Martin Bidegaray
08/11/2020 - 9:31
- Clarín.com
- Economy
- Economy
The pandemic caused unprecedented falls for YPF, the main company in the country. The oil company lost more than $ 83 billion between April and June , a record figure. The company will explain to investors on Tuesday its plans to improve their accounts. One of the objectives that you will seek a 30% reduction in your costs.
To preserve itself during the pandemic, YPF paralyzed investment and took it to lows not seen in a decade. In the second quarter it only disbursed US $ 162 million , which represents a drop of 82% compared to the US $ 915 million it allocated to investments in the same period of 2019. Before the pandemic, it had invested US $ 598 million in the first quarter of the year.
The company will narrate on Tuesday how it behaved between April and June. It will also detail the cost reduction plan, characterized as "unprecedented" in the presentation that investors will see. The goal is to reduce your outlays by 30%. It is believed that analysts will also ask about the impending increase in the price of fuels , which could help generate more revenue.
YPF's main objectives are “the optimization of the company's structure” , through the decentralization of operations, which will allow improving efficiencies, as stated. There will be a "review of contracts with all providers." There, criteria will be established for the review of 11,000 contracts.
" Temporary wage reduction and voluntary retirements" is another aspect that they will explain. That provision is for non-unionized workers. Employees outside the agreement have already suffered a salary cut. The possibility of leaving the company is open through some incentives.
Guillermo Pereyra, who commands the Neuquén oil and gas union, spread expressions contrary to an agreement with the company. "There was a negotiation in the working conditions with the unions", will raise the YPF staff, who will advise that there is already an agreement with the unions in Santa Cruz, Mendoza and Chubut.
YPF's sales fell by almost half (47%) between the second quarter of 2020 versus the same period in 2019. Its cash went from US $ 3,672 million to US $ 1,947 million. Revenues fell 31% compared to the first quarter, when they harvested $ 2,832 million.
The company's costs also fell, but at a slower rate than revenues. Operating expenses fell from US $ 2,721 million in the second quarter of 2019 to US $ 1,786 million in that period of 2020. In the first quarter, costs were US $ 1,975 million. The difference between the first quarter of 2020 (until mid-March there was no lockdown) and the second is 10%.
“The investment was adjusted to preserve liquidity”, they will point out to defend the scarce US $ 162 million that YPF used in this last quarter. The company took on debt for US $ 400 million, to take advantage of "efficient conditions in the local market."
YPF noted "market concern" about short-term maturities. That is why they launched a debt swap, which had a 58.7% acceptance rate.
The ratio of debt to Ebitda (gross profit) is 2.9. In other words, the company should allocate 3 times its gross profits to be able to meet its commitments.
All YPF numbers are made at an official exchange rate of $ 70.36. Any significant devaluation would complicate your ability to pay your obligations. Analysts often suggest that price recomposition is the best way to weather exchange jumps. But that political decision generates controversies in the Government.