Edgar Filing: YPF SOCIEDAD ANONIMA

YPF Sociedad Anónima

Date: August 7, 2018

/s/ Diego Celaá

Diego Celaá

Market Relations Officer

Form 6-K - Consolidated Results

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of August, 2018

Commission File Number: 001-12102

YPF Sociedad Anónima

(Exact name of registrant as specified in its charter)

Macacha Güemes 515

C1106BKK Buenos Aires, Argentina

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ☐ No ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ☐ No ☒

YPF Sociedad Anónima

TABLE OF CONTENTS

ITEM

1 Translation of Consolidated Results Q2 2018.

YPF S.A.

Consolidated Results

Q2 2018


		Consolidated Results Q2 2018

CONTENT


1. MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q2 2018			3
2. ANALYSIS OF RESULTS FOR Q2 2018			4
3. ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q2 2018			7
3.1 UPSTREAM			7
3.2 DOWNSTREAM			10
3.3 GAS AND ENERGY			13
3.4 CORPORATE AND OTHER			14
3.5 RELATED COMPANIES			14
4. LIQUIDITY AND SOURCES OF CAPITAL			14
5. TABLES AND NOTES			16
5.1 CONSOLIDATED STATEMENT OF INCOME			17
5.2 CONSOLIDATED BALANCE SHEET			18
5.3 CONSOLIDATED STATEMENT OF CASH FLOW			19
5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION			20
5.5 MAIN FINANCIAL MAGNITUDES IN U.S. DOLLARS			21
5.6 MAIN PHYSICAL MAGNITUDES			22


		Consolidated Results Q2 2018

Adj. EBITDA for Q2 2018 was Ps 24.8 billion, 53.2% higher than Q2 2017.


Q2		Q1		Q2		Var.%				Jan-Jun		Jan-Jun		Var.%
2017		2018		2018		Q2 18/ Q2 17				2017		2018		2018/2017
	60,162		75,823		93,034		54.6	%	Revenues (Million Ps)		117,165		168,857		44.1	%
	3,466		17,354		1,746		-49.6	%	Operating income (Million Ps)		7,977		19,100		139.4	%
	272		5,986		1,508		454.4	%	Net income (Million Ps)		464		7,494		1515.1	%
	16,177		36,492		24,782		53.2	%	Adj. EBITDA (Million Ps)		33,003		61,274		85.7	%
	16,177		24,512		24,782		53.2	%	Recurring Adj. EBITDA		33,003		49,294		49.4	%
	0.54		15.47		5.08		835.5	%	Earnings per share (Ps per Share)		0.60		20.55		3307.3	%
	13,029		14,874		19,338		48.4	%	Capital Expenditures (Million Ps)		24,979		34,212		37.0	%

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

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

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

1. MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR Q2 2018

•

Revenues for Q2 2018 were Ps 93.0 billion, 54.6% higher than Q2 2017.

•

Operating income for Q2 2018 was Ps 1.7 billion, 49.6% lower than Q2 2017.

•

Net income for Q2 2018 was a gain of Ps 1.5 billion compared to net income of Ps 0.3 billion recorded for Q2 2017.

•

Hydrocarbon production for Q2 2018 was 544.6 Kboed, 1.0% lower than Q2 2017.

•

Refinery processing levels in the Downstream business segment for Q2 2018 were 86.1%, 6.6% lower than the same quarter last year.

•

Capital expenditures in property, plant and equipment for Q2 2018 were Ps 19.3 billion, 48.4% higher than Q2 2017.


		Consolidated Results Q2 2018

2. ANALYSIS OF RESULTS FOR Q2 2018

Revenues for Q2 2018 were Ps 93.0 billion, 54.6% higher than Q2 2017, due primarily to the following factors:

•

Diesel revenues increased Ps 9.8 billion, 50.9% higher than Q2 2017, due to a 45.8% increase in diesel mix prices and a 3.5% increase in sales volumes. Sales volumes of Infinia Diesel, a premium diesel product, increased by 21.6%;

•

Gasoline revenues increased Ps 6.6 billion, 50.9% higher than Q2 2017, due to a 42.9% increase in gasoline mix prices and a 5.6% increase in sales volumes. Sales volumes of Infinia Gasoline, a premium gasoline product, increased by 2.6%;

•

Natural gas revenues increased Ps 4.7 billion, 44.8% higher than Q2 2017, due to a 49.0% increase in prices in Argentine peso terms, partially offset by a 2.8% decrease in sales volumes due to the lower production and demand of this product;

•

Retail natural gas revenues (residential and small business and companies) increased Ps 2.1 billion, 63.0% higher than Q2 2017, mainly due to YPF’s controlled company Metrogas S.A. (“Metrogas”), which recorded a 78.8% increase in prices and a 4.2% increase in volumes sold through its distribution network;

•

Fuel oil revenues in the Argentine domestic market decreased Ps 1.5 billion, 94.3% lower than Q2 2017, due to a 96.3% decrease in sales volumes to power generation plants which was partially offset by a 53.4% increase in prices;

•

Remaining domestic sales increased Ps 5.8 billion, 74.9% higher than Q2 2017. We highlight the higher sales of jet fuel by 77.2%, of petrochemical products by 44.4%, lubricants by 40.1%, asphalts by 36.0%, LPG by 35.2%, in each case mainly due to the higher prices of these products and the larger traded volumes of petroleum coal and virgin naphtha;

•

Export revenues increased Ps 5.4 billion, 115.1% higher than Q2 2017. This was primarily due to a 121.8% increase of sales of jet fuel, due to an increase in average sales prices measured in Argentine pesos of 93.6% and 14.6% in the volumes sold, as well as the higher volumes traded and better prices obtained in virgin naphtha, LPG and gas oil, with increases of 346.5%, 192.4% and 83.7%, respectively. Exports of petrochemical products increased by 148.7% due to higher sales volumes. Crude oil exports were also recorded for Ps 0.3 billion and for petroleum coal for Ps 0.4 billion, which had not been registered in Q2 2017. Exports of soybean flour and oil had an increase of Ps 0.9 billion, 54.7% higher than Q2 2017, driven by an increase of 90.8% in the prices obtained, partially offset by a decrease in volumes of 18.9%.

