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, 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

YPF Sociedád Anonima

TABLE OF CONTENTS

ITEM

1 Translation of Consolidated Results Q3 2016.

LOGO

YPF S.A.

Consolidated Results

Q3 2016


		Consolidated Results Q3 2016

CONTENT


1.	MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q3 2016	3

2.	ANALYSIS OF RESULTS FOR Q3 2016	4

3.	ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q3 2016	7

	3.1 UPSTREAM	7

	3.2 DOWNSTREAM	10

	3.3 CORPORATE AND OTHERS	12

	3.4 RELATED COMPANIES	12

4.	LIQUIDITY AND SOURCES OF CAPITAL	12

5.	TABLES AND NOTES	14

Q3 2016 Results		14

	5.1 CONSOLIDATED STATEMENT OF INCOME YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES	15

	5.2 CONSOLIDATED BALANCE SHEET YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES	16

	5.3 CONSOLIDATED STATEMENT OF CASH FLOW YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES	17

	5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION	18

	5.5 MAIN FINANCIAL MAGNITUDES IN U.S. DOLLARS	19

	5.6 MAIN PHYSICAL MAGNITUDES	20


		Consolidated Results Q3 2016

Adjusted EBITDA for Q3 2016 was Ps 14.6 billion, 9.3% higher than Q3 2015.


Q3 2015	Q2 2016		Q3 2016		Var.% Q3 16/ Q3 15				Jan - Sep 2015		Jan - Sep 2016		Var.% 2016 / 2015

40,056		52,759		55,849		39.4	%	Revenues (Million Ps)		115,190		155,542		35.0	%

5,631		5,318		-34,578		-714.1	%	Operating income (Million Ps)		15,678		-27,642		-276.3	%

5,631		5,318		1,610		-71.4	%	Operating income before impairment of assets (Million Ps)		15,678		8,546		-45.5	%

1,884		-753		-30,256		-1705.9	%	Net income (Million Ps)		6,291		-30,154		-579.3	%

1,884		-753		-6,734		-457.4	%	Net income before impairment of assets (Million Ps)		6,291		-6,632		-205.4	%

13,363		17,181		14,609		9.3	%	Adj. EBITDA (Million Ps)		35,967		44,283		23.1	%

4.72		-1.89		-77.14		-1732.9	%	Earnings per share (Ps per Share)		16.00		-76.49		-578.0	%

15,730		14,498		14,997		-4.7	%	Capital expenditures (Million Ps)		42,839		44,236		3.3	%

Adjusted EBITDA = Net income attributable to shareholders + Net income (loss) for non-controlling interest - Deferred income tax - Income tax - Financial income (losses) gains on liabilities - Financial income gains (losses) on assets - Income on investments in companies + Depreciation of property, plant and equipment + Amortization of intangible assets + Impairment of property, plant and equipment.

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

1. MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q3 2016

•

Revenues for Q3 2016 were Ps 55.8 billion, 39.4% higher than Q3 2015.

•

Operating income for Q3 2016 before asset impairment charges was Ps 1.6 billion, 71.4% lower than Q3 2015. Taking into account asset impairment charges of Ps 36.2 billion, operating losses for Q3 2016 were Ps 34.6 billion.

•

Net income for Q3 2016 before asset impairment charges was a loss of Ps 6.7 billion compared to net income of Ps 1.9 billion recorded for Q3 2015. Net income after asset impairment charges was a loss of Ps 30.3 billion.

•

Adjusted EBITDA for Q3 2016 was Ps 14.6 billion, 9.3% higher than Q3 2015.

•

Hydrocarbon production for Q3 2016 was 579.3 Kboed, 1.3% higher than Q3 2015. Crude oil production for Q3 2016 was 247.1 Kbbld, 0.9% lower than Q3 2015. Natural gas production for Q3 2016 was 44.9 Mm³d, 1.1% higher than Q3 2015. NGL production for Q3 2016 was 50.1 Kbbld, 14.8% higher than Q3 2015.

•

Refinery processing levels in the Downstream business segment for Q3 2016 were 91.4%, 1.7% lower than Q3 2015.

•

Capital expenditures in fixed assets for Q3 2016 were Ps 15.0 billion, 4.7% lower than Q3 2015.


		Consolidated Results Q3 2016

2. ANALYSIS OF RESULTS FOR Q3 2016

Revenues for Q3 2016 were Ps 55.8 billion, 39.4% higher than Q3 2015, due primarily to the following factors:

•

Natural gas revenues increased Ps 4.2 billion, due to a 76.0% increase in prices in Argentine peso terms and a 1.1% increase in sales volumes.

•

Diesel revenues increased Ps 3.8 billion, due to a 31.7% increase in diesel mix prices, offset by a 4.2% decrease in sales volumes.

•

Gasoline revenues increased Ps 2.9 billion, due to a 36.8% increase in prices, offset by a 2.5% decrease in sales volumes.

•

Retail natural gas revenues from our subsidiary MetroGas (residential and small business and companies) increased Ps 1.2 billion, due to a 69.9% increase in prices in Argentine peso terms and a 19.7% increase in sales volumes.

•

Fuel oil revenues increased Ps 1.0 billion, due to a 56.6% increase in prices in Argentine peso terms, offset by a 7.7% decrease in sales volumes.

•

Exports of flour, oil and grains increased Ps 0.4 billion, due to a 101.2% increase in prices in Argentine peso terms, offset by a 28.4% decrease in sales volumes.

