Q1 2025 YPF SA Earnings Call
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Unknown Attendee: Ladies and gentlemen, thank you for standing by today's conference call will begin momentarily until that time your lines will be placed on music with a hold. Thank you so much for your patience. Thank you for standing by.
Ladies and gentlemen, thank you for standing by today's conference call will begin momentarily until that time your lines will be placed on music with a hold thank you so much for your patience.
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Danica: Thank you for standing by my name is Danica and I will be your conference operator today.
Danica: My name is Danica and I will be your conference operator today.
Danica: At this time, I would like to welcome everyone to the YPF first quarter 2025 earnings webcast presentation. All lines have been placed on mute to prevent any background noise.
Speaker Change: At this time I would like to welcome everyone to the Y P. S first quarter 2025 earnings webcast presentation.
Danica: All lines have been placed on mute to prevent any background noise.
Danica: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you.
Danica: After the Speakers' remarks, there will be a question and answer session.
Danica: If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad.
Danica: You would like to withdraw your question Press Star one again, thank you.
Margarita Chun: I would now like to turn the call over to Margarita Chun, YPF's Investor Relations Manager. Please go ahead. Good morning, ladies and gentlemen. This is Margarita Chun, YPF IR Manager.
Danica: I would now like to turn the call over to Marguerite touch on why P. S. Investor Relations manager. Please go ahead.
Danica: Good morning, ladies and gentlemen, this is mercury that true why P. S. I Gotta monitor. Thank you for joining US today, you know our first quarter 2025 earnings call.
Margarita Chun: Thank you for joining us today in our first quarter 2025 earnings call. Today's presentation will be conducted by our Chairman and CEO, Mr. Horacio Marin, and our CFO, Mr. Federico Barroetaveña. During the presentation, we will go through the main aspects and events that explain the quarter results, and then we will open the floor for Q&A session together with our management.
Speaker Change: Today's presentation will be conducted by our chairman and CEO, Mr. Wood, I feel about Eaton and our CFO, Mr. Thiede equaled out right away and you during the presentation. We will go through the main aspects on either that explained the quarter results and then we will open the floor for Q&A session together with our management.
Margarita Chun: Before we begin, please consider our cautionary statement on slide 2. Our remarks today and answer to our questions may include forward-looking statements, which are subject to risk and uncertainties that could cause actual results to be materially different from the expectations contemplated by this remark. Our financial figures are stated in accordance with IFRS, but during the presentation, we might discuss some non-IFRS measures, such as adjusted EBTA.
Speaker Change: Before we begin please come see their order cautionary statement on slide two our remarks today and uncertain. So our questions may include forward looking statements, which are subject to risks and uncertainties that could cause actual results to be must be really different from the expectations contemplated by these <unk>.
Speaker Change: Yes.
Speaker Change: All the financial figures are stated in accordance we'd I asked her as well during the presentation. We may discuss some not I FRS measures such as adjusted EBITDA.
Margarita Chun: Finally, according to the relevant fact released last December, as from 2025, the new business structure of YPF is in place. The main changes are as follows. First, we split gas and power segment into two segments, LNG and integrated gas, and new energy. Second, we renamed downstream segment as midstream and downstream. And third, we reallocated our midstream gas business that used to be in gas and power segment to midstream and downstream segment. You can find further details on the backup slide of this presentation.
Speaker Change: Finally, according to the relevant fact released last December as from 'twenty to 'twenty five the new business structure at a one P. S eating place. The main change you saw a fall off.
Speaker Change: First we sleep got Sunpower segment into two segments LNG anything that he got a new energy sector.
Speaker Change: Second we renamed downstream segments of me seem them downstream and third we relocated our measly in gas business, but used to being in Gaza and power segments to mid stream and downstream segment you can find a photo of their retails on the backup slide off these presentation.
Horacio Marín: I will now turn the call over to Horacio. Please go ahead. Thank you, Margarita, and good morning, everyone.
Raphael: I'll now turn the call over to Raphael. Please go ahead.
Raphael: Thank you Dan good morning, everyone.
Horacio Marín: Let me begin today's presentation with the main highlight of the quarter. First, we recorded a strong level or a shot evidence of one point. to $4 billion, making a significant sequential growth of 48%. This increase reflects the initial benefit and increase in profitability resulted from the initial disbursement in mature fields in according with the first two pillars of the 4-4 plan. In addition, we report improved refining and marketing margins where our strategy efforts have played a crucial role in this performance to align our price to international parities and enhance our operational efficiency metrics. Let me also highlight that without the negative contribution of our mature fields, our proxy that shall be done during this quarter will have been roughly $1.35 billion.
Raphael: Let me begin today's presentation with the main probably late in the quarter.
Raphael: First we recorded a strong liberal or EBITDA or one point.
Raphael: Two $4 billion, making a significant sequential growth.
Raphael: 48%.
Speaker Change: This increase reflect the initial benefit on increasing profitability, resulting from Denise L. G.
Raphael: With men in mature fields.
Raphael: According with the first two pillars of the 424.
Raphael: Sure.
Raphael: In addition, with report improved refining and marketing margins, where our thought that if for example, a crucial role in this performance to align our price internationally.
Raphael: I mean, that's where operational efficiency metrics.
Raphael: Let me also highlight though without the negative contribution of our mature fields. Our proceeds EBITDA. During this quarter, we have been rapidly $135 billion.
Horacio Marín: Interannually, our shale debit remains stable as the robust growth in our shale operation and higher local fuel prices of Q1 this year was offset by the extraordinarily low OPEX in Q1 last year after the discreet devaluation of December 2023, but partially softened by lower value on inventory due to this devaluation. In terms of shale oil, we produced 31% more than Q1 last year, now represented 55% of our total oil production. This outstanding growth was boosted by record drilling performance achieved especially in March. First, we record the fastest and conventional drilling speed of 551 meters per day in our general block for an oil well with 2,573 meters of lateral length in 10 days.
Raphael: Incidentally shows it'd be very many steel.
Raphael: A lot of growth in our shale operation. That's how you look at fuel prices of Q1. This year was upset by the extraordinary low opex in Q1 of last year. After that is good the valuation because December 'twenty two 'twenty three.
Raphael: Partially softened by lower value inventory due to this devaluation.
Raphael: In terms of shale oil, we produced 31% more than Q1 last year now represented 55%.
Raphael: Our total oil production. This outstanding growth was boosted by a record drilling performance achieved in March.
Raphael: First we record the foster unconventional, losing a few or 551 meters per day in our tenure rock.
Raphael: For an oil well.
Raphael: 2005 Xiaomi.
Raphael: 73 meters of lateral length in 10 days.
Horacio Marín: Second, in the same month, we built the deepest unconventional well of 7,828 meters with a useful lateral length of 4,501 meters in Marga Chica block at a speed of 353 meters per day. In both cases, our real-time intelligence center contributed to efficiently design the roadmap and casing process and mitigate vibration. In downstream business, in Q1, we reached a record high refinery utilization of 94%, even with a higher technical capacity of 338,000 barrels per day.
Raphael: Second in the same month.
Raphael: We do the deepest unconventional well.
Raphael: 7828 meters will be useful to let their limb.
Raphael: <unk> 4501 meter.
Raphael: <unk> chica below a dispute of 353 meters per day.
Raphael: In most cases, our real time intelligence center contributed to efficiently designed the roadmaps allocation process.
Raphael: <unk> preparations.
Raphael: In downstream business in Q1, we reached a record high refinery utilization of 94%.
Raphael: Even with the higher technical capacity of three three years, so somebody's per day.
Horacio Marín: Moreover, at the beginning of this month, we inaugurate our first real-time intelligence center for the downstream cement in La Plata Refinery. This center is designated to facilitate data-driven decision-making in real time, with a focus on profitability and maximizing the output value for every barrel of oil processing, while optimizing resource utilization. We plan to replicate this center in the other two refineries of YPF as well as in logistics and commercialization throughout this year and into 2026. Additionally, by the end of April, we signed an MOU with LOAN to accelerate our digital transformation, implementing artificial intelligence that leans and evolves, incrementally making complex decisions by using algorithms that are supervised by our experts, so that we can optimize efficiency across the world supply chain.
Raphael: Moreover, the beginning of this month.
Raphael: Our first real time intelligence center for their don't think salmon in the blood a refinery.
Raphael: This center is this evening.
Raphael: To facilitate data driven decision, making in real time.
Raphael: With a focus on profitability and maximizing the output value for every barrel of oil processes, while optimisations resource utilization.
Raphael: We plan to replicate the center and the other two refinery of <unk> us realize in logistics, our commercialization throughout this year and into 2026.
Raphael: Additionally by the end of April we signed an Mou with loan to accelerate our digital transformation.
Speaker Change: Women in artificial intelligence, the liens on evolve incrementally, making complex decision by using algorithms that are supervised by yeah. What exports. So that we can optimize efficiency across the world supply chain.
Horacio Marín: Regarding our LNG projects, last week, Solar Energy, also known as SISA, obtained FID approval for the 20-year bare board charter agreement for 2.45 MTPA floating LNG Healy, which is expected to be operational in 2027. With respect to Healy, a few weeks ago, the SPB already obtained a three year export permit from the Secretary of Energy for a maximum daily volume of 10.4 million cubic meters per day as from July the 4th of 2027. Moreover, the Rio Negro province approved the environmental impact assessment. Additionally, a few days ago, the Secretary of Energy approved the regime for a total capacity range between 1.5 and 2.2 million tons per year of LNG, depending on the ability of gas.
Raphael: Regarding our LNG projects last week.
Speaker Change: He also knows Caesar.
Speaker Change: And if I the approval for the 20 year Bareboat charter agreements for two point 45 M. Tpa floating LNG hilli, which is expected to be operational in operational in 2027.
Speaker Change: <unk> a few weeks ago, the SPV array obtained a three year export permit from the secretary of energy for a maximum daily volume of $10 4 million cubic meter per day.
