la Arena. Development activities continued at the Cuyana basin, mainly in the Mesa Verde, Ugarteche, Loma Alta Sur, Barrancas, La Ventana and Cerro Fortunoso blocks. In the Golfo San Jorge basin, activity was focused on the following blocks: Manantiales Behr, El Trébol-Escalante, Seco León, Zona Central, Cañadón Yatel, Barranca Baya, Los Perales, Las Heras y Cerro de Piedra.

Exploration activities for Q3 2018 covered the Neuquina, Golfo San Jorge, Austral, Noroeste Argentino and Cuyana basins. In the Neuquina basin, exploratory activity was focused in the Filo Morado, Los Caldenes, Malargüe, Las Manadas, CNQ7 and CNQ7A blocks. In the Golfo San Jorge basin, exploration activity was focused in the Los Perales-Las Mesetas and El Trebol-Escalante blocks. In the Austral basin, exploration activity continues in Cañadón Piedra-Cabo Nombre and Los Chorrillos blocks. As for the Cuyana basin, exploratory activity was carried out in the Mesa Verde block. Additionally, in the Noroeste Argentino basin the activity was concentrated in the Aguaragüe block.

During Q3 2018, 6 (six) exploratory wells were completed: 3 (three) natural gas and 3 (three) crude oil exploratory wells.


		Consolidated Results Q3 2018

3.2 DOWNSTREAM


Q3 2017			Q2 2018			Q3 2018			Var.% Q3 18 / Q3 17				Jan-Sep 2017			Jan-Sep 2018			Var.% 2018/2017
	3,204			361			-908			N/A		Operating income (Million Ps)		10,661			3,462			-67.5	%
	49,845			70,273			91,220			83.0	%	Revenues (Million Ps)		139,636			221,830			58.9	%
	4,119			4,048			4,150			0.7	%	Sales of refined products in domestic market (Km3)		12,244			12,109			-1.1	%
	361			393			343			-5.0	%	Exportation of refined products (Km3)		1,069			1,248			16.8	%
	198			208			203			2.5	%	*Sales of petrochemical products in domestic market ()** (Ktn)		586			618			5.5	%
	54			138			73			35.2	%	Exportation of petrochemical products (Ktn)		149			271			81.8	%
	294			275			280			-4.6	%	Crude oil processed (Kboed)		293			282			-3.8	%
	92	%		86	%		88	%		-4.6	%	Refinery utilization (%)		92	%		88	%		-3.8	%
	2,434			2,673			3,660			50.4	%	Capital Expenditures (Million Ps)		5,648			7,588			34.3	%
	1,837			2,596			3,465			88.6	%	Depreciation (Million Ps)		5,027			8,137			61.9	%
	642			634			585			-8.8	%	Average domestic market gasoline price ()** (USD/m3)		655			637			-2.6	%
	602			613			577			-4.1	%	Average domestic market diesel price ()** (USD/m3)		622			616			-1.0	%

(*)	Fertilizer sales not included.

(**)	Includes gross income and net of deductions, commissions and other taxes.

Operating income for the Downstream business segment for Q3 2018 was a loss of Ps 0.9 billion, in comparison to the operating profit of Ps 3.2 MM reported in Q3 2017.

Revenues were Ps 91.2 billion in Q3 2018, 83.0% higher than Q3 2017, primarily due to the following factors:

•

Diesel revenues increased Ps 18.6 billion, 89.6% higher than Q3 2017 due to a 74.3% increase in diesel mix prices and an 8.8% increase in sales volumes, including a 16.4% increase in sales volumes of Infinia Diesel, a premium diesel product;

•

Gasoline revenues increased Ps 10.4 billion, 69.7% higher than Q3 2017, due to a 64.9% increase in gasoline mix prices and a 2.9% increase in sales volumes;

•

Fuel oil revenues in the Argentine domestic market decreased Ps 0.7 billion, 85,1% lower than Q3 2017, due to a 91.6% decrease in sales volumes to power generation plants partially offset by a 78.0% increase in prices;

•

The remaining revenues in the domestic market increased by Ps 8.1 billion, 109.0% higher than Q3 2017. We highlight the higher sales of LPG by 153.5%, of jet fuel by 127.9%, of petrochemical products by 76.2%, of coal by 189,8%, fertilizers by 86,4% and lubricants by 44,1%, in each case mainly due to the higher prices of these products. In addition, larger traded volumes of virgin naphtha were recorded;