•

Partially offsetting the effect of the increases discussed above, in Q3 2015 Ps 0.5 billion was accrued due to the Crude Oil Production Stimulus Program, which was discontinued as of 2016.

Cost of sales for Q3 2016 was Ps 48.0 billion, 61.2% higher than Q3 2015. This includes a 58.0% increase in production costs and a 52.1% increase in purchases. Cash costs, which include costs of production and purchases but exclude depreciation and amortization, increased by 48.8%. This increase was driven by the following factors:

a) Costs of production:

•

Depreciation of fixed assets increased Ps 5.5 billion, an increase of 82.0 %, due to investments in assets and appreciation in 2016 based on their valuation in U.S. dollars, which is the functional currency of the company.

•

Lifting costs increased Ps 2.5 billion, reflecting a 32.6% increase in the unit indicator in Argentine peso terms.

•

Royalties increased Ps 1.6 billion. Of this increase, Ps 0.9 billion was related to an increase in royalties for crude oil production and Ps 0.7 billion was related to an increase in royalties for natural gas production.


		Consolidated Results Q3 2016

•

Production costs related to refining increased Ps 0.7 billion, reflecting a 49.5% increase in the unit indicator in Argentine peso terms.

•

Transportation costs increased Ps 0.5 billion, mainly due to increases in rates produced during 2016.

b) Purchases:

•

FAME and ethanol biofuel purchases increased Ps 1.6 billion, due to higher FAME and ethanol biofuel prices and a 12.9% increase in volumes purchased of ethanol biofuel due to an increase in the amount of ethanol biofuel required to be included in gasoline (from 10% to 12%), which was partially offset by a 7.1% decrease in volumes purchased of FAME in line with decreased diesel production.

•

Natural gas purchases from other suppliers for resale in the retail segment (residential and small business and companies) from our subsidiary MetroGas increased Ps 1.2 billion due to an increase in prices in Argentine peso terms of 146.5% and an increase in the volumes purchased of 2.9%.

•

Imports of diesel and jet fuel increased Ps 0.5 million, due to greater volumes purchased of jet fuel and higher prices for diesel and jet fuel in Argentine peso terms, which was partially offset by lower volumes purchased of diesel.

•

Grain purchases in the agricultural sales segment through the form of barter, which were recorded as purchases for accounting purposes, increased Ps 0.4 billion due to higher prices in Argentine peso terms, which was partially offset by lower volumes purchased.

•

Crude oil purchases from third parties increased Ps 0.4 billion, due to a 41.8% increase in the Argentine peso purchase price against a 20.9% decrease in volumes purchased.

Administration expenses for Q3 2016 were Ps 1.9 billion, 49.0% higher than Q3 2015. The increase was principally due to higher personnel expenses, higher IT costs and higher fixed asset depreciation.

Selling expenses for Q3 2016 were Ps 3.9 billion, 52.1% higher than Q3 2015. This was driven primarily by increases in transport expenses, principally due to higher rates paid for domestic transport of fuels and increases in personnel costs and fixed asset depreciation. Additionally, in Q3 2015 there was a recovery of charges in the provision for doubtful debts in the natural gas distribution segment.

Exploration expenses for Q3 2016 were Ps 0.3 billion, a decrease compared to Ps 1.2 billion for Q3 2015.

Additionally, in Q3 2016, the company recorded an impairment charge for property, plant and equipment of Ps 36.2 billion, due to an expected reduction in prices for crude oil in the Argentine domestic market, together with estimated evolution of costs based on both the impact of macroeconomic factors and the operational behavior of the company’s assets.


		Consolidated Results Q3 2016

Other Operating Results, net, for Q3 2016 were a loss of Ps 26 million, compared to a gain of Ps 0.4 billion for Q3 2015. The loss is primarily due to the temporary economic assistance of Ps 0.2 billion received in Q3 2015 by the company’s subsidiary, MetroGAS S.A., available through Resolution No. 263/2015 of the Argentine Secretary of Energy as well as the receipt of construction incentives of Ps 0.2 billion by the company’s subsidiary A-Evangelista.

Financial results for Q3 2016 were a loss of Ps 3.3 billion, compared to a loss of Ps 0.7 billion for Q3 2015. This change was driven primarily by lower positive effects of foreign exchange rates on net liabilities in Argentine pesos of Ps 0.6 billion, generated by a lower devaluation of the Argentine peso in Q3 2016 compared to Q3 2015. Interest expenses also increased Ps 2.9 billion, due to increased levels of debt and higher interest rates.

Income tax for Q3 2016 was a benefit of Ps 7.5 billion, compared to an expense of Ps 3.1 billion in Q3 2015. This was due primarily to a decrease in deferred tax expenses of Ps 9.5 billion and a decrease in current income tax of Ps 1.1 million.

Capital expenditures in fixed assets for Q3 2016 were Ps 15.0 billion, 4.7% lower than Q3 2015.