Cost of sales for Q2 2018 was Ps 82.0 billion, 65.0% higher than Q2 2017. This includes a 58.5% increase in production costs, substantially affected by the increase in depreciations, and a 59.1% increase in purchases. Cash costs, which include costs of production and purchases but exclude depreciation and amortization, increased by 49.4%. This increase was driven by the following factors:


		Consolidated Results Q2 2018

Costs of production:

•

Depreciation of property, plant and equipment increased Ps 10.5 billion, 90.3% higher than Q2 2017, due to an increase in the value of assets based on their valuation in U.S. dollars, which is the functional currency of the Company, and an increase in the depreciation rate due to decreased net reserves of crude oil and natural gas recorded during Q3 and Q4 2017 as a consequence of a reduction in the average domestic price over that year;

•

Royalties and other production related costs increased Ps 3.4 billion, 89.0% higher than Q2 2017. Of this increase, Ps 2.6 billion was related to an increase in royalties for crude oil production, and Ps 0.8 billion was related to an increase in royalties for natural gas production, due to higher wellhead values of these products;

•

Lifting costs increased Ps 3.2 billion, 32.1% higher than Q2 2017, reflecting a 32.7% increase in the unit indicator in Argentine peso terms. These increased costs are in line with the general increase in prices in the economy, weighted by the lower production of the period;

•

Transportation costs increased Ps 0.7 billion, 33.2% higher than Q2 2017, due primarily to increases in rates and higher transported volumes;

•

Refining costs increased Ps 0.4 billion, 15.5% higher than Q2 2017, due primarily to higher costs for repair and maintenance services, for the consumption of materials, spare parts and other supplies, reflecting a 23.7% increase in the unit indicator in Argentine peso terms.

Purchases:

•

Purchases of natural gas from other producers for resale in the retail distribution segment (residential and small businesses and industries) increased Ps 2.1 billion, 105.4% higher than Q2 2017due to an increase in the purchase prices of approximately 129.6%, partially offset by a decrease in volumes purchased of 10.5%;

•

Crude oil purchases from third parties increased Ps 1.7 billion, 35.1% higher than Q2 2017, due to an 84.8% increase in the average purchase price from third parties in Argentine peso terms. This increase in purchase price was mainly due to the increase in the international reference price, partially offset by a decrease in purchased volumes of approximately 26.9%;

•

Fuel imports increased Ps 1.7 billion, 79.3% higher than Q2 2017, mainly due to imports of diesel and jet fuel due to higher international prices of these products;

•

Biofuel purchases increased Ps 1.1 billion, 27.0% higher than Q2 2017, due to higher FAME and ethanol biofuel prices of 34.4% and 9.4%, respectively, and a 5.3% increase in volumes purchased of ethanol biofuel, while FAME recorded an increase of 2.4%;

•

Grain purchases in the agricultural sales segment through the form of barter, which were recorded as purchases for accounting purposes, increased Ps 0.8 billion, 41.5% higher than Q2 2017, primarily due to a 78.6% increase in prices and a 20.8% decrease in volumes.


		Consolidated Results Q2 2018

Administration expenses for Q2 2018 were Ps 3.0 billion, 47.5% higher than Q2 2017. The increase was principally due to higher personnel expenses, higher IT costs, higher charges related to institutional advertising and higher depreciation of fixed assets.

Selling expenses for Q2 2018 were Ps 5.9 billion, 39.9% higher than Q2 2017. This was driven primarily by increases in transport expenses, primarily due to higher volumes sold and higher rates paid for domestic transport of fuels, as well as higher export taxes mainly of flours and oils, higher charges for depreciation of fixed assets, higher personnel expenses and higher charges in allowances for bad debt and environmental contingencies.

Exploration expenses for Q2 2018 were Ps 0.5 billion, 44.3% lower than Q2 2017.

Other operating results, net, for Q2 2018 was a loss of Ps 17 million, compared to a gain of Ps 22 million for Q2 2017. In Q2 2018, the Company recorded a profit of Ps 0.3 billion as a result of the total assignment of its participation in the Cerro Bandera area, which more thanoffset by the effect of higher charges in the provision for judicial contingencies.

Financial results for Q2 2018 were a gain of Ps 22.8 billion compared to a gain of Ps 0.9 billion in Q2 2017. This change was driven primarily by a positive foreign exchange effects on net liabilities in Argentine peso terms of Ps 23.0 billion, generated by the depreciation of the Argentine peso in Q2 2018 compared to Q2 2017 when the devaluation of the local currency had been substantially lower. Higher interest expenses of Ps 1.9 billion were also recorded in Q2 2018 due to higher average indebtedness, measured in Argentine pesos, compared to Q2 2017.

Income tax for Q2 2018 resulted in an expense of Ps 21.9 billion compared to the resulting expense of Ps 4.2 billion in Q2 2017. This difference is mainly due to the higher negative charge of Ps 17.6 billion for deferred tax recorded in both periods, resulting from the effects of the exchange rate movements in both periods, as previously mentioned.

Net income for Q2 2018 was a gain of Ps 1.5 billion, compared to a gain of Ps 0.3 billion in Q2 2017.

Capital expenditures for property, plant and equipment in Q2 2018 were Ps 19.3 billion, 48.4% higher than Q2 2017.


		Consolidated Results Q2 2018

3. ANALYSIS OF OPERATING RESULTS BY BUSINESS SEGMENT FOR Q2 2018

3.1 UPSTREAM


Q2 2017		Q1 2018		Q2 2018		Var.% Q2 18/ Q2 17				Jan-Jun 2017		Jan-Jun 2018		Var.% 2018/2017
	-884		2,148		2,868		N/A		Operating income (Million Ps)		15		5,016		33340.0	%
	26,606		38,704		46,308		74.1	%	Revenues (Million Ps)		54,383		85,012		56.3	%
	218.3		227.6		226.3		3.6	%	Crude oil production (Kbbld)		226.1		226.9		0.4	%
	51.4		47.0		41.6		-19.2	%	NGL production (Kbbld)		53.1		44.3		-16.6	%
	44.6		43.7		44.0		-1.3	%	Gas production (Mm3d)		44.9		43.9		-2.4	%
	550.1		549.6		544.6		-1.0	%	Total production (Kboed)		561.7		547.0		-2.6	%
	833		323		464		-44.3	%	Exploration costs (Million Ps)		1,426		787		-44.8	%
	9,905		13,033		16,099		62.5	%	Capital Expenditures (Million Ps)		19,353		29,132		50.5	%
	10,079		16,300		19,689		95.3	%	Depreciation (Million Ps)		20,014		35,989		79.8	%
									Realization Prices
	52.5		65.1		64.6		22.9	%	Crude oil prices in domestic market Period average (USD/bbl)		52.8		64.8		22.8	%
	4.99		4.76		4.90		-1.9	%	*Average gas price ()** (USD/Mmbtu)		4.96		4.83		-2.6	%

(*)	The average price of gas for Q2 2017 and Q1 2018 has been recalculated. The price for Q2 2018 is preliminary.