		Consolidated Results Q3 2018

•

Export revenues in the Downstream segment increased by Ps 5.1 billion, 84.5% higher than Q3 2017. We highlight the increase in exports of jet fuel of Ps 2.6 billion, 161.0% higher than Q3 2017 due to an increase in average sales prices measured in Argentine pesos of 154.2%, and an increase of 2.7% in volumes sold. Exports of petrochemical products increased by Ps 0.9 billion or 110.2%. Exports of petroleum coal were also recorded for Ps 0.7 billion, which had not been recorded in the previous year.

Cost of sales and operating expenses for Q3 2018 were Ps 85.1 billion with an increase of Ps 43.1 billion, or 102.7%, compared to Q3 2017, primarily due to the following factors:

•

Crude oil purchases increased Ps 28.5 billion, 118.0% higher than Q3 2017, due to an increase in prices in Argentine peso terms of crude oil purchased of 131.8%, mainly due to the increase in the international reference price. Crude oil volumes purchased from third parties decreased 27.5% while volumes transferred from the Upstream business segment increased 1.0%;

•

Fuel imports increased Ps 8.1 billion, 722.1% higher than Q3 2017 due to higher imports of diesel and premium gasoline driven by the higher volumes purchased and the higher international prices of these products, considering also the devaluation that occurred in this period;

•

Biofuel purchases increased Ps 1.7 billion, 37.1% higher than Q3 2017, mainly due to an increase of 53,3% in the price of FAME and 21.2% in the price of ethanol biofuel and the increase in purchased volumes of ethanol biofuel of 1.7%, partially offset by a decrease in purchased volumes of FAME of 2,3%;

•

Fertilizer purchases for resale of Ps 1.3 billion, 204.6% higher than Q3 2017. This increase was due to an increase in the average price of approximately 135.6% and a 29.3% in the volumes sold;

•

Refining costs increased Ps 0.5 billion, 18.5% higher than Q3 2017. This increase was mainly driven by higher charges for repair and maintenance services, consumption of materials, spare parts and other supplies. As a result of this, and considering also that the processing level in refineries was 4.6% lower, the unit refining cost increased in Q3 2018 by 24.3% compared to the Q3 2017. In turn, transportation costs linked to production (shipping, oil pipelines and polyducts) showed an increase of Ps 0.5 billion, which represents an increase of 36.4%;

•

Depreciation of property, plant and equipment increased Ps 1.3 billion, 82.8%, higher tan Q3 2017, due to an increase in the value of assets based on their valuation in U.S. dollars, which is the functional currency of the Company.

Selling expenses increased Ps 2.2 billion, or 48.9% higher than Q3 2017, mainly driven by higher transported volumes due to higher sales and higher costs for transporting products, mainly linked to the increase in fuel prices in the domestic market, higher charges for depreciation of fixed assets, higher personnel expenses, higher charges in allowances for bad debt and environmental contingencies and higher taxes on bank debits and credits.


		Consolidated Results Q3 2018

The volume of crude oil processed in Q3 2018 was 280 Kbbld, 4.6% lower than Q3 2017 due to scheduled maintenance stoppages in our industrial complexes. These lower processing levels resulted in a 5.8% increase in gasoline production, a 0.2% decrease in diesel production and an increase in the production of other refined products such as LPG and petroleum coal and a decrease in the production of fuel oil, asphalts, lubricants bases and petrochemical gasoline, all in comparison to Q3 2017.

CAPEX

Capital expenditures for the Downstream business segment for Q3 2018 were Ps 3.7 billion, 50.4% higher than Q3 2017.

During Q3 2018, work continued on the blending of gasoline in the Luján de Cuyo refinery to increase the production capacity of premium gasoline, and on increasing diesel blending capacity at La Plata Refinery, in order to increase the production of premium diesel. These activities are expected to conclude by Q4 2018. The foregoing complies with the new specifications for fuels pursuant to Resolution 5/2017 of the Hydrocarbon Resources Secretary, for which the main modifications will become effective in 2019 and in 2022. Additionally, YPF continues with the development of the engineering for the new gasoline and diesel hydrotreatment units to be carried out in the aforementioned refineries.