		Consolidated Results Q3 2016

3. ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q3 2016

3.1 UPSTREAM


Q3 2015		Q2 2016		Q3 2016		Var.% Q3 16/ Q3 15			Jan - Sep 2015		Jan - Sep 2016		Var.% 2016 / 2015

	2,171		1,716		-35,137		-1718.5%	Operating income (Million Ps)		6,965		-28,980		-516.1%

	2,171		1,716		1,051		-51.6%	Operating income before impairment of assets (Million Ps)		6,965		7,208		3.5%

	20,491		27,839		28,096		37.1%	Revenues (Million Ps)		58,623		85,265		45.4%

	249.3		242.9		247.1		-0.9%	Crude oil production (Kbbld)		248.8		246.3		-1.0%

	43.6		49.6		50.1		14.8%	NGL production (Kbbld)		47.6		52.0		9.3%

	44.4		44.8		44.9		1.1%	Gas production (Mm3d)		44.3		44.6		0.6%

	571.9		574.0		579.3		1.3%	Total production (Kboed)		574.9		578.5		0.6%

	1,182		738		312		-73.6%	Exploration costs (Million Ps)		1,760		1,504		-14.5%

	12,292		11,409		11,665		-5.1%	Capital expenditures (Million Ps)		35,402		35,329		-0.2%

	6,023		9,734		10,965		82.1%	Depreciation (Million Ps)		16,444		29,795		81.2%

								Realization Prices

	68.9		60.7		59.9		-12.9%	Crude oil prices in domestic market Period average (USD/bbl)		68.9		60.8		-11.7%

	4.47		4.74		4.78		6.9%	Average gas price (USD/Mmbtu)		4.58		4.74		3.6%

Operating income for the Upstream business segment for Q3 2016 before asset impairment charges was Ps 1.1 billion, 51.6% lower than Q3 2015. Taking into account asset impairment charges of Ps 36.2 billion, operating losses for this business segment for Q3 2016 were Ps 35.1 billion.

Revenues were Ps 28.1 billion for Q3 2016, 37.1% higher than Q3 2015, due primarily to the following factors:

•

Crude oil revenues increased Ps 4.1 billion, an increase of 28.6%, due to a 41.3% increase in Argentine peso terms of the transfer price between the Upstream business segment and the Downstream business segment, while volumes transferred between business segments decreased by 4.9% and volumes sold to third parties decreased by 32.5%.

•

Natural gas sales to third parties increased Ps 4.2 billion, an increase of 78.0%, due to a 76.0% increase in prices in Argentine peso terms and a 1.1% increase in sales volumes.

•

In Q3 2015, Ps 0.5 billion was accrued due to the Crude Oil Production Stimulus Program.


		Consolidated Results Q3 2016

The price obtained in U.S. dollars for crude oil in the Argentine domestic market for Q3 2016 decreased 12.9% to US$59.90/barrel, highlighting that in August, negotiations between local producers and refiners resulted in a 6% reduction of the Argentine domestic crude oil price per barrel over three months. The price obtained in U.S. dollars for natural gas was US$4.78/Mmbtu, 6.9% higher than Q3 2015.

Hydrocarbon production for Q3 2016 was 579.3 Kboed, 1.3% higher than Q3 2015. Crude oil production for Q3 2016 was 247.1 Kbbld, a 0.9% decrease. Natural gas production for Q3 2016 was 44.9 Mm³d, a 1.1% increase. NGL production for Q3 2016 was 50.1 Kbbld, a 14.8% increase.

With respect to development activity, 140 wells were put in production in Q3 2016, including the unconventional wells and tight gas wells discussed below, for a total of 512 new wells in 2016.

Hydrocarbon production in shale areas for Q3 2016 was 58.2 Kboed, including 30.7 Kbbld of crude oil, 11.3 Kbbld of NGL and 2.6 Mm³d of natural gas, of which YPF consolidates approximately 50%. During Q3 2016, 24 wells were put in production targeting the Vaca Muerta formation, for a total of 522 wells at the end of Q3 2016, including 11 active drilling rigs and 10 workovers.

With respect to tight gas activity: (i) in the Lajas formation, 10 wells were put in production during Q3 2016, and natural gas production was 5.25 Mm³d, (ii) in the Mulichinco formation in the Rincón del Mangrullo area, natural gas production was 2.1 Mm³d, and 3 wells were put in production, and (iii) in the Estacíon Fernández Oro area, natural gas production was 2.2 Mm³d.

Production costs for Q3 2016 were Ps 26.6 billion, 56.8% higher than Q3 2015, mainly due to the following:

•

Depreciation of fixed assets increased Ps 4.9 billion, an 82.1% increase;

•

Lifting costs increased Ps 2.5 billion, reflecting a 32.6% increase in the unit indicator in Argentine peso terms;

•

Royalties increased Ps 1.6 billion. Of this increase, Ps 0.9 billion was related to higher royalties for crude oil production and Ps 0.7 billion was related to higher royalties for natural gas production; and

•

Transportation costs increased Ps 95 million, a 20.9% increase, mainly due to increases in rates produced during 2016.

Exploration expenses for Q3 2016 were Ps 0.3 billion, 73.6% lower than Q3 2015. Losses from unproductive exploratory wells decreased Ps 0.6 billion for Q3 2016 compared to Q3 2015. Expenses for geological and geophysical studies decreased Ps 0.2 billion, as seismic survey studies in Q3 2016 focused on developing areas and this focus allowed the company to capitalize on such areas.

As discussed above, in Q3 2016 the company recorded an impairment charge for property, plant and equipment of Ps 36.2 billion, due to an expected reduction in prices for crude oil in the Argentine domestic market, together with estimated evolution of costs based on both the impact of macroeconomic factors and the operational behavior of the company’s assets.

Unit cash costs in U.S. dollars decreased 14.4% to US$20.80/boe for Q3 2016 from US$24.30/boe for Q3 2015, including taxes of US$6.10/boe and US$6.70/boe, respectively. In turn, the average lifting cost for YPF was US$12.00/boe for Q3 2016, 20.0% lower than US$15.10/boe for Q3 2015.


		Consolidated Results Q3 2016

CAPEX

Capital expenditures for the Upstream business segment for Q3 2016 were Ps 11.7 billion, 5.1% lower than Q3 2015.

