Form 6-K

6-K 1 d719874d6k.htm FORM 6-K Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of May, 2019

Commission File Number: 001-12102

YPF Sociedad Anónima

(Exact name of registrant as specified in its charter)

Macacha Güemes 515

C1106BKK Buenos Aires, Argentina

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ☐ No ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ☐ No ☒

LOGO

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS AS OF MARCH 31, 2019

AND COMPARATIVE INFORMATION (UNAUDITED)

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

CONTENT


Note	Description	Page
	Glossary of terms	1
	Legal Information	2
	Condensed interim consolidated statements of financial position	3
	Condensed interim consolidated statements of comprehensive income	4
	Condensed interim consolidated statements of changes in shareholders’ equity	5
	Condensed interim consolidated statements of cash flow	7
	Notes to the condensed interim consolidated financial statements:
1	General information, structure and organization of the business of the Group		8
2	Basis of preparation of the condensed interim consolidated financial statements		9
3	Seasonality of operations		13
4	Acquisitions and disposals		13
5	Financial risk management		13
6	Segment information		14
7	Financial instruments by category		16
8	Intangible assets		17
9	Property, plant and equipment		17
10	Right-of-use assets		20
11	Investments in associates and joint ventures		20
12	Inventories		24
13	Other receivables		24
14	Trade receivables		24
15	Cash and cash equivalents		25
16	Provisions		25
17	Income Tax		26
18	Lease liabilities		28
19	Loans		29
20	Other liabilities		31
21	Accounts payable		31
22	Revenues		31
23	Costs		33
24	Expenses by nature		34
25	Other net operating results		35
26	Net financial results		35
27	Investments in joint operations		35
28	Shareholders’ equity		36
29	Earnings per share		36
30	Issues related to Maxus Entities		36
31	Contingent assets and contingent liabilities		37
32	Contractual commitments		38
33	Main regulations and others		38
34	Balances and transactions with related parties		41
35	Employee benefit plans and similar obligations		43
36	Assets and liabilities in currencies other than the Peso		44
37	Subsequent events		45


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

GLOSSARY OF TERMS


Term		Definition
ADR		American Depositary Receipt
ADS		American Depositary Share
AESA		Subsidiary A-Evangelista S.A.
AFIP		Argentine Tax Authority
ASC		Accounting Standards Codification
Associate		Company over which YPF has significant influence as provided for in IAS 28
BNA		Banco de la Nación Argentina
BO		Official Gazette of the Argentine Republic
BONAR		Argentine public bonds
CAMMESA		Compañía Administradora del Mercado Mayorista Eléctrico S.A.
CDS		Associate Central Dock Sud S.A.
CIMSA		Subsidiary Compañía de Inversiones Mineras S.A.
CNDC		Argentine Antitrust Authority
CNV		Argentine Securities Commission
CSJN		Argentine Supreme Court
Condensed interim consolidated financial statements		Condensed interim consolidated financial statements as of March 31, 2019
DOP		Deliver or pay
EBITDA		Earnings before Interest, Tax, Depreciation and Amortization
Eleran		Subsidiary Eleran Inversiones 2011 S.A.U.
ENARGAS		Argentine National Gas Regulatory Authority
FACPCE		Argentine Federation of Professional Councils in Economic Sciences
FOB		Free on Board
Group		YPF and its subsidiaries
IAS		International Accounting Standard
IASB		International Accounting Standards Board
IEASA (former ENARSA)		Integración Energética Argentina S.A. (former Energĺa Argentina S.A.)
IFRIC		International Financial Reporting Interpretations Committee
IFRS		International Financial Reporting Standard
IDS		Associate Inversora Dock Sud S.A.
INDEC		National Institute of Statistics and Census
IVA		Value Added Tax
Joint venture		Company jointly owned by YPF as provided for in IFRS 11
JO		Joint operation
LGS		Argentine General Corporations Law No. 19,550 (T.O. 1984), as amended
LNG		Liquified natural gas
LPG		Liquefied Petroleum Gas
MEGA		Joint venture Compañía Mega S.A.
Metroenergía		Subsidiary Metroenergía S.A.
Metrogas		Subsidiary Metrogas S.A.
MINEM		Ministry of Energy and Mining
MMBtu		Million British thermal units
NO		Negotiable Obligations
Oiltanking		Associate Oiltanking Ebytem S.A.
Oldelval		Associate Oleoductos del Valle S.A.
OPESSA		Subsidiary Operadora de Estaciones de Servicios S.A.
OTA		Associate Oleoducto Trasandino (Argentina) S.A.
OTC		Associate Oleoducto Trasandino (Chile) S.A.
PEN		National Executive Power
Peso		Argentine Peso
Profertil		Joint Venture Profertil S.A.
Refinor		Joint Venture Refinería del Norte S.A.
SEC		U.S. Securities and Exchange Commission
SGE		Government Secretariat of Energy
Subsidiary		Company controlled by YPF in accordance with the provisions of IFRS 10
Termap		Associate Terminales Marítimas Patagónicas S.A.
TSEP		Access point to the Transportation System
US$		U.S. dollar
US$/Bbl		U.S. dollar per barrel
Y-GEN I		Joint venture Y-GEN Eléctrica S.A.U.
Y-GEN II		Joint venture Y-GEN Eléctrica II S.A.U.
YPF Brasil		Subsidiary YPF Brasil Comércio Derivado de Petróleo Ltda.
YPF Chile		Subsidiary YPF Chile S.A.
YPF EE		Joint Venture YPF Energía Eléctrica S.A.
YPF Gas		Associate YPF Gas S.A.
YPF Holdings		Subsidiary YPF Holdings, Inc.
YPF International		Subsidiary YPF International S.A.
YPF or the Company		YPF Sociedad Anónima
YTEC		Subsidiary YPF Tecnología S.A.


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

LEGAL INFORMATION

Legal address

Macacha Güemes 515 – Ciudad Autónoma de Buenos Aires, Argentina

Fiscal year number 43

Beginning on January 1, 2019

Principal business of the Company

The Company’s purpose shall be to perform, on its own, through third parties or in association with third parties, the exploration, development and production of oil, natural gas and other minerals and refining, marketing and distribution of oil and petroleum products and direct and indirect petroleum derivatives, including petrochemicals, chemicals, including those derived from hydrocarbons, and non-fossil fuels, biofuels and their components, as well as production of electric power from hydrocarbons, through which it may manufacture, use, purchase, sell, exchange, import or export them. It shall also be the Company’s purpose to render, directly, through a subsidiary or in association with third parties, telecommunications services in all forms and modalities authorized by the legislation in force after applying for the relevant licenses as required by the regulatory framework, as well as the production, industrialization, processing, commercialization, conditioning, transportation and stockpiling of grains and products derived from grains, as well as any other activity complementary to its industrial and commercial business or any activity which may be necessary to attain its objective. In order to fulfill these objectives, the Company may set up, become associated with or have an interest in any public or private entity domiciled in Argentina or abroad, within the limits set forth in the Bylaws.

Filing with the Public Registry

Bylaws filed on February 5, 1991 under No. 404, Book 108, Volume “A”, Sociedades Anónimas, with the Public Registry of Buenos Aires City, in charge of the Argentine Registrar of Companies (Inspección General de Justicia); and Bylaws in substitution of previous Bylaws, filed on June 15, 1993, under No. 5109, Book 113, Volume “A”, Sociedades Anónimas, with the above mentioned Registry.

Duration of the Company

Through June 15, 2093.

Last amendment to the Bylaws

April 29, 2016 registered with the Argentine Registrar of Companies (Inspección General de Justicia) on December 21, 2016 under No. 25,244, Book 82 of Corporations.

Capital structure

393,312,793 shares of common stock, Pesos 10 par value and 1 vote per share.

Subscribed, paid-in and authorized for stock exchange listing (in Pesos)

3,933,127,930

MIGUEL ANGEL GUTIERREZ

President

English translation of the financial statements originally filed in Spanish with the Argentine Securities Commission (“CNV”). In case of discrepancy, the financial statements filed with the CNV prevail over this translation.


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS OF MARCH 31, 2019 AND DECEMBER 31, 2018 (UNAUDITED)
(Amounts expressed in millions of Pesos)


			March 31,		December 31,
	Notes		2019		2018
ASSETS
Noncurrent Assets
Intangible assets		8		23,347		20,402
Property, plant and equipment		9		799,914		699,087
Right-of-use assets		10		26,459		—
Investments in associates and joint ventures		11		39,395		32,686
Deferred income tax assets, Net		17		433		301
Other receivables		13		10,298		9,617
Trade receivables		14		22,581		23,508

Total noncurrent assets				922,427		785,601

Current Assets
Assets held for disposal				2,372		3,189
Inventories		12		65,860		53,324
Contract assets		22		538		420
Other receivables		13		25,091		21,867
Trade receivables		14		78,111		72,646
Investment in financial assets		7		11,564		10,941
Cash and cash equivalents		15		56,599		46,028

Total current assets				240,135		208,415

TOTAL ASSETS				1,162,562		994,016

SHAREHOLDERS’ EQUITY
Shareholders’ contributions				10,620		10,518
Reserves, other comprehensive income and retained earnings				396,359		348,682

Shareholders’ equity attributable to shareholders of the parent company				406,979		359,200

Non-controlling interest				3,664		3,157

TOTAL SHAREHOLDERS’ EQUITY				410,643		362,357

LIABILITIES
Noncurrent Liabilities
Provisions		16		106,603		83,388
Deferred income tax liabilities, net		17		98,694		91,125
Contract liabilities		22		1,778		1,828
Income tax liability		17		4,300		—
Taxes payable				2,085		2,175
Lease liabilities		18		15,371		—
Loans		19		307,414		270,252
Other liabilities		20		560		549
Accounts payable		21		3,329		3,373

Total noncurrent liabilities				540,134		452,690

Current Liabilities
Liabilities associated with assets held for disposal				1,853		3,133
Provisions		16		5,001		4,529
Contract liabilities		22		3,929		4,996
Income tax liability		17		5,571		357
Taxes payable				12,688		10,027
Salaries and social security				5,487		6,154
Lease liabilities		18		11,305		—
Loans		19		75,868		64,826
Other liabilities		20		897		722
Accounts payable		21		89,186		84,225

Total current liabilities				211,785		178,969

TOTAL LIABILITIES				751,919		631,659

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY				1,162,562		994,016

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

MIGUEL ANGEL GUTIERREZ

President


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2019 AND 2018 (UNAUDITED)
(Amounts expressed in millions of Pesos, except per share information, expressed in Pesos)


			For the three-month period ended March 31,
Net income	Notes		2019			2018
Revenues		22		130,907			75,823
Costs		23		(104,754	)		(63,438	)

Gross profit				26,153			12,385

Selling expenses		24		(9,820	)		(5,181	)
Administrative expenses		24		(4,768	)		(2,354	)
Exploration expenses		24		(1,521	)		(323	)
Other net operating results		25		587			12,827

Operating profit				10,631			17,354

Income from equity interests in associates and joint ventures		11		1,559			214
Financial income		26		25,343			7,899
Financial loss		26		(19,997	)		(8,923	)
Other financial results		26		2,677			1,142

Net financial results		26		8,023			118

Net profit before income tax				20,213			17,686

Income tax		17		(28,366	)		(11,700	)

Net (loss) / profit for the period				(8,153	)		5,986

Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Translation differences from subsidiaries, associates and joint ventures				(1,991	)		(398	)
Result from net monetary position in subsidiaries, associates and joint ventures⁽¹⁾				2,341			—
Exchange differences reversed to profit for the period⁽²⁾				—			1,572
Items that may not be reclassified subsequently to profit or loss:
Translation differences from YPF				55,987			12,335

Other comprehensive income for the period				56,337			13,509

Total comprehensive income for the period				48,184			19,495

Net profit / (loss) for the year attributable to:
Shareholders of the parent company				(8,185	)		6,067
Non-controlling interest				32			(81	)
Other comprehensive income for the period attributable to:
Shareholders of the parent company				55,862			13,509
Non-controlling interest				475			—
Total comprehensive income / (loss) for the period attributable to:
Shareholders of the parent company				47,677			19,576
Non-controlling interest				507			(81	)
Earnings per share attributable to shareholders of the parent company
Basic and Diluted		29		(20.86	)		15.47

(1)	Result associated to subsidiaries, associates and joint ventures with the Peso as functional currency. See accounting policy in Note 2.b.1 to the annual consolidated statements.