Speaker Change: For July the fourth of 2027, Moreover, the Rio <expletive> drawings.
Speaker Change: Peru, the environmental impact assessment.
Speaker Change: Additionally, if you they siegal the secrecy of energy.
Speaker Change: Theyre risky for a total capacity range is between one five and $2 $2 million per year of <unk>.
LNG, depending on the ability of the us.
Horacio Marín: In addition, CESA also signed a 20-year railroad charter agreement for 3.5 million tons per year floating LNG MK2, subject to FID approval, which is estimated to be no later than July 31st. If approved, it's expected to be operational in 2028. This second vessel allows the construction of a 100% dedicated gas pipeline from Baca Muerta to the San Matias Gulf in the province of Rio Negro, available during the whole year, instead of using existing pipeline idle capacity during the off-peak season. To supply natural gas for the floating LNG, helium, and MN Mark II, CESA signed a 20-year gas supply agreement with main gas producers of Argentina, including YPF, through ESO's subsidiary, Sur Inversiones Energéticas.
Speaker Change: In addition, Caesar also sign it Buendia railroad charter or any man for $3 5 million tons per year floating LNG MK two subject to <unk> approval, which is estimated with no later than July.
Speaker Change: Yes.
Speaker Change: If approved is expected to be operational in 2020. This second vessel allow the contraction of a 100% dedicated pipeline from <unk> to the south multiyear health in the province of Rio <expletive> available during the whole year instead of using the existing.
Speaker Change: Idle capacity during the off peak season.
Speaker Change: To supply natural gas for the floating LNG season.
Speaker Change: Mark to see his assignment 20 year gas supply agreement will remain gas producer of Argentina, including White beer.
Speaker Change: Through a subsidiary sold in Brazil and is generating.
Horacio Marín: Our equity stake in CESA is 25%, while our commitment of grass production is 27.5%.
Speaker Change: Our equity stake in <unk> is 25%, while our commit the aspiration is.
Speaker Change: Seven 5%.
Horacio Marín: On the other hand, in mid-April, we signed an MOU with E&I, the strategic partner for the Argentine LNG3, to analyze the development of upstream transportation and gas liquefaction facility through two floating LNG using six MTPA each for a total of 12 million tons per year. Considering all this advance and the project development agreement signed last December, we show our strategic planning for the Argentine LNG2 with a capacity of 10 million tons per year. It allow us to reach almost 30 million tons per year of the Argentine LNG project. We will define when YPS launch its fortified plan in March last year.
Speaker Change: On the other hand in mid April we signed an Mou with Eni.
Speaker Change: It is disappointing for the Argentina in Q3 to analyze in the development of upstream transportation Congas equally faction facilities, who do floating LNG using six M. DPA each for a total of 12 million tonnes per year.
Speaker Change: Considering all these advance and the push and development agreements signed last December we show our strategic planning for the Argentina, LNG too we had capacity of 10 million ton per year. It allow us to reach almost 30 million ton per year over the Argentina LNG project.
Speaker Change: We'll define one way peers lunch is four to five plan in March last year.
Horacio Marín: Moving to our quarterly results, we reported revenue of $4.61 billion in Q1, reflecting a 3% sequentially decline mainly explained by lower seasonal local demand of diesel oil and fertilizer. and reduced oil export volume as we increase the vertical integration with our La Plata refinery. These effects were partially offset by higher local fuel prices and peak seasonal demand of natural gas from power plants. Interannually, revenue grew by 7%, mainly boosted by shale activity, including increased oil exports. Improving in tariff from Metrogas and slightly high local fuel price and our agro-business side also played a role in enhancing our Q revenues.
Speaker Change: Moving to our quarterly results, we reported revenue of $4 six $1 billion in Q1.
Speaker Change: Reflecting a 3% sequentially decline, mainly explained by lower seasonal local demand of Liza lawn fertilizers.
Speaker Change: And I've used oil export volume as we increase the vertical integration.
Speaker Change: Our la Plata refinery. This effect was partially offset by higher local fuel prices peak seasonal demand of natural that got us from power plants.
Speaker Change: In data annually revenue Hulu, a 7% mainly boosted by shale activity, including increased exports.
Speaker Change: The improvement in theory from mature with us and he's like a local fuel price and our out of munis.
Speaker Change: Also play a role in enhancing our Q revenues. Nevertheless, revenues were partially offset by discontinuation of ships.
Horacio Marín: Nevertheless, revenues were partially upset by discontinuation of jet fuel sales from our Chile subsidiary. Q1 achieved EBITDA amount of $1.24 billion, increasing by 48% sequentially. Primarily driven by increased prices of fuels and other refined products, driven by higher brand as well as output saving related to the partially sale of mature fields. In addition to higher value inventories and processing level in our refineries to accumulate stock of our incoming program maintenance. On the other hand, EBITDA was negatively impacted by slightly higher cost of oil purchases to third parties. Interannually, Ajax Evita remained flat as the strong shell production was counterbalanced by the exceptional low OPEX record last year as a result of the December 2023 devaluation.
Speaker Change: Sales from our Chile subsidiary.
Speaker Change: Q1 chef Irvine.
Speaker Change: Amount of $1 billion to $4 billion, increasing by 48% sequentially.
Speaker Change: Primarily driven by increased prices of fuels, another refined products driven by higher brand.
Speaker Change: Opex savings related to the partial sale on mature fields. In addition to higher value in men.
Speaker Change: Assessing liberal in our refinery to accumulate talk of our incoming program maintain that on the other hand.
Speaker Change: There were negatively impacted by a slightly higher cost of oil purchases to third parties.
Speaker Change: Data annually a shelf.
Speaker Change: EBITDA remained flat as strong shale production.
Speaker Change: Counterbalanced by the exceptional low Opex recorded last year as a result of the December 2023, the evaluation.
Horacio Marín: This last effect was partially offset by lower value of inventories due to the same devaluation. Also, Q1 last year was affected by lower availability of crude oil and adverse weather conditions that affect La Plata refinery. While Q1 this year records strong processing level to accumulate stock before the next maintenance stoppage, as mentioned before. Let me remark once more that without mature fields, our proxies adjusted, and that would have been $1.35 billion. In the incoming quarters, we expect to continue to reduce this impact and deliver even stronger EBITDA. To achieve guidance of the year, we range from $5.2 to $5.5 billion, considering an annual average Brent of $72.5 per barrel.
Speaker Change: This loss effect was partially offset by lower value of inventories due to the same devaluation.
Speaker Change: So Q1 last year was affected by lower availability of crude oil and adverse weather conditions that affect of la Plata refinery, while Q1 D. C. Our record of strong processing level to accumulate stock before the next maintain this stoppage as mentioned before.
Speaker Change: Let me remark one more now without much appeal, our brokerage adjusted EBITDA would have been $1 $35 million.
Speaker Change: In the coming quarters, we expect it to continue to reduce this impact and deliver even stronger EBITDA to achieve the guidance of the year will range from five to five 5 billion.
Speaker Change: Considering.
Speaker Change: Our brand of $72 $5 per barrel.
Horacio Marín: Q1 net result was a loss of $10 million compared to a loss of $284 million in Q4 last year. May explain by higher shares EBITDA and lower one-off cost related to mature field. Partially offset by income tax charges from subsidies and higher negative financial results driven by lower gains for the holding of financial instruments and higher net interest expenses. On the other hand, Q4 last year, actual positive income tax driven by lower future tax payables. Interannually, net result declined significantly compared to a gain of $657 million. Primarily explained by one of costs related to mature fields in Q1 this year, in addition to higher depreciation and amortization due to increased unconventional activities.
Speaker Change: Q1, net result was a loss of $10 million compared to a loss of 200 any before million dollars in Q4 of last year.
Speaker Change: Mainly explained by higher chefs EBITDA on lower one off costs related to mature field.
Speaker Change: Actually offset but income tax charges from subsidiary.
Speaker Change: In may at the financial results.
Speaker Change: And by lower gains for the holding of financial need to win.
Speaker Change: Net interest expenses on the other hand, Q4 last year to positive income tax driven by lower future tax payables.
Speaker Change: In paid annually net result declined significantly compared to a gain of.
Speaker Change: $657 million.
Speaker Change: Hi, Mommy explained by one off costs related to mature fields. In Q1. This year in addition to higher depreciation and amortization.
Speaker Change: To increase and commercial activities.
Horacio Marín: While during Q1 last year, we accrued positive income tax driven by lower future tax payable. As highlighted earlier, mature fields also impacted on our net results. Without mature fields, our approximate net result would have been a gain of $428 million. In terms of investment, in Q1, we deployed $1.21 billion and 75% was allocated to unconventional assets. Also, this level of CAPEX is fully in line with our guidance for the year, ranging from between 5 billion and 5.2 billion dollars. Sequentially, Q1 CAPEX declined by 8 percent, mainly because during Q4 we record higher CAPEX in downtime, related to revamping works and seasonality, partially offset by higher sale activity.
Speaker Change: During Q1 last year, we grew positive income tax driven by lower future tax payables.
Speaker Change: As highlighted earlier module feels also impacted on our net results without mature fields our approach in their result Caribbean.
Speaker Change: Jane or forehand, the $28 million.
Speaker Change: In terms of investment in Q1, we deployed $1 $21 billion and.
Speaker Change: 75% was allocated to unconventional assets.
Speaker Change: Also this level of Capex is fully in line with our guidance for the year ranging from between <unk> five $2 billion sequentially Q1, Capex declined by 8%, mainly because in Q4 with record higher Capex in <unk>.
Speaker Change: Downtime related to revamping more expenses.
Speaker Change: So Natalie D, partially offset by higher sale activities in data annually Capex increased 4%, mainly boosted by shale operations.