Operating income for the Upstream business segment for Q2 2018 was Ps 2.9 billion, in comparison to the negative result of Ps 0.9 billion in Q2 2017.

Revenues were Ps 46.3 billion for Q2 2018, 74.1% higher than Q2 2017, due primarily to the following factors:

•

Crude oil revenues totaled Ps 30.2 billion, 87.8% or Ps 14.1 billion higher than Q2 2017. The average realization price for crude oil in Q2 2018 increased by 22.9% to US$64.6/bbl. Crude oil volumes transferred between segments increased 1.6%, while those sold to third parties increased by 26.9%;

•

Natural gas revenues reached Ps 16.4 billion, 50.0% or Ps 5.5 billion higher than Q2 2017. The average realization price for natural gas in Q2 2018 decreased 1.8% to US$4.90/Mmbtu and natural gas volumes decreased by 2.8% in Q2 2018, compared to Q2 2017 as a result of the lower production and demand of natural gas in the quarter. However, prices in terms of pesos increased significantly, resulting in the increase of revenues.

Hydrocarbon production for Q2 2018 was 544.6 Kboed, 1.0% lower than Q2 2017. Crude oil production for Q2 2018 was 226.3 Kbbld, 3.6% higher than Q2 2017. It should be noted that, in Q2 2017, crude oil production had been adversely affected by heavy rain and snow storms that had mainly affected the province of Chubut and, to a lesser extent, the province of Santa Cruz. Natural gas production for Q2 2018 was 44.0 Mm3d, 1.3% lower than Q2 2017 due to the lower demand in the quarter.


		Consolidated Results Q2 2018

NGL production for Q2 2018 was 41.6 Kbbld, 19.2% lower than Q2 2017.

With respect to development activity, 97 wells were put in production in Q2 2018, including the shale and tight wells mentioned below.

Hydrocarbon production in shale areas, net to YPF, for Q2 2018 was 55.9 Kboed, 52.8% higher than Q2 2017. This includes 20.3 Kbbld of crude oil, 7.2 Kbbld of NGL and 4.5 Mm3d of natural gas. During Q2 2018, 18 wells were put in production targeting the Vaca Muerta formation, for a total of 632 wells, including 12 active drilling rigs and 9 workovers.

With respect to tight development, net production in Q2 2018 reached a total of 13.6 Mm3d of natural gas, plus 4.8 Kbbld of NGL and 6.1 Kbbld of crude oil, of which 88.6% comes from YPF operated areas. During Q2 2018, 17 new wells were put into production, 5 in Estación Fernández Oro, 4 in Loma la Lata – Sierra Barrosa, 3 in Río Neuquén, 3 in Octógono, 1 in Rincón del Mangrullo and 1 in Dadín.

Operating costs for Q2 2018 were Ps 43.3 billion, 64.3% higher than Q2 2017 (excluding exploration expenses), mainly due to the following:

•

Depreciation of property, plant and equipment increased by Ps 9.6 billion, 95.3% higher than Q2 2017, primarily due to an increase in the value of assets based on their valuation in U.S. dollars, which is the functional currency of the Company, and the increase in the depreciation rate due to the decrease in net reserves of crude oil and natural gas recorded during Q3 and Q4 2017 as a consequence of a reduction in the average domestic price over that year;

•

Lifting costs increased Ps 3.2 billion, 32.1% higher than Q2 2017, reflecting a 32.7% increase in the unit indicator in Argentine peso terms in line with the general increase in prices in the economy, weighted by the drop in production mentioned above;

•

Transportation costs related to production (truck, pipelines and polyducts in deposit) increased Ps 0.3 billion, 40.3% higher than Q2 2017.

It is noteworthy that the exploratory investment for Q2 2018 was 110.9% higher Q2 2017. Exploration expenses for Q2 2018 were Ps 0.5 billion, a decrease of 44.3% compared to Ps 0.8 billion for Q2 2017. This variation was mainly due to a Ps 0.5 billion decrease in negative results from unproductive exploratory wells in Q2 2018 compared to Q2 2017. Expenses for the development of geological and geophysical studies increased Ps 0.1 billion between Q2 2018 and Q2 2017.

In Q2 2018, the results of this segment also included a profit of Ps 0.3 billion related to the total cession of participation in the Cerro Bandera area.

Unit cash costs in U.S. dollars decreased 3.8% to US$20.5/boe for Q2 2018 from US$21.3/boe for Q2 2017, including taxes of US$6.8/boe and US$5.6/boe, respectively. In turn, the average lifting cost for YPF in Q2 2018 was US$11.2/boe, 13.2% lower than US$12.9/boe for Q2 2017.


		Consolidated Results Q2 2018

CAPEX

Capital expenditures for the Upstream business segment for Q2 2018 were Ps 16.1 billion, 62.5% higher than Q2 2017.

Of these capital expenditures, 69.8% were invested in drilling and workover activities, 18.7% in facilities, 8.1% in exploration and the remaining 3.4% in other activities of the Upstream business segment.

In the Neuquina basin area, activities for Q2 2018 were focused on the development of the Loma Campana, Estación Fernandez Oro, El Orejano, La Amarga Chica, Rincón del Mangrullo, Río Neuquén, Aguada Toledo-Sierra Barrosa (Lajas), Chachahuén, Octógono, Volcán Auca Mahuida, Filo Morado, Loma La Lata and Loma Alta Sur blocks. Activity continues with the pilots targeting Vaca Muerta in the following blocks: Rincón del Mangrullo, La Ribera, Bajada de Añelo and Aguada de la Arena. Development activities continued at the Cuyana basin, mainly in the Mesa Verde, Ugarteche, Barrancas, La Ventana and Los Cavaos blocks. In the Golfo San Jorge basin, activity was focused on the following blocks: Manantiales Behr, El Trébol-Escalante, Cañadón Yatel, Cañadón León, Barranca Baya, El Guadal, Los Perales, Zona Central, Cañadón Vasco and Restinga Ali. In the Austral basin, drilling activity continues at Lago Fuego.