(2)	Corresponds to reversal to net profit for the period, for the partial disposal of the investment in YPF EE. See Note 3 to the annual consolidated statements.

Accompanying notes are an integral part of these condensed interim consolidated financial statements

MIGUEL ANGEL GUTIERREZ

President


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2019 AND 2018 (UNAUDITED)
(Amounts expressed in millions of Pesos)


	For the three-month period ended March 31, 2019
	Shareholders’ contributions
	Subscribed capital		Adjustment to contributions		Treasury shares			Adjustment to treasury shares			Share-based benefit plans			Acquisition cost of treasury shares		Share trading premium			Issuance premiums		Total
Balance at the beginning of the fiscal year		3,923		6,084		10			17			115			11		(282	)		640		10,518
Accrual of share-based benefit plans⁽³⁾		—		—		—			—			103			—		—			—		103
Settlement of share-based benefit plans⁽²⁾		1		1		(1	)		(1	)		(53	)		68		(16	)		—		(1	)
Other comprehensive income		—		—		—			—			—			—		—			—		—
Net loss		—		—		—			—			—			—		—			—		—

Balance at the end of the period		3,924		6,085		9			16			165			79		(298	)		640		10,620


	Reserves																Equity attributable to
	Legal		Future dividends		Investments		Purchase of treasury shares		Initial IFRS adjustment		Other comprehensive income			Retained earnings			Shareholders of the parent company			Non- controlling interest		Total shareholders’ equity
Balance at the beginning of the fiscal year		2,007		—		11,020		220		—		297,120			38,315			359,200			3,157		362,357
Accrual of share-based benefit plans⁽³⁾		—		—		—		—		—		—			—			103			—		103
Settlement of share-based benefit plans⁽²⁾		—		—		—		—		—		—			—			(1	)		—		(1	)
Other comprehensive income		—		—		—		—		—		55,862			—			55,862			475		56,337
Net loss		—		—		—		—		—		—			(8,185	)		(8,185	)		32		(8,153	)

Balance at the end of the period		2,007		—		11,020		220		—		352,982	⁽¹⁾		30,130			406,979			3,664		410,643

(1)

Includes 363,707 corresponding to the effect of the translation of the financial statements of YPF and, (23,671) corresponding to the effect of the translation of the financial statements of investments in subsidiaries, associates and joint ventures with functional currencies other than the U.S. dollar and 12,946 corresponding to the recognition of the result for the net monetary position of subsidiaries, associates and joint ventures with the Peso as functional currency, as detailed in Note 2.b.1. to the annual consolidated financial statements.

(2)	Net of employees’ income tax withholdings related to the share-based benefit plans.

(3)	See Note 35.

MIGUEL ANGEL GUTIERREZ

President


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2019 AND 2018 (UNAUDITED) (Cont.)
(Amounts expressed in millions of Pesos)


	For the three-month period ended March 31, 2018
	Shareholders’ contributions
	Subscribed capital		Adjustment to contributions		Treasury shares		Adjustment to treasury shares		Share-based benefit plans			Acquisition cost of treasury shares			Share trading premium			Issuance premiums		Total
Balance at the beginning of the fiscal year		3,924		6,085		9		16		36			(91	)		(217	)		640		10,402
Modification to the balances at the beginning of the fiscal⁽⁴⁾		—		—		—		—		—			—			—			—		—

Balance at the beginning of the fiscal modified		3,924		6,085		9		16		36			(91	)		(217	)		640		10,402

Accrual of share-based benefit plans⁽³⁾		—		—		—		—		53			—			—			—		53
Settlement of share-based benefit plans⁽²⁾		—		—		—		—		(1	)		4			(1	)		—		2
Other comprehensive income		—		—		—		—		—			—			—			—		—
Net income		—		—		—		—		—			—			—			—		—

Balance at the end of the period		3,924		6,085		9		16		88			(87	)		(218	)		640		10,457


	Reserves																Equity attributable to
	Legal		Future dividends		Investments		Purchase of treasury shares		Initial IFRS adjustment		Other comprehensive income			Retained earnings			Shareholders of the parent company			Non- controlling interest			Total shareholders’ equity
Balance at the beginning of the fiscal year		2,007		—		—		100		—		127,446			12,340			152,295			238			152,533
Modification to the balances at the beginning of the fiscal⁽⁴⁾		—		—		—		—		—		—			(298	)		(298	)		—			(298	)

Balance at the beginning of the fiscal modified		2,007		—		—		100		—		127,446			12,042			151,997			238			152,235

Accrual of share-based benefit plans⁽³⁾		—		—		—		—		—		—			—			53			—			53
Settlement of share-based benefit plans⁽²⁾		—		—		—		—		—		—			—			2			—			2
Other comprehensive income		—		—		—		—		—		13,509			—			13,509			—			13,509
Net income		—		—		—		—		—		—			6,067			6,067			(81	)		5,986

Balance at the end of the period		2,007		—		—		100		—		140,955	⁽¹⁾		18,109			171,628			157			171,785

(1)

Includes 144,726 corresponding to the effect of the translation of the financial statements of YPF and (3,771) corresponding to the effect of the translation of the financial statements of investments in subsidiaries, associates and joint ventures with functional currencies other than the U.S. dollar, as detailed in Note 2.b.1. to the annual consolidated financial statements.

(2)	Net of employees’ income tax withholding related to the share-based benefit plans.

(3)	See Note 35.

(4)	Corresponds to the change in the accounting policy described in Note 2.b.26 to the annual consolidated financial statements.

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

MIGUEL ANGEL GUTIERREZ

President


YPF SOCIEDAD ANONIMA
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2019 AND 2018 (UNAUDITED)
(Amounts expressed in millions of Pesos)


	For the three-month period ended March 31,
	2019			2018
Operating activities
Net (loss) / profit		(8,153	)		5,986
Adjustments to reconcile net profit / (loss) to cash flows provided by operating activities:
Income from equity interest in associates and joint ventures		(1,559	)		(214	)
Depreciation of property, plant and equipment		28,048			18,714
Depreciation of right-of-use assets		2,020			—
Amortization of intangible assets		483			247
Retirement of property, plant and equipment and intangible assets and consumption of materials		4,297			1,466
Charge on income tax		28,366			11,700
Net increase in provisions		3,213			1,593
Exchange differences, interest and other		(8,432	)		49
Share-based benefit plan		103			53
Result of companies’ revaluation		—			(11,980	)
Changes in assets and liabilities:
Trade receivables		(1,382	)		(4,230	)
Other receivables		(3,378	)		(4,835	)
Inventories		(4,198	)		50
Accounts payable		5,525			3,241
Taxes payables		1,945			2,188
Salaries and social security		(423	)		(863	)
Other liabilities		232			(1,930	)
Decrease in provisions included in liabilities due to payment/use		(862	)		(383	)
Contract assets		(118	)		(112	)
Contract liabilities		(2,832	)		871
Dividends received		50			104
Proceeds from collection of business interruption insurance		758			—
Income tax payments		(1,063	)		(289	)

Net cash flows from operating activities⁽¹⁾		42,640			21,426

Investing activities:⁽²⁾
Acquisition of property, plant and equipment and intangible assets		(30,530	)		(15,794	)
Contributions and acquisitions of interests in associates and joint ventures		—			(280	)
Proceeds from sales of financial assets		957			4,953

Net cash flows used in investing activities		(29,573	)		(11,121	)

Financing activities:⁽²⁾
Payments of loans		(9,534	)		(9,435	)
Payments of interest		(8,625	)		(5,399	)
Proceeds from loans		13,081			8,666
Payment of leases		(2,555	)		—

Net cash flows used in financing activities		(7,633	)		(6,168	)

Translation differences of cash and cash equivalents		5,137			636

Net increase in cash and cash equivalents		10,571			4,773

Cash and cash equivalents at the beginning of year		46,028			28,738
Cash and cash equivalents at the end of period		56,599			33,511

Net increase in cash and cash equivalents		10,571			4,773

(1)	Does not include exchange differences generated by cash and cash equivalents, which are disclosed separately in this statement.

(2)	The main investing and financing transactions that have not affected cash and cash equivalents correspond to:


	For the three-month period ended March 31,
	2019		2018
Unpaid acquisitions of property, plant and equipment and concession extension liabilities		11,303		5,109
Additions of right-of-use assets		2,575		—
Capitalization of amortization of right-of-use assets		292
Capitalization of financial accretion for lease liabilities		23

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

MIGUEL ANGEL GUTIERREZ

President


YPF SOCIEDAD ANONIMA
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)
(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

1.	GENERAL INFORMATION, STRUCTURE AND ORGANIZATION OF THE BUSINESS OF THE GROUP

General information

YPF Sociedad Anónima is a stock corporation (sociedad anónima) incorporated under the laws of the Argentine Republic, with a registered office at Macacha Güemes 515, in the City of Buenos Aires.

YPF and its subsidiaries form the leading energy group in Argentina, which operates a fully integrated oil and gas chain with leading market positions across the domestic Upstream and Downstream segments.

Structure and organization of the economic Group

The following table shows the organizational structure, including the main companies of the Group, as of March 31, 2019:

LOGO

(1)	Held directly and indirectly.

(2)	See Note 3 to the annual consolidated financial statements.