Horacio Marín: Interannually, CAPEX increased 4% mailing boosted by shale operations. On the financial side, we reported negative free cash flow of $957 million in Q1. Although a shuttle EBITDA was similar to the deployment of a workup. Q1 was mainly affected by $336 million of negative impact from mature fields, Neto proceeded. Moreover, Q1 free cash flow was impacted by $211 million of net disbursement, mainly for the acquisition of Sierra Yata at 54.45% of stake, that is a shale gas block in Bagamora. As a result, our net debt rose to $8.3 billion, reaching a net leverage ratio of 1.8 times.
Speaker Change: On the financial side, we reported negative free cash flow of <unk> $57 million in Q1.
Speaker Change: Although adjusted EBITDA were seeming to deployment of our Capex Q1 was mainly affected by 336 million negative.
Speaker Change: Impact from mature fields net of proceeds.
Speaker Change: Moreover, Q1 free cash flow was impacted.
Speaker Change: $211 million of net investment mainly for the acquisition of Sierra jumped up to 50, 445% of stake that this evening shale gas blocking back on what I said.
Speaker Change: As a result, our net debt dropped to $8 3 billion, reaching a net leverage ratio of one eight times.
Horacio Marín: We expect it to reach, after this best in our mature fields, returning to 1.5 and 1.6 time level by year-end, considering an annual average print of $72.5 per barrel. Focusing on the uptrend segment, Q1 total hydrocarbon production increased by approximately 5%, both on a sequential and granular basis. Crude oil production amounted to 270,000 barrels per day in Q1, recording an interannual increase of 6%, mainly driven by shale expansion, which effectively offset reduction in conventional oil, especially in mature fields. Notably, shale oil production grew an impressive 31% year over year, underscoring our strategy focus in our Pillar 1 and in line with our 2025 annual target of over 165,000 barrels per day.
Speaker Change: We expect it to reach.
Speaker Change: After this vest in our modular fees return to one five.
Speaker Change: One six times level by year end.
Speaker Change: Here in.
Speaker Change: <unk> brand or $72 $5 per borrower.
Speaker Change: Yeah.
Speaker Change: Focusing on the ethane segment Q1 total either Ocado, one price increase by approximately 5%.
Speaker Change: Both on a sequential basis.
Speaker Change: <unk> 552000 barrels of oil equivalent per day right.
Speaker Change: Primarily boosted by sharing contribution, which now accounts for an outstanding level of 58% of the total output on the other hand modular fill out revenues by 11% versus the previous quarter, mainly due to the effect of already divested block.
Speaker Change: Like Korlym 97000 barrels of oil equivalent per day and represented 18% of the total.
Speaker Change: Crude oil production amounted to 270000 barrels per day in Q1, the recording an annual increase of 6% mainly.
Speaker Change: Mainly driven by shell expansion, which effectively offset the reduction in conventional oil, especially mature fields, notably shale oil production grew an impressive 31% year over year on the corner.
Speaker Change: <unk> in our strategic focus in our pillar one.
Speaker Change: In line with our 2025 annual target over 155000 barrels per day.
Horacio Marín: As a result of the production ramp-up, our oil export mainly to Chile grew by 34% interannually, reaching 36,000 barrels per day and representing 13% of our oil production. Sequentially, oil export reduced by 11% as we expanded vertical integration with our refineries. Beyond crude oil, natural gas production in Q1 increased by 9% sequentially, delivering more than 37 million cubic meters per day, mainly due to higher seasonal demand from power plants. NGL's production amounted to 47,000 barrels per day, returning to normal levels thanks to the reactivation of MEGA's facilities after maintenance. In Q1, total lifting cost reached $15.3 per barrel of oil equivalent, a sequential 12% reduction mostly driven by the completion of disbandment of certain mature fields.
Speaker Change: As a result of the production ramp up our oil export mainly into Chile grew by 34% in data annually, reaching 36000 barrels per day, representing 13% of our oil production.
Speaker Change: Sequentially.
Speaker Change: EXPAREL revenues by 11% I was finally vertical integration with our refineries.
Speaker Change: Beyond crude oil natural gas production in Q1.
Speaker Change: Chris.
Chris: 9% sequentially delivering more than 37 million cubic meters per day.
Chris: Mainly due to higher seasonal demand from power plants.
Chris: Ngls production amounted to 47000 barrels per day.
Chris: Returning to normal levels sank to the activation Omega facilities after maintaining us in.
Chris: In Q1 total lifting cost reached 15 $3 per barrel of oil equivalent. It is sequential 12% reduction mostly driven by the completion of disbursement of certain mature fields.
Horacio Marín: If we exclude this mature field, our proxy lifting cost of Q1 would have been below $9 per barrel of oil equivalent. Considering that we continue reducing our exposure to mature field, our best estimate for 2025 average lifting cost could be $12 per barrel of oil equivalent. Assuming our core had blocks, lifting cost was $4.6 per barrel of oil equivalent on a gross base. Regarding prices in the uptrend segment, crude oil prices recovered 3% sequentially, averaging almost $68 per barrel. Despite Brent volatility during the quarter, local pricing environment was more gradual. On the natural gas side, price is to the similar level of $3 per million BTU, mostly derived from the off-peak season price of plant gas.
Chris: If we exclude this much reveal our proceeds realistic cost of Q1 would have been below $9 per barrel of oil equivalent.
Chris: Considering that we continue reducing our exposure to mature field, our best estimate for 2025.
Chris: Lifting cost could be $12 per barrel of oil equivalent assuming in our core blocks.
Chris: Blogs lifting cost was $4 $6 per value of oil equivalent on a gross basis regarding prices in the operating segment.
Chris: Oil prices recover or 3% sequentially.
Chris: Almost $68 per barrel, despite brent volatility during the quarter local pricing environment was norm was more gradual on the natural gas side price is to the similar level of $3 per million Btu, mostly derived from the <unk>.
Chris: <unk> see some price of plan gas.
Horacio Marín: Now, walking through the performance of our Shell activities, we continue focusing on operational efficiency in our oil blocks, in line with the production target set for the year. In that sense, we accelerated the activity by drilling 51 oil salt and oil wells on the gross basis, most of them in operating blocks, delivering a 16% increase compared to the same period last year. Our net working interest percentage also grew to 65%. This performance is in line with our estimated number of wells to be drilled during the year 2025, which amounts to 190 operated and 15 not operating Shell oil wells on a gross basis, where net working interest should be around 55%.
Chris: Now walk you through the performance of our shale activities will continue focusing on operational efficiency in our oil blocks in line with the production target set for the year.
Chris: In that sense, we accelerated activity by drilling 51, or <unk> download wells on a gross basis most of them in about 80 blocks delivering a 16% increase compared to the same period last year. Our net working interest percentage also rose to 60.
Chris: 5%.
Chris: <unk> performance is in line with our at the main number of world to Israel. During the year 2025, which amounts to 190 operated 50, not operating shale oil wells on a gross basis, we have net working interest should be around 55.
Chris: Percent.
Horacio Marín: In terms of completion and time of wells, we also accelerate activities in our operating blocks, completing 53 and tying in 47 horizontal wells on a gross basis, recording an increase of 83% and 21% respectively when comparing to Q1 last year. Once again, we successfully set a new record high shale oil production, delivering 147,000 barrels per day in Q1, which is more than 50% growth compared to 23 annual average production. This production level indicates a positive start for the year to reach the 2025 target of 155,000 barrels per day. Seventy-six percent of the total sale output came from our core hub oil blocks, Loma Campana, La Marga Chica, Bandurria Sur, and Aguada del Cañal.
Chris: In terms of completion and timing of wells. We also accelerated activities in our operated blocks completing 53 and <unk> 47 horizontal wells on a gross basis.
Chris: Causing an increase of 83% and 21% respectively, when comparing to Q1 last year.
Chris: Once again, we successfully set a new record high of shale oil production delivering 147000 barrels.
Chris: In Q1, which is more than 50% growth compared to 23 annual average production. This production level indicate a positive start for the year to reach the 2025 target of 155000 barrels per day.
Chris: 76% of the total CL King.
Chris: <unk> for our core.
Chris: Or is blocks Loma campana, la <unk> chica bundle their sewer and our junior. Moreover, it's important to highlight that sequentially Bureau was driven by the contribution from langworth toward a solid one.
Horacio Marín: Moreover, it's important to highlight that sequential growth was driven by the contribution from La Angostura Sur I, a block located in the south hub of Vaca Muerta, which has shown outstanding productivity. In terms of efficiency with our unconventional operation on the drilling site, we reach an average speed of 304 meters per day in our core hub locks. Despite beginning the year with a drilling speed at the level below our expectation in certain wells in a wide general block, in March we recovered successfully drilling the faster unconventional well in the same block as mentioned before. Expecting further improvements, we are confident of achieving the annual target of 360 meters per day.
Chris: Lac located in the south of a comparator, which has shown outstanding productivity.
Chris: In terms of efficiency with our unconventional operation on the Iranian side, we reached an average of 374 meters per day in our core have locks.
Chris: Beginning the year, we remain at the level below our expectation in surveying world in a way to have locked in March will recover successfully drilling the fatter unconventional wells in the same Luke mentioned before.
Chris: Effecting further improvements we are confident of achieving the annual target of 350 meter per day.
Horacio Marín: On the fracking site, we record 235 stages per set per month in our unconventional operation, a strong performance in line with the target of the year of 260 stages per set per month. Moving on to our downstream segment, during Q1, we continue adjusting local fuel price to fully converge with international priorities while preserving our leading market share. As a result, local fuel price measured in dollars were up 2% versus the previous quarter and 1% up versus the same period last year, while the gap with import policy stood in positive territory at 1% in Q1 compared to 3% in Q4 and minus 7% in Q1 last year.
Chris: On the fracking side, you will recall 235 stages per site per month in our unconventional operation is strong performance in line with the target of the year of 250 days.
Chris: <unk> per month.
Chris: Moving on to our downstream segment. During Q1, we continue assessing local fuel price to fully converged with international parity, while preserving our leading market share.
Chris: As a result local fuel prices measured in dollars were up 2% versus the previous quarter.
