YPF Sociedad Anonima

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the YPF first quarter 2023 earnings webcast. 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 at that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. It's now my pleasure to turn today's call over to Pablo Calderone, the Investor Relations Manager. Sir, please go ahead.

Good morning, ladies and gentlemen. This is Pablo Calderone, YPS IR Manager. Thank you for joining us today in our first quarter 2023 earnings call. This presentation will be conducted by our CEO, Pablo Yudiliano, and our CFO, Alejandro Leo. During the presentation, we will go through the main aspects and events that explain our first quarter results. And finally, we will open up the call for questions. Before we begin, I would like to draw your attention to our questionnaire statement on slide 2. Please take into consideration that our remarks today and answer to your questions may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by these remarks. Our financial figures are stated in accordance with IFRS, but during the call, we might discuss some non-IFRS measures, such as adjusted EBITDA. I will now turn the call to Pablo. Please, Pablo, go ahead.

Thank you, Pablo, and good morning to you all. We are glad to report a solid beginning of the year across our operational and financial metrics, where our total hydrocarbon production continued with a positive trend, bringing to market over 511,000 barrels of oil equivalent per day. representing an increase of 2% on a sequential basis and 1% when compared with the same period of 2022. Moreover, I would like to highlight the evolution of our crude oil production, which as commented during our strategic outlook presented a few weeks ago, is the focus of our short-term growth strategy. recording a 3% sequential increase and a robust 7% interannual expansion. Adjusted EBITDA remained strong in the quarter, surpassing once again the $1 billion mark, expanding 12% from the previous quarter and 5% on a year-over-year basis. Sequential improvements come as a result of higher hydrocarbon production and higher processing levels at our refineries. Accompanied also by lower OPEX, partially offset by lower realization prices of our refinery products when comparing to the previous quarter. The solid operating results permit our bottom line to come in positive territory once again. with net income reaching $341 million in Q1. In terms of our investment activities, we started the year investing $1.3 billion, 78% higher than the first quarter of 2022. On track to meet our ambitious plan for the year, where the main focus was once again directed to shale operations, which concentrated more than 50% of the total investment. On the financial side, free cash flow was almost flat during the first quarter at a negative $17 million, stacking our net debt to $6 billion, resulting in a flat net leverage ratio at 1.2 times. On a final note, Let me briefly comment on the positive recent developments related to the international legal contingencies. In the Peterson and Eaton Park case on March 31, the New York court found that YPF has not contractual liability and always no damage to the claimants and according dismissed plaintiffs claim against YPF. We believe this ruling to be of significant value to dissipate to a large extent our potential contingencies and should plaintiffs appeal the decision. YPF will continue to defend itself in accordance with applicable law. In the Maxus case on April 6th, YPF and Repsol signed a settlement agreement with the Maxus Settlement Trust providing for a full release and discharge of all claims in exchange for payment of $287.5 million each, subject to the satisfaction or waiver of certain conditions, including court approvals and other procedural events. We are convinced that these legal decisions represent a fair and reasonable outcome for YPL. and will allow the company to continue focusing on generating value for all our stakeholders. In summary, we are pleased with the result achieved during first Q23, and although we know it is a year full of challenges, we believe we have taken the initial step to deliver on the ambitious goals we set for the year. I now turn to Alejandro to go through some further details of our operating and financial results for the quarter.