(3)	See Note 30.h to the annual consolidated financial statements.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

1.	GENERAL INFORMATION, STRUCTURE AND ORGANIZATION OF THE BUSINESS OF THE GROUP (Cont.)

Organization of the business

As of March 31, 2019, the Group carries out its transactions and operations in accordance with the following structure:

•

Upstream;

•

Gas and Power;

•

Downstream;

•

Central administration and others, which covers the remaining activities not included in the previous categories.

Activities covered by each business segment are detailed in Note 6.

Almost all operations, properties and clients are located in Argentina. However, the Group also holds participating interests in exploratory and production areas in Chile and Bolivia. The Group also sells lubricants and derivatives in Brazil and Chile.

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

2.a) Basis of preparation

The condensed interim consolidated financial statements of YPF for the three-month period ended March 31, 2019 are presented in accordance with IAS 34 “Interim Financial Reporting”. These condensed interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements of the Group as of December 31, 2018 prepared in accordance with IFRS issued by the IASB and the interpretations issued by the IFRIC.

Moreover, some additional issues required by the LGS and/or CNV’s regulations have been included.

These condensed interim consolidated financial statements were approved by the Board of Directors’ meeting and authorized to be issued on May 9, 2019.

These condensed interim consolidated financial statements corresponding to the three-month period ended on March 31, 2019 are unaudited. The Company´s Management believes they have included all necessary adjustments to reasonably present the results of each period on a basis consistent with the audited annual consolidated financial statements. Loss for the three-month period ended on March 31, 2019 does not necessarily reflect the proportion of the Group’s full-year loss.

2.b) Significant Accounting Policies

The most significant accounting policies are described in Note 2.b to the annual consolidated financial statements.

The accounting policies adopted in the preparation of these condensed interim consolidated financial statements are consistent with those used in the preparation of the annual consolidated financial statements, except for the valuation policy for income tax detailed in Note 17.

Also, regarding IFRS 16 “Leases”, effective as of January 1, 2019, the Group has applied the guidelines of this IFRS. See the accounting policy described below in this Note.

Functional and reporting currency

As mentioned in Note 2.b.1. to the annual consolidated financial statements, YPF has defined the U.S. dollar as its functional currency. Additionally, according to CNV Resolution No. 562, YPF must present its financial statements in Pesos.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

Effects of the translation of investments in subsidiaries, associates and joint ventures with the Peso as functional currency corresponding to a hyperinflationary economy

The results and financial position of subsidiaries with the Peso as functional currency were translated into U.S dollars by the following procedures: all amounts (i.e., assets, liabilities, stockholders’ equity items, expenditures and revenues) were translated at the exchange rate effective at the closing date of the financial statements, except for comparative amounts, which were presented as current amounts in the financial statements of the previous fiscal year (i.e., these amounts were not be adjusted to reflect subsequent variations in price levels or exchange rates). Thus, the effect of the restatement of comparative amounts was recognized in other comprehensive income.

These criteria were also implemented by the Group for its investments in associates and joint ventures.

Adoption of new standards and interpretations effective as of January 1, 2019

The Group, has adopted all new and revised standards and interpretations, issued by the IASB, relevant to its operations which are of mandatory and effective application as of March 31, 2019, as specified in Note 2.b.26 to the annual consolidated financial statements. The aforementioned new and revised standards and interpretations that have affected these condensed interim consolidated financial statements are described below:

•

IFRS 16 – Leases

The model introduced by this standard is based on the definition of lease, which mainly relates to the concept of control. IFRS 16 distinguishes between lease contracts and service contracts on the basis of whether an identified asset is under the customer’s control, which exists if the customer has the right to: i) obtain substantially all of the economic benefits from the use the asset; and ii) direct the use of the asset.

The Group as lessee:

Once the lease has been identified, the Group recognizes the following items:

•

Right-of-use assets, whose cost includes:

(a)

the amount of the initial measurement of the lease liability;

(b)

any rent paid to the lessor prior to the commencement date or on the same date, after discounting any incentive received for the lease;

(c)

the initial direct costs incurred by the lessee; and

(d)

an estimate of the costs to be incurred by the lessee in dismantling and eliminating the underlying asset, restoring the place where the underlying asset is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless such costs are incurred at the time of making of the inventories. The Group could incur in certain obligations because of such costs either on the date of commencement of the term of the lease, or because of having used the underlying asset during a specified period.

Subsequently, the valuation of right-of-use of assets will be based on the cost model under IAS 16 “Property, Plant and Equipment” (recognizing therefore the depreciation and impairment in the profit and loss account). Deprecation is estimated by the straight-line method based on the term of each lease contract, except where the useful life of the underlying asset is shorter.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

Lease contracts in which the Group is the lessee mainly correspond to the lease of:

•

Exploitation facilities and equipment, which include equipment for installations and production equipment in reservoirs, such as drilling equipment, work-over and lifting pumps. The average term of these contracts is from three to five years, establishing minimum guaranteed payments based on the availability of these assets, and also variable payments estimated based on a rate per unit of use (Pesos per hour/day of use);

•

Machinery and equipment, which include:

Equipment for natural gas compression and generation of energy. The average term of these contracts is six years, featuring minimum payments based on the available power. Variable payments are estimated on the basis of a rate per generation unit.

ii.

Regasification and/or gas liquefaction equipment. The average term of these contracts is from eight to ten years, establishing a minimum guaranteed payment on the basis of the availability of these assets.

•

Transportation equipment, including:

Vessels and crafts for hydrocarbon transportation, whose average contract term is five years, establishing monthly guaranteed payments associated to the Group’s availability over such assets.

ii.

Truck fleets with average contract terms of three years, for which variable payments are estimated based on a rate per unit of use (Pesos per kilometer travelled), featuring in some cases minimum payments associated to the availability of such assets.

•

Gas station lands and facilities, with average contract terms of 20 years and for which payments are determined based on a given quantity of fuel.

•

Land and buildings which include mainly:

a reservoir and the land necessary to mount the surface installations necessary for the underground storage of natural gas, whose contract lasts for four years, for which there are minimum guaranteed quotas

ii.

permits for the use of ports and land, for which there are minimum guaranteed quotas

•

Lease liabilities, measured as the aggregate amount of future lease payments, discounted using the lessee’s incremental borrowing rate, considering the complexity of determining the implicit interest rate in the lease. The Group applied the lessee’s incremental borrowing rate to the lease liabilities recognized in the statement of financial position of the initial date of the contract.

Lease liabilities include:

(a)

fixed payments (including in substance fixed payments), less any lease incentive receivable;

(b)

variable payments, which depend on an index or a rate, initially measured by using the index or rate on the effective date of the contract;

(c)

amounts that the lessee expects to pay as residual value guarantees;

(d)

the price for the exercise of a purchase option if the Group is reasonably certain to exercise that option; and

(e)

payment of penalties for terminating the lease, if the lease period reflects that the Group will exercise an option to terminate it (i.e., because there is a reasonable certainty thereon).

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

Subsequently, the Group increases the lease liability to reflect the accrued interest (and recognized in the comprehensive income statement), deducts the installments that are being paid from such liability and recalculates the book value to reflect any review, amendment to the lease or review of the so-called “in-substance” fix payments, by applying a revised discount rate, if applicable.

The Group revises the lease liability in the following cases:

(a)

when there is a change in the amount expected to be paid under a residual value guarantee;

(b)

when there is a change in future rental payments to reflect the variation of an index or an interest rate used to determine such rental payments (including, for example, a market rent review);

(c)

when there is a change in the term of duration of the lease as a result of a change in the non-cancellable period of the lease (for example, if the lessee does not exercise an option previously included in the determination of the lease period); or

(d)

when there is a change in the evaluation of the purchase option of the underlying asset.

The Group recognized right-of-use assets and lease liabilities for 23,059 on January 1, 2019 in the statement of financial position, measured at the present value of future payments.

The implementation of this standard had no effect on retained earnings as the Group applied the simplified model without restating any comparative figures, recognizing a right-of-use asset equal to the lease liability on the initial transition date (January 1, 2019). There were no adjustments to be made due to the impairment arising from the provision for onerous contracts related to these right-of-use assets.

With regard to short-term leases and leases of low-value underlying assets, the Group continues recognizing them as straight-line expense during the term of the lease, unless another systematic basis is more representative, in accordance with the option specified in the standard. The Group did not identify any low-value leases other than those whose underlying asset corresponds to printers, cell phones, computers, photocopiers, among others, which are not material.

The Group applied a practical solution to the standard whereby leases expiring within the term of 12 months from the date of the initial application, regardless of the original date, and which comply with the conditions to be classified as short-term leases, follow the treatment described in the previous paragraph. The total charges against comprehensive income for the period and total capitalizations for these leases amount to 1,450. These new contracts might generate right-of-use assets and lease liabilities disclosed in the statement of financial position.

The Group as lessor

Under IFRS 16, the lessor is required to classify the lease as either operating or financial. A financial lease is a lease in which substantially all of the risks and benefits resulting from the ownership of an asset are transferred. A lease will be classified as operating if it does not transfer substantially all of the risks and benefits resulting from the ownership of an underlying asset.

The classification of the lease is made on the date in which the agreement becomes effective and is evaluated again only if there is an amendment to the lease. Changes in estimates (such as changes in the economic life or residual value of the underlying asset) or changes in circumstances (such as default by the lessee) will not result in a new classification of the lease for accounting purposes.

The Group does not have any significant assets leased to third parties.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

2.c) Accounting Estimates and Judgments

The preparation of financial statements at a certain date requires Management to make estimates and assessments affecting the amount of assets and liabilities recorded, contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual future results might differ from the estimates and assessments made as of the date of preparation of these condensed interim consolidated financial statements.

In preparing these condensed interim consolidated financial statements, significant estimates and judgments were made by Management in applying the Group’s accounting policies and the main sources of uncertainty were consistent with those applied by the Group in the preparation of the annual consolidated financial statements, which are disclosed in Notes 2.b and 2.c to the annual consolidated financial statements, about accounting estimates and judgments.

2.d) Comparative information

Amounts and other information corresponding to the year ended on December 31, 2018 and to the three-month period ended on March 31, 2018 are an integral part of these condensed interim consolidated financial statements and are intended to be read only in relation to these financial statements.

3.	SEASONALITY OF OPERATIONS

Historically, the Group’s results have been subject to seasonal fluctuations throughout the year, particularly as a result of the increase in natural gas sales during the winter. After the devaluation of the Peso in 2002, and as a consequence of the natural gas price freeze imposed by the Argentine government, the use of natural gas has been diversified, generating an increase in demand throughout the entire year. However, recently, an excess of the supply with respect to the domestic demand took place at specific times of the year. Consequently, the Group may be subject to seasonal fluctuations in its sales volumes and prices, which might adversely affect the level of production and sales of natural gas.

4.	ACQUISITIONS AND DISPOSALS

On February 11, 2019, the Executive Branch of the Province of Rio Negro published Decree No. 1677/18 authorizing the sale of 100% of the exploitation concession over the areas known as Bajo del Piche, Barranca de los Loros, El Santiagueño and El Medanito. As a result of this sale, the Group recorded a gain of 1,523 included in “Other net operating results”.