Chris: 1% up versus the same period last year, while the gab within probably two in positive territory at 1% in Q1 compared to 3% in Q4 minus 7% in Q1 last year.
Horacio Marín: Moreover, let me mention that driven by the international price downward trend, we reduced local fuel price by an average of 4% as from this month. Regarding fuel cell volume, it decreased by 5% sequentially to 3.4 million cubic meters. but below the contraction of the competition. The main decrease came from diesel, which was affected by lower seasonal demand. Let me mention that since the second fortnight of April, diesel demand started to grow again. Also, it's worth noting that despite price normalization, our market share remains at a historical level of 56% Q1, while growing our refinery and marketing margin by 28% sequentially to $14.3 per barrel, boasted by our OPEX efficiency measures.
Chris: Moreover, let me mention that driven by the international price downward trend with it.
Chris: Use local crude prices by an average of 4% us from this month.
Chris: Regarding fuel sales volume decreased by 5% sequentially to $3 4 million meters.
Chris: But we load the contraction of the competition.
Chris: The main decrease came from diesel was affected by lower seasonal demand.
Chris: Let me mention that seen the signal for nine of April diesel demand has started to grow again.
Chris: Also it's worth noting that despite modernization our market share remain at historical level for 56% in Q1, while growing our refinery market in margin by 20% sequentially to 14.
Chris: $3 bravado bolstered by our Opex efficiency measures in terms of efficiency will continue moving forward with our plan to improve our downstream margin.
Horacio Marín: In terms of efficiency, we continue moving forward with our plan to improve our downstream margins and become a world-class refinery player. In that sense, during Q1, we implemented more than 100 initiatives that allow us to capture efficiency for more than $70 million, such as energy consumption, steam and gas recovery optimization, as well as service contract rearrangement and shutdown maintenance co-reduction. Lastly, regarding refinery utilization, we processed 318,000 barrels per day in Q1, expanding 5% sequentially and recording a strong refinery utilization rate of 94%, boosted by the better performance of platter refinery during Q1, which was affected by the Montana shutdown in Q4.
Chris: Come a world class refinery player in that sense during Q1, we implemented <unk>.
Chris: More than 100 initiatives that allow us to capture efficiency for more than $70 million.
Chris: Just energy consumption is.
Chris: <unk> and gas recovery optimization.
Speaker Change: Yes service contracts to play a very instruments and shutdown maintained corporate action.
Chris: Lastly.
Chris: Refinery utilization, we processed three family a DSL sub barrels per day in Q1 expanded 5% sequentially and recording a strong refinery utilization rate of 94%.
Chris: Posted by the bid their performer Plata refinery during Q1, which was effective in maintaining that shutdown in Q4.
Horacio Marín: Also, let me clarify once more that the higher processing level enables us to accumulate inventory of refined products before the incoming Montana shutdown. Inter-annually processing level increased by 6%.
Chris: Also let me clarify once more.
Chris: Higher processing level enabled us to accumulate inventory or refined products before the incoming maintaining stoppage.
Chris: In data annually and processing level increased by 6%.
Horacio Marín: Now let me share the progress so far in terms of the mystery in all Spain. Regarding the existing oil pipeline expansion and the Duplicar Plus project, it was successfully completed in early April, increasing its transportation capacity from 330,000 barrels per day by the end of December to 540,000 barrels per day today. Let me highlight that the original capacity of Del Val before the execution of this project was roughly 225,000 barrels per day. Therefore, Del Val more than doubled its capacity in close to two years, contributing significantly to the evacuation of the shale oil from Bacamar.
Chris: Now, let me share the progress so far in term of the mystery novelist Bancshares.
Chris: And the existing or the life by relentless passion and the duplicate the last project. It was successfully completed in early April increasingly transportation capacity from 300, I'm sorry, So somebody per day by the end of December two five family 40 sell somebody's birthday.
Chris: Okay.
Chris: Let me highlight that the original capacity are involved before the execution. The project was roughly 225000 barrel per day. Therefore, although it was more than double its capacity in Q2, two years contributing significantly to the evacuation of.
Chris: The shale oil from <unk>.
Horacio Marín: YPF shipping stake in Ovalval is roughly 25%. YPF will use this expansion to transport our shell oil to our La Plata refinery, optimizing our vertical integration. Regarding the BEMOS Vaca Muerta Oil Pipe South, the new 100% oil export dedicated pipeline that started construction in the beginning of this year, the SPV was already started receiving the pipes and started the construction work in the oil pipe routes and the trench excavation. Moreover, he received the initial steel plates to initial tank assembly at the export terminal, where we are now working on ground movements and civil wars.
Chris: While keeping a stake in a little while is roughly 25%.
Chris: IPF, we use this expansion to transport our shell oil to our la Plata refinery optimizing our vertical integration.
Chris: Regarding the Bmo's back on more of the oil <unk>, south the new 100% oil export Medicaid buy in line that the starting construction in the beginning of this year. The SPV was already started receiving the pipes.
Chris: The construction work in the oil private roads and trained excavation.
Chris: Moreover received initially steel plate to initial tank assembly the export terminal.
Chris: Where we are now working on ground movement on <unk> rewards.
Horacio Marín: The operational progress of this project is roughly 4.5% by the end of March.
Chris: Operational progress of these approaches is roughly four 5% by the end of March now I will turn the call.
Federico Barroetave: Now I will turn the call over to Federico. Thank you, Horacio.
Federico: Paul over to Federico.
Paul: Thank you Ross you're switching to the financials, let us start with the cash flow evolution.
Federico Barroetave: Switching to the financials, let us start with the cash flow evolution. In Q1, we posted a negative free cash flow of $957 million. Although I just said the BDA was consistent with the deployment of our CAPEX, the quarter was significantly impacted by the performance of the material. Specifically, these fields resulted in an adjusted EBDA loss of $106 million and a one-off cash flow loss of $230 million net of proceeds. Additionally, we disbursed a net amount of $211 million in M&A activity, primarily for the acquisition of Sierrachata. and provided contributions and prepayments to our affiliates for $102 million, mostly to BMOS and Old El Valle.
Paul: In Q1, we posted a negative free cash flow of nine.
Paul: And can the $57 million.
Paul: Although adjusted EBITDA was consistent with the deployment of our Capex the quarter was significantly impacted by the performance of the mature fields.
Paul: Specifically these fields resulted in an adjusted EBITDA loss of 106 million doors, and a one off cash flow loss of two kind of $30 million net of proceeds.
Paul: Additionally, we disbursed, a net amount of $211 million in M&A activity.
Paul: Primarily for the acquisition of Sierra Chata.
Paul: Providers contributions prepayments to our affiliates for $102 million, mostly to bemis and all the value.
Federico Barroetave: Considering also the negative working capital mainly due to lower sales accrual in addition to the regular debt service, we added approximately $1 billion of new net debt including the reduction of our cash and equivalent position by 18%.
Paul: Considering also the negative working capital mainly due to lower sales accrual. In addition to the railroad that service, we added approximately $1 billion.
Paul: New net debt, including the reduction of our cash and equivalent position by 18%.
Federico Barroetave: in terms of financing. As mentioned during the last call, in January, we issued a nine-year unsecured international bond for $1.1 billion at a yield of eight and a half. The proceeds were mainly directed to refinance $757 million of the 2025 notes maturing in July and acquire 54% of the Sierra Chata block. Regarding the 2025 notes, we executed a cash tender offer, prepaying $315 million in January, and exercised the May hold call option for the remaining balance in February to complete the refinancing.
Paul: In terms of financing as mentioned during the last call in January we issued nine year unsecured international bond for $1 $1 billion at a yield of eight and a half. The proceeds were mainly directed to refinance 750 <unk>.
Paul: $7 million of the 2025 notes maturing in July and acquired a 54% of the Sierra Chata blocks.
Paul: Regarding the 2025 nodes, we executed a cash tender offer prepaying $315 million in January and exercise the make whole call option for the remaining balance in February to complete the refinancing.
Federico Barroetave: In addition, we have also been active in the local bond market. We issued two dollar-MEP local bonds in February, one for $140 million with a two-year tenor at six and one quarter, and $60 million bill with a six-month tenor and three and a half percent. After the quarter, we also issued a $204 million bond in April and more recently in May, another $140 million hard dollar bond, the first one with a 15-month tenor at 3.95%, and the second one with a two-year tenor at 7%. For the remaining nine months of 2025, the company faces around $800 million, consisting of 71% of local maturity and only 29% international.
Paul: In addition, we have also been active in the local bond market.
Paul: We issued two dollar map local bonds in February one for $140 million with a two year tenure at six in one quarter and $60 million.
Paul: With a six month tenor and 3.5%.
Paul: After the quarter. We also issued 204 million dollar linked bond in April and more recently in May another 140 million car dollar bond. The first one with a 15 month tenure at 395% and the.
Paul: Second one with a two year tenure at 7%.
Paul: For the remaining nine months of 2025, the company faces at around $800 million, consisting of 71% of local maturity and only 29% international.
Federico Barroetave: Also, as mentioned in the last call, as a consequence of the recent sovereign rating upgrade, lower country risk and a better outlook. During Q1, two global rating agencies raised YPF rate Moody's upgraded from CAA3 to CAA1 with a stable outlook while S&P upgraded from CCC to B-. On the liquidity front, in line with the free cash flow and debt issuance, our cash and short-term investment decreased by 18% versus previous quarter to $1.2 billion, while our net debt increase amounting to $8.3 billion. Consequently, our net leverage ratio also increased from 1.6 to 1.8 times as anticipated during our Investor Day last month.
Paul: Also as mentioned in the last call as a consequence of the recent sodium rating upgrade lower countries can have better outlook. During Q1, two lower rating agencies raised ypa crave ratings moodys upgraded from CIA three two.
Paul: CA, one with a stable outlook, while S&P upgraded it from triple C to be miners.