With respect to refining, logistics and oil product dispatch facilities, work continued with improvements in infrastructure, safety and environmental performance. The construction of the crude oil reception works in the La Plata Industrial Complex is particularly noteworthy since it will allow greater flexibility in processing crude oil. In addition, this will improve the safety conditions of both, the installed facilities and of the associated logistics facilities.


		Consolidated Results Q3 2018

3.3 GAS AND ENERGY


Q3 2017		Q2 2018		Q3 2018		Var.% Q3 18 / Q3 17				Jan-Sep 2017		Jan-Sep 2018		Var.% 2018/2017
	1,481		849		2,920		97.2	%	Operating income (Million Ps)		3,064		16,020		422.8	%
	17,178		23,912		31,539		83.6	%	Revenues (Million Ps)		46,672		72,469		55.3	%
	670		196		442		-34.0	%	Capital Expenditures (Million Ps)		2,605		1,017		-61.0	%
	67		64		73		9.0	%	Depreciation (Million Ps)		197		194		-1.5	%

The Gas and Energy business segment, which includes activities related to transportation, distribution and the sale of natural gas to third parties, regasification services for liquefied natural gas (LNG) and electricity generation, reported an operating income of Ps 2.9 billion, a 97.2% increase compared to Ps 1.5 billion in Q3 2017.

Separately, our subsidiary Metrogas S.A., recorded an operating profit of Ps 2.5 billion in Q3 2018, which was higher than the operating profit of Ps 0.7 billion in Q3 2017, mainly due to a change in the estimation methodology and determination of purchase prices of natural gas to producers, and in accordance with the latest policies of the National Secretariat of Energy in this regard.

As a consequence of the agreement for the capitalization of YPF Energía Eléctrica, this company is no longer consolidated in Q3 2018, whereas in Q3 2017 it contributed Ps 0.3 billion in operating income to the results of the Group.


		Consolidated Results Q3 2018

3.4 CORPORATE AND OTHER

This business segment involves mainly corporate costs and other activities that are not reported in any of the previously-mentioned business segments.

Corporate operating income for Q3 2018 was a loss of Ps 1.6 billion, compared to a loss of Ps 1.3 billion in Q3 2017. The variation is mainly related to an increase in personnel expenses, higher IT costs, which are mainly dollar denominated, and institutional advertising, coupled whit higher charges for depreciation of fixed assets.

Consolidation adjustments to eliminate results among business segments not transferred to third parties were positive Ps 62 million for Q3 2018. These adjustments were negative Ps 0.7 billion in Q3 2017. In the current quarter the gap between transfer prices between businesses and the replacement cost of the company’s inventories remained constant, compared to a higher gap in Q3 2017. In both cases, the movement of transfer prices reflects changes in market prices, especially of crude oil.

3.5 RELATED COMPANIES

Results from related companies for Q3 2018 were a loss of Ps 1.6 billion, compared to a gain of Ps 0.4 billion for Q3 2017. This variation was due primarily to the negative results obtained by YPF Energía Eléctrica, which was consolidated in the Gas & Power segment during Q3 2017.

4. LIQUIDITY AND SOURCES OF CAPITAL

In Q3 2018, net cash flows provided by operating activities were Ps 32.2 billion, 137.7% higher than Q3 2017. This increase of Ps 18.7 billion was due to an increase in EBITDA of Ps 19.8 billion, and with working capital variations that were offset each other. The generation of funds during Q3 2018 allowed the Company to substantially exceed the amount it required to finance the investments made during the current period.

Net cash flows used in investing activities were Ps 22.4 billion for Q3 2018, 60.7% higher than Q3 2017. Investments in fixed and intangible assets were Ps 23.4 billion in Q3 2018, 44.0% higher than Q3 2017. On the other hand, the holdings of public securities BONAR 2020 and 2021 were partially liquidated, with a cash inflow of Ps 1.0 billion.

As a result of its financing activities, in Q3 2018 the Company had a net decrease in funds of Ps 14.0 billion, compared to a net increase of Ps 2.6 billion in Q3 2017. This difference was generated by a lower net borrowing and refinancing debt maturities of Ps 13.3 billion and by a higher interest payment of Ps 3.3 billion.