Exploration activities for Q2 2018 covered the Neuquina, Golfo San Jorge, Austral, Noroeste Argentino and Cuyana basins. In the Neuquina basin, exploratory activity was focused in the Estación Fernández Oro, Agua Salada, Filo Morado, Los Caldenes, Señal Picada-Punta Barda y Loma la Lata blocks. In the Golfo San Jorge basin, exploration activity was focused in the Los Perales-Las Mesetas, Cerro Piedra y Cañadón Vasco blocks. In the Austral basin, exploration activity continues in Cañadón Piedra-Cabo Nombre y Lago Fuego blocks. As for the Cuyana basin, exploratory activity was carried out in the Mesa Verde block. Additionally, in the Noroeste Argentino basin the activity was concentrated in the Aguaragüe block. Additionally, activity was carried out in San Sebastián block (Tierra del Fuego-Chile).

During Q2 2018, 4 (four) natural gas exploratory wells, 3 (three) natural gas workovers and 1 (one) crude oil exploratory well, were completed.


		Consolidated Results Q2 2018

3.2 DOWNSTREAM


Q2 2017			Q1 2018			Q2 2018			Var.% Q2 18/ Q2 17				Jan-Jun 2017			Jan-Jun 2018			Var.% 2018/2017
	3,093			4,009			361			-88.3	%	Operating income (Million Ps)		7,457			4,370			-41.4	%
	45,611			60,337			70,273			54.1	%	Revenues (Million Ps)		89,791			130,610			45.5	%
	4,172			3,911			4,048			-3.0	%	Sales of refined products in domestic market (Km3)		8,124			7,959			-2.0	%
	289			512			393			36.1	%	Exportation of refined products (Km3)		708			905			27.9	%
	214			207			208			-3.0	%	*Sales of petrochemical products in domestic market ()** (Ktn)		387			415			7.1	%
	52			60			138			164.7	%	Exportation of petrochemical products (Ktn)		96			198			106.0	%
	294.6			290.7			275.0			-6.6	%	Crude oil processed (Kboed)		292.8			282.8			-3.4	%
	92	%		91	%		86	%		-6.6	%	Refinery utilization (%)		92	%		89	%		-3.4	%
	1,935			1,255			2,673			38.1	%	Capital Expenditures (Million Ps)		3,214			3,928			22.2	%
	1,621			2,076			2,596			60.1	%	Depreciation (Million Ps)		3,190			4,672			46.5	%
	655			691			634			-3.2	%	Average domestic market gasoline price ()** (USD/m3)		661			663			0.3	%
	624			664			613			-1.7	%	Average domestic market diesel price ()** (USD/m3)		633			638			0.7	%

(*)	Fertilizer sales not included.

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

Operating income for the Downstream business segment for Q2 2018 was Ps 0.4 billion, 88.3% lower than Q2 2017.

Revenues were Ps 70.3 billion in Q2 2018, 54.1% higher than Q2 2017, due primarily to the following factors:

•

Diesel revenues increased Ps 9.8 billion, 50.9 % higher than Q2 2017, due to a 45.8% increase in diesel mix prices and a 3.5% increase in sales volumes, including a 21.6% increase in sales volumes of Infinia Diesel, a premium diesel product;

•

Fuel oil revenues in the Argentine domestic market decreased Ps 1.5 billion, 94.3% lower than Q2 2017, due to a 96.3% decrease in sales volumes to power generation plants partially offset by a 53.4% increase in prices;


		Consolidated Results Q2 2018

•

The remaining revenues in the domestic market increased by Ps 4.4 billion, 62.2% higher than Q2 2017. We highlight the higher sales of jet fuel by 77.2%, of petrochemical products by 44.4%, lubricants by 40.1%, asphalts by 36.0%, LPG by 35.2%, in each case mainly due to the higher prices of these products and also the larger traded volumes of petroleum coal and virgin naphtha;

•

Export revenues in the Downstream segment increased by Ps 5.4 billion, 115.6% higher than Q2 2017. The most notable items were the 121.8% increase in exports of jet fuel, due to an increase in average sales prices measured in Argentine pesos of 93.6%, and an increase of 14.6% in volumes sold, as well as the higher volumes traded and better prices obtained in virgin naphtha, LPG and gas oil, with increases of 346.5%, 192.4% and 83.7%, respectively. Exports of petrochemical products increased by 148.7% due to higher sales volumes. Crude oil exports were also recorded for Ps 0.3 billion and for petroleum coal for Ps 0.4 billion, which had not been registered in Q2 of the previous year. Exports of soybean flour and oil had an increase of Ps 0.9 billion, 54.7% higher compared to Q2 2017, driven by an increase of 90.8% in the prices obtained, partially offset by a decrease in volumes of 18.9%.

Cost of sales and operating expenses for Q2 2018 were Ps 64.5 billion with an increase of Ps 26.2 billion, or 68.3%, compared to Q2 2017, due primarily to the following factors:

•

Crude oil purchases increased Ps 15.7 billion, 76.2% higher than Q2 2017, due to an increase in prices in Argentine peso terms of crude oil purchased of 85.3%, mainly due to the increase in the international reference price. Crude oil volumes purchased from third parties decreased 26.9% and volumes transferred from the Upstream business segment increased 1.6%;

•

Fuel imports increased Ps 1.7 billion, 79.3% higher than Q2 2017, mainly due to imports of diesel and jet fuel due to higher international prices of these products;

•

Biofuel purchases increased Ps 1.1 billion, 27.0% higher than Q2 2017, mainly due to an increase of approximately 34.4% in the price of FAME and 9.4% in the price of ethanol biofuel and the increase in purchased volumes of ethanol biofuel of 5.3%, partially offset by a decrease in purchased volumes of FAME of 2.4%;

•

Grain purchases in the agricultural sales segment through the form of barter, which were recorded as purchases for accounting purposes, increased Ps 0.8 billion, 41.5% higher than Q2 2017. This increase was due to an increase in the average price of around 78.6% partially offset by a 20.8% decrease in the volumes sold;

•

Additionally, in Q2 2018 a negative inventory variation of Ps 0.4 billion was registered, while in the same period of 2017, this amount had been positive in Ps 0.5 billion, mainly due to a decrease in the diesel and gasoline inventory of the company observed in the current quarter;

•

Depreciation of property, plant and equipment increased Ps 0.8 billion, 60.5% higher than Q2 2017, due to an increase in the value of assets based on their valuation in U.S. dollars, which is the functional currency of the Company;

•

Refining costs increased Ps 0.4 billion, 15.5% higher than Q2 2017. This increase was mainly driven by higher charges for repair and maintenance services, consumption of materials, spare parts and other supplies. As a result of this, and considering also that the processing level in refineries was 6.6% lower, the unit refining cost increased in Q2 2018 by 23.7% compared to the Q2 2017.


