Argentina’s YPF beats expectations as Q3 profit backed by output, price increases

(Reuters) – Argentine state oil company YPF blew past expectations with a third-quarter net profit of $1.47 billion posted on Thursday, boosted by increases in output and prices of oil and natural gas.

Analysts polled by LSEG expected YPF to post a much smaller net profit of $312 million, but still reversing its year-ago loss of $128 million.

YPF’s revenues were up 18% year-on-year to $5.30 billion, also above the LSEG consensus of $4.84 billion.

YPF, one of Argentina’s top fuel suppliers, boosted its total output around 8% from the year-ago period.

Crude production was also up 8% while natural gas production climbed 7%. Prices of each increased 13% and 4% respectively.

YPF operates the Vaca Muerta shale formation, one of the biggest in the world, which it hopes can help the country boost production to eventually become a net energy exporter and replenish the country’s foreign reserves.

Shale output climbed 36% year-over-year, YPF said, while it also cut its local fuel sales and fuel imports.