5.	SEGMENT INFORMATION

The different segments in which the Group is organized take into consideration the different activities from which the Group obtains income and incurs expenses. The aforementioned organizational structure is based on the way in which the highest decision-making authority analyzes the main financial and operating magnitudes for making decisions about resource allocation and performance assessment also considering the Group’s business strategy.

•

Upstream

The Upstream segment carries out all activities relating to the exploration, development and production of oil and natural gas.

Revenue is generated from (i) the sale of produced crude oil to the Downstream segment and, marginally, from its sale to third parties; (ii) the sale of produced gas to the Gas and Power segment.

•

Gas and Power

The Gas and Power segment generates its revenue from the development of activities relating to: (i) the natural gas commercialization to third parties and the Downstream segment, (ii) the commercial and technical operation of LNG regasification terminals in Bahía Blanca (until October 31, 2018) and Escobar, by hiring two regasification vessels, and (iii) the natural gas distribution.

Additionally, for the years ended December 31, 2017 and 2016, it included revenues derived from the generation of conventional and renewable electricity corresponding to YPF EE. See Note 3.

In addition to the proceeds derived from the sale of natural gas to third parties and the intersegment, which is then recognized as a “purchase” to the Upstream segment, and including Stimulus Plan for Natural Gas production in force (see Note 30.g), Gas and Power accrues a fee in its favor with the Upstream segment to carry out such commercialization.

•

Downstream

The Downstream segment develops activities relating to: (i) crude oil refining and petrochemical production, (ii) commercialization of refined and petrochemical products obtained from such processes, (iii) logistics related to the transportation of crude oil and gas to refineries and the transportation and distribution of refined and petrochemical products to be marketed in the different sales channels.

It obtains its income from the marketing mentioned in item (ii) above, which is developed through the Retail, Industry, Agro, LPG, Chemicals and Lubricants and Specialties businesses.

It incurs in all expenses relating to the aforementioned activities, including the purchase of crude oil from the Upstream segment and third parties and the natural gas to be consumed in the refinery and petrochemical industrial complexes from the Gas and Power segment.

•

Central Administration and Others

It covers other activities, not falling into the aforementioned categories, mainly including corporate administrative expenses and assets and construction activities.

Sales between business segments were made at internal transfer prices established by the Group, which generally seek to approximate market prices.

Operating profit and assets for each segment have been determined after consolidation adjustments.


	Upstream			Gas and Power			Downstream		Central Administration and Others			Consolidation Adjustments⁽¹⁾			Total
For the year ended December 31, 2018
Revenues from sales		3,108			91,176			338,042		8,363			(4,869	)		435,820
Revenues from intersegment sales		207,480			7,862			1,688		13,186			(230,216	)		—

Revenues		210,588			99,038			339,730		21,549			(235,085	)		435,820

Operating profit / (loss)		22,483			16,786	⁽⁴⁾		7,818		(6,055	)		2,748			43,780
Income / (loss) from equity interests in associates and joint ventures		—			4,435			404		—			—			4,839
Depreciation of property, plant and equipment		72,052	⁽³⁾		928			12,285		2,304			—			87,569
Recovery of property, plant and equipment⁽²⁾		2,900			—			—		—			—			2,900
Acquisition of property, plant and equipment		63,171			1,968			15,632		2,877			—			83,648
Assets		480,263			129,885			307,312		82,762			(6,206	)		994,016
For the year ended December 31, 2017
Revenues from sales		739			56,805			195,321		2,534			(2,586	)		252,813
Revenues from intersegment sales		115,955			4,075			988		7,133			(128,151	)		—

Revenues		116,694			60,880			196,309		9,667			(130,737	)		252,813

Operating profit / (loss)		3,877			3,259			15,813		(4,400	)		(2,476	)		16,073
Income / (loss) from equity interests in associates and joint ventures		—			634			794		—			—			1,428
Depreciation of property, plant and equipment		45,279	⁽³⁾		290			6,926		1,017			—			53,512
Recovery of property, plant and equipment⁽²⁾		5,032			—			—		—			—			5,032
Acquisition of property, plant and equipment		39,411			3,867			8,179		1,639			—			53,096
Assets		251,525			45,395			158,800		53,934			(3,936	)		505,718
For the year ended December 31, 2016
Revenues from sales		18,745			26,514			162,538		2,303			—			210,100
Revenues from intersegment sales		95,398			3,212			925		7,447			(106,982	)		—

Revenues		114,143			29,726			163,463		9,750			(106,982	)		210,100

Operating profit / (loss)		(26,845	)		2,008			3,093		(1,615	)		(887	)		(24,246	)
Income / (loss) from equity interests in associates and joint ventures		(1	)		302			287		—			—			588
Depreciation of property, plant and equipment		38,125			290			5,507		830			—			44,752
Impairment of property, plant and equipment and intangible assets⁽²⁾		34,943	⁽³⁾		—			—		—			—			34,943
Acquisition of property, plant and equipment		51,396			2,134			9,839		1,679			—			65,048
Assets		236,173			25,866			125,536		34,739			(1,175	)		421,139

(1)	Corresponds to the elimination among segments of the YPF Group.

(2)	See Notes 2.c. and 8.

(3)	Includes depreciation of charges for impairment of property, plant and equipment.

(4)	Includes the result for revaluation of the interest in YPF EE. See Note 3.

The distribution of revenues by geographic area, according to the markets for which they are intended, for the years ended on December 31, 2018, 2017 and 2016, and property, plant and equipment by geographic area as of December 31, 2018, 2017 and 2016 are as follows:


	Revenues						Property, plant and equipment
	2018		2017		2016		2018		2017		2016
Argentina		390,892		230,728		193,707		698,222		353,868		307,350
Mercosur and associated countries		20,056		8,694		7,964		865		575		664
Rest of the world		15,711		8,785		6,142		—		—		—
Europe		9,161		4,606		2,287		—		—		—

		435,820		252,813		210,100		699,087		354,443		308,014

Intangible assets are mainly geographically located in Argentina.

As of December 31, 2018, no foreign client represents 10% or more of the Group’s revenue from its ordinary activities.