		Consolidated Results Q2 2018

In turn, transport costs linked to production (shipping, oil pipelines and polyducts) showed an increase of Ps 0.3 billion, which represents an increase of 24.9%.

Selling expenses increased Ps 1.6 billion, or 39.1% higher than Q2 2017, mainly driven by higher transported volumes due to higher sales and higher costs for transporting products, mainly linked to the increase in fuel prices in the domestic market, as well as higher export taxes mainly of flours and oils, higher charges for depreciation of fixed assets, higher personnel expenses and higher charges in allowances for bad debt and environmental contingencies.

The volume of crude oil processed in Q2 2018 was 275 Kbbld, 6.6% lower than Q2 2017. These lower processing levels resulted in a 2.4% decrease in gasoline production, a 0.3% decrease in diesel production and a decrease in the production of other refined products such as fuel oil, LPG, jet fuel, petrochemical gasoline, asphalts and lubricants bases, all in comparison to Q2 2017.

CAPEX

Capital expenditures for the Downstream business segment for Q2 2018 were Ps 2.7 billion, a 38.1% increase compared to Q2 2017.

During Q2 2018, work continued on the blending of gasoline in the Luján de Cuyo refinery to increase the production capacity of premium gasoline, and on increasing diesel blending capacity at La Plata Refinery, in order to increase the production of premium diesel. These activities are expected to conclude by Q4 2018. The foregoing complies with the new specifications for fuels pursuant to Resolution 5/2017 of the Hydrocarbon Resources Secretary, for which the main modifications will become effective in 2019 and in 2022. Additionally, YPF continued with the development of the engineering for the new gasoline and diesel hydrotreatment units to be carried out in the aforementioned refineries.

With respect to refining, logistics and oil product dispatch facilities, work continued with improvements in infrastructure, safety and environmental performance.


		Consolidated Results Q2 2018

3.3 GAS AND ENERGY


Q2 2017		Q1 2018		Q2 2018		Var.% Q2 18/ Q2 17				Jan-Jun 2017		Jan-Jun 2018		Var.% 2018/2017
	1,025		12,251		849		-17.2	%	Operating income (Million Ps)		1,583		13,100		727.5	%
	15,749		17,018		23,912		51.8	%	Revenues (Million Ps)		29,494		40,930		38.8	%
	992		379		196		-80.2	%	Capital Expenditures (Million Ps)		1,935		575		-70.3	%
	65		57		64		-1.5	%	Depreciation (Million Ps)		130		121		-6.9	%

The Gas and Energy business segment, which includes activities related to transportation, distribution and the sale of natural gas to third parties, regasification services for liquefied natural gas (LNG) and electricity generation, reported an operating income of Ps 0.8 billion, a 17.2% reduction compared to Ps 1.0 billion in Q2 2017.

As a consequence of the agreement for the capitalization of YPF Energía Eléctrica, this company is no longer consolidated in Q2 2018, whereas in Q2 2017 it contributed Ps 0.2 billion in operating income to the results of the Group.

Separately, despite the gradual restructuring of rates obtained by our subsidiary Metrogas S.A., the segment recorded an operating profit of Ps 0.5 billion in Q2 2018, which was lower than the operating profit of Ps 0.6 billion in Q2 2017, mainly due to an increase in charges for judicial contingencies relating to our participation in Metrogas S.A.


		Consolidated Results Q2 2018

3.4 CORPORATE AND OTHER

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

Corporate operating income for Q2 2018 was a loss of Ps 1.5 billion, compared to a loss of Ps 0.5 billion in Q2 2017. The variation is mainly related to an increase in charges for judicial contingencies, both for the activity of YPF in the country and for those linked to the Maxus Entities (deconsolidated as of its filing with the Bankruptcy Court). On the other hand, in the current period, there were increases in personnel expenses, higher IT costs and institutional advertising, and lower results obtained by our controlled company A-Evangelista S.A which had a negative variation of Ps 0.2 billion.

Consolidation adjustments to eliminate results among business segments not transferred to third parties were negative Ps 0.8 billion for Q2 2018. These adjustments were positive Ps 0.8 billion in Q2 2017. In the current quarter there was an increase in the gap between transfer prices between businesses and the replacement cost of the company’s inventories, compared to a smaller gap in Q2 2017. In both cases, the movement of transfer prices reflects changes in market prices, especially of crude oil.

3.5 RELATED COMPANIES

Results from related companies for Q2 2018 were a loss of Ps 1.1 billion, compared to a gain of Ps 0.1 billion for Q2 2017. This variation was due primarily to the negative results obtained by YPF Energía Eléctrica, which was consolidated in the Gas & Power segment during Q2 2017.

4. LIQUIDITY AND SOURCES OF CAPITAL

In Q2 2018, net cash flows provided by operating activities were Ps 27.6 billion, 112.7% higher than Q2 2017. This increase of Ps 14.6 billion was due to an increase in EBITDA of Ps 8.6 billion, and as a consequence of a reduction in working capital generated by higher accounts payable originated in the higher purchases of the quarter, and in the increase of the liability for purchases of gas from third-party producers by our controlled company Metrogas, for the realization of inventories due to the lower processing mentioned above, as well as for the partial collection of the outstanding balance of the partial transfer of the Aguada Pichana Este and Aguada de Castro areas and a greater monetization of tax credits. The generation of funds during Q2 2018 allowed us to substantially exceed the amount that the company required to finance the investments made during the current period.

