YPF's earnings could be affected by lower crude oil prices
A Friday presentation to investors revealed that the state-owned oil company in Argentina could have its core earnings fall this year due to lower crude prices.
According to the firm's current estimates, its earnings before interest taxes depreciation amortization (EBITDA), in 2025, will range from $5.2 billion to $5.5 billion assuming Brent crude at $72.5 per barrel.
The firm estimates that if crude sold for $60 per barrel, projected EBITDA would drop to between $4.2 and $4.5 billion.
The price of crude oil has been volatile this week, as traders have had to re-evaluate the risks in the market due to U.S. Tariffs.
Prices are a little higher than usual.
Ticked off
Brent futures settled up 2.26% at $64.76 a barrel on Friday after U.S. Energy Sec. Chris Wright suggested that Washington might take action to halt Iran’s oil exports. This stoked concerns about global supply.
YPF said that its business operations remain resilient in these uncertain times in a New York presentation to investors.
Horacio Marin, the CEO of Vaca Muerta in Argentina, said earlier this week that the formation could be a game changer.
Profitably develop
Even with lower crude oil prices.
YPF divests from mature oilfields to focus its investments on Vaca Muerta. This is the world's largest unconventional gas reserve, and fourth largest oil reserve.
YPF is expecting to invest between $5 billion and $6 billion this year. 66% of that money will go towards shale. By 2030, this should amount to $5.4 billion with 88% going towards shale. (Reporting and editing by Eliana Razewski, Kylie Madry, and Natalia Siniawski).
(source: Reuters)
