The state-controlled oil company YPF reported on Wednesday a net income of $756 million for the third quarter. This was 51% lower than the same period of 2011 and well below market expectations.
YPF was partly nationalised last May, when the Argentine government decided to expropriate 51% of YPF that was owned by the Spanish company Repsol, since they found they were not making sufficient investments to avoid a persistent decline in oil production.
Reuters reported, having consulted four independent analysts, an expected profit with a median of $902.5 million, with estimates ranging from $877.7 million to $932 million.
YPF said in conjunction with an application to the stock market regulator ”a delayed tax payment of $408 million affected the net income result”.
In the press release they also explained: “the comprehensive result, which considers the effects of the implementation of International Financial Reporting Standard (NIIF), reached $1,980 million, 3.2% lower than the result of 2011.”
Another reason, claims YPF, is the fact that the revenue for oil in the third quarter this year increased by $17,378 million: a 15.7% raise from the same time period 2011.
The higher costs were mainly due to “an increase in production with higher fuel prices and increased cleared volumes of fuel oil,” said the YPF, adding that “the cost of sales in the third quarter of 2012 were higher by 26.3% than the same period last year.”
During the last few years Argentina’s production of raw material and natural gas has collapsed due to the maturity of deposits and the lack of stimulating investments, despite economic growth, according to Reuter’s polled analysts.
I’ll bet CFK and the government wishes YPF was a ship about to be impounded in some obscure Third World country.