Post by : Badri Ariffin

Argentina’s state-controlled energy giant YPF reported a net loss of $198 million in the third quarter, the company announced Friday. The loss was mainly driven by a deferred tax charge, highlighting ongoing financial pressures even as the company pushes its shale ambitions.

Revenues for the July-to-September period fell 12% year-on-year to $4.64 billion, slightly below analysts’ estimates of $4.76 billion. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), a key measure of profitability, stood at $1.36 billion, down 1% from the same period last year.

Total hydrocarbon production declined by 6% to 523,100 barrels per day, reflecting broader operational challenges. However, shale oil production showed a remarkable surge, jumping 35% year-on-year to average 170,000 barrels per day. In October alone, YPF set a new record, reaching 190,000 barrels per day from its shale operations, which now contribute 70% of the company’s total oil output.

The Vaca Muerta formation in western Argentina, home to the company’s shale operations, remains central to Argentina’s energy strategy. Despite only 8% of the formation being under development, it accounts for 64% of the nation’s oil production, making it critical for Argentina’s goal of becoming a net energy exporter.

In downstream operations, YPF maintained refinery utilization at 97%, with domestic fuel sales rising 3% from the previous quarter as the company gained market share.

While the quarterly loss reflects short-term financial adjustments, the company’s continued growth in shale production underscores its role in Argentina’s broader economic ambitions and energy independence strategy.

#Global News #Business News