Net cash flows used in investing activities were Ps 17.4 billion for Q2 2018, 37.1% higher than Q2 2017. Investments in fixed and intangible assets were Ps 18.1 billion in Q2 2018, 38.2% higher than Q2 2017. On the other hand, the holdings of public securities BONAR 2020 and 2021 were partially liquidated, with a cash inflow of Ps 0.5 billion.

As a result of its financing activities, in Q2 2018 the Company had a net decrease in funds of Ps 2.7 billion, compared to a net increase of Ps 1.3 billion in Q2 2017. This difference was generated by a lower net borrowing and refinancing debt maturities of Ps 2.2 billion and by a higher interest payment of Ps 1.8 billion.


		Consolidated Results Q2 2018

The previously explained cash generation, together with the Company’s investment in Argentine sovereign bonds, including those received to cancel the accounts receivables of the Gas Plan program for the year 2015, which are still in the portfolio, resulted in a position of cash and cash equivalents of Ps 57.6 billion₍₁₎ as of June 30, 2018.

Total debt in U.S. dollars was US$9.6 billion, net debt was US$7.6 billion₍₁₎ with a Net debt/recurring adjusted EBITDA LTM ratio of 1.80x₍₂₎.

The average interest rate for debt denominated in Argentine pesos at the end of Q2 2018 was 31.66%, while the average interest rate for debt denominated in U.S. dollars was 7.39%.

(1)	Includes investments in financial assets (government securities) of US$394 million at market value

(2)	Net Debt: US$7,627 million/Recurring adjusted EBITDA LTM: US$4,248 million = 1.80x


		Consolidated Results Q2 2018

5. TABLES AND NOTES

Q2 2018 Results


		Consolidated Results Q2 2018

5.1 CONSOLIDATED STATEMENT OF INCOME

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)


Q2 2017			Q1 2018			Q2 2018			Var.% Q2 18 / Q2 17				Jan-Jun 2017			Jan-Jun 2018			Var.% 2018 / 2017
	60,162			75,823			93,034			54.6	%	Revenues		117,165			168,857			44.1	%
	(49,675	)		(63,438	)		(81,966	)		-65.0	%	Costs		(95,473	)		(145,404	)		-52.3	%

	10,487			12,385			11,068			5.5	%	Gross profit		21,692			23,453			8.1	%

	(4,209	)		(5,181	)		(5,890	)		-39.9	%	Selling expenses		(8,096	)		(11,071	)		-36.7	%
	(2,001	)		(2,354	)		(2,951	)		-47.5	%	Administration expenses		(3,791	)		(5,305	)		-39.9	%
	(833	)		(323	)		(464	)		44.3	%	Exploration expenses		(1,426	)		(787	)		44.8	%
	22			12,827			(17	)		N/A		Other operating results, net		(402	)		12,810			N/A

	3,466			17,354			1,746			-49.6	%	Operating income (loss)		7,977			19,100			139.4	%


	92			214			(1,139	)		*N/A*		Income (loss) of interests in companies and joint ventures		114			(925	)		*N/A*

	3,001			7,899			46,126			1437.0	%	Finance Income		4,613			54,025			1071.1	%
	(2,720	)		(8,923	)		(24,326	)		-794.3	%	Finance Cost		(11,568	)		(33,249	)		-187.4	%
	658			1,142			1,027			56.1	%	Other financial results		733			2,169			195.9	%

	939			118			22,827			2331.0	%	Net financial results		(6,222	)		22,945			*N/A*

	4,497			17,686			23,434			-421.1	%	Net (loss) profit before income tax		1,869			41,120			2100.1	%

	(4,225	)		(11,700	)		(21,926	)		-419.0	%	Income tax		(1,405	)		(33,626	)		-2293.3	%

	272			5,986			1,508			454.4	%	Net (loss) profit for the period		464			7,494			1515.1	%

	60			(81	)		(485	)		N/A		Net (loss) profits for noncontrolling interest		227			(566	)		N/A

	212			6,067			1,993			840.1	%	Net (loss) profit for shareholders of the parent company		237			8,060			3300.8	%

	0.54			15.47			5.08			842.5	%	Earnings per share, basic and diluted		0.60			20.55			3307.3	%

	9,593			13,509			69,295			622.4	%	Other comprehensive Income		5,950			82,804			1291.7	%

	9,865			19,495			70,803			617.7	%	Total comprehensive income for the period		6,414			90,298			1307.8	%

	16,177			36,492			24,782			53.2	%	*Adj. EBITDA ()**		33,003			61,274			85.7	%

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

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


		Consolidated Results Q2 2018

5.2 CONSOLIDATED BALANCE SHEET

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Q2 2018 figures unaudited)


	12/31/2017		06/30/2018
Noncurrent Assets
Intangible assets		9,976		15,231
Properties, plant and equipment		354,443		531,888
Investments in companies and joint ventures		6,045		24,926
Assets held for disposal		8,823		—
Deferred tax assets, net		588		1,685
Other receivables		1,335		1,920
Trade receivables		2,210		17,874

Total Non-current assets		383,420		593,524


Current Assets
Inventories		27,149		40,903
Contract assets		142		296
Other receivables		12,684		21,473
Trade receivables		40,649		47,959
Investment in financial assets		12,936		11,346
Cash and equivalents		28,738		46,251

Total current assets		122,298		168,228


Total assets		505,718		761,752


Shareholders’ equity
Shareholders’ contributions		10,402		10,408
Reserves, other comprehensive income and retained earnings		141,893		232,459
Noncontrolling interest		238		(328	)

Total Shareholders’ equity		152,533		242,539


Noncurrent Liabilities
Provisions		54,734		84,577
Liabilities associated with assets held for disposal		4,193		—
Deferred tax liabilities, net		37,645		71,873
Contract liabilities		1,470		1,904
Other taxes payable		220		2,259
Loans		151,727		220,584
Other liabilities		277		412
Accounts payable		185		174

Total Noncurrent Liabilities		250,451		381,783


Current Liabilities
Provisions		2,442		2,869
Income tax payable		191		93
Contract liabilities		1,460		1,977
Other taxes payable		6,879		8,605
Salaries and social security		4,132		3,611
Loans		39,336		56,673
Other liabilities		2,383		699
Accounts payable		45,911		62,903