Of these capital expenditures, 69% were invested in drilling and workover activities, 19% in facilities, and the remaining 12% in exploration and other activities in the Upstream business segment.

In the Neuquina basin area, activities for Q3 2016 were focused on the development of the Loma Campana, Aguada Toledo – Sierra Barrosa (Lajas), Rincón del Mangrullo, El Orejano, La Amarga Chica, Loma La Lata (Sierras Blancas) and Chachahuen blocks. Development activities continued at the Cuyana basin, mainly in the Barrancas, Estructura Cruz de Piedra, La Ventana, Vizcacheras, Llancanelo and Cerro Fortunoso blocks. In the Golfo San Jorge basin, most activity was concentrated in Cañadón de la Escondida, El Guadal, Seco León and Barranca Baya areas, in the province of Santa Cruz, and the Manantiales Behr and El Trébol-Escalante areas in the province of Chubut.

Exploration activities for Q3 2016 covered the Cuyana, Neuquina and Golfo San Jorge basins. In the Cuyana basin, exploratory activity targeted the Barrancas block. Exploration activities in the Neuquina basin focused on the Señal Picada – Punta Barda, Bajo del Piche, Chachahuan and Rincón del Mangrullo blocks. In the Golfo San Jorge basin, activity focused on the evaluation of deep targets in the west flank of the Los Perales block.

During Q3 2016, four exploratory wells were completed.


		Consolidated Results Q3 2016

3.2 DOWNSTREAM


Q3 2015			Q2 2016			Q3 2016			Var.% Q3 16/ Q3 15				Jan - Sep 2015			Jan - Sep 2016			Var.% 2016 / 2015

	3,522			3,432			1,118			-68.3	%	Operating income (Million Ps)		8,881			3,756			-57.7	%

	35,804			47,715			50,515			41.1	%	Revenues (Million Ps)		103,832			139,163			34.0	%

	4,308			4,126			4,259			-1.1	%	Sales of refined products in domestic market (Km3)		12,816			12,425			-3.1	%

	314			275			303			-3.5	%	Exportation of refined products (Km3)		1,078			1,070			-0.7	%

	218			207			227			4.1	%	*Sales of petrochemical products in domestic market ()** (Ktn)		622			622			0.0	%

	87			42			80			-8.0	%	Exportation of petrochemical products (Ktn)		242			149			-38.4	%

	297			288			292			-1.7	%	Crude oil processed (Kboed)		300			292			-3.0	%

	93	%		90	%		91	%		-1.7	%	Refinery utilization (%)		94	%		91	%		-3.0	%

	2,813			2,776			2,906			3.3	%	Capital expenditures (Million Ps)		6,257			7,773			24.2	%

	778			1,333			1,389			78.5	%	Depreciation (Million Ps)		2,249			4,012			78.4	%

	764			676			645			-15.7	%	Average domestic market gasoline price ()** (USD/m3)		756			625			-17.3	%

	773			661			629			-18.7	%	Average domestic market diesel price ()** (USD/m3)		763			618			-19.0	%

(*)	Fertilizer sales not included

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

Operating income for the Downstream business segment for Q3 2016 was a gain of Ps 1.1 billion, 68.3% lower than Q3 2015.

Revenues were Ps 50.5 billion, 41.1% higher than Q3 2015, due primarily to the following:

•

Diesel revenues increased Ps 3.8 billion, due to a 31.7% increase in diesel mix prices, offset by a 4.2% decrease in sales volumes, although sales volumes of Eurodiesel, a premium diesel product, increased 2.9%.

•

Gasoline revenues increased Ps 2.9 billion, due to a 36.8% increase in prices, offset by a 2.5% decrease in sales volumes.

•

Fuel oil revenues in the Argentine domestic market increased Ps 1.0 billion, due to a 51.9% increase in prices, offset by a 0.5% decrease in sales volumes.

•

Petrochemical product revenues in the Argentine domestic market increased Ps 0.2 billion, due to a 10.3% increase in prices in Argentine peso terms and a 6.3% increase in sales volumes.


		Consolidated Results Q3 2016

•

Exports increased Ps 1.3 billion, or 39.8%, compared to Q3 2015, due to higher prices in Argentine peso terms driven by devaluation of the Argentine peso in Q3 2016, offset by a decrease in export volumes. Exports of flour, oil and grains totaled Ps 1.5 billion, due to a 101.2% increase in prices in Argentine peso terms, offset by a 28.4% decrease in export volumes.

Cost of sales and operating expenses for Q3 2016 increased Ps 17.1 billion, or 53.0% compared to Q3 2015, due primarily to the following factors:

•

Crude oil purchases increased Ps 5.2 billion, due to an increase in prices in Argentine peso terms of crude oil purchased, offset by a 4.9% decrease in volumes purchased from the Upstream business segment and a 20.9% decrease in volumes purchased from other producers of crude oil. Purchase prices from the Upstream business segment in Argentine peso terms increased 41.3%, and purchase prices from other producers of crude oil similarly increased 41.8%.

•

FAME and ethanol biofuel purchases increased Ps 1.6 billion, due to higher FAME and ethanol biofuel prices of 93% and 57%, respectively. There was a 12.9% increase in volumes purchased of ethanol biofuel, due to an increase in the amount of ethanol biofuel required to be included in gasoline (from 10% to 12%), which was partially offset by a 7.1% decrease in volumes purchased of FAME in line with decreased diesel production.