The previously explained cash generation, together with the Company’s investment in Argentine sovereign bonds, including those received to cancel the accounts receivables of the Gas Plan program for the year 2015, which are still in the portfolio, resulted in a position of cash and cash equivalents of Ps 72.4 billion₍₁₎ as of September 30, 2018.

Total debt in U.S. dollars was US$9.1 billion, net debt was US$7.3 billion₍₁₎ with a Net debt/recurring adjusted EBITDA LTM ratio of 1.67x₍₂₎.


		Consolidated Results Q3 2018

The average interest rate for debt denominated in Argentine pesos at the end of Q3 2018 was 36.70%, while the average interest rate for debt denominated in U.S. dollars was 7.34%.

(1)	Includes investments in financial assets (government securities) of US$351 million at market value

(2)	Net Debt: US$7,349 million/Recurring adjusted EBITDA LTM: US$4,409 million = 1.67x


		Consolidated Results Q3 2018

5. TABLES AND NOTES

Q3 2018 Results


		Consolidated Results Q3 2018

5.1 CONSOLIDATED STATEMENT OF INCOME

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)


Q3 2017			Q2 2018			Q3 2018			Var.% Q3 18 / Q3 17				Jan-Sep 2017			Jan-Sep 2018			Var.% 2018 / 2017
	66,034			93,034			121,188			83.5	%	Revenues		183,199			290,045			58.3	%
	(56,108	)		(81,966	)		(95,993	)		71.1	%	Costs		(151,581	)		(241,397	)		59.3	%

	9,926			11,068			25,195			153.8	%	Gross profit		31,618			48,648			53.9	%

	(4,684	)		(5,890	)		(7,113	)		51.9	%	Selling expenses		(12,780	)		(18,184	)		42.3	%
	(2,174	)		(2,951	)		(3,669	)		68.8	%	Administration expenses		(5,965	)		(8,974	)		50.4	%
	(334	)		(464	)		(1,082	)		224.0	%	Exploration expenses		(1,760	)		(1,869	)		6.2	%
	316			(17	)		(646	)		N/A		Other operating results, net		(86	)		12,164			N/A

	3,050			1,746			12,685			315.9	%	Operating income (loss)		11,027			31,785			188.2	%


	432			(1,139	)		(1,573	)		*N/A*		Income (loss) of interests in companies and joint ventures		546			(2,498	)		*N/A*

	4,350			46,126			46,980			980.0	%	Finance Income		8,963			101,005			1026.9	%
	(7,297	)		(24,326	)		(22,501	)		208.4	%	Finance Cost		(18,865	)		(55,750	)		195.5	%
	491			1,027			988			101.2	%	Other financial results		1,224			3,157			157.9	%

	(2,456	)		22,827			25,467			N/A		Net financial results		(8,678	)		48,412			*N/A*

	1,026			23,434			36,579			3465.2	%	Net (loss) profit before income tax		2,895			77,699			2583.9	%

	(780	)		(21,926	)		(23,372	)		2896.4	%	Income tax		(2,185	)		(56,998	)		2508.6	%

	246			1,508			13,207			5268.7	%	Net (loss) profit for the period		710			20,701			2815.6	%

	153			(485	)		4			-97.4	%	Net (loss) profits for noncontrolling interest		380			(562	)		N/A

	93			1,993			13,203			14096.8	%	Net (loss) profit for shareholders of the parent company		330			21,263			6343.3	%

	0.24			5.08			33.50			14047.5	%	Earnings per share, basic and diluted		0.84			54.05			6335.2	%

	5,634			69,295			106,585			1791.8	%	Other comprehensive Income		11,584			189,389			1534.9	%

	5,880			70,803			119,792			1937.3	%	Total comprehensive income for the period		12,294			210,090			1608.9	%

	17,043			24,782			36,821			116.0	%	*Adj. EBITDA ()**		50,046			98,095			96.0	%

Note: Information reported in accordance with International Financial Reporting Standards (IFRS), except adjusted EBITDA.

(*) Adjusted EBITDA = Operating income + Depreciation and impairment of properties, plant and equipment and intangible assets + Amortization of intangible assets + Unproductive exploratory drillings.