Total Current Liabilities		102,734		137,430


Total Liabilities		353,185		519,213


Total Liabilities and Shareholders’ Equity		505,718		761,752

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


		Consolidated Results Q2 2018

5.3 CONSOLIDATED STATEMENT OF CASH FLOW

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)


Q2 2017			Q1 2018			Q2 2018				Jan-Jun 2017			Jan-Jun 2018
									Operating activities
	272			5,986			1,508		Net income (loss)		464			7,494
	(92	)		(214	)		1,139		Income (loss) of interests in companies and joint ventures		(114	)		925
	11,972			18,714			22,689		Depreciation of property, plant and equipment		23,736			41,403
	202			247			314		Amortization of intangible assets		383			561
	1,315			1,466			1,548		Losses of property, plant and equipment and intangible assets and consumption of materials		2,184			3,014
	4,225			11,700			21,926		Income tax charge		1,405			33,626
	510			1,593			1,969		Net increase in provisions		2,181			3,562
	(1,024	)		37			(22,295	)	Interest, exchange differences and other		5,345			(22,258	)
	44			53			73		Stock compensation plans		70			126
	—			(11,980	)		—		Results due to revaluation of companies		—			(11,980	)
									Changes in assets and liabilities:
	(769	)		(4,230	)		(7,677	)	Trade receivables		1,125			(11,907	)
	(278	)		(4,835	)		1,489		Other receivables		2,897			(3,346	)
	(1,310	)		62			910		Inventories		(1,199	)		972
	(2,850	)		3,241			3,629		Accounts payable		(1,705	)		6,870
	(675	)		2,188			753		Other Taxes payable		1,444			2,941
	238			(863	)		277		Salaries and Social Security		(413	)		(586	)
	18			(1,930	)		457		Other liabilities		(932	)		(1,473	)
	(393	)		(383	)		(619	)	Decrease in provisions included in liabilities for payments / utilization		(666	)		(1,002	)
	(98	)		(112	)		(42	)	Contract Assets		(98	)		(154	)
	(1,694	)		871			80		Contract Liabilities		(1,694	)		951
	216			104			22		Dividends received		311			126
	(234	)		(289	)		(540	)	Income tax payments		(479	)		(829	)

	12,983			21,426			27,610		Net cash flow from operating activities		37,633			49,036


									Investing activities

	(13,104	)		(15,794	)		(18,105	)	Acquisitions of property, plant and equipment and Intangible assets		(27,678	)		(33,899	)
	(65	)		(280	)		(4	)	Contributions and acquisitions of interests in companies and joint ventures		(337	)		(284	)
	—			4,953			452		Collection for sale of financial assets		—			5,405
	3			—			—		Investment in financial assets		—			—
	503			—			293		Interest received from financial assets		511			293


	(12,663	)		(11,121	)		(17,364	)	Net cash flow from investing activities		(27,504	)		(28,485	)


									Financing activities

	(6,687	)		(9,435	)		(5,093	)	Payment of loans		(15,080	)		(14,528	)
	(3,208	)		(5,399	)		(4,964	)	Payment of interests		(8,577	)		(10,363	)
	11,291			8,666			7,481		Proceeds from loans		16,060			16,147
	(100	)		—			(120	)	Acquisition of own shares		(100	)		(120	)


	1,296			(6,168	)		(2,696	)	Net cash flow from financing activities		(7,697	)		(8,864	)


	415			636			5,190		Effect of changes in exchange rates on cash and equivalents		266			5,826

	2,031			4,773			12,740		Increase (decrease) in Cash and Equivalents		2,698			17,513

	11,424			28,738			33,511		Cash and equivalents at the beginning of the period		10,757			28,738
	13,455			33,511			46,251		Cash and equivalents at the end of the period		13,455			46,251


	2,031			4,773			12,740		Increase (decrease) in Cash and Equivalents		2,698			17,513


									COMPONENTS OF CASH AND EQUIVALENT AT THE END OF THE PERIOD

	5,438			12,325			5,318		Cash		5,438			5,318
	8,017			21,186			40,933		Other Financial Assets		8,017			40,933

	13,455			33,511			46,251		TOTAL CASH AND EQUIVALENTS AT THE END OF THE PERIOD		13,455			46,251

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


		Consolidated Results Q2 2018

5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION

(Unaudited, figures expressed in millions of pesos)


Q2 2018	Upstream		Gas & Power			Downstream			Corporate and Other			Consolidation Adjustments			Total
Revenues		496		22,185			69,892			1,486			(1,025	)		93,034
Revenues from intersegment sales		45,812		1,727			381			2,455			(50,375	)		—

Revenues		46,308		23,912			70,273			3,941			(51,400	)		93,034


Operating Income (loss)		2,868		849			361			(1,532	)		(800	)		1,746
Results of interest in companies and joint ventures		—		(1,138	)		(1	)		—			—			(1,139	)
Depreciation of property, plant and equipment		19,689		64			2,596			340			—			22,689
Impairment of property, plant and equipment and intangible assets		—		—			—			—			—			—
Acquisitions of fixed assets		16,099		196			2,673			370			—			19,338
Assets		374,150		78,776			238,447			77,758			(7,379	)		761,752


Q2 2017	Upstream			Gas & Power		Downstream		Corporate and Other			Consolidation Adjustments			Total
Revenues		78			14,808		45,406		483			(613	)		60,162
Revenues from intersegment sales		26,528			941		205		1,791			(29,465	)		—

Revenues		26,606			15,749		45,611		2,274			(30,078	)		60,162


Operating Income (loss)		(884	)		1,025		3,093		(535	)		767			3,466
Results of interest in companies and joint ventures		—			53		39		—			—			92
Depreciation of property, plant and equipment		10,079			65		1,621		207			—			11,972
Impairment of property, plant and equipment and intangible assets		—			—		—		—			—			—
Acquisitions of fixed assets		9,905			992		1,935		197			—			13,029
Assets as of December 31st, 2017		251,525			45,395		158,800		53,934			(3,936	)		505,718


		Consolidated Results Q2 2018

5.5 MAIN FINANCIAL MAGNITUDES IN U.S. DOLLARS

(Unaudited figures)


Million USD	2017 Q2			2018 Q1			2018 Q2			Var Q2 18 / Q2 17			2017 Jan-Jun			2018 Jan-Jun			Var 2018 / 2017
INCOME STATMENT
Revenues		3,837			3,858			3,963			3.3	%		7,484			7,821			4.5	%
Costs of sales		(3,168	)		(3,228	)		(3,491	)		-10.2	%		(6,098	)		(6,719	)		-10.2	%