•

Grain purchases in the agricultural sales segment through the form of barter increased Ps 0.4 billion due to higher prices in Argentine peso terms, which was recorded as purchases for accounting purposes.

•

Production costs related to refining increased Ps 0.7 billion, due to inflation and increased expenses for materials, parts, electricity, other supplies and fuel. As a result, and considering the 1.7% decrease in volumes processed, unit refining costs in Q3 2016 were 49.5% higher than Q3 2015. Transportation costs related to production (shipping, oil pipelines, and multiproduct pipelines) increased Ps 0.4 billion, a 47.6% increase.

•

Fixed asset depreciation increased Ps 0.6 billion, an 82.4% increase, resulting from an increase in the value of assets subject to depreciation compared to Q3 2015 due to increased investments in assets and an increase in asset values, based on their valuation in U.S. dollars, the functional currency of the company.

•

Marketing expenses increased Ps 1.3 billion, due to higher transportation costs related to an increase in Argentine domestic fuel transportation rates and increased depreciation costs of assets linked to commercial use.


		Consolidated Results Q3 2016

The volume of crude oil processed in Q3 2016 was 292 Kbbld, 1.7% lower than in Q3 2015.

CAPEX

Cumulative capital expenditures for the Downstream business segment for Q3 2016 were Ps 2.9 billion, a 3.3% decrease compared to Q3 2015.

The construction of the new Coke Plant was completed, and it commenced operations on September 29, 2016. In addition, improvements to the Topping III unit in Mendoza have progressed, and it is expected to commence operations in Q2 2017. Work to improve YPF’s logistical facilities and optimize safety and environmental performance has also continued.

3.3 CORPORATE AND OTHERS

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 2016 was a loss of Ps 0.7 billion, compared to a gain of Ps 0.4 billion in Q3 2015. This change was driven primarily by higher personnel expenses, higher IT costs, and lower receipts of construction incentives by the company’s subsidiary A-Evangelista, as discussed above.

Consolidation adjustments to eliminate results among business segments not transferred to third parties were Ps 0.1 billion in Q3 2016. These adjustments were Ps 0.4 billion in Q3 2015.

3.4 RELATED COMPANIES

Results from related companies for Q3 2016 were a gain of Ps 110 million, compared to a gain of Ps 36 million for Q3 2015. This change was primarily due to improved results from Profertil, Central Dock Sud, and Refinor.

4. LIQUIDITY AND SOURCES OF CAPITAL

Net cash flows provided by operating activities for Q3 2016, including collections of accounts receivable owed to the company through Plan Gas, received in BONAR 2020 sovereign bonds issued by Argentina for US$642 million and which remain in the company’s investment portfolio, reached Ps 26.6 billion, 172.3% higher than Q3 2015. This increase of net cash flows provided by operating activities of Ps 16.9 billion was principally driven by a reduction in working capital produced by the collections of accounts receivable owed to the company, including among others, accounts receivable previously received from the aforementioned Plan Gas program and programs to stimulate crude oil production that was in effect in 2015, a Ps 1.2 billion increase in adjusted EBITDA and a lower income tax payment.

Net cash flows used in investing activities were Ps 19.9 billion for Q3 2016, or 25.9% higher than Q3 2015. Investments in fixed and intangible assets were 9.2% lower than Q3 2015. In Q3 2016, a guaranteed loan to Pampa Energía S.A. of Ps 2.1 billion was granted, equal to the price paid for the indirect acquisition of a stake by YPF in the Río Neuquén and Aguada de la Arena areas, and an increase in investments in financial assets of Ps 2.2 billion was recorded.


		Consolidated Results Q3 2016

The previously discussed cash flow generation, together with a net increase of Ps 4.2 billion from financing activities, and the investment made by the company in BONAR 2021 sovereign bonds issued by Argentina contributed to a Ps 32.4 billion cash and cash equivalent position as of September 30, 2016. The main debt issuances in Q3 2016 consisted of two new series of negotiable obligations for a total of Ps 11.2 billion and CHF 300 million. Total debt in U.S. dollars was US$9.9 billion, net debt was US$7.8 billion(1) and the net debt/EBITDA LTM(2) ratio was 1.86x.

The average interest rate for debt denominated in Argentine pesos in Q3 2016 was 30.38%, while the average interest rate for debt denominated in U.S. dollars and Swiss francs was 7.76% and 3.75%, respectively.

YPF negotiable obligations issued during Q3 2016 and thereafter are detailed below:

YPF Note

Amount

Interest Rate

Maturity

Series L

USD 750 million

BADLAR + 4.0

48 months

Series LI

CHF 300 million

3.75

36 months

Series XXVIII (Q4 2016)

USD 197 million

8.75

90 months

(*)	Subscription in kind made only with Series X and XI

(1)	Net Debt: Includes investments in government securities of US$965 million at market value.

(2)	Net Debt: US$7,797 million/EBITDA LTM: US$4,208 million = 1.86x.