5.	FINANCIAL RISK MANAGEMENT

The Group’s activities expose it to a variety of financial risks: market risk (including foreign currency risk, interest rate risk, and price risks), credit risk and liquidity risk. Within the Group, risk management functions are conducted in relation to financial risks associated to financial instruments to which the Group is exposed during a certain period or as of a specific date.

There have been no significant changes in the risk management or risk management policies applied by the Group since the last fiscal year end. See Note 4 to the annual consolidated financial statements. Besides, in relation to the initial application of IFRS 16 “Leases”, see Note 18 to these condensed interim consolidated financial statements.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

6.	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; and (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 three-month term ended March 31, 2018, it included revenues derived from the generation of conventional and renewable electricity corresponding to YPF EE. See Note 3 to the annual consolidated financial statements.

In addition to the proceeds derived from the sale of natural gas to third parties and the other segments, which is then recognized as a “purchase” to the Upstream segment, and including the Stimulus Plans for Natural Gas production in force (see Note 30.g to the annual consolidated financial statements), Gas and Power accrues a fee charge to 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, and (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, Aviation, 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.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

6.	SEGMENT INFORMATION (Cont.)


	Upstream			Gas and Power			Downstream		Central Administration and Others			Consolidation Adjustments⁽¹⁾			Total
For the three-month period ended March 31, 2019
Revenues from sales		321			20,043			108,365		3,408			(1,230	)		130,907
Revenues from intersegment		55,224			1,745			572		4,816			(62,357	)		—

Revenues		55,545			21,788			108,937		8,224			(63,587	)		130,907

Operating profit / (loss)		(1,663	)		(234	)		13,283		(2,056	)		1,301			10,631
Income from equity interests in associates and joint ventures		—			1,442			117		—			—			1,559
Depreciation of property, plant and equipment		23,125	⁽²⁾		269			4,027		627			—			28,048
Acquisition of property, plant and equipment		24,804			1,177			3,568		828			—			30,377
Assets		572,482			145,013			352,457		98,021			(5,411	)		1,162,562

For the three-month period ended March 31, 2018
Revenues from sales		220			15,542			60,062		875			(876	)		75,823
Revenues from intersegment		38,484			1,476			275		2,016			(42,251	)		—

Revenues		38,704			17,018			60,337		2,891			(43,127	)		75,823

Operating profit / (loss)		2,148			12,251	⁽³⁾		4,009		(989	)		(65	)		17,354
Income from equity interests in associates and joint ventures		—			174			40		—			—			214
Depreciation of property, plant and equipment		16,300	⁽²⁾		57			2,076		281			—			18,714
Acquisition of property, plant and equipment		13,033			379			1,255		207			—			14,874

As of December 31, 2018
Assets		480,263			129,885			307,312		82,762			(6,206	)		994,016

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

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

(3)	Includes the result for revaluation of the interest in YPF EE. See Note 3 to the annual consolidated financial statements.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

7.	FINANCIAL INSTRUMENTS BY CATEGORY

Fair value measurements

Fair value measurements are described in Note 6 to the annual consolidated financial statements.

The tables below show the Group’s financial assets measured at fair value as of March 31, 2019 and December 31, 2018, and their allocation to their fair value levels:


	As of March 31, 2019
Financial assets	Level 1		Level 2		Level 3		Total
Investments in financial assets:
- Public securities		11,564		—		—		11,564

		11,564		—		—		11,564

Cash and cash equivalents:
- Mutual funds		12,954		—		—		12,954

		12,954		—		—		12,954

		24,518		—		—		24,518


	As of December 31, 2018
Financial assets	Level 1		Level 2		Level 3		Total
Investments in financial assets:
- Public securities		10,941		—		—		10,941

		10,941		—		—		10,941

Cash and cash equivalents:		7,792		—		—		7,792

- Mutual funds		7,792		—		—		7,792


		18,733		—		—		18,733

The Group has no financial liabilities measured at fair value.

Fair value estimates

From December 31, 2018 until March 31, 2019, there have been no significant changes in the commercial or economic circumstances affecting the fair value of the Group’s assets and financial liabilities, whether measured at fair value or amortized cost.

Furthermore, during the three-month period ended March 31, 2019, there were no transfers between the different hierarchies used to determine the fair value of the Group’s financial instruments.

Fair value of financial assets and financial liabilities measured at amortized cost

The estimated fair value of loans, considering unadjusted listed prices (Level 1) for NO and interest rates offered to the Group (Level 3) for the other financial loans remaining, amounted to 356,114 and 293,972 as of March 31, 2019 and December 31, 2018, respectively.

The fair value of other receivables, trade receivables, cash and cash equivalents, accounts payable and other liabilities do not differ significantly from their book values.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2018 AND COMPARATIVE INFORMATION (UNAUDITED)

8.	INTANGIBLE ASSETS

The evolution of the Group’s intangible assets for the three-month period ended March 31, 2019 and the year ended December 31, 2018 is as follows:


	Service concessions		Exploration rights			Other intangibles			Total
Cost		14,824		3,465			6,830			25,119
Accumulated amortization		9,180		—			5,963			15,143

Balances as of December 31, 2017		5,644		3,465			867			9,976


Cost
Increases		1,303		276			765			2,344
Translation effect		15,544		3,414			6,636			25,594
Adjustment for inflation⁽¹⁾		—		—			591			591
Decreases and reclassifications		31		(248	)		(100	)		(317	)

Accumulated amortization
Increases		1,190		—			559			1,749
Translation effect		9,740		—			6,243			15,983
Adjustment for inflation⁽¹⁾		—		—			58			58
Decreases and reclassifications		—		—			(4	)		(4	)

Cost		31,702		6,907			14,722			53,331
Accumulated amortization		20,110		—			12,819			32,929

Balances as of December 31, 2018		11,592		6,907			1,903			20,402


Cost
Increases		315		—			77			392
Translation effect		4,787		1,027			1,992			7,806
Adjustment for inflation^{( (1)}		—		—			395			395
Decreases and reclassifications		—		(103	)		(25	)		(128	)

Accumulated amortization
Increases		391		—			92			483
Translation effect		3,067		—			1,890			4,957
Adjustment for inflation^{( (1)}		—		—			80			80
Decreases and reclassifications		—		—			—			—

Cost		36,804		7,831			17,161			61,796
Accumulated amortization		23,568		—			14,881			38,449

Balances as of March 31, 2019		13,236		7,831			2,280			23,347

(1)	Corresponds to adjustment for inflation of opening balances of intangible assets in subsidiaries with the Peso as functional currency which was charged to other comprehensive income.

9.	PROPERTY, PLANT AND EQUIPMENT


	March 31, 2019			December 31, 2018
Net book value of property, plant and equipment		844,454			740,103
Provision for obsolescence of materials and equipment		(4,530	)		(3,955	)
Provision for impairment of property, plant and equipment		(40,010	)		(37,061	)

		799,914			699,087

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

9.	PROPERTY, PLANT AND EQUIPMENT (Cont.)

Changes in Group’s property, plant and equipment for the three-month period ended March 31, 2019 and the year ended December 31, 2018 are as follows:


	Land and buildings			Mining property, wells and related equipment			Refinery equipment and petrochemical plants			Transportation equipment			Materials and equipment in warehouse			Drilling and work in progress			Exploratory drilling in progress			Furniture, fixtures and installations			Selling equipment			Infrastructure for natural gas distribution			Other property			Total
Cost		21,394			775,353			134,675			7,614			15,993			59,529			2,871			10,454			18,788			3,406			11,978			1,062,055
Accumulated depreciation		9,250			566,334			69,160			4,512			—			—			—			8,686			11,656			1,381			8,446			679,425

Balances as of December 31, 2017		12,144			209,019			65,515			3,102			15,993			59,529			2,871			1,768			7,132			2,025			3,532			382,630

Cost
Increases		425			(10,216	)⁽³⁾		370			38			19,885			67,264			5,438			59			—			—			385			83,648	⁽⁴⁾
Translation effect		20,845			808,772			138,924			7,400			15,332			61,084			3,851			10,935			20,016			—			11,468			1,098,627
Adjustment for inflation⁽⁷⁾		5,096			152			—			797			1,107			792			—			1,371			—			20,519			6,968			36,802
Decreases and reclassifications		287			30,807			6,482			313			(17,327	)		(64,288	)		(4,188	)		1,898			2,194			243			838			(42,741	)⁽⁵⁾

Accumulated depreciation
Increases		758			82,939	⁽³⁾		9,517			960			—			—			—			1,561			1,680			677			777			98,869	⁽⁴⁾
Translation effect		9,356			609,973			73,643			4,639			—			—			—			9,158			12,396			—			8,127			727,292
Adjustment for inflation⁽⁷⁾		2,785			141			—			565			—			—			—			1,309			—			10,584			5,152			20,536
Decreases and reclassifications		(35	)		(27,457	)		(25	)		(97	)		—			—			—			(7	)		(35	)		(134	)		(44	)		(27,834	)⁽⁵⁾

Cost		48,047			1,604,868			280,451			16,162			34,990			124,381			7,972			24,717			40,998			24,168			31,637			2,238,391
Accumulated depreciation		22,114			1,231,930			152,295			10,579			—			—			—			20,707			25,697			12,508			22,458			1,498,288

Balances as of December 31, 2018		25,933			372,938	⁽¹⁾		128,156			5,583			34,990			124,381			7,972			4,010			15,301			11,660			9,179			740,103

Cost
Increases		4			—			338			29			7,237			21,189			1,446			9			—			—			125			30,377	⁽³⁾
Translation effect		6,313			242,442			42,578			2,224			4,860			18,138			1,154			3,489			6,290			—			3,432			330,920	⁽⁶⁾
Adjustment for inflation⁽⁷⁾		1,107			—			—			143			63			283			—			101			—			2,709			648			5,054
Decreases and reclassifications		20			9,436			3,001			(29	)		(7,554	)		(11,727	)		(1,530	)		(512	)		1,195			1,747			1,539			(4,414	)

Accumulated depreciation
Increases		252			25,396			3,114			273			—			—			—			408			544			191			254			30,432
Translation effect		2,871			187,835			23,223			1,473			—			—			—			2,949			3,919			—			2,482			224,752
Adjustment for inflation⁽⁷⁾		366			—			—			98			—			—			—			97			—			1,621			451			2,633
Decreases and reclassifications		(8	)		(30	)		(141	)		(57	)		—			—			—			(551	)		—			2,404			(1,848	)		(231	)

Cost		55,491			1,856,746			326,368			18,529			39,596			152,264			9,042			27,804			48,483			28,624			37,381			2,600,328
Accumulated depreciation		25,595			1,445,131			178,491			12,366			—			—			—			23,610			30,160			16,724			23,797			1,755,874

Balances as of March 31, 2019		29,896			411,615	⁽¹⁾		147,877			6,163			39,596			152,264			9,042	⁽²⁾		4,194			18,323			11,900			13,584			844,454

(1)	Includes 18,263 and 16,154 of mineral property as of March 31, 2019 and December 31, 2018 respectively.

