YPF Sociedad Anonima

Hello, greetings, and welcome to the YPF third quarter 2024 earnings webcast presentation. All participants are in a listen-only mode at this time. Later, we will conduct a question and answer session. To ask a question, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, just press star one. As a reminder, this conference is being recorded. At this time, I would like to turn the conference over to Margarita Chu, YPF's IR Manager. Please go ahead.

Good morning, ladies and gentlemen. This is Margarita Chun, YPF IR Manager. Thank you for joining us today in our third quarter 2024 EARNEST Call. This presentation will be conducted by our CFO, Mr. Federico Barretta-Veña, and our Strategy, New Businesses, and Controlling Vice President, Mr. Maximiliano Weston. During the presentation, we will go through the main aspects and events that explain the quarter results. And then we will open the floor for Q&A session, together with our CEO, Mr. Horacio Marín. Before we begin, please consider our cautionary statement on slide two. Our remarks today and answer to our questions may include forward-looking statements, which are subject to risk 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 presentation we might discuss some non-IFRS measures, such as Adjust the EVTA. I will now turn the call over to Federico. Please go ahead.

Thank you, Margarita, and good morning, everyone. Let me start today's presentation by describing the main highlights of Q3 2024. First of all, We achieved a strong level of EBITDA, 13% up sequentially and even higher, 47% up interannually, despite the recent rain contraction and the extreme weather conditions in Patagonia during July that affected our conventional production. This positive result reflects the company's dedicated efforts since December and along this year to fully converge local fuel prices to international parity, in parallel with our focus on production efficiencies in our core asset, Vaca Muerta, where we can now share improved process and efficiency metrics across all the businesses. As a result of this, we produced 36% more shale oil than Q3 last year, now representing almost half of our total production. Very important and in line with this inter-annual expansion, we became the largest oil exporter in the country, exporting roughly 40,000 barrels per day. We also made progress in the development of the key infrastructure project, Vaca Muerta South Oil Pipeline, also known as VEMOS, that YPF is leading as a producer's consortium export initiative. Also, we advanced further with the Andes project, and Max will share further details later. Now, let's move on to the quarter's result. Revenues reached $5.3 billion, 7% up sequentially, mainly driven by higher seasonal sales of gas, as well as growing oil exports to Chile and better fuel prices, which was boosted by higher gasoline demand. These effects were partially upset by contraction in diesel demand and oil prices, in addition to lower conventional production due to our Patagonia's operations affected by the extreme climate until early August. Interannually, revenues increased by 18%, mostly on the back of a rebound in fuel prices, plus even higher oil exports, partially upset by lower fuel demand, which was exceptionally high last year in view of reduced prices. Adjusted EVDA totaled almost $1.4 billion, 13% up sequentially, primarily due to the higher seasonal sales of gas, coupled with higher shale hydrocarbon production and better fuel prices, partially offset by higher costs related to Patagonia's weather condition and cost inflation, besides lower export prices linked to Brent. Interannually, the increase was remarkable, growing the adjusted VDA by 47%, mainly boosted by the significant recovery of fuel prices, in addition to 29% expansion in shale hydrocarbon output combined with lower imports of fuel partially offset by higher costs and the weather impact mentioned before. Net result grew significantly, posting roughly $1.5 billion almost three times the previous quarter, mainly due to a positive income tax on the back of a lower devaluation expected for tax assets so decreasing future tax payable. Interannually, besides this impact, the increase was even higher since Q3 last year was affected by an impairment charge in natural gas assets. Total hydrocarbon production averaged 559,000 barrels of oil equivalent per day, rising 4% sequentially and 8% interannually. driven by a solid performance in our shale operations, which is our core business and focus since last December. This was partially upset by lower conventional output due to the conditions in Patagonia. In terms of investments, we deployed near $1.4 billion, 13% up sequentially, mostly on the back of higher activities in the upstream to ramp up shale oil production. Interannually, CAPEX was 7% down, mainly due to last year's inflationary context. Notably, 73% of the quarter's investment was concentrated in the upstream, mostly for shale oil operations. On the financial side, we reported a negative free cash flow of $173 million, although the adjusted VDA was similar to the deployment OF OUR CAPEX, Q3 WAS MAINLY AFFECTED BY HIGHER DEBT SERVICE PAYMENT, PARTIALLY UPSET BY A GROWING ACTIVITY IN ABSTRAINED BUSINESS, TEMPORARILY INCREASING ACCOUNTS PAIL. AS A RESULT, WE MAINTAINED NET DEBT AT $7.5 BILLION, BUT IMPROVED NET LEVERAGE RATIO TO 1.5 TIMES, FULLY ALIGNED WITH THE TARGET OF THE YEAR. Turn the call to Max to continue with the quarters operating performance.