Argentina's YPF Scores Big Gains in Fourth-Quarter 2022

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Argentinian energy major YPF S.A. (NYSE:YPF) (Buenos Aires) reported net income of US$464 million for fourth-quarter 2022, a 69% increase from the same quarter in 2021. Net income for all of 2022 was a record US$2.23 billion, compared with US$16 million reported in 2021.

Higher international hydrocarbon prices, stronger production and positive refining levels were cited as factors in the increase.

On the upstream front, the energy company produced 232,000 barrels of oil per day (BBL/d) in the fourth quarter, about 7% more than in fourth-quarter 2021. Oil production for all of 2022 averaged 226,000 BBL/d, also 7% higher than in 2021.

Net shale oil production has been on the rise, representing 85,000 BBL/d in the fourth quarter. YPF's shale oil production averaged 77,000 BBL/d for all of 2022, or 234% more than in 2018, when non-conventional output stood at 23,000 BBL/d, and 45% higher than in 2021, when shale production was 53,000 BBL/d.

Shale oil output volumes in Argentina have risen over the last few years with the development of Vaca Muerta, the world's second-largest shale gas reserve and the fourth-largest non-conventional oil formation.

Last year, YPF completed 122 horizontal shale oil wells, slightly higher than the 107 wells registered in 2021, which shows the company's commitment to continue developing its assets in Vaca Muerta.

YPF's natural gas production stood at 225,000 barrels of oil equivalent per day in the fourth quarter. For all of 2022, output averaged 236,000 barrels of oil equivalent per day, about 5% more than in 2021.

YPF also reported a boost in refining utilization. In the fourth quarter, downstream throughput averaged 293,000 BBL/d or 89% of total capacity, and 4% higher than in fourth-quarter 2021. Overall refining utilization in 2022 averaged 87%, compared with 82% in the previous year.

YPF is the largest refiner in Argentina and operates three downstream assets. The three refineries are the 113,200-BBL/d Lujan de Cuyo refinery, the 205,000-BBL/d Complejo Industrial la Plata, and the 25,000-BBL/d Plaza Huincul complex.

The company also reported that it has been making progress on lithium exploration as it looks to invest in other types of energy. Argentina has the second-largest lithium reserves in the world with 20 million tons, according to the U.S. Geological Survey.

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