(2)

As of March 31, 2019, there are 57 exploratory wells in progress. During the three-month period ended on such date, 8 wells were drilled, 7 wells were charged to exploratory expenses and 2 wells was transferred to properties with proven reserves in the mining property, wells and related equipment account.

(3)	Includes (11,710) corresponding to hydrocarbon wells abandonment costs and 5,521 of depreciation recovery.

(4)	Includes 1,470 y 1,092 of cost and accumulated depreciation, respectively, corresponding to additions for the acquisition of a participation in several areas.

(5)	Includes 31,800 and 28,673 of cost and accumulated depreciation, respectively, corresponding to reclassification of certain areas that were classified as assets held for disposal. See Note 3 to the annual consolidated financial statements.

(6)

Includes 557 and 71 corresponding to short-term leases and the variable charge of leases related to the underlying asset return/use, respectively. Additionally, it includes 292 and 23 corresponding to the depreciation capitalization of right-of-use assets (see Note 10) and to capitalization of the financial accretion of the lease liability, respectively.

(7)	Corresponds to adjustments for inflation of opening balances of property, plant and equipment of subsidiaries with the Peso as functional currency which was charged to other comprehensive income.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

9.	PROPERTY, PLANT AND EQUIPMENT (Cont.)

The Group capitalizes the financial cost as part of the cost of the assets. For the three-month period ended March 31, 2019 and 2018, the rate of capitalization was 10.73% and 10.41%, respectively, and the amount capitalized amounted to 227 and 146, respectively, for the period mentioned above.

Set forth below is the evolution of the provision for obsolescence of materials and equipment for the three-month period ended on March 31, 2019 and for the year ended December 31, 2018:


	Provision for obsolescence of materials and equipment
Balance as of December 31, 2017		1,652
Increase charged to profit / (loss)		629
Amounts incurred due to utilization		(60	)
Translation differences		1,666
Transfers and other movements		68

Balance as of December 31, 2018		3,955

Increase charged to profit / (loss)		8
Amounts incurred due to utilization		(14	)
Translation differences		581

Balance as of March 31, 2019		4,530

Set forth below is the evolution of the provision for impairment of property, plant and equipment for three-month period ended on March 31, 2019 and for the year ended December 31, 2018:


	Provision for impairment of property, plant and equipment
Balance as of December 31, 2017		26,535
Increase charged to profit / (loss)		36,937	⁽¹⁾
Amounts incurred due to utilization		(39,837	)⁽¹⁾
Depreciation		(10,208	)⁽²⁾
Translation differences		23,634

Balance as of December 31, 2018		37,061

Depreciation		(2,384	)⁽²⁾
Translation differences		5,333

Balance as of March 31, 2019		40,010

(1)	See Note 2.c to the annual consolidated financial statements.

(2)	Included in “Depreciation of property, plant and equipment” in Note 24.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

10.

RIGHT-OF-USE ASSETS

The evolution of the Group’s right-of-use assets for the three-month period ended March 31, 2019 is as follows:


	Land and buildings		Exploitation facilities and equipment		Machinery and equipment		Gas stations		Transportation equipment		Total
Balances for initial application of NIIF 16		450		6,732		8,612		3,356		3,909		23,059


Cost
Increases		66		1,015		594		5		895		2,575
Translation differences		68		1,012		1,294		425		587		3,386

Accumulated depreciation
Increases		41		1,124		575		127		445		2,312	⁽¹⁾
Translation differences		4		122		63		11		49		249

Cost		584		8,759		10,500		3,786		5,391		29,020
Accumulated depreciation		45		1,246		638		138		494		2,561

Balances as of March 31, 2019		539		7,513		9,862		3,648		4,897		26,459

(1)	Includes 2,020 that were charged to “Depreciation of right-of-use assets” in the comprehensive statement of income (see Note 24) and 292 that were capitalized at wells cost in the item “Property, plant and equipment” in the statement of financial position (see Note 9).

11.

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

The following table shows the value of the investments in associates and joint ventures at an aggregate level, as of March 31, 2019 and December 31, 2018:


	March 31, 2019			December 31, 2018
Amount of investments in associates		3,300			2,374
Amount of investments in joint ventures		36,107			30,324
Provision for impairment of investments in associates and joint ventures		(12	)		(12	)

		39,395			32,686

The main movements during the three-month period ended March 31, 2019 and for the year ended December 31, 2018 which affected the value of the aforementioned investments, correspond to:


	Investments in associates and joint ventures
Balance as of December 31, 2017		6,045
Acquisitions and contributions		280
Income on investments in associates and joint ventures		4,839
Translation differences		3,180
Distributed dividends		(583	)
Interest maintained in YPF EE		17,285	⁽¹⁾
Adjustment for inflation		1,640	⁽²⁾

Balance as of December 31, 2018		32,686

Income on investments in associates and joint ventures		1,559
Translation differences		4,586
Distributed dividends		(50	)
Adjustment for inflation		614	⁽²⁾

Balance as of March 31, 2019		39,395

(1)	Corresponds to the fair value of the interest maintained in the investment in YPF EE following the loss of control. See Note 3 to the annual consolidated financial statements.

(2)	Corresponds to the recognition of the result for the net monetary position of associates and joint ventures with the Peso as functional currency, which was charged to other comprehensive income, as detailed in Note 2.b.1 to the annual consolidated financial statements.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

11.

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (Cont.)

The following table shows the principal amounts of the results of the investments in associates and joint ventures of the Group, calculated according to the equity method therein, for the three-month period ended March 31, 2019 and 2018. The Group has adjusted, if applicable, the values reported by these companies to adapt them to the accounting criteria used by the Group for the calculation of the equity method value in the aforementioned dates:


	Associates				Joint ventures
	For the three-month period ended March 31,				For the three-month period ended March 31,
	2019		2018		2019		2018
Net income		291		52		1,268		162
Other comprehensive income		685		15		4,515		373

Comprehensive income for the period		976		67		5,783		535

The Group does not have investments in subsidiaries with significant non-controlling interests. Likewise, the Group does not have investments in associates and joint ventures that are significant, with the exception of the investment in YPF EE.

The management information corresponding to the assets and liabilities as of March 31, 2019 of YPF EE and for the three month period ended on such date are detailed below:


	March 31, 2019⁽¹⁾
Noncurrent assets		54,019
Current assets		14,792

Total assets		68,811

Noncurrent liabilities		24,436
Current liabilities		14,489

Total liabilities		38,925

Total shareholders’ equity		29,886



	For the three- month period ended March 31, 2019⁽¹⁾
Revenues		2,685
Costs		(895	)

Gross profit		1,790

Operating profit		1,556
Income from equity interest in associates and joint ventures		78
Net financial results		(506	)

Net profit before income tax		1,128

Income tax		(311	)

Net profit		817

(1)	On this information, accounting adjustments have been made for the calculation of equity interest and results of YPF EE. The equity and adjusted results do not differ significantly from the YPF EE management information disclosed here.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

11.

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (Cont.)

The following table shows information of the subsidiaries:


					Information of the issuer
	Description of the Securities						Last Available Financial Statements
Name and Issuer	Class	Face Value		Amount	Main Business	Registered Address	Date	Capital stock		Net profit (loss)			Equity			Holding in Capital Stock
Subsidiaries:⁽⁷⁾
YPF International S.A.⁽⁶⁾	Common	Bs.	100	66,897	Investment	La Plata Street 19, Santa Cruz de la Sierra, República de Bolivia	03-31-19		15		—			61			100.00	%
YPF Holdings Inc.⁽⁶⁾	Common	US$	0.01	810,614	Investment and finance	10333 Richmond Avenue I, Suite 1050, TX, U.S.A.	03-31-19		35,055		(1	)		(9,290	)		100.00	%
Operadora de Estaciones de Servicios S.A.	Common	$	1	163,701,747	Commercial management of YPF’s gas stations	Macacha Güemes 515, Buenos Aires, Argentina	03-31-19		164		299			2,536			99.99	%
A-Evangelista S.A.	Common	$	1	307,095,088	Engineering and construction services	Macacha Güemes 515, Buenos Aires, Argentina	03-31-19		307		42			2,015			100.00	%
Metrogas S.A.	Common	$	1	398,419,700	Providing the public service of natural gas distribution	Gregorio Aráoz de Lamadrid 1360, Buenos Aires, Argentina.	03-31-19		569		(234	)		14,657			70.00	%
YPF Chile S.A.⁽⁶⁾	Common	-	—	50,968,649	Lubricants and aviation fuels trading and hydrocarbons research and exploration	Villarica 322; Módulo B1, Qilicura, Santiago	03-31-19		1,975		(243	)		2,228			100.00	%
YPF Tecnología S.A.	Common	$	1	234,291,000	Investigation, development, production and marketing of technologies, knowledge, goods and services	Macacha Güemes 515, Buenos Aires, Argentina	03-31-19		459		265			1,912			51.00	%
Compañía de Inversiones Mineras S.A.	Common	$	1	236,474,420	Exploration, exploitation, processing, management, storage and transport of all types of minerals; assembly, construction and operation of facilities and structures and processing of products related to mining	Macacha Güemes 515, Buenos Aires, Argentina	03-31-19		236		—			347			100.00	%

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2018 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

11.

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (Cont.)