		Consolidated Results Q3 2018

5.2 CONSOLIDATED BALANCE SHEET

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Q3 2018 figures unaudited)


	12/31/2017		09/30/2018
Noncurrent Assets
Intangible assets		9,976		21,385
Properties, plant and equipment		354,443		755,903
Investments in companies and joint ventures		6,045		26,602
Assets held for disposal		8,823		—
Deferred tax assets, net		588		1,920
Other receivables		1,335		4,849
Trade receivables		2,210		33,398

Total Non-current assets		383,420		844,057


Current Assets
Inventories		27,149		63,483
Contract assets		142		458
Other receivables		12,684		20,405
Trade receivables		40,649		67,748
Investment in financial assets		12,936		14,462
Cash and equivalents		28,738		57,915

Total current assets		122,298		224,471


Total assets		505,718		1,068,528


Shareholders’ equity
Shareholders’ contributions		10,402		10,430
Reserves, other comprehensive income and retained earnings		141,893		352,247
Noncontrolling interest		238		(324	)

Total Shareholders’ equity		152,533		362,353


Noncurrent Liabilities
Provisions		54,734		119,226
Liabilities associated with assets held for disposal		4,193		—
Deferred tax liabilities, net		37,645		95,000
Contract liabilities		1,470		2,371
Other taxes payable		220		2,765
Loans		151,727		294,947
Other liabilities		277		579
Accounts payable		185		214

Total Noncurrent Liabilities		250,451		515,102


Current Liabilities
Provisions		2,442		4,021
Income tax payable		191		376
Contract liabilities		1,460		3,529
Other taxes payable		6,879		11,670
Salaries and social security		4,132		4,612
Loans		39,336		79,855
Other liabilities		2,383		783
Accounts payable		45,911		86,227

Total Current Liabilities		102,734		191,073


Total Liabilities		353,185		706,175


Total Liabilities and Shareholders’ Equity		505,718		1,068,528

Note: Information reported in accordance with International Financial Reporting Standards (IFRS).


		Consolidated Results Q3 2018

5.3 CONSOLIDATED STATEMENT OF CASH FLOW

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)


Q3 2017			Q2 2018			Q3 2018				Jan-Sep 2017			Jan-Sep 2018
									Operating activities
	246			1,508			13,207		Net income (loss)		710			20,701
	(432	)		1,139			1,573		Income (loss) of interests in companies and joint ventures		(546	)		2,498
	13,718			22,689			23,251		Depreciation of property, plant and equipment		37,454			64,654
	222			314			450		Amortization of intangible assets		605			1,011
	1,034			1,548			2,735		Losses of property, plant and equipment and intangible assets and consumption of materials		3,218			5,749
	780			21,926			23,372		Income tax charge		2,185			56,998
	135			1,969			2,415		Net increase in provisions		2,316			5,977
	1,904			(22,295	)		(25,730	)	Interest, exchange differences and other		7,249			(47,988	)
	46			73			80		Stock compensation plans		116			206
	—			—			(270	)	Accrued insurance		—			(270	)
	—			—			—		Results due to revaluation of companies		—			(11,980	)
									Changes in assets and liabilities:
	(8,952	)		(7,677	)		(14,041	)	Trade receivables		(7,827	)		(25,948	)
	(766	)		1,489			(958	)	Other receivables		2,131			(4,304	)
	149			910			(5,144	)	Inventories		(1,148	)		(4,172	)
	2,598			3,629			9,570		Accounts payable		2,587			16,440
	752			753			1,506		Other Taxes payable		2,196			4,447
	706			277			926		Salaries and Social Security		293			340
	452			457			251		Other liabilities		(480	)		(1,222	)
	(315	)		(619	)		(775	)	Decrease in provisions included in liabilities for payments / utilization		(981	)		(1,777	)
	(183	)		(42	)		(162	)	Contract Assets		(183	)		(316	)
	1,723			80			(126	)	Contract Liabilities		1,723			825
	17			22			348		Dividends received		328			474
	—			—			476		Insurance charge for loss of profit		—			476
	(282	)		(540	)		(744	)	Income tax payments		(761	)		(1,573	)

	13,552			27,610			32,210		Net cash flow from operating activities		51,185			81,246