		Consolidated Results Q3 2016

5. TABLES AND NOTES

Q3 2016 Results


		Consolidated Results Q3 2016

5.1 CONSOLIDATED STATEMENT OF INCOME

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)


Q3 2015			Q2 2016			Q3 2016			Var.% Q3 16/ Q3 15				Jan - Sep 2015			Jan - Sep 2016			Var.% 2016 / 2015
	40,056			52,759			55,849			39.4	%	Revenues		115,190			155,542			35.0	%
	(29,795	)		(42,819	)		(48,028	)		61.2	%	Costs of sales		(86,756	)		(130,978	)		51.0	%

	10,261			9,940			7,821			(23.8	%)	Gross profit		28,434			24,564			(13.6	%)

	(2,587	)		(3,699	)		(3,934	)		52.1	%	Selling expenses		(8,065	)		(10,678	)		32.4	%
	(1,301	)		(1,833	)		(1,939	)		49.0	%	Administration expenses		(3,857	)		(5,258	)		36.3	%
	(1,182	)		(738	)		(312	)		(73.6	%)	Exploration expenses		(1,760	)		(1,504	)		(14.5	%)
	—			—			(36,188	)				Impairment of property, plant and equipment		—			(36,188	)
	440			1,648			(26	)		(105.9	%)	Other operating results, net		926			1,422			53.6	%

	5,631			5,318			(34,578	)		(714.1	%)	Operating income		15,678			(27,642	)		(276.3	%)

	36			166			110			205.6	%	Income on investments in companies		52			373			617.3	%
	(701	)		(4,660	)		(3,291	)		(369.5	%)	Net Financial Results:		(2,009	)		(3,933	)		(95.8	%)

	4,966			824			(37,759	)		(860.4	%)	Net income before income tax		13,721			(31,202	)		(327.4	%)

	(3,082	)		(1,577	)		7,503			(343.4	%)	Income tax		(7,430	)		1,048			(114.1	%)

	1,884			(753	)		(30,256	)		(1,705.9	%)	Net Income for the period		6,291			(30,154	)		(579.3	%)

	34			(10	)		(45	)				Net income (loss) for noncontrolling interest		17			(196	)

	1,850			(743	)		(30,211	)		(1,733.0	%)	Net income for shareholders of the parent company		6,274			(29,958	)		(577.5	%)

	4.72			(1.89	)		(77.14	)		(1,732.9	%)	Earnings per share, basic and diluted		16.00			(76.49	)		(578.0	%)

	3,206			4,309			2,848			(11.2	%)	Other comprehensive Income		8,229			22,564			174.2	%

	5,090			3,556			(27,408	)		(638.5	%)	Total comprehensive income for the period		14,520			(7,590	)		(152.3	%)



	13,363			17,181			14,609			9.3	%	*Adj. EBITDA ()**		35,967			44,283			23.1	%

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

(*)

Adjusted EBITDA = Net income attributable to shareholders + Net income (loss) for non-controlling interest - Deferred income tax - Income tax - Financial income (losses) gains on liabilities - Financial income gains (losses) on assets - Income on investments in companies + Depreciation of properties, plant and equipment + Amortization of intangible assets + Unproductive exploratory drillings + Impairment of property, plant and equipment.


		Consolidated Results Q3 2016

5.2 CONSOLIDATED BALANCE SHEET

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Q3 2016 figures unaudited, figures expressed in millions of pesos)


	12/31/2015		09/30/2016
Noncurrent Assets
Intangible assets		7,279		8,644
Fixed assets		270,905		287,082
Investments in companies		4,372		5,095
Deferred income tax assets		954		506
Other receivables and advances		2,501		3,998
Trade receivables		469		226
Investment in financial assets		—		7,353

Total Non-current Assets		286,480		312,904


Current Assets
Inventories		19,258		22,703
Other receivables and advances		19,413		12,190
Trade receivables		22,111		31,119
Investment in financial assets		804		7,380
Cash and equivalents		15,387		17,634

Total Current Assets		76,973		91,026


Total Assets		363,453		403,930


Shareholders’ equity
Shareholders’ contributions		10,349		10,359
Reserves and unappropiated retained earnings		110,064		101,781
Noncontrolling interest		48		(148	)

Total Shareholders’ Equity		120,461		111,992


Noncurrent Liabilities
Provisions		39,623		43,246
Deferred income tax liabilities		44,812		42,973
Other taxes payable		207		106
Loans		77,934		121,226
Accounts payable		625		626

Total Noncurrent Liabilities		163,201		208,177


Current Liabilities
Provisions		2,009		1,848
Income tax liability		1,487		154
Other taxes payable		6,047		6,164
Salaries and social security		2,452		2,734
Loans		27,817		30,113
Accounts payable		39,979		42,748

Total Current Liabilities		79,791		83,761


Total Liabilities		242,992		291,938


Total Liabilities and Shareholders’ Equity		363,453		403,930

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


		Consolidated Results Q3 2016

5.3 CONSOLIDATED STATEMENT OF CASH FLOW

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)


Q3 2015			Q2 2016			Q3 2016				Jan - Sep 2015			Jan - Sep 2016
									Cash flows from operating activities
	1,884			(753	)		(30,256	)	Net income		6,291			(30,154	)
	(36	)		(166	)		(110	)	Income from investments in companies		(52	)		(373	)
	6,895			11,225			12,652		Depreciation of fixed assets		18,961			34,411
	65			170			188		Amortization of intangible assets		225			511
	1,811			1,422			996		Consumption of materials and fixed assets and intangible assets retired, net of provisions		3,250			3,601
	3,082			1,577			(7,503	)	Income tax		7,430			(1,048	)
	709			1,411			1,289		Net increase in provisions		2,267			3,792
	—			—			36,188		Impairment of property, plant and equipment		—			36,188
	(252	)		3,966			2,893		Interest, exchange differences and other		1,357			2,193
	36			17			51		Stock compensation plan		89			108
	(562	)		—			—		Accrued insurance		(1,085	)		—
	—			(1,528	)		—		Results due to deconsolidation of companies		—			(1,528	)
									Changes in assets and liabilities:
	(1,350	)		(6,922	)		(505	)	Trade receivables		(2,853	)		(15,393	)
	(1,204	)		217			2,399		Other receivables and liabilities		(4,299	)		7,134
	(1,005	)		(1,208	)		(79	)	Inventories		(240	)		(198	)
	1,171			(2,498	)		(990	)	Accounts payable		3,182			(2,610	)
	463			311			307		Other Taxes payable		2,112			(142	)
	396			368			341		Salaries and Social Securities		123			290
	(347	)		(594	)		(355	)	Decrease in provisions from payments		(1,247	)		(1,303	)
	2			420			1		Dividends from investments in companies		181			421
	—			—			—		Insurance charge for loss of profit		1,673			607
	(1,976	)		(821	)		(786	)	Income tax payments		(5,650	)		(2,347	)