The following table shows the investments in associates and joint ventures:


	03-31-2019																			12-31-2018
							Information of the issuer
	Description of the Securities								Last Available Financial Statements
Name and Issuer	Class	Face Value		Amount	Book value⁽²⁾	Cost⁽¹⁾	Main Business	Registered Address	Date	Capital stock		Net profit (loss)			Equity		Holding in Capital Stock			Book Value⁽²⁾
Joint ventures:
YPF Energía Eléctrica S.A.⁽⁵⁾⁽⁶⁾	Common	$	1	1,879,916,921	23,198	1,085	Exploration, mining and marketing of hydrocarbons and generation, transport and marketing of electric energy	Macacha Güemes 515, Buenos Aires, Argentina	03-31-19		3,747		1,060			30,482		75.00	%		19,320
Compañía Mega S.A.^(5) (6)	Common	$	1	244,246,140	4,345	—	Separation, fractionation and transportation of natural gas liquids	San Martín 344, P. 10º, Buenos Aires, Argentina	03-31-19		643		885			11,116		38.00	%		3,405
Profertil S.A.⁽⁶⁾	Common	$	1	391,291,320	7,122	—	Production and marketing of fertilizers	Alicia Moreau de Justo 740, P. 3, Buenos Aires, Argentina	12-31-18		783		655			14,793		50.00	%		6,133
Refinería del Norte S.A.	Common	$	1	45,803,655	1,236	—	Refining	Maipú 1, P. 2º, Buenos Aires, Argentina	12-31-18		92		(563	)		2,610		50.00	%		1,307

					35,901	1,085															30,165

Associates:
Oleoductos del Valle S.A.	Common	$	10	4,072,749	884	—	Oil transportation by pipeline	Florida 1, P. 10º, Buenos Aires, Argentina	03-31-19		110		202			2,396		37.00	%		710
Terminales Marítimas Patagónicas S.A.	Common	$	10	476,034	339	—	Oil storage and shipment	Av. Leandro N. Alem 1180, P. 11º, Buenos Aires, Argentina	12-31-18		14		312			1,015		33.15	%		226
Oiltanking Ebytem S.A.⁽⁶⁾	Common	$	10	351,167	476	—	Hydrocarbon transportation and storage	Terminal Marítima Puerto Rosales – Province of Buenos Aires, Argentina.	12-31-18		12		600			1,396		30.00	%		424
Gasoducto del Pacífico (Argentina) S.A.	Preferred	$	1	15,579,578	46	—	Gas transportation by pipeline	San Martín 323, P.13°, Buenos Aires, Argentina	12-31-18		156		(89	)		1,375		10.00	%		42
Central Dock Sud S.A.⁽⁶⁾	Common	$	0.01	11,869,095,145	803	—	Electric power generation and bulk marketing	Pasaje Ingeniero Butty 220, P.16°, Buenos Aires, Argentina	03-31-19		1,231		1,260			9,861		10.25	%⁽⁴⁾		625
Oleoducto Trasandino (Argentina) S.A.	Preferred	$	1	12,135,167	55	—	Oil transportation by pipeline	Macacha Güemes 515, P.3º, Buenos Aires, Argentina	12-31-18		34		25			210		36.00	%		60
YPF Gas S.A.	Common	$	1	59,821,434	672	—	Gas fractionation, bottling, distribution and transport for industrial and/or residential use	Macacha Güemes 515, P.3º, Buenos Aires, Argentina	12-31-18		176		(19	)		2,057		33.99	%		258
Other companies:
Other⁽³⁾	—		—	—	231	208	—	—	—		—		—			—		—			188

					3,506	208															2,533

					39,407	1,293															32,698

(1)	Corresponds to cost net of dividends collected and capital reductions.

(2)	Corresponds to holding in shareholders’ equity plus adjustments in order to conform to YPF accounting principles.

(3)	Includes Gasoducto del Pacífico (Cayman) Ltd., A&C Pipeline Holding Company, Poligás Luján S.A.C.I., Oleoducto Transandino (Chile) S.A., Bizoy S.A., Civeny S.A., Bioceres S.A., Petrofaro S.A. and Oleoducto Loma Campana-Lago Pellegrini S.A.

(4)	Additionally, the Group has a 22.49% indirect holding in the capital stock through YPF EE.

(5)	As stipulated by shareholders’ agreement, joint control is held in this company by shareholders.

(6)	The U.S. dollar has been defined as the functional currency of this company.

(7)	Additionally, consolidates YPF Services USA Corp., YPF Europe B.V., YPF Brasil Comércio Derivado de Petróleo Ltda., Wokler Investment S.A., YPF Colombia S.A.S., Miwen S.A., Eleran Inversiones 2011 S.A.U., Lestery S.A., Energía Andina S.A. and YPF Ventures S.A.U.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

12.

INVENTORIES


	March 31, 2019			December 31, 2018
Refined products		38,834			33,583
Crude oil and natural gas		21,346			14,571
Products in process		1,192			1,177
Raw materials, packaging materials and others		4,488			3,993

		65,860	⁽¹⁾		53,324	⁽¹⁾

(1)	As of March 31, 2019 and December 31, 2018, the cost of inventories does not exceed their net realizable value.

13.

OTHER RECEIVABLES


	March 31, 2019						December 31, 2018
	Noncurrent			Current			Noncurrent			Current
Trade		173			2,034			150			2,210
Tax credit, export rebates and production incentives		4,142			3,394			3,534			3,315
Loans to third parties and balances with related parties⁽¹⁾		3,755			4,702			3,565			4,920
Collateral deposits		1			589			1			575
Prepaid expenses		312			3,411			240			2,207
Advances and loans to employees		26			660			25			572
Advances to suppliers and custom agents⁽²⁾		—			6,110			1			4,212
Receivables with partners in JO		2,521			3,332			2,644			2,379
Insurance receivables		—			—			—			758
Miscellaneous		29			913			32			770

		10,959			25,145			10,192			21,918
Provision for other doubtful receivables		(661	)		(54	)		(575	)		(51	)

		10,298			25,091			9,617			21,867

(1)	See Note 34 for information about related parties.

(2)	Includes, among others, advances to customs agents for the payment of taxes and import rights related to the imports of fuels and goods.

14.

TRADE RECEIVABLES


	March 31, 2019					December 31, 2018
	Noncurrent		Current			Noncurrent		Current
Accounts receivable and related parties⁽¹⁾⁽²⁾		22,581		81,934			23,508		75,422
Provision for doubtful trade receivables		—		(3,823	)		—		(2,776	)

		22,581		78,111			23,508		72,646

(1)	See Note 34 for information about related parties.

(2)	See Note 22 for information about contract trade receivables.

Set forth below is the evolution of the provision for doubtful trade receivables for three-month period ended on March 31, 2019 and for the year ended December 31, 2018:


	Provision for doubtful trade receivables
Balance as of December 31, 2017		1,323

Modification of balance at beginning of the fiscal year⁽¹⁾		425

Balance as of December 31, 2017 modified		1,748

Increases charged to expenses		444
Decreases charged to income		(91	)
Translation differences		607
Result from net monetary position⁽²⁾		92
Other movements		(24	)

Balance as of December 31, 2018		2,776

Increases charged to expenses		801
Decreases charged to income		(2	)
Translation differences		180
Result from net monetary position⁽²⁾		68

Balance as of March 31, 2019		3,823

(1)	Corresponds to the change in the accounting policy described in detail in Note 2.b.26 to the annual consolidated financial statements.

(2)	Includes adjustment for inflation of provision for doubtful trade receivables opening balances of subsidiaries with the Peso as functional currency, which was charged to other comprehensive income, and the adjustment for inflation of the period, which was charged to results.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

15.

CASH AND CASH EQUIVALENTS


	March 31, 2019			December 31, 2018
Cash and banks		5,676			6,678
Short-term investments		37,969	⁽¹⁾		31,558	⁽¹⁾
Financial assets at fair value through profit or loss⁽²⁾		12,954			7,792

		56,599			46,028

(1)	Includes 2,438 and 5,084 of term deposits and other investments with the BNA as of March 31, 2019 and December 31, 2018, respectively.

(2)	See Note 7.

16.

PROVISIONS

Changes in the Group’s provisions for the three-month period ended March 31, 2019 and for the fiscal year ended December 31, 2018 are as follows:


	Provision for lawsuits and contingencies						Provision for environmental liabilities						Provision for hydrocarbon wells abandonment obligations						Total
	Noncurrent			Current			Noncurrent			Current			Noncurrent			Current			Noncurrent			Current
Balance as of December 31, 2017		11,667			688			1,196			1,018			41,871			736			54,734			2,442

Increases charged to expenses		3,320			357			3,021			—			3,785			—			10,126			357
Decreases charged to income		(371	)		(266	)		—			—			(14,250	)		—			(14,621	)		(266	)
Amounts incurred due to payments/utilization		(76	)		(129	)		—			(933	)		—			(1,514	)		(76	)		(2,576	)
Net exchange and translation differences		6,826			471			495			80			43,674			758			50,995			1,309
Increases due to business combination⁽²⁾		—			—			465			—			—			—			465			—
Result from net monetary position⁽³⁾		(204	)		66			—			—			—			—			(204	)		66
Reclassifications and other movements		73			(64	)		(1,457	)		1,457			(16,647	)⁽¹⁾		1,804	⁽¹⁾		(18,031	)		3,197

Balance as of December 31, 2018		21,235			1,123			3,720			1,622			58,433			1,784			83,388			4,529

Increases charged to expenses		11,584	⁽⁴⁾		—			28			—			1,464			—			13,076			—
Decreases charged to income		(1	)		(97	)		—			—			—			—			(1	)		(97	)
Amounts incurred due to payments/utilization		—			(92	)		—			(263	)		—			(507	)		—			(862	)
Exchange and translation differences, net		2,096			113			133			44			8,915			270			11,144			427
Reclassifications and other movements		(53	)		53			(439	)		439			(512	)		512			(1,004	)		1,004

Balance as of March 31, 2019		34,861			1,100			3,442			1,842			68,300			2,059			106,603			5,001

(1)	Includes 11,710 and 3,133 corresponding to the annual recalculation of abandonment of hydrocarbon wells cost and to liabilities reclassified as Liabilities associated to assets held for disposal, respectively, for the year ended December 31, 2018.

(2)	See Note 3 to the annual consolidated financial statements.

(3)	Includes adjustment for inflation of opening balances which was charged to other comprehensive income and the adjustment for inflation of the period, which was charged to results.

(4)	Includes 10,572 corresponding to the recognition of the contingency associated to the deduction of well abandonment costs for periods 2011-2017.

Provisions for lawsuits, claims and environmental liabilities are described in Note 14 to the annual consolidated financial statements. The news of the three-month period ended on March 31, 2019 are described below:

•

Claims arising from restrictions in the natural gas market

•

Transportadora de Gas del Norte S.A. (“TGN”)

On April 5, 2019, Division II of the National Court of Appeals in Federal Civil and Commercial matters revoked the decision of the Lower Court and ordered the distribution of the expenses on their behalf, as it considered that YPF does not sustain any damages, as considering that benefit granted was only limited to the payment of the Court fees.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

16.

PROVISIONS (Cont.)

•

Tax claims

•

Dispute over the cost deduction for well abandonment

With respect to the dispute over the cost deduction for wells abandonment, which is described in further detail in Notes 28.b.4 and 30.j. to the annual consolidated financial statements, it should be noted that AFIPs General Resolution No. 4434/2019, published in the Official Gazette on March 1, 2019, established a payment facility plan in relation to the tax liabilities being heard at the Fiscal Tribunal of the Nation (Tribunal Fiscal de la Nación), whose adherence expires on June 30, 2019.

Additionally, AFIP’s General Resolution No. 4477/2019, published in the Official Gazette on May 6, 2019, established a new payment facility plan, whose adherence expires on August 31, 2019, with the option of adhering from May 15 to June 25 in more favorable conditions. Even though both plans include an advance payment and payment terms of up to five years, the latter offers better financing conditions.

The Company’s Management, based on the opinion of its external advisors, and notwithstanding the technical merits for defending its position, has evaluated the aforementioned Payment Facility Plans and decided to adhere to one of these with the purpose of putting an end to the controversy corresponding to fiscal years 2005 to 2010 that is currently being heard by the Fiscal Tribunal of the Nation, which is in process of formal instrumentation as of the date of issuance of these condensed interim consolidated financial statements. See Note 17.