									Investing activities

	(16,273	)		(18,105	)		(23,426	)	Acquisitions of property, plant and equipment and Intangible assets		(43,951	)		(57,325	)
	(92	)		(4	)		—		Contributions and acquisitions of interests in companies and joint ventures		(429	)		(284	)
	2,404			452			997		Collection for sale of financial assets		2,404			6,402
	—			293			—		Interest received from financial assets		511			293


	(13,961	)		(17,364	)		(22,429	)	Net cash flow from investing activities		(41,465	)		(50,914	)


									Financing activities

	(9,797	)		(5,093	)		(18,267	)	Payment of loans		(24,877	)		(32,795	)
	(4,948	)		(4,964	)		(8,248	)	Payment of interests		(13,525	)		(18,611	)
	17,343			7,481			12,530		Proceeds from loans		33,403			28,677
	—			(120	)		—		Acquisition of own shares		(100	)		(120	)


	2,598			(2,696	)		(13,985	)	Net cash flow from financing activities		(5,099	)		(22,849	)


	237			5,190			15,868		Effect of changes in exchange rates on cash and equivalents		503			21,694

	2,426			12,740			11,664		Increase (decrease) in Cash and Equivalents		5,124			29,177

	13,455			33,511			—		Cash and equivalents at the beginning of the period		10,757			28,738
	15,881			46,251			11,664		Cash and equivalents at the end of the period		15,881			57,915


	2,426			12,740			11,664		Increase (decrease) in Cash and Equivalents		5,124			29,177


									COMPONENTS OF CASH AND EQUIVALENT AT THE END OF THE PERIOD

	6,639			5,318			9,215		Cash		6,639			9,215
	9,242			40,933			48,700		Other Financial Assets		9,242			48,700

	15,881			46,251			57,915		TOTAL CASH AND EQUIVALENTS AT THE END OF THE PERIOD		15,881			57,915

Note: Information reported in accordance with International Financial Reporting Standards (IFRS).


		Consolidated Results Q3 2018

5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION

(Unaudited, figures expressed in millions of pesos)


Q3 2018	Upstream		Gas & Power			Downstream			Corporate and Other			Consolidation Adjustments			Total
Revenues		322		29,051			90,734			2,464			(1,383	)		121,188
Revenues from intersegment sales		63,144		2,488			486			3,096			(69,214	)		—

Revenues		63,466		31,539			91,220			5,560			(70,597	)		121,188


Operating Income (loss)		12,215		2,920			(908	)		(1,604	)		62			12,685
Investments in companies		—		(1,866	)		293			—			—			(1,573	)
Depreciation of property, plant and equipment		18,946		73			3,465			767			—			23,251
Impairment of property, plant and equipment and intangible assets		—		—			—			—			—			—
Acquisitions of fixed assets		22,547		442			3,660			583			—			27,232
Assets		532,413		106,252			343,644			96,701			(10,482	)		1,068,528


Q3 2017	Upstream		Gas & Power		Downstream		Corporate and Other			Consolidation Adjustments			Total
Revenues		240		16,209		49,558		706			(679	)		66,034
Revenues from intersegment sales		29,695		969		287		1,808			(32,759	)		—

Revenues		29,935		17,178		49,845		2,514			(33,438	)		66,034


Operating Income (loss)		360		1,481		3,204		(1,273	)		(722	)		3,050
Investments in companies		—		244		188		—			—			432
Depreciation of property, plant and equipment		11,483		67		1,837		331			—			13,718
Impairment of property, plant and equipment and intangible assets		—		—		—		—			—			—
Acquisitions of fixed assets		12,499		670		2,434		300			—			15,903
Assets		234,575		48,463		139,815		39,844			(1,413	)		461,284


		Consolidated Results Q3 2018

5.5 MAIN FINANCIAL MAGNITUDES IN U.S. DOLLARS

(Unaudited figures)


Million USD	2017 Q3		2018 Q2		2018 Q3		Var Q3 18 / Q3 17			2017 Jan-Sep		2018 Jan-Sep		Var 2018 / 2017
INCOME STATEMENT
Revenues		3,831		3,963		3,784		-1.2	%		11,315		11,605		2.6	%
Costs of sales		-3,255		-3,491		-2,998		-7.9	%		-9,354		-9,717		3.9	%

