YPF Sociedad Anonima

Ladies and gentlemen, good morning. My name is Abby and I will be your conference operator today. I would like to welcome everyone to the YPS third quarter 2022 earnings call. Today's call is being recorded and all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, just simply press star one once again. Thank you. And I will now turn the conference over to Pablo Calderone. You may begin your conference.

Good morning, ladies and gentlemen. This is Pablo Calderone, YPF IR Manager. Thank you for joining us today in our third quarter 2022 earnings call. This presentation will be conducted by our CEO, Pablo Giuliano, and our CFO, Alejandro Leo. During the presentation, we will go through the main aspects and events that explain our third quarter results. And finally, we will open up the call for questions. Before we begin, I would like to draw your attention to our customer statement on slide two. Please take into consideration that our remarks today and answer to your question may include forward-looking statements, which are subject to risk and answer that could cause actual result to be materially different from the expectations contemplated by these remarks. Also, know the exchange rate using calculations to reach our main financial figures in US dollars. Our financial figures are stated in accordance with RFRS, but during the call, we might discuss some non-RFRS measures such as adjusted EBITDA. I will now turn the call to Pablo. Please go ahead.

Thank you, Pablo, and good morning to you all. Let me start highlighting that this was another robust quarter in which we continue delivering solid operational and financial results, remaining on track to meet our ambitious target for the year. We maintain healthy profitability levels, gaining further operating efficiency, and consolidating the tremendous progress that has been achieved in our unconventional operation. During the third quarter, total hydrocarbon production remained stable when compared to the previous quarter, but has accumulated a very healthy growth of about 9% comparing the first nine months of 2022 with the same period of last year, primarily as a result of very positive performance in our shale operations. Objective Eritrea remains strong. reaching the $1.5 billion quarterly mark for the second quarter in a row, representing an increase of 50% on a year-over-year basis. Interannual improvement continues being the result of the increased hydrocarbon production levels, coupled with improvement pricing across our business segments, and partially offset by an increase in total OPEX, mostly driven by cost pressure in local currency that continues to run higher than the ESX depreciation. The solid operating results permitted our bottom line to come in positive territory once again, with net income reaching $678 million, accumulating over $1.7 billion during the first nine months of the year. In terms of our investment activities, we continue ramping up our CAPEX expanding 27% on a sequential basis and 71% when compared with the same quarter of the last year, totaling close to $1.2 billion in the quarter and accumulating $2.9 billion as of September, being on track to fully deploy our updated target for the year. On the financial side, pre-cash flow was positive once again for 10 consecutive quarter at $262 million, accumulating close to $1 billion year-to-date. This translated into further strengthening of our balance sheet as our net debt declined to $5.7 billion pushing our net leverage ratio down below 1.2 times, the lowest mark since the second quarter of 2015. On a final note, let me briefly comment on the recent presidential decree in relation to the expansion of Plant Gas 4 and a potential new Plant Gas 5. We expected that this important step towards will reduce the country needs to import LNG in coming years, based on the availability of a new evacuation capacity once Néstor Pichner pipeline is up and running. Also provides further stability and price signaling to continue incentivizing the profitable development of our vast natural gas reserves. In summary, we have continued advancing towards achieving the targets that we set for this year. delivering on financial and operating results while we continue to strengthen and prepare YPF for new and even more challenging goals for the future. I now turn to Alejandro to go through same details of our operating and financial results for the quarter.