Paul: On the liquidity front in line with the free cash flow and debt issuance our cash onshore.
Paul: Short term investments decreased by 18% versus previous quarter to $1 $2 billion, while our net debt increased amounting to $8 $3 billion.
Paul: Consequently, our net leverage ratio also increased from one six to one eight times as anticipated during our Investor day last month.
Federico Barroetave: Once we fully divest material fields, we estimate to end the year with a net leverage ratio of 1.5 or 1.6 times, considering an annual average brand of $72.5 per barrel.
Paul: Once we fully divest mature fields, we estimate to end the year with a net leverage ratio of one five or one six times, considering an annual average brand of $72 five doors per borrower.
Federico Barroetave: So with this, we conclude our presentation and open the floor for questions. Thank you.
Paul: So with this we conclude our presentation and open the floor for questions.
Paul: Hmm.
Danica: At this time, I'd like to remind everyone in order to ask a question, press star then the number one on your telephone keypad.
Speaker Change: Thank you at this time I'd like to remind everyone in order to ask a question Press Star then the number one on your Telecom Z Pak.
Daniel Guardiola: Your first question comes from the line of Daniel Guardiola. with BTG. Your line is now open. Hi, good morning. Actually, it's Daniel Guardiola. But thank you Horacio and Federico for the presentation.
Paul: Your first question comes from the line.
Paul: Daniel.
Speaker Change: Leo.
Speaker Change: I'm with BTG. Your line is now open.
Speaker Change: Hi, good morning, actually as Daniel Guardiola.
Speaker Change: But thank you I would ask you emphatically for the presentation.
Daniel Guardiola: Before we dive in, I just want to take a moment and wish Horacio a very happy birthday. Congrats. And I hope the market gets the chance to give you a decent present today.
Speaker Change: Before we dive in I, just wanted to take a moment and we should ask you.
Speaker Change: Happy birthday, Congrats on I hope the market gets the chance to to give you a decent presence today.
Daniel Guardiola: Looking at the questions, my first question is on how resilient the company is amid the current uncertain and bearish environment of prices. And I wanted to know, Horacio and Fede, if you could please share with us what is the current breakeven level in terms of EBITDA and cash flow that the company currently has. My second question will be also in the same line, but just to better understand what is the required CAPEX that you need to keep your current production stable, especially considering that right now the bulk of your production is shale oil and shale gas and the declining rates are very steep.
Speaker Change: What kind of questions. My first question is on.
Speaker Change: How resilient the company, yes, I mean, the current uncertain I'm bearish environment of prices and I wanted to know I would ask you I'm sorry, if you could please share with US what is the current Brent breakeven level in terms of EBITDA and cash flow that the company currently has.
Speaker Change: My second question will be all following the same line, but just to better understand.
Speaker Change: What is the required capex that you need to keep your current production is stable, especially considering that right now the bulk of your production is shale oil and shale gas and the declining rates our very steep those are my two questions. Thank you.
Daniel Guardiola: Those are my two questions. Thank you. Okay, thank you very much.
Speaker Change: Okay. Thank you very much because you tell me.
Horacio Marín: Because you tell me happy birthday, I answer second question, okay? If not, I will say no, okay? Okay, for the first question, if you see, I think it's the slide 37, if my memory is not bad, because now I am old man of 62 years old. Remember for all the market, I'm two years more than Federico, so Federico is 60, okay? If you go to that slide, you can see that every $10 of reduction as an average in all the year, all the year, for the sensitivities is only of $900 million. Okay? That is the answer.
Speaker Change: Before I answer the second question I would say no.
Speaker Change: Okay.
Speaker Change: Okay for the first question.
Speaker Change: If you see the I think as their life 37, if my memory is not about.
Speaker Change: Because now I am all minus 62, we also.
Speaker Change: Remember for all the market I'm, Julia Moore downplay that vehicle, so equally 60, okay.
Speaker Change: If you want to read this slide you can see that every $10 of rate action as an average in all the year all the year four.
Speaker Change: The sensitivity on the NIE family meals, Okay that is the answer.
Horacio Marín: If I take Brent of 60, our EBITDA would be 4.4. That is everything I explained that in New York. That is the, I think it's the first, the second one is in the order of 2 billion, okay? to maintain our production, but we are going to grow, okay?
Speaker Change: If I take Brian of 60, our EBITDA would be for volume for that it's everything I explained that in New York.
Speaker Change: That is the I think is the first the second one is in the order of $2 billion. Okay.
Speaker Change: To maintain our production, but we are going to grow okay.
Andrew: Thank you Andrew.
Speaker Change: Okay.
Alejandro DeMichelis: All right, our next question comes from Alejandro Demichelis. Yes, good morning. Alejandro Demichelis here from Jefferies. Horacio, Federico, one question, please, as a bit of a follow-up. So in the current oil price scenario that we are seeing, when you were in New York, you talked about some flexibility on your plan.
Speaker Change: Alright, our next question comes from Alejandro.
Speaker Change: <unk>.
Speaker Change: Go ahead.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Yes, good morning.
Speaker Change: Yes from Jefferies.
Speaker Change: <unk>.
Speaker Change: So.
One question. Please ask a bit of a follow up so in the current oil price scenario that we see when you were in New York you talk about some flexibility.
Speaker Change: On your plan.
Horacio Marín: What is your latest thinking in terms of how you're seeing CAPEX activity levels, and also the risk that some of these proposals that you have been doing may not complete, because some of your buyers may actually have some trouble financing those? Okay, first I would like to say that if we have to change our program, we will change, okay? I never, never, I will take decision in panic, okay? And also, there is a lot of uncertainties, and uncertainties, no, there is a lot of volatility, sorry, in the price. The wall goes down, the price goes down, and if there is one new that is positive, you can get back, okay?
Speaker Change: What is your latest thinking in terms of how youre seeing capex activity levels and also the risk that some of these disposals that you have been doing may not complete because some of your bias may actually have some travel financing.
Speaker Change: Okay first I would like to say that we have changed.
Speaker Change: Our problem.
Speaker Change: Okay.
Speaker Change: We're never I will take a decision.
Speaker Change: Okay.
Speaker Change: And also there is a lot of uncertainty.
Speaker Change: There is a lot of.
Speaker Change: Sorry in the price the allowed ROE down in Chile were down.
Speaker Change: <unk>.
And maybe if there is a very one meal that is positive.
Horacio Marín: So, we wait. If we need to stop, we will stop. It's not the moment today, okay, to do that. And another thing is that we have the CAPEX to do when the price is down. It's a very good news for you, for the investor, because I can reduce the price of the Unicorps because service company, when it goes down, they go down the price, and I can reduce the investment. And when they go back, we make much more money. But we will wait. I think now it's not, for me, the market is not stabilized to say that that is the new number, the new price that it will be steady, okay?
Speaker Change: Black Okay. So we wait.
Speaker Change: If we need to stop.
Speaker Change: We will stop.
Speaker Change: It's not the moment today okay.
Speaker Change: Yes.
Speaker Change: Kim.
Speaker Change: Now I know the other thing is that we.
Speaker Change: The capex too, though when the prices.
Neal: Well Neal for you for an investor because I can reduce the price of the unit cost because savvy company, where he goes down it goes down the price and guidance.
Neal: Radio is the investment and when they go back remain much more money.
Neal: We were like I think now is not.
Neal: If not.
Neal: For me the market is stabilized to say that that is the new number the new price that they will be still tick.
Neal: Okay.
Horacio Marín: Okay. Okay, thank you.
Neal: Okay.
Neal: Okay. Thank you.
Leonardo Marcondes: All right, our next question comes from Leonardo Marcondes with Bank of America. Please go ahead. Hi everyone, Horacio, Federico, Margarita, thank you for picking my questions here. I have two. My first one is related to the divestment of demographic. In this quarter, we saw an impact of around $230 million on the cash flow related to the mature assets, right? So, I was wondering if you could provide more color on this impact, and also if we could expect a further impact related to the divestment of the assets that are yet to be divested, right? My second question is regarding the LNG project.
Leonardo: Alright. Our next question comes from Leonardo <unk> with Bank of America. Please go ahead.
Neal: Okay.
Speaker Change: Oh, hi, everyone, so forget equal Margarita.
Neal: Thanks for taking my questions here.
Neal: I have true.
Neal: My first one.
Neal: As related to that.
Neal: The divestment of mature ethics.
Neal: And this quarter, we saw an impact of around $230 million on the cash flow related she'd been mature assets right.
Neal: So I was wondering if you could provide more color on this impact and also if we could expect a further impact.
Neal: Related to the divestment of the assets that.
Neal: Sorry, yeah distributors, that's it right.
Neal: My second question is regarding the LNG projects.
Horacio Marín: I mean, could you walk us through the necessary steps for the final investment decision for the LNG projects that are more advanced and by more advanced, I mean that this alternative energy JV, right, because there's still another vessel to be brought, if I'm not mistaken, and also the project with Shell, because you already have the off-takers and so on, right? So, what are the necessary steps for the FID of this project? Thank you very much.
Neal: I mean could you walk us through the necessary steps.
Neal: For the final investment decision for the LNG projects that are more advanced.
Neal: But more than that said I mean, this alternative energy JV.
Neal: J P right, because there's still a lot.
Neal: That's what should be brought if I'm not mistaken and also.
Neal: The project with shell because you already have the off takers and so right. So what are the necessary steps for this idea of this project. Thank you very much.
Horacio Marín: Okay, the first question, what I can tell you that in the, we are very proud what we did in the mature field. And today, with the lower price, you have to be proud of us also because we made YPF to be very good at low price, okay? Regarding the mature fields, yesterday was a decree of the province of Santa Cruz, and we think that in a couple of months, we are... We are finishing all going out from Santa Cruz. The same is in we are working hard for Tierra del Fuego, what is a small one.
Neal: Okay.
Neal: The first question what I can tell you the in the we are very proud of what we did in the microfilm.
