YPF is looking to self-supply by the end of 2021

NEW YORK.- While fire trucks were crossing the Fifth Avenue of this city in search of any envelopes with explosives, Miguel Gutiérrez, president of

YPF
and eight company executives met with foreign investors on Wall Street to present
its business plan for the next five years, which answers questions and explains how the energy sector in the country is following the sharp rise in the exchange rate in such a short time.

Gutiérrez and YPF President Daniel González explained that after the devaluation and the increase in

international oil prices
which in one year has gone from $ 55 to $ 78 a barrel, making it impossible to transfer to prices in the local market. However, they said, it was possible to increase the value of

fuels
66%, the double

l & # 39; inflation
accumulated in the year. For the remainder of 2018, the directors confirmed that it would be necessary to apply a 5% increase in naphtha and 15% of diesel if the dollar stays around $ 37 and that the price of oil begins to go down, as expected.

"We had price increases every month, we could not get the peso devaluation nor the increase in international prices, but we think we will bridge the gap in the rest of the world. ;year." Inflation was half of the price increase. We are raising prices more aggressively because we think that would affect demand, "said Gonzalez, who also pointed out that naphtha sales had dropped 8% in September." We have not seen for a long time, "admitted the executive.

YPF executives arrived in the United States the day before yesterday to celebrate the 25th anniversary of the Values ​​of New York (NYSE) listing, making it the first Argentine company to realize 39, years on Wall Street. Before being honored yesterday by the agents, the nine managers met more than three hours of investors to explain their business plan, calculating for the coming years a gas value of 4 million US dollars (in English). used in the sector) and the price of oil between 60 and 70 USD per barrel.

They also indicated that in the coming years, the company will work to increase oil production to self-supply by the end of 2021 and export the following year. Currently, YPF buys 20% of its processing processes at two of its refineries – Luján de Cuyo (Mendoza) and La Plata – to supply the local market.

The concerns of investors, who were very well informed about the situation in Argentina, concerned the regulation of the price of gas and "the pressure exerted by the government to lower it". They also wanted to know how a long recession hit the market and the
notebook scandals (the scandal of notebooks), in addition to asking what projects the country must satisfy for the largest gas supply.

"The Argentine government is very attached to the deregulation of the energy market and the creation of incentives allowing it to be exported.With the current price of gas and what we are seeing in the medium term , it could converge to the price we need to continue to produce higher costs, which represent US $ 4 million, "they replied, explaining that YPF had the right to associate with other market players to build a regasification facility to liquefy the gas and export it.In addition, they reported that they were exporting gas to Chile and electricity to Brazil, and that the purchase of Oil in Bolivia had been reduced.

In dealing with the crisis, the leaders said that with the devaluation, their fixed costs had greatly diminished. "The plan we have presented has made assuming that we will not need a regulatory framework to help us and that the economy is not going to develop." next year, it's not a plan based on anything that's perfect, "they admitted.

At the end of the presentation, one of the leaders, already more relaxed, said: "We can do all the tasks well, but changes in the regulatory framework are still raising doubts".