Gross profit		576		471		787		36.6	%		1,962		1,888		-3.7	%
Other operating expenses, net		-399		-397		-391		-2.1	%		-1,275		-535		-58.0	%

Operating income		177		74		396		123.8	%		687		1,353		97.1	%
Depreciation and impairment of property, plant & equipment and intangible assets		796		966		726		-8.8	%		2,312		2,645		14.4	%
Amortization of intangible assets		13		13		14		9.1	%		37		40		7.1	%
Unproductive exploratory drillings		3		1		14		341.7	%		61		24		-60.7	%

Adj. EBITDA		989		1,056		1,150		16.3	%		3,097		4,062		31.2	%
Recurring Adj. EBITDA		989		1,056		1,150		16.3	%		3,097		3,453		11.5	%

UPSTREAM
Revenues		1,737		1,973		1,982		14.1	%		5,211		5,924		13.7	%
Operating income		21		122		381		1726.1	%		22		613		2682.1	%
Depreciation & amortization		667		840		592		-11.1	%		1,947		2,262		16.2	%
Capital expenditures		725		686		704		-2.9	%		1,961		2,053		4.7	%
Adj. EBITDA		691		963		987		43.0	%		2,030		2,899		42.8	%

DOWNSTREAM
Revenues		2,892		2,993		2,849		-1.5	%		8,628		8,912		3.3	%
Operating income		186		15		-28		N/A			662		191		-71.2	%
Depreciation & amortization		117		122		119		11.9	%		340		357		5.0	%
Capital expenditures		141		114		114		-19.1	%		346		292		-15.7	%
Adj. EBITDA		303		137		91		-68.9	%		1,002		548		-45.3	%

GAS & ENERGY
Revenues		997		1,019		985		-1.2	%		2,881		2,869		-0.4	%
Operating income		86		36		91		6.1	%		187		751		301.4	%
Depreciation & amortization		4		3		3		-21.0	%		13		9		-33.1	%
Capital expenditures		39		8		14		-64.5	%		162		41		-74.5	%
Adj. EBITDA		90		39		94		4.9	%		200		760		279.1	%

CORPORATE AND OTHER
Operating income		-74		-65		-50		-32.2	%		-172		-166		-3.9	%
Capital expenditures		17		16		18		4.6	%		48		44		-7.1	%

CONSOLIDATION ADJUSTMENTS
Operating income		-42		-34		2		N/A			-12		-35		185.3	%

*Average exchange rate of period*		*17.23*		*23.48*		*32.02*					*16.18*		*25.05*
*Exchange rate end of period*		*17.26*		*28.80*		*41.15*					*17.26*		*41.15*

NOTE: The calculation of the main financial figures in U.S. dollars is derived from the calculation of the financial results expressed in Argentine pesos using the average exchange rate for each period.


		Consolidated Results Q3 2018

5.6 MAIN PHYSICAL MAGNITUDES

(Unaudited figures)


		2017										2018
	Unit	Q1		Q2		Q3		Q4		Cum. 2017		Q1		Q2		Q3		Cum. 2018
Production
Crude oil production	Kbbl		21,058		19,867		20,904		21,219		83,048		20,483		20,591		20,933		62,007
NGL production	Kbbl		4,923		4,680		4,469		4,309		18,381		4,228		3,781		2,477		10,487
Gas production	Mm3		4,076		4,056		4,057		3,893		16,082		3,935		4,004		4,018		11,957
Total production	Kboe		51,618		50,055		50,891		50,012		202,576		49,460		49,554		48,679		147,693