Neal: And today with the low lower value of the new crop to be probable fossil also because we made.
Neal: While we have to be very good our loan price okay.
Neal: Regarding the mitral fills we yesterday was a decrease of the province of Santa Cruz.
Neal: We've seen them in a couple of months we are.
Neal: We are finishing.
Neal: Out from Santa Cruz.
The same is in we are working hard for good I'll play what is more one.
Horacio Marín: And the others that we have are we are in the last, last, last stage.
Neal: On the other.
Neal: We are in the last let's say say, so I think we are going to be.
Horacio Marín: So I think we are going to be out during this year, I would say Q3 is my, my, my, our purpose because of all the delays that you need for, for sign all the documents and follow all, all the law for the different provinces. Regarding if you have to spend more, more in this investment, we think that it could be some in materials, but not a lot. We have almost all done, okay? There will be, comparing with all the process, it's very, it's marginal, what we expect on that, okay?
Neal: Building.
Neal: During this this year I would say Q3.
Neal: Is my my.
Neal: Our purpose because of the delays that youll near four four signed all the documents and follow all the law for the different provinces.
Neal: Right I mean, if you have to spend more.
Neal: Mark.
Mark: In the basement.
Neal: Within that it could be some materials.
Neal: But not a lot we have almost all of them okay.
Neal: B.
Neal: Compare with all the process.
Neal: It's very it's mark.
Neal: While we expect on that okay.
Horacio Marín: The second question, you think about the LNG process. For the CESA, I called Argentina, Argentina 1 LNG, that is the one that we made with CESA, the one that we signed the 5D for the first ship in May the 1st. For the second, we have to sign FID before the end of July. The second, what is Argentina and G2, what is with Shell, you are, you know, I don't know if you remember, but we are in a process today to forbidding the feed. And after FID, it will be, I would say, end of next year or so.
Neal: The second question.
Neal: About the LNG project.
Neal: This is what is the first who I call, Argentina, Argentina, one LNG.
Neal: Sure.
Neal: One that we may receive.
Neal: One that we signed if IV for the first.
Neal: Chip.
Neal: In may the fourth.
Neal: For the second we have to sign a Friday.
Neal: Before the end of July.
Neal: D D.
Neal: Take on what these R&D LNG to digitally shell.
Neal: I don't know Youll remember we are in the process to date to 4 billion the fifth.
Neal: And after a filing could be I would say end of next year or so.
Horacio Marín: I cannot exactly tell you when because it depends. We are going to receive the bidding process during those days for the FID. And after, we can have a better date. And with the Argentine Free, what it is, in an I, the purpose that we have both companies is to sign FID by the end of the year. That is our goal, but things can change while you are working and see what is happening in the world, okay? That's very clear. Thank you very much for the answer. Thank you for the question.
Neal: I cannot exactly tell you one because in the past.
Neal: We are going to receive the bidding process in.
Neal: <unk>.
Neal: Thanks for the fifth enough that we can have a bit there.
Neal: And with the Argentine three for this year.
Neal: Yeah.
Neal: The purpose that we have both company.
Neal: I'm, saying if I D.
Neal: By the end of the ear.
Neal: That is our our at all.
Scott: Thanks, Scott any change why you are you are working on and see what is happening in the war okay.
Neal: Sure.
Neal: That's very clear thank you very much for the answers.
Neal: Thank you for the question.
George Guestout: All right, our next question comes from George Guestout with Latin Securities, please go ahead. Hi, good morning. And thank you for taking my question.
George: Alright. Our next question comes from George guest out with Latin Securities. Please go ahead.
Neal: Okay.
George: Hi, Good morning, and thank you for taking my question.
Horacio Marín: Following the gasoline price cut in May, what is your fuel pricing strategy for the rest of the year? As the most competitively priced provider, do you expect to capture additional market share? And did this drive the quarterly improvement in market share? Okay, the price strategy that we have is the same that any company can have around the world in a free market. It's as simple as that. So, what I saw, I was in the United States last... It was on Sunday and Monday. for some meetings, and I saw the price of gasoline was up. So that is our strategy.
George: Following the gasoline price cut in May what is your fuel price extract the chase for the rest of the year as the most competitively priced provider do you expect to capture additional market share and to test drive a car.
George: The improvement in market share.
George: Hi.
George: Okay.
George: Okay.
George: The pricing strategy that we haven't seen any campaign that clients have around the world in a free market.
George: It's as simple as that.
George: A.
George: So what I saw in your life.
George: Yeah.
George: Okay.
George: It was on Sunday and Monday.
George: Or some maintenance and I saw the price of ethylene goes up.
George: So that is our our strategy is no different than that.
Horacio Marín: There is no one different than that. So I can't answer more than that, OK? It's import value, price of oil, taxes, price of biofuel that we have to buy, and the share price of Argentina. Thank you.
George: So.
George: I can answer more than that okay.
George: In book value price of oil.
George: Axis.
George: Yeah.
George: Right.
George: Biofuels.
George: By nature of Argentina.
George: Okay.
George: Thank you.
Horacio Marín: OK.
George: Okay.
Andres Cardona: All right, our next question comes from Andres Cardona with Citigroup. Please go ahead. Hi, good morning, everyone. I have two questions. The first one is about the update you provided about La Camarta Sur. I noticed you are moving forward the 550,000 barrels that originally was scheduled for the third quarter, 2017, to the first half of the year. But in the slides you are showing us today, there is no mention of the 180,000 barrels addition by the fourth quarter, 2026.
George: Alright, our next question comes from Andreas <unk>.
George: I'll now of Citigroup. Please go ahead.
Speaker Change: Hi, good morning, everyone.
George: Questions the personal needs.
George: Right.
George: I know this move.
George: Moving forward there.
George: It saw some barrels that well.
George: It was scheduled for the third.
George: Third quarter two as soon as the first time.
George: On the year.
George: Slide you are showing us today, there is no nation.
George: But the fourth quarter of 2026.
Andres Cardona: Are you still targeting that first stage by the end of the next year?
George: Are you still targeting that.
George: The first stage.
George: But the next year and the second one is important.
Andres Cardona: And the second one is, media is reporting that the Souther Energy is negotiating already the gas pipeline with an international company. Do you know the site of the pipeline investment and the technical characteristics? And why not to go with an open process? Thank you. Okay. The COD of BEMOS is as was expected. It's in line with what we say. But the force is 4q between n of 3, say, q3 of. 4Q26 And that is for $180, and for $550 is in the first, I would say, end of, I can say an end of quarter two of 27.
George: So easily.
George: It's not very big.
George: Pipeline.
George: But do you know this cycle that followed the pattern of investment on the silicon.
George: And look we go we don't okay.
George: <unk> plus.
George: Thank you.
George: Okay.
George: The <unk> is.
George: It was affected.
George: This is in line with what we say.
George: What is the four forces for appeal maintain the end of Q.
George: Q3 of <unk>.
George: <unk> 26.
George: And that's before 184 550 is insofar as I would say.
George: And I can say.
George: Fourth quarter, two of 2007 and as I would say there is no delay.
Horacio Marín: And as I would say at the beginning, there is no delay, there is no delay. And we are working very hard on that. And for sure, we're going to put a lot of effort to reduce if we can, okay?
George: We are working very hard on that.
George: For sure we're going to.
George: A lot of effort to reduce if we can okay.
Horacio Marín: For, you're talking about the CAPEX in the gas pipeline, okay, you're right, we are talking with an international company, and why not do an open process? If we can have a company that is a good price for all the partners, that is a tariff, it's a good deal for the project. And we ask for a tariff that it works for everybody. And we think that if that happens, it will be an excellent news for all our companies, all the partners. But there is a period on that, and if that's finished and we don't agree with the tariff, we are making an auction open process as you say, exactly as you say, okay?
George: For.
George: You are talking about.
George: The Capex is.
George: That's fine line okay.
George: You are right.
George: We are talking with an international company.
George: Why not to announce.
George: Open process because.
George: If we can have.
George: A company that is at a good price for all the partners that this is tariff.
George: Is it a good deal for ordinary profit.
George: And we have for it.
George: Okay.
George: A study.
George: <unk> for everybody and within the debt if that happens it will be an excellent year for all of our it comes in the funnel.
George: Does that vary.
George: And that.
George: Is that finished and we don't agree with that Brian with the tariff we are making an auction of in process. How you say exactly as you say okay.
Guilherme Martins: Thank you.
Speaker Change: Thank you.
Guilherme Martins: Our next question comes from Guilherme Martins with Goldman Sachs. Please go ahead. Hey everyone, thanks for having my questions. I have three quick ones. The first one is a follow-up on the divestment of natural fuels. I understand roughly 11 blocks were already fully divested, right? I would like to get a sense on terms of production contribution from those blocks. And my second question is general divestment of mature fields is, correct me if I'm wrong, but you mentioned you're expecting to bring leverage down as you divest from those legacy fields. I would like to understand if this reduction in leverage is more on the back of you exiting EBITDA negative assets, or if you're expecting some relevant cash inflow from the divestments.
Kevin: Thank you Kevin.
Kevin: Yeah, Martin with Goldman Sachs. Please go ahead.
Kevin: Okay.
Speaker Change: Hey, everyone. Thanks for taking my questions I have two quick ones. The first one is a follow up on a little bit extra fields.
Kevin: Roughly 11 walks were already fully divested right.
Speaker Change: That's all in terms of production contribution from those closed blocks and my second question is still not divest what about what's your fuels is correct me if I'm wrong, but you mentioned you are expecting to bring leverage down as Julie Davis from the.
Legacy fields I would like to understand if there is traditionally leverages just mark on the back half.
Speaker Change: You're exiting maybe that negative assets already for expecting some relevant cash inflow from divestments and my third and final questions on topics I understand you'll man you mentioned, you're still Charley sure.