17.

INCOME TAX

According to IAS 34, income tax expense is recognized in each interim period based on the best estimate of the effective income tax rate expected as of year-end. Amounts calculated for income tax expense for the three-month period ended March 31, 2019 may need to be adjusted in the subsequent period if, based on new factors of judgment, the estimate of the effective expected income tax rate changes.

The calculation of the income tax expense accrued for the three-month period ended March 31, 2019 and 2018 is as follows:


	For the three-month period ended March 31,
	2019			2018
Current income tax		(479	)		(71	)
Deferred income tax⁽¹⁾		(7,086	)		(11,629	)

Subtotal		(7,565	)		(11,700	)

Income tax – Well abandonment⁽²⁾		(16,239	)		—
Special tax – Tax revaluation, Law No. 27,430⁽³⁾		(4,562	)		—

		(28,366	)		(11,700	)

(1)	Includes 5,175 corresponding to the reversal of tax loss carryforwards related to the contingency associated to cost deduction for wells abandonment.

(2)	Includes 10,610 corresponding to interest related to the contingency associated to cost deduction for wells abandonment. See Note 16.

(3)	See Note 33.e.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

17.

INCOME TAX (Cont.)

The reconciliation between the charge to net income for income tax for the three-month period ended March 31, 2019 and 2018 and the one that would result from applying the prevailing tax rate on net income before income tax arising from the consolidated statements of comprehensive income for each period is as follows:


	For the three-month period ended March 31,
	2019			2018
Net income before income tax		20,213			17,686
Statutory tax rate		30	%		30	%

Statutory tax rate applied to net income before income tax		(6,064	)		(5,306	)
Effect of the valuation of property, plant and equipment and intangible assets, net		(9,863	)		(14,898	)
Effect of exchange differences and other results associated to the valuation of the currency, net		11,903			5,793
Effect of the valuation of inventories		(3,285	)		(975	)
Income on investments in associates and joint ventures		468			64
Effect of tax rate change		3,004			—
Contingencies associated to cost deduction for wells abandonment		(5,175	)		—
Result of companies’ revaluation		—			3,594
Miscellaneous		1,447			28

Income tax		(7,565	)		(11,700	)

The Group has classified 5,571 as current income tax payable, of which 1,367 correspond to the 9 installments related to the payment facility plan (see Note 16), 3,650 to installments of the special tax according to the tax revaluation under Law No. 27.430 due as of the end of the fiscal period (see Note 33.e) and 554 to other balances due in relation to the income tax. Also, the Group has classified 4,300 as non-current income tax payable, corresponding to the 51 installments related to the payment facility plan.

Breakdown of deferred tax as of March 31, 2019 and December 31, 2018 is as follows:


	March 31, 2019			December 31, 2018
Deferred tax assets
Provisions and other non-deductible liabilities		2,970			2,920
Tax losses carryforward and other tax credits		19,067			21,575
Miscellaneous		354			270

Total deferred tax assets		22,391			24,765

Deferred tax liabilities
Property, plant and equipment		(115,132	)		(113,821	)
Miscellaneous		(5,520	)		(1,768	)

Total deferred tax liabilities		(120,652	)		(115,589	)

Total Net deferred tax		(98,261	)⁽²⁾		(90,824	)⁽¹⁾⁽²⁾

(1)	Includes 127 as a result of the implementation of the impairment method in the calculation of the impairment of financial assets pursuant to IFRS 9, having an impact in “Retained earnings”. See Note 2.b.26 to the annual consolidated financial statements.

(2)

Includes (424) and (3,432) as of March 31, 2019 and December 31, 2018, respectively, corresponding to adjustment for inflation of the opening deferred liability of subsidiaries with the Peso as functional currency with effect in other comprehensive income and the adjustment for inflation for the period that was charged to results.

As of March 31, 2019 and December 31, 2018 there are no significant deferred tax assets which are not recognized.

As of March 31, 2019 and December 31, 2018, the Group has classified as deferred tax assets 433 and 301, respectively, and as deferred tax liability 98,694 and 91,125, respectively, all of which arise from the net deferred tax balances of each of the separate companies included in these condensed interim consolidated financial statements.

As of March 31, 2019 and December 31, 2018, the transactions that generate entries to “Other comprehensive income”, did not create temporary differences for income tax.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

18.

LEASE LIABILITIES

As of March 31, 2019, the Group recorded non-current and current lease liabilities in the amount of 15,371 and 11,305, respectively. These liabilities are discounted at the following rates:


Lease term	Balance as of March 31, 2019		Effective average monthly rate used
One year		958		0.41	%
One to two years		6,693		0.48	%
Two to three years		4,176		0.59	%
Three to four years		5,627		0.68	%
Four to five years		1,390		0.70	%
More than five years		7,832		0.80	%

		26,676

Financial accretion accrued over the three-month period ended March 31, 2019, resulting from lease contracts, amounts to 442, of which 419 were included in the “Financial Accretion” line in financial loss of the “Net Financial Results” item of the comprehensive statement of income (see Note 26) and 23 were capitalized in “Property, Plant and Equipment”.

As of March 31, 2019, maturities of liabilities related to lease contracts are as follows:


	Lease liabilities
0 to 1 year		11,305
1 to 2 years		6,615
2 to 3 years		3,736
3 to 4 years		2,439
4 to 5 years		1,140
More than 5 years		1,441

		26,676

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

19.

LOANS


			March 31, 2019					December 31, 2018
	Interest rate ⁽¹⁾	Maturity	Noncurrent		Current			Noncurrent		Current
Pesos:
Negotiable obligations⁽⁵⁾	16.50% - 54.16%	2019-2024		24,968		7,338			26,118		6,999
Financial loans⁽³⁾	43.17% - 50.45%	2019-2020		40		157			40		789
Account overdraft	6.36% - 69.00%	2019		—		162			—		—

				25,008		7,657			26,158		7,788

Currencies other than the Peso:
Negotiable obligations⁽²⁾⁽⁴⁾	3.50% - 10.00%	2019-2047		252,499		18,986			219,510		17,417
Export pre-financing	2.00% - 7.50%	2019-2021		1,288		25,496	⁽⁶⁾		—		20,724	⁽⁶⁾
Imports financing	4.04% - 6.74%	2019-2020		1,114		15,489			968		13,176
Loans⁽⁵⁾	4.20% - 6.55%	2019-2024		27,505		8,240			23,616		5,721

				282,406		68,211			244,094		57,038

				307,414		75,868			270,252		64,826

(1)	Annual interest rate in force as of March 31, 2019.

(2)	Disclosed net of 472 and 410 corresponding to YPF’s own NO repurchased through open market transactions, as of March 31, 2019 and December 31, 2018, respectively.

(3)	Includes loans granted by BNA. As of December 31, 2018, it includes 500, which accrues interest at a BADLAR variable rate plus a spread of 3.5 percentage points. See Note 34.

(4)	Includes 4,244 and 2,634 as of March 31, 2019 and December 31, 2018, respectively, of nominal value of NO that will be canceled in pesos at the applicable exchange rate in accordance with the terms of the series issued.

(5)	Includes 15,850 as of March 31, 2019 and December 31, 2018, of nominal value of NO that will be canceled in U.S. dollars at the applicable exchange rate according to the conditions of the issued series.

(6)

Includes pre-financing of exports granted by BNA. As of March 31 2019, it includes 6,488, 1,298 of which accrue a 2% fixed interest rate and 5,190 a 6.5% fixed interest rated. As of December 31, 2018, it includes 5,264, 3,008 of which accrue a 2% fixed interest rate and 2,256 a 6.5% fixed interest rated.

Set forth below is the evolution of the loans for three-month period ended on March 31, 2019 and for the year ended December 31, 2018:


	Loans
Balance as of December 31, 2017		191,063
Proceed from loans		39,673
Payments of loans		(55,734	)
Payments of interest		(26,275	)
Accrued interest⁽¹⁾		27,998
Net exchange differences and translation		160,016
Result from net monetary position⁽²⁾		(1,663	)

Balance as of December 31, 2018		335,078

Proceed from loans		13,081
Payments of loans		(9,534	)
Payments of interest		(8,625	)
Accrued interest⁽¹⁾		8,846
Net exchange differences and translation		44,431
Result from net monetary position⁽²⁾		5

Balance as of March 31, 2019		383,282

(1)	Includes capitalized financial costs.

(2)	Includes adjustment for inflation of opening balances which was charged to other comprehensive income and the adjustment for inflation of the period, which was charged to results.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

19.

LOANS (Cont.)

Details regarding the Negotiable Obligations of the Group are as follows:


											March 31, 2019				December 31, 2018
Month	Year	Principal value		Ref.		Class	Interest rate⁽³⁾			Principal Maturity	Noncurrent		Current		Noncurrent		Current
YPF
-	1998	US$	15		(1) (6)	—	Fixed	10.00	%	2028		641		26		557		9
April	2013	$	2,250		(2) (4) (6) (7)	Class XVII	BADLAR plus 2.25%	42.94	%	2020		1,125		1,284		1,125		1,330
June	2013	$	1,265		(2) (4) (6)	Class XX	BADLAR plus 2.25%	44.20	%	2020		633		653		633		657
July	2013	US$	92		(2) (5) (6)	Class XXII	Fixed	3.50	%	2020		524		530		456		461
April, February and October	2014/5/6	US$	1,522		(2) (4) (6)	Class XXVIII	Fixed	8.75	%	2024		65,834		2,832		57,233		1,210
March	2014	$	500		(2) (6) (7)	Class XXIX	BADLAR	40.29	%	2020		—		205		200		162
September	2014	$	1,000		(2) (6) (7)	Class XXXIV	BADLAR plus 0.10%	43.32	%	2024		833		175		833		299
September	2014	$	750		(2) (4) (6)	Class XXXV	BADLAR plus 3.50%	46.72	%	2019		—		252		—		571
February	2015	$	950		(2) (6) (7)	Class XXXVI	BADLAR plus 4.74%	44.55	%	2020		—		1,007		950		187
April	2015	$	935		(2) (4) (6)	Class XXXVIII	BADLAR plus 4.75%	50.66	%	2020		312		461		312		390
April	2015	US$	1,500		(2) (6)	Class XXXIX	Fixed	8.50	%	2025		64,486		959		56,062		2,025
September	2015	$	1,900		(2) (6) (7)	Class XLI	BADLAR	43.22	%	2020		633		644		633		801
September and December	2015	$	1,697		(2) (4) (6)	Class XLII	BADLAR plus 4.00%	47.22	%	2020		1,697		15		1,697		243
October	2015	$	2,000		(2) (6) (7)	Class XLIII	BADLAR	45.85	%	2023		2,000		404		2,000		196
March	2016	$	1,350		(2) (4) (6)	Class XLVI	BADLAR plus 6.00%	46.26	%	2021		1,350		46		1,350		234
March	2016	US$	1,000		(2) (6)	Class XLVII	Fixed	8.50	%	2021		43,250		72		37,600		870
April	2016	US$	46		(2) (5) (6)	Class XLVIII	Fixed	8.25	%	2020		1,982		32		1,723		29
April	2016	$	535		(2) (6)	Class XLIX	BADLAR plus 6.00%	47.45	%	2020		535		50		535		62
July	2016	$	11,248		(2) (6) (8)	Class L	BADLAR plus 4.00%	51.73	%	2020		11,248		1,323		11,248		1,238
September	2016		CHF300		(2) (6)	Class LI	Fixed	3.75	%	2019		—		13,281		—		11,563
May	2017	$	4,602		(2) (6) (8)	Class LII	Fixed	16.50	%	2022		4,602		299		4,602		110
July and December	2017	US$	1,000		(2) (6)	Class LIII	Fixed	6.95	%	2027		43,739		593		38,024		1,180
December	2017	US$	750		(2) (6)	Class LIV	Fixed	7.00	%	2047		32,043		661		27,855		70
Metrogas
December	2018	$	513			Class II	BADLAR plus 10.00%	57.81	%	2019		—		520		—		519

												277,467		26,324		245,628		24,416

(1)	Corresponds to the 1997 M.T.N. Program for US$ 1,000 million.