Gross profit		669			630			471			-29.5	%		1,386			1,102			-20.5	%
Other operating expenses, net		(448	)		253			(397	)		11.3	%		(876	)		(144	)		83.5	%

Operating income		221			883			74			-66.4	%		510			957			87.8	%
Depreciation and impairment of property, plant &		764			952			966			26.6	%		1,516			1,919			26.5	%
equipment and intangible assets
Amortization of intangible assets		13			13			13			3.8	%		24			26			6.0	%
Unproductive exploratory drillings		34			9			1			-95.9	%		58			10			-82.0	%

Adj. EBITDA		1,032			1,857			1,056			2.3	%		2,108			2,912			38.1	%
Recurring Adj. EBITDA		1,032			1,247			1,056			2.3	%		2,108			2,303			9.2	%

UPSTREAM
Revenues		1,697			1,969			1,973			16.3	%		3,474			3,942			13.5	%
Operating income		(56	)		109			122			N/A			1			231			20172.8	%
Depreciation		643			829			839			30.5	%		1,278			1,668			30.5	%
Capital expenditures		632			663			686			8.6	%		1,236			1,349			9.1	%
Adj. EBITDA		621			948			962			55.0	%		1,338			1,910			42.8	%

DOWNSTREAM
Revenues		2,909			3,070			2,993			2.9	%		5,735			6,063			5.7	%
Operating income		197			204			15			-92.2	%		476			219			-54.0	%
Depreciation		103			106			111			7.0	%		204			216			6.1	%
Capital expenditures		123			64			114			-7.7	%		205			178			-13.4	%
Adj. EBITDA		301			310			126			-58.1	%		680			436			-36.0	%

GAS & ENERGY
Revenues		1,004			866			1,019			1.4	%		1,884			1,884			0.0	%
Operating income		65			623			36			-44.7	%		101			659			552.5	%
Depreciation		4			3			3			-34.2	%		8			6			-32.2	%
Capital expenditures		63			19			8			-86.8	%		124			28			-77.6	%
Adj. EBITDA		70			626			39			-44.1	%		109			665			508.1	%

CORPORATE AND OTHER
Operating income		(15	)		(50	)		(65	)		-343.0	%		(99	)		(116	)		-17.3	%
Capital expenditures		13			11			16			25.4	%		30			26			-13.7	%

CONSOLIDATION ADJUSTMENTS
Operating income		49			(3	)		(34	)		N/A			29			(37	)		N/A

*Average exchange rate of period*		*15.68*			*19.65*			*23.48*						*15.65*			*21.57*
*Exchange rate end of period*		*16.58*			*20.10*			*28.80*						*16.58*			*28.80*

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


		Consolidated Results Q2 2018

5.6 MAIN PHYSICAL MAGNITUDES

(Unaudited figures)


		2017										2018
	Unit	Q1		Q2		Q3		Q4		Cum. 2017		Q1		Q2		Cum. 2018
Production
Crude oil production	Kbbl		21,058		19,867		20,904		21,219		83,048		20,483		20,591		41,074
NGL production	Kbbl		4,923		4,680		4,469		4,309		18,381		4,228		3,781		8,009
Gas production	Mm3		4,076		4,056		4,057		3,893		16,082		3,935		4,004		7,939
Total production	Kboe		51,618		50,055		50,891		50,012		202,576		49,460		49,554		99,014

Henry Hub	USD/Mbtu		3.32		3.18		3.00		2.93		3.11		3.00		2.80		2.90
Brent	USD/Bbl		53.68		49.67		52.11		61.53		54.25		66.81		74.50		70.65
Sales
Sales of petroleum products
Domestic market
Gasoline	Km3		1,297		1,220		1,284		1,358		5,159		1,373		1,288		2,661
Diesel	Km3		1,792		1,954		1,981		2,025		7,752		1,870		2,023		3,893
Jet fuel and kerosene	Km3		134		117		140		143		534		135		125		260
Fuel Oil	Km3		220		264		121		37		642		7		10		17
LPG	Km3		152		241		189		159		741		146		185		331
Others (*)	Km3		357		377		406		408		1,548		381		416		797
Total domestic market	Km3		3,952		4,173		4,121		4,130		16,376		3,912		4,047		7,959
Export market
Petrochemical naphtha	Km3		57		23		46		58		184		24		44		68
Jet fuel and kerosene	Km3		135		123		139		142		539		141		136		277
LPG	Km3		115		39		70		98		322		194		91		285
Bunker (Diesel and Fuel Oil)	Km3		83		74		102		116		375		101		72		173
Others (*)	Km3		28		29		4		53		114		52		50		102
Total export market	Km3		418		288		361		467		1,534		512		393		905
Total sales of petroleum products	Km3		4,370		4,461		4,482		4,597		17,910		4,424		4,440		8,864
Sales of petrochemical products
Domestic market
Fertilizers	Ktn		35		39		139		111		324		38		85		123
Methanol	Ktn		57		84		73		99		313		69		93		162
Others	Ktn		116		130		125		129		500		138		115		253
Total domestic market	Ktn		208		253		337		339		1,137		245		293		538
Export market
Methanol	Ktn		1		2		1		2		6		24		75		99
Others	Ktn		42		51		53		55		201		36		63		99
Total export market	Ktn		43		53		54		57		207		60		138		198
Total sales of petrochemical products	Ktn		251		306		391		396		1,344		305		431		736
Sales of other products
Grain, flours and oils
Domestic market	Ktn		21		37		21		18		97		30		23		53
Export market	Ktn		159		291		331		253		1,034		169		236		405
Total Grain, flours and oils	Ktn		180		328		352		271		1,131		199		259		458
Main products imported
Gasolines and Jet Fuel	Km3		3		40		13		98		154		114		59		173
Diesel	Km3		152		230		77		85		544		111		161		272

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


		Consolidated Results Q2 2018

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

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

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

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

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

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

Investor Relations

E-mail: inversoresypf@ypf.com

Website: inversores.ypf.com

Macacha Güemes 515

C1106BKK Buenos Aires (Argentina)

Phone: 54 11 5441 1215

Fax: 54 11 5441 2113

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.