Henry Hub	USD/Mbtu		3.32		3.18		3.00		2.93		3.11		3.00		2.80		2.90		2.90
Brent	USD/Bbl		53.68		49.67		52.11		61.53		54.25		66.81		74.50		75.22		72.18
Sales
Sales of petroleum products
Domestic market
Gasoline	Km3		1,297		1,220		1,284		1,358		5,159		1,373		1,288		1,321		3,982
Diesel	Km3		1,792		1,954		1,981		2,025		7,752		1,870		2,023		2,154		6,047
Jet fuel and kerosene	Km3		134		117		140		143		534		135		125		146		406
Fuel Oil	Km3		220		264		121		37		642		7		10		10		27
LPG	Km3		152		241		189		159		741		146		185		196		527
Others (*)	Km3		357		377		406		408		1,548		381		416		323		1,120
Total domestic market	Km3		3,952		4,173		4,121		4,130		16,376		3,912		4,047		4,150		12,109
Export market
Petrochemical naphtha	Km3		57		23		46		58		184		24		44		0		68
Jet fuel and kerosene	Km3		135		123		139		142		539		141		136		144		421
LPG	Km3		115		39		70		98		322		194		91		41		326
Bunker (Diesel and Fuel Oil)	Km3		83		74		102		116		375		101		72		65		238
Others (*)	Km3		28		29		4		53		114		52		50		93		195
Total export market	Km3		418		288		361		467		1,534		512		393		343		1,248
Total sales of petroleum products	Km3		4,370		4,461		4,482		4,597		17,910		4,424		4,440		4,493		13,357
Sales of petrochemical products
Domestic market
Fertilizers	Ktn		35		39		139		111		324		38		85		117		240
Methanol	Ktn		57		84		73		99		313		69		93		64		226
Others	Ktn		116		130		125		129		500		138		115		139		392
Total domestic market	Ktn		208		253		337		339		1,137		245		293		320		858
Export market
Methanol	Ktn		1		2		1		2		6		24		75		31		130
Others	Ktn		42		51		53		55		201		36		63		42		141
Total export market	Ktn		43		53		54		57		207		60		138		73		271
Total sales of petrochemical products	Ktn		251		306		391		396		1,344		305		431		393		1,129
Sales of other products
Grain, flours and oils
Domestic market	Ktn		21		37		21		18		97		30		23		92		145
Export market	Ktn		159		291		331		253		1,034		169		236		177		582
Total Grain, flours and oils	Ktn		180		328		352		271		1,131		199		259		269		727
Main products imported
Gasolines and Jet Fuel	Km3		3		40		13		98		154		114		59		49		222
Diesel	Km3		152		230		77		85		544		111		161		355		627

(*) Principally includes sales of oil and lubricant bases, grease, asphalt and residual carbon, among others.


		Consolidated Results Q3 2018

This document contains statements that YPF believes constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995.

These forward-looking statements may include statements regarding the intent, belief, plans, current expectations or objectives as of the date hereof of YPF and its management, including statements with respect to trends affecting YPF’s future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes and reserves, as well as YPF’s plans, expectations or objectives with respect to future capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as the future price of petroleum and petroleum products, refining and marketing margins and exchange rates. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes in circumstances and other factors that may be beyond YPF’s control or may be difficult to predict.

YPF’s actual future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes, reserves, capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies, as well as actual future economic and other conditions, such as the future price of petroleum and petroleum products, refining margins and exchange rates, could differ materially from those expressed or implied in any such forward-looking statements. Important factors that could cause such differences include, but are not limited to fluctuations in the price of petroleum and petroleum products, supply and demand levels, currency fluctuations, exploration, drilling and production results, changes in reserves estimates, success in partnering with third parties, loss of market share, industry competition, environmental risks, physical risks, the risks of doing business in developing countries, legislative, tax, legal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, wars and acts of terrorism, natural disasters, project delays or advancements and lack of approvals, as well as those factors described in the filings made by YPF and its affiliates before the Comisión Nacional de Valores in Argentina and with the U.S. Securities and Exchange Commission, in particular, those described in “Item 3. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in YPF’s Annual Report on Form 20-F for the fiscal year ended December 31, 2017 filed with the Securities and Exchange Commission. In light of the foregoing, the forward-looking statements included in this document may not occur.

Except as required by law, YPF does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized.

These materials do not constitute an offer for sale of YPF S.A. bonds, shares or ADRs in the United States or elsewhere.

The information contained herein has been prepared to assist interested parties in making their own evaluations of YPF.

Investor Relations

E-mail: inversoresypf@ypf.com

Website: inversores.ypf.com

Macacha Güemes 515

C1106BKK Buenos Aires (Argentina)

Phone: 54 11 5441 1215

Fax: 54 11 5441 2113

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: November 9, 2018

/s/ Diego Celaá

Diego Celaá

Market Relations Officer