Guilherme Martins: And my third and final question is on CAPEX. I understand you mentioned you're still too early to reassess your investment program for the year, but I would like to understand better for how long would branch prices have to stay at the 60s in order for you to revise your drilling and CAPEX activity. Thanks so much for the question. The mature field, the production contribution for those blocks, we can, as we... mentioned on your show in all our calls. We are changing from within, improving production from Bacamorta. So, there is no, for us, it's not a problem.
Speaker Change: Your investment program for the year.
Speaker Change: I would like to understand better.
Speaker Change: For how long would branch prices have to stay at the <unk> or is there for you to revise your drilling and capex activity. Thanks. So much for the question first please.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: The mature field the production control ratio for those block we can.
Speaker Change: We.
Speaker Change: And you mentioned that you show in.
Speaker Change: In all of our calls.
Speaker Change: We are changing from within in program production from like a more of them.
Speaker Change: Okay.
Speaker Change: So there is no.
Speaker Change: Hello, Dan.
Horacio Marín: And also, I don't care a lot about production because the AV that was Almost nothing. Negative in some cases. So it's better for the investors. Okay. So we are not worried about that. And also Argentina is a free market today. So I can get the oil. Either way, at the same price, it's not a problem. So I can make much more money if I buy. And also, you don't ask that question, but we have an excellent result in the downstream. So it's rolling at all.
Speaker Change: So I don't care, they love that correction.
Speaker Change: EBITDA was.
Speaker Change: Furthermore.
Speaker Change: Nothing.
Speaker Change: Negative in some cases, we've layered in some case so therefore.
For the better okay.
Speaker Change: So.
Speaker Change: We are not worry about that and also Argentina.
Speaker Change: Pre market today so.
Speaker Change: Again get the oil.
Speaker Change: Either way at the same price it is not the provenance.
Speaker Change: Much of our money.
Speaker Change: <unk> also a year ago.
Speaker Change: Quite some level.
Speaker Change: And excellent results in the downstream so.
Leonardo: Hello Leonardo.
Speaker Change: I mean, the labor de leveraging.
Horacio Marín: The question from Guilherme on this is basically how we are going to be slowing down on the debt after the peak that we announced in New York because of the divestment of the mature fields. We predict that to be happening end of this second Q or during the third Q. So once we finish with that, Guilherme, what is going to happen is we are going to be taking out all the negative EBDAs from the mature fields that are affecting our overall EBDAs. So once we finish, we are going to start seeing the YPF and that is going to be mostly unconventional So, we are going to be switching or reducing the leverage by the end of the year.
Speaker Change: I forgot the question from me.
Speaker Change: This is basically how we are going to be.
Speaker Change: Slowing down on the debt.
Speaker Change: After the peak that we announced in New York.
Speaker Change: Also the divestment of the mature fields.
Speaker Change: Predict that to rehab building.
Speaker Change: End of the second Q or during the third Q. So once we finish with that.
Speaker Change: Going to happen is we're going to be taken out all the negative EBITDA from the entire field that are affecting our overall EBITDA.
Speaker Change: So once we finish we're going to we're going to start seeing the white.
Speaker Change: And there is going to be mostly.
Speaker Change: Unconventional and that will carry higher EBITDA and you start to see that most likely.
Speaker Change: Thank you our fourth year of this year with that.
Speaker Change: We are going to be.
Speaker Change: Shrink.
Speaker Change: You've seen the leverage by the end of the year.
Horacio Marín: We are also, let's say, as anticipated in New York, considering other divestments that may happen towards the end of the year or beginning of next year. We don't know exactly, let's say, the timing, but we have some considerations there.
Speaker Change: We also see some dissipated in New York.
Speaker Change: Considering other divestments that may happen towards the end of the year or beginning of next year.
Speaker Change: We don't know exactly.
Speaker Change: Let's say the timing, but we have some some.
Speaker Change: Considerations there.
Horacio Marín: And with the capes, the... Really, with 60, I explained that we are in lower price to be our breaking price for developing Baccamorza. So at 16, in Bagamorta, we made money, and we made good money. For sure, it's lower money than 70, it's lower money than 80, or not so, or 100. But after the time pass, you need always less capital because you are making money with that number. So, we will see and I tell before, if I have to change, I will change. But today, I don't see that it's necessary. Thank you so much.
Speaker Change: Yeah.
Speaker Change: And with the cafes.
Speaker Change: Really we think.
Speaker Change: <unk> that we have in lower price of the hour.
Speaker Change: Taking price for development, but more of them.
Speaker Change: So 15 Bucks a month that will remain money and we'll make good money.
Speaker Change: For sure is our Moneyline 17, lower mining Raytheon also one coming.
Speaker Change: But after that.
Speaker Change: The tank path <unk> always less capital because you are making money with that with that number.
Speaker Change: So.
Speaker Change: We will see.
Speaker Change: I'd tell before.
Speaker Change: Capital change a weekend.
Speaker Change: But today I don't see that as necessary.
Speaker Change: Okay.
Speaker Change: Thanks, so much.
Unknown Attendee: OK.
Speaker Change: Okay.
Tasso Vasconcellos: Our next question comes from Tasso Vasconcellos with UBS.
Paso Vasconcellos: Our next question comes from Paso Vasconcellos with UBS. Please go ahead.
Tasso Vasconcellos: Please go ahead. Hi Horacio, Federico, thanks for taking my questions here. I have actually one follow-up on the CAPEX and one on the LNG project. Starting with the CAPEX, you have released the 5 billion guidance for 2025 and during the first Q right now you just separated the 100 million disbursement to affiliates. So could you please clarify this disbursement on this affiliate and overall infrastructure projects such as Bacalmeritorio Sul, South Energy and so on, are these already included in the 5 billion CAPEX for the full year and what's the total expect breakdown here for the full year?
Paso Vasconcellos: Hi, Good also for the equaled thanks for taking my questions here I have actually one follow up on the Capex and one on the LNG project is starting with the Capex Youll have released the 5 billion guidance for 2025 and during the first Q right now you're just stipulated.
Speaker Change: The 100 million disbursement to affiliates. So could you. Please clarify disbursement on these affiliates and overall infrastructure projects suggest welcomed Meredith iosue sulfur energy and so on are already included in the 5 billion Capex for the full year and what's the total.
Speaker Change: Expect breakdown here for the full year, how much we're aiming to disburse on these affiliates in 2025.
Tasso Vasconcellos: How much you're aiming to disburse on these affiliates in 2025? The second question or follow-up on the LNG project, you have been commenting that the LNG project is more resilient given this profile from the contracts and so on. But given that you're still negotiating this contract, have you already noticed some pushback from potential clients regarding the pricing for this contract? And in this context, do you believe that potential rent lower for longer or the tensions from the U.S. government, could this lead you to assess the CAPEX and the size of this project at an extent?
Speaker Change: Good question I'll follow up on the LNG project, you have been commenting badly.
Speaker Change: The project is more resilient.
Speaker Change: Given this profile from the contracts and so on but given that youre still negotiating this contract have you already.
Speaker Change: Low to some pushback from potential clients regarding the pricing.
Speaker Change: The pricing for these contracts.
Speaker Change: And in this context, we believe that potential Brent lower for longer or detention and uncertainties from the U S. Government could this lead you to SaaS the topics and the size of this project and extend.
Horacio Marín: Those are my two questions or follow-ups. Thank you. I'm sorry. Thank you for the question. Regarding the capex, the 100 million, remember that we are growing, growing. Argentina was a country that was producing for four or five, five different places. And now produce for only one. So it's a big bottleneck. for growth production, not for YPF, for all the companies, right? So that money is for infrastructure to grow, because if not, we cannot grow. That's why we have 100, and it's all included because it's our. is our business. I think that, Tasso, maybe...
Speaker Change: Those are my two questions are follow ups. Thank you.
Speaker Change: I'm sorry.
Speaker Change: Your first question.
Speaker Change: Regarding the Capex, the 100 million remember that we are growing growing.
Speaker Change: PMT now with a company that was producing four four or five different places.
Speaker Change: I'll now break for only one.
Speaker Change: It's always a big bottleneck.
Speaker Change: Without production now for like there.
So that money is for Amtrak fracture the widow, because there is no we cannot at all that's why we had to work on it and it's already included because is a water.
Speaker Change: Our.
Speaker Change: Our V I think that that's where maybe.
Federico Barroetave: I don't know if we understood correctly your question, but the $5 billion doesn't include the contributions to affiliates. Mostly, what you see in this quarter is the finishing of Oil del Valle and the initial construction of Belmos. So, if that's your question, let's say, please let us know. Tasso? Okay, yeah, that was the question before is included on the guide or not.
Speaker Change: If I understood correctly. Your question back to the 5 billion does include the contributions to affiliates, mostly what you see in this quarter is the fee.
Speaker Change: Finishing off all the lights and the niche the initial construction of Bmo's.
Speaker Change: So if that's your question.
Speaker Change: Let's say, please let us know.
Speaker Change: Okay.
Speaker Change: Faisel.
Speaker Change: Okay, Yes.
Speaker Change: The question as far as included in the guidance or not in.
Horacio Marín: And the second one on the LNG project. The LNG project, remember that there are We have very, I would say that I'm very proud of the partner that we have and it's all Project Finance. So I'm The ward needs... needs energy and they need a lot of energy. And there is no way that the world can supply the gas without United States. and we are in a better way than the United States. So I'm very quiet and I know that we can deliver the LNG in Argentina and we can be very profitable. And if they make money, we will make money.
Speaker Change: And the second one on the LNG project.
Speaker Change: LNG brought here remember that our.
Speaker Change: <unk>.
Speaker Change: Barry.
Speaker Change: I will say that I'm very proud of the partner that we have any solid project finance.
Speaker Change: So.
Speaker Change: Hum.
Speaker Change: The world needs.
Speaker Change: LNG and then ill out of energy.
Speaker Change: There is no way they award Ken can supply that guys without United States.
Speaker Change: And we are in a better way than United States. So.
Speaker Change: Very quiet and I know that we've got it there.