	9,782			6,614			16,721		Net cash flows provided by operating activities		31,715			34,160

									Cash flows from investing activities
									Payments for investments:
	(15,825	)		(15,299	)		(14,368	)	Acquisitions of fixed assets and Intangible assets		(46,692	)		(46,970	)
	—			—			(388	)	Contributions and acquisitions of interests in companies and UTEs		(163	)		(388	)
	—			923			(3,078	)	Financial assets investments		—			(2,168	)
	—			—			—		Insurance charge for material damages		—			355

	(15,825	)		(14,376	)		(19,927	)	Net cash flows used in investing activities		(46,855	)		(51,264	)

									Cash flows from financing activities
	(5,652	)		(16,775	)		(15,488	)	Payment of loans		(17,624	)		(49,442)
	(1,386	)		(3,378	)		(4,728	)	Payment of interests		(4,531	)		(11,621	)
	9,935			17,863			25,304		Proceeds from loans		38,162			79,770
	(74	)		(55	)		5		Acquisition of own shares		(119	)		(50	)
	—			—			—		Non controling interest contribution		—			50
	(503	)		—			(889	)	Payments of dividends		(503	)		(889	)
	—			—			—		Non controling interest contribution		—			50

	2,320			(2,345	)		4,204		Net cash flows provided by financing activities		15,385			17,818

	342			(15	)		743		Effect of changes in exchange rates on cash and equivalents		854			1,681

	—			(148	)		—		Deconsolidation of subsidiaries		—			(148	)

	(3,381	)		(10,270	)		1,741		Increase (decrease) in cash and equivalents		1,099			2,247

	—			26,163			15,893		Cash and equivalents at the beginning of the period		9,758			15,387
	(3,381	)		15,893			17,634		Cash and equivalents at the end of the period		10,857			17,634

	(3,381	)		(10,270	)		1,741		Increase (decrease) in cash and equivalents		1,099			2,247

									COMPONENTS OF CASH AND EQUIVALENT AT THE END OF THE PERIOD
	(187	)		6,898			11,163		Cash		9,195			11,163
	(3,194	)		8,995			6,471		Other financial assets		1,662			6,471

	(3,381	)		15,893			17,634		TOTAL CASH AND EQUIVALENTS AT THE END OF THE PERIOD		10,857			17,634

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


		Consolidated Results Q3 2016

5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION

(Unaudited, figures expressed in millions of pesos)


Q3 2016	Upstream		Downstream		Corporate and Other		Consolidation Adjustments		Total

Revenues		5,098		50,221		530		—		55,849
Revenues from intersegment sales		22,998		294		1,999		-25,291		—

Revenues		28,096		50,515		2,529		-25,291		55,849


Operating Income (loss)		-35,137		1,118		-696		137		-34,578
Investments in companies		0		110		—		—		110
Depreciation of fixed assets		10,965		1,389		298		—		12,652
Impairment of property, plant and equipment		36,188		—		—		—		36,188
Acquisitions of fixed assets		11,680		2,906		426		0		15,012
Assets		222,359		142,653		41,482		-2,564		403,930

Q3 2015	Upstream		Downstream		Corporate and Other		Consolidation Adjustments		Total

Revenues		4,289		35,470		297		—		40,056
Revenues from intersegment sales		16,202		334		1,639		-18,175		—

Revenues		20,491		35,804		1,936		-18,175		40,056


Operating Income (loss)		2,171		3,522		-417		355		5,631
Investments in companies		3		33		—		—		36
Depreciation of fixed assets		6,023		778		94		—		6,895
Acquisitions of fixed assets		12,315		2,813		625		—		15,753
Assets		223,035		113,805		26,708		-95		363,453


		Consolidated Results Q3 2016

5.5 MAIN FINANCIAL MAGNITUDES IN U.S. DOLLARS (Unaudited figures)


Million USD	2015 Q3		2016 Q2		2016 Q3		Var Q3 16/ Q3 15			2015 Jan - Sep		2016 Jan - Sep		Var 2016 / 2015
INCOME STATMENT
Revenues		4,353		3,720		3,748		-13.9	%		8,559		10,720		25.2	%
Costs of sales		-3,238		-3,019		-3,224		-0.5	%		-6,488		-9,023		39.1	%

Gross profit		1,115		701		525		*-52.9*	%		2,071		1,697		*-18.0*	%
Selling expenses		-281		-261		-264		-6.1	%		-624		-736		17.9	%
Administration expenses		-141		-129		-130		-8.0	%		-291		-362		24.4	%
Exploration expenses		-128		-52		-21		-83.7	%		-66		-104		59.3	%
Other expenses		48		116		-2		-103.6	%		54		101		86.4	%

Operating income		612		375		-2,321		*-479.2*	%		1,144		-1,834		*-260.3*	%
Depreciation and impairment of fixed and intangible assets		749		792		3,278		337.5	%		1,374		4,799		249.2	%
Amortization of intangible assets		7		12		13		78.6	%		18		35		93.4	%
Unproductive exploratory drillings		84		33		11		-87.3	%		38		57		51.0	%

*Adj. EBITDA ()**		1,452		1,212		981		*-32.5*	%		2,574		3,057		*18.8*	%

UPSTREAM
Revenues		2,227		1,963		1,886		-15.3	%		4,346		5,881		35.3	%
Operating income		236		121		-2,358		-1099.5	%		546		-1,930		-453.3	%
Depreciation		655		686		736		12.4	%		1,187		2,052		72.9	%
Capital expenditures		1,336		805		783		-41.4	%		2,632		2,436		-7.4	%

DOWNSTREAM
Revenues		3,986		3,365		3,390		-14.9	%		7,751		9,591		23.7	%
Operating income		383		242		75		-80.4	%		607		262		-56.8	%
Depreciation		85		94		93		10.3	%		168		277		65.0	%
Capital expenditures		306		196		195		-36.2	%		392		536		36.7	%

CORPORATE AND OTHER
Operating income		-45		43		-47		3.1	%		-121		-40		-66.6	%
Capital expenditures		68		22		29		-57.9	%		63		78		23.7	%

CONSOLIDATION ADJUSTMENTS
Operating income		39		-31		9		-76.2	%		112		-126		-212.6	%
*Average exchange rate for the period*		*9.20*		*14.18*		*14.90*					*8.91*		*14.51*

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. .

(*)

Adjusted EBITDA = Net income attributable to shareholders + Net income (loss) for non-controlling interest - Deferred income tax - Income tax - Financial income (losses) gains on liabilities - Financial income gains (losses) on assets - Income on investments in companies + Depreciation of properties, plant and equipment + Amortization of intangible assets + Unproductive exploratory drillings + Impairment of property, plant and equipment.


		Consolidated Results Q3 2016

5.6 MAIN PHYSICAL MAGNITUDES (Unaudited)


		2015										2016
	Unit	Q1		Q2		Q3		Q4		Cum. 2015		Q1		Q2		Q3		Cum. 3Q 2016
Production
Crude oil production	Kbbl		22,238		22,750		22,934		23,218		91,139		22,656		22,102		22,735		67,493
NGL production	Kbbl		5,390		3,580		4,015		4,958		17,944		5,124		4,512		4,608		14,243
Gas production	Mm3		3,921		4,091		4,080		4,032		16,124		4,008		4,074		4,127		12,209
Total production	Kboe		52,288		52,061		52,611		53,532		210,492		52,986		52,237		53,299		158,522


Henry Hub	USD/Mbtu		2.98		2.64		2.77		2.27		2.66		2.09		1.95		2.81		2.29
Brent	USD/Bbl		53.92		61.69		50.23		43.57		52.35		37.88		45.56		45.79		41.68

Sales
Sales of petroleum products
Domestic market
Gasoline	Km3		1,246		1,171		1,208		1,269		4,894		1,283		1,119		1,178		3,580
Diesel	Km3		1,906		2,169		2,040		2,019		8,134		1,855		2,038		1,955		5,848
Jet fuel and kerosene	Km3		125		108		130		131		494		130		107		135		371
Fuel Oil	Km3		348		396		378		313		1,436		354		350		376		1,080
LPG	Km3		176		212		238		162		788		153		242		273		668
Others (*)	Km3		304		343		314		323		1,283		261		274		342		877
Total domestic market	Km3		4,104		4,399		4,308		4,218		17,029		4,035		4,131		4,259		12,425
Export market
Petrochemical naphtha	Km3		18		12		7		19		56		0		0		15		15
Jet fuel and kerosene	Km3		122		127		130		132		511		121		117		130		369
LPG	Km3		149		52		42		94		337		117		17		40		174
Bunker (Diesel and Fuel Oil)	Km3		153		115		130		134		532		149		116		93		358
Others (*)	Km3		7		10		4		4		25		105		24		26		155
Total export market	Km3		449		316		314		382		1,461		493		275		303		1,070
Total sales of petroleum products	Km3		4,553		4,715		4,622		4,600		18,490		4,528		4,405		4,562		13,495

Sales of petrochemical products
Domestic market
Fertilizers	Ktn		21		34		45		108		208		24		40		91		155
Methanol	Ktn		49		61		75		64		249		55		82		105		242
Others	Ktn		130		164		143		129		566		133		125		122		380
Total domestic market	Ktn		200		259		263		301		1,023		212		247		318		777
Export market
Methanol	Ktn		41		36		54		20		151		2		1		2		5
Others	Ktn		28		50		33		39		150		25		41		78		144
Total export market	Ktn		69		86		87		59		301		27		42		80		149
Total sales of petrochemical products	Ktn		269		345		350		360		1,324		239		289		398		926

Sales of other products
Grain, flours and oils
Domestic market	Ktn		30		31		13		15		89		9		27		7		43
Export market	Ktn		155		418		358		208		1,139		169		311		256		736
Total grain, flours and oils	Ktn		185		449		371		223		1,228		178		338		263		779

Main products imported
Gasoline and jet fuel	Km3		20		22		43		36		120		50		65		52		168
Diesel	Km3		196		343		346		289		1,174		145		239		306		691

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


		Consolidated Results Q3 2016

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, 2015 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 8, 2016

/s/ Diego Celaá

Diego Celaá

Market Relations Officer