Speaker Change: <unk> in Argentina.
Speaker Change: And we can be very.
Speaker Change: Very profitable.
Speaker Change: And if they make money we remain money.
Horacio Marín: So there is no, I'm not really worried about that. And also for the quality of the company that we have, it's a good direction. You can not see... CEO and President of YPF. The LNG for all this year, because if not, I'm not doing a good job. That's clear.
Speaker Change: So there is no real worry about that and also for the quality of the company that we have.
Speaker Change: It's a good direction you cannot see.
Speaker Change: Gracie company that goes along.
Speaker Change: The approach we are.
Speaker Change: In the order of 25%.
Speaker Change: 75% of our partner they think that are very.
Speaker Change: Thickness.
Speaker Change: Mike Amortize heal their reserve that we have.
Speaker Change: I feel that I need phosphate.
Speaker Change: CEO.
Speaker Change: Great.
Speaker Change: Yes.
Speaker Change: The available data.
Speaker Change: For all the shareholders, because if not I know I'm not doing a good job.
Speaker Change: Okay.
Speaker Change: That's clear. Thank you I'd also think of the recalls.
Horacio Marín: Thank you, Horacio. Thank you, Federico.
Speaker Change: Okay.
Anne Milne: Our next question comes from Anne Milne with Bank of America. Please go ahead. Good morning. Good afternoon. Thank you very much for the call, Horacio, Federico, and Margarita. My first question is for Federico. I know you went over the balance of your debt maturities for 2025, but you have a fairly large amount in 2026. I do see that it's mostly in the local market. So my question is, do you plan to refinance most of that in the local market? And how is the local market these days? I've heard a few mixed comments. It might not be quite as liquid as it was at one point.
Anne Milne: Our next question comes from Anne Milne with Bank of America. Please go ahead.
Anne Milne: Good morning. Good afternoon. Thank you very much for your call Raphael Federico and Margherita.
Anne Milne: My first question is for Federico.
Anne Milne: I know you went over the balance of your debt maturities for 2025, but you have a fairly large amount in 2026 I do see that it's mostly in the local market. So my question is do you plan to refinance most of that in the local market and how is a local market. These days I've heard a few.
Anne Milne: Next comments it might not be quite as liquid as it was at one point.
Federico Barroetave: And then the second question I have is on exports. I know your exports decreased this quarter. You mentioned it was because of greater vertical integration. Could you give us an idea of when you expect your exports to increase in a more meaningful fashion? Thank you. A.M. How are you? Well, on the... On the first question, yes, for 2026, let's say most of what we have, it's going to be, roughly speaking, we have 1.5, let's say, of refinancing in the local market and only less than 400 in the international bond market. So, based on this and at the current situation, we maintain, let's say, all our eyes open for the different alternatives that we have.
Anne Milne: And then the second question I have is on exports I know youre exports decreased this quarter.
Anne Milne: You mentioned it was because of greater vertical integration could you give us an idea of when you expect your exports to increase.
Anne Milne: In a more meaningful fashion. Thank you.
Anne Milne: And how are you.
Anne Milne: Yeah.
Anne Milne: On the first question yes.
Anne Milne: 2026.
Anne Milne: Let's say most of what we have.
Anne Milne: Going to be.
Anne Milne: Yes.
Anne Milne: Roughly speaking.
Anne Milne: We have one five.
Anne Milne: Let's say of refinancing in the local market.
Anne Milne: And only less than 400 internationally.
Anne Milne: Bond market so based on this and the current expectation we maintain let's.
Let's say, let's say all our eyes open for the different alternatives.
Federico Barroetave: The local market continues to be quite open for YPF. We just priced a new issue, I think it was Monday or Tuesday, we priced $140 million for two years at 7%. So, this was a bigger amount of what we were looking at the lower interest rate of what we originally anticipated. So, YPF continues to be one of the key names into the local market. And, let's say, the market has been reacting very well for all our decisions in the different alternatives that we offer from time to time. So, roughly speaking, I will maintain my eyes open on what is the best alternative to refinance these maturities in 2026.
Anne Milne: We have the.
Anne Milne: Local market continues to be quite open, Florida, IPF, we adjust the price.
Anne Milne: New issue.
Anne Milne: I think that was Monday or Tuesday.
Anne Milne: We priced $40 million for two year at 7%.
Anne Milne: This was.
Anne Milne: We get amount of what we're looking at the lower interest rate of what we originally anticipated so while it continues to be one of the.
Anne Milne: Key names into the.
Anne Milne: Local markets and.
Anne Milne: The market has been reacting very well for all our debt issuance in the different alternatives that we offer from time to time so.
Anne Milne: Broadly speaking I will maintain my eyes open on what is the best alternative to refinance these maturities in 2026.
Federico Barroetave: As you know, international bond market, let's say, from time to time, it's reopened for Argentina since last year and from time to time give us, let's say, very good opportunity to refinance long term at low rates as we did back in January. So, we will see, we have different pockets of liquidity to tap and we are going to be playing like that. But the local markets continue to be very supportive to YPF and I'm very confident that this amount that we have in 2026, we are going to have no problem refinancing in the local market.
Anne Milne: As you know.
Anne Milne: I mentioned in the bond market.
Anne Milne: Hey.
Anne Milne: From time to time, it's reopened for Argentina.
Anne Milne: Since last year.
Anne Milne: Thanks for your time U S. It's a very real opportunity to refinance long term.
Low rates.
Speaker Change: We did back in January.
Speaker Change: So we will see we have different pockets of <unk>.
Speaker Change: Liquidity stood up.
Speaker Change: And we are going to replace it like that.
Speaker Change: But the local markets continue to be very supportive to IPF on let's say I'm very confident that this amount that we have in 2026, we're going to have no problem in refinancing.
Speaker Change: The local market.
Speaker Change: Yes.
Speaker Change: Thank you.
Federico Barroetave: Second question. It's for oil exports. Well, I think that, let's say we are right now reducing a little bit what we export in fourth queue. Now, when we are going to be increasing, definitely related to the first oil expectation that we have for BIMOS, most likely that will be, as Horacio just mentioned, the end of 2026, the last quarter there, the pipeline will be releasing 180,000 barrels. We have a share of 27%. And that will continue to grow up until final COD in, I would say, end of the first quarter or during the second quarter of 2027.
Speaker Change: A second question.
Speaker Change: Sure.
Speaker Change: It's for oil exports well.
Speaker Change: I think that.
Speaker Change: Let's say, we have right now is reducing a little bit.
Speaker Change: Exports.
Speaker Change: In fourth Q.
Speaker Change: Now when we are going to be increasing definitely related to the first oil.
Speaker Change: Our expectation that we have for demos and most likely that will be so that as Jeff mentioned the end of 2026, the last quarter there.
Speaker Change: The pipeline will be releasing one kind of entity Hudson bodies, we have a share of 27% and that will continue to grow up until final CRB.
Speaker Change: I would say end of the first quarter.
Speaker Change: During the second quarter of 2007 at that time the final language.
Federico Barroetave: At that time, the pipeline will have a total capacity of 550. And our commitment is to undertake 120,000 barrels. So that will be our export ramp up for the coming year, on top of what we can marginally add to Chile, depending on the price and the trade that we can obtain and the circumstances. Okay, so just to clarify, so when the VMOS is up and running, so 27% of the 180 initially, and that will increase to 120 out of the 550. in 27 or 28, whenever that's finished, plus GWAS. Yes, it starts with the first oil of 180, and then COD will be, the pipeline will be delivering up to 550, out of which the seven initial shippers have committed a total capacity of 450, out of which YPF owns 120.
Speaker Change: Total capacity of 550 an hour.
Commitment to undertake 120000 bodies, so that will be.
Speaker Change: B our exports.
Speaker Change: Ramp up for the.
Speaker Change: For the coming year on top of what we can marginally add to Chile.
Speaker Change: Depending on the price.
Speaker Change: And I would say that we can obtain.
Speaker Change: And the circumstances.
Speaker Change: Okay. So just to clarify so when the demos is up and running said, 27% of the 180, initially and that will increase to $125 50.
Speaker Change: In 2007 or 20 whenever that finished them.
Speaker Change: Chile.
Speaker Change: Yes.
Speaker Change: <unk> will be the first oil of one come in.
Speaker Change: And then <unk> will be the.
Speaker Change: Finally, we will be delivering.
Up to 550 out of reach the seven initial shippers have committed a total capacity of 450 out of which <unk> <unk>.
Speaker Change: <unk> 120.
Federico Barroetave: It's totally logical that our incremental production depends on the capacity that we have, okay? That's why this year you see the same investment as last year, okay? Very clear. Thank you very much.
Speaker Change: It's totally logic.
Speaker Change: What incremental production in Japan, so the hiccup.
Speaker Change: A party to that we have okay. That's why this year youll see the same the same investment that lag.
Speaker Change: Capex lots here okay.
Speaker Change: Very clear thank you very much.
Speaker Change: Okay.
Horacio Marín: All right, I will now turn the call back over to Horacio Marin for closing remarks. Okay. Thank you very much for the question.
Raphael: Alright, I will now turn the call back over to her Raphael money for closing remarks.
Speaker Change: Okay.
Speaker Change: Thank you very much for the question, we are very happy to work here.
Horacio Marín: We are very happy to work here in YPF, and I will switch to Spanish, okay?
Speaker Change: In white, Beth and I will seek to expands okay.
Horacio Marín: Respiro YPF, Transpiro YPF, Pienso YPF, Amo YPF, and My Birthday, okay? All right.
Speaker Change: Right right.
Peter: Peter basically.
Peter: Yes, you basically almost daily in my verified okay.
Peter: Alright.
Peter: Okay.
Unknown Attendee: Thank you all for joining.
Peter: Thank you all for joining that concludes today's call.
Unknown Attendee: That concludes today's call.
Peter: Yeah.
Peter: Okay.
Peter: Yeah.