(2)	Corresponds to the 2008 M.T.N. Program for US$ 10,000 million.

(3)	Interest rate as of March 31, 2019.

(4)

The ANSES and/or the “Fondo Argentino de Hidrocarburos” have participated in the primary subscription of these negotiable obligations, which may at the discretion of the respective holders, be subsequently traded on the securities market where these negotiable obligations are authorized to be traded.

(5)	The payment currency of these Negotiable Obligations is the Peso at the Exchange rate applicable under the terms of the series issued.

(6)	As of the date of issuance of these financial statements, the Group has fully complied with the use of proceeds disclosed in the corresponding pricing supplements.

(7)	NO classified as productive investments computable as such for the purposes of section 35.8.1, paragraph K of the General Regulations applicable to Insurance Activities issued by the Argentine Insurance Supervisory Bureau.

(8)	The payment currency of this issue is the U.S. dollar at the exchange rate applicable in accordance with the conditions of the relevant issued series.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

20.

OTHER LIABILITIES


	March 31, 2019				December 31, 2018
	Noncurrent		Current		Noncurrent		Current
Liabilities for contractual claims⁽¹⁾		151		43		175		41
Extension of concessions		383		513		348		436
Miscellaneous		26		341		26		245

		560		897		549		722

(1)	See Note 14 to the annual consolidated financial statements.

21.

ACCOUNTS PAYABLE


	March 31, 2019				December 31, 2018
	Noncurrent		Current		Noncurrent		Current
Trade and related parties ⁽¹⁾		2,152		86,654		2,227		81,450
Guarantee deposits		28		536		19		492
Payables with partners of JO and consortia		1,149		573		1,127		324
Miscellaneous		—		1,423		—		1,959

		3,329		89,186		3,373		84,225

(1)	See Note 34 for information about related parties.

22.

REVENUES


	For the three-month period ended March 31,
	2019			2018
Sales of goods and services		132,852			76,484
Government incentives⁽¹⁾		2,260			2,091
Turnover tax		(4,205	)		(2,752	)

		130,907			75,823

(1)	See Note 34.

The Group’s transactions and the main revenues are described in Note 6. The Group’s revenues are derived from contracts with customers, except for Government incentives.

•

Breakdown of revenues

•

Type of good or service


	For the three-month period ended March 31, 2019
	Upstream		Downstream		Gas and Energy		Corporation and others		Total
Gas oil		—		44,187		—		—		44,187
Gasolines		—		31,271		—		—		31,271
Natural Gas⁽¹⁾		—		264		17,593		—		17,857
Crude Oil		—		3,073		—		—		3,073
Jet fuel		—		9,559		—		—		9,559
Lubricants and by-products		—		2,713		—		—		2,713
Liquefied Petroleum Gas		—		3,483		—		—		3,483
Fuel oil		—		995		—		—		995
Petrochemicals		—		4,520		—		—		4,520
Fertilizers		—		678		—		—		678
Flours, oils and grains		—		2,537		—		—		2,537
Asphalts		—		1,052		—		—		1,052
Goods for resale at gas stations		—		943		—		—		943
Income from services		—		—		—		852		852
Income from construction contracts		—		—		—		2,334		2,334
Virgin naphtha		—		709		—		—		709
Petroleum coke		—		1,568		—		—		1,568
LNG Regasification		—		—		22		—		22
Other goods and services		328		1,866		1,863		442		4,499

		328		109,418		19,478		3,628		132,852

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

22. REVENUES (Cont.)


	For the three-month period ended March 31, 2018
	Upstream		Downstream		Gas and Energy		Corporation and Others		Total
Gas oil		—		23,708		—		—		23,708
Gasolines		—		19,411		—		—		19,411
Natural Gas⁽¹⁾		25		167		13,833		—		14,025
Crude Oil		—		434		—		—		434
Jet fuel		—		3,982		—		—		3,982
Lubricants and by-products		—		1,647		—		—		1,647
Liquefied Petroleum Gas		—		2,615		—		—		2,615
Fuel oil		—		486		—		—		486
Petrochemicals		—		2,562		—		—		2,562
Fertilizers		—		287		—		—		287
Flours, oils and grains		—		1,274		—		—		1,274
Asphalts		—		988		—		—		988
Goods for resale at gas stations		—		690		—		—		690
Income from services		—		—		—		224		224
Income from construction contracts		—		—		—		385		385
Virgin naphtha		—		375		—		—		375
Petroleum coke		—		943		—		—		943
LNG Regasification		—		—		629		—		629
Other goods and services		200		642		632		345		1,819

		225		60,211		15,094		954		76,484

(1)	Includes 11,914 and 11,306 corresponding to sales of natural gas produced by the Company for the three-month period ended March 31, 2019 and 2018, respectively.

•

Sales Channels


	For the three-month period ended March 31, 2019
	Upstream		Downstream		Gas and Energy		Corporation and others		Total
Gas Stations		—		54,810		—		—		54,810
Power Plants		—		115		3,597		—		3,712
Distribution Companies		—		—		1,991		—		1,991
Retail distribution of natural gas		—		—		5,789		—		5,789
Industries, transport and aviation		—		23,885		6,215		—		30,100
Agriculture		—		10,278		—		—		10,278
Petrochemical industry		—		5,376		—		—		5,376
Trading		—		8,231		—		—		8,231
Oil Companies		—		3,796		—		—		3,796
Commercialization of liquefied petroleum gas		—		1,306		—		—		1,306
Other sales channels		328		1,621		1,886		3,628		7,463

		328		109,418		19,478		3,628		132,852


	For the three-month period ended March 31, 2018
	Upstream		Downstream		Gas and Energy		Corporation and others		Total
Gas Stations		—		32,852		—		—		32,852
Power Plants		—		30		6,235		—		6,265
Distribution Companies		—		—		1,004		—		1,004
Retail distribution of natural gas		—		—		3,194		—		3,194
Industries, transport and aviation		25		12,142		3,399		—		15,566
Agriculture		—		5,439		—		—		5,439
Petrochemical industry		—		3,271		—		—		3,271
Trading		—		3,086		—		—		3,086
Oil Companies		—		1,462		—		—		1,462
Commercialization of liquefied petroleum gas		—		1,064		—		—		1,064
Other sales channels		200		865		1,262		954		3,281

		225		60,211		15,094		954		76,484

•

Target Market

Sales contracts in the domestic market resulted in 115,601 and 68,945 for the three-month period ended March 31, 2019 and 2018, respectively.

Sales contracts in the international market resulted in 17,251 and 7,539 for the three-month period ended March 31, 2019 and 2018, respectively.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

22.

REVENUES (Cont.)

•

Contract balances

The following table reflects information regarding credits, contract assets and contract liabilities:


	March 31, 2019				December 31, 2018
	Non-current		Current		Non-current		Current
Credits for contracts included in Trade Receivables		7,452		61,333		7,804		59,419
Contract assets		—		538		—		420
Contract liabilities		1,778		3,929		1,828		4,996

Contract assets are mainly related to the work carried out by the Group under the construction contracts.

Contract liabilities are mainly related to advances received from customers under the contracts for the sale of commodities, fuels, crude oil, methanol, lubricants and by-products, gas oil and natural gas, among others.

During the three-month period ended on March 31, 2019, the Group has recognized 2,226 in revenues from ordinary activities arising from contracts entered into with customers in the statement of comprehensive income, which have been included in the balance for contract liabilities at the beginning of the period.

23.

COSTS


	For the three-month period ended March 31,
	2019			2018
Inventories at beginning of year		53,324			27,149
Purchases		36,104			17,717
Production costs⁽¹⁾		72,848			45,671
Translation effect		8,239			2,131
Adjustment for inflation⁽²⁾		99			—
Inventories at end of the period		(65,860	)		(29,230	)

		104,754			63,438

(1)	See Note 24.

(2)	Corresponds to adjustment for inflation of inventories opening balances of subsidiaries with the Peso as functional currency, which was charged to other comprehensive income.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

24.

EXPENSES BY NATURE

The Group presents the statement of comprehensive income by classifying expenses according to their function as part of the “Costs”, “Administrative expenses”, “Selling expenses” and “Exploration expenses” lines. The following additional information is disclosed as required, on the nature of the expenses and their relation to the function within the Group for the three-month period ended March 31, 2019 and 2018:


	For the three-month period ended March 31, 2019
	Production costs⁽³⁾		Administrative expenses			Selling expenses			Exploration expenses		Total
Salaries and social security taxes		5,742		1,577			788			127		8,234
Fees and compensation for services		392		1,210	⁽²⁾		216			6		1,824
Other personnel expenses		1,652		173			92			13		1,930
Taxes, charges and contributions		1,618		97			2,053	⁽¹⁾		—		3,768
Royalties, easements and canons		8,304		—			25			2		8,331
Insurance		503		4			48			—		600
Rental of real estate and equipment		1,833		9			255			—		2,097	⁽⁴⁾
Survey expenses		—		—			—			217		217
Depreciation of property, plant and equipment		26,893		472			683			—		28,048
Amortization of intangible assets		418		59			6			—		483
Depreciation of right-of-use assets		1,897		—			123			—		2,020
Industrial inputs, consumable materials and supplies		4,213		19			49			12		4,293
Operation services and other service contracts		4,457		131			501			20		5,109	⁽⁴⁾
Preservation, repair and maintenance		9,329		131			134			9		9,603	⁽⁴⁾
Unproductive exploratory drillings		—		—			—			992		992
Transportation, products and charges		4,166		5			3,385			—		7,556
Provision for doubtful trade receivables		—		—			799			—		799
Publicity and advertising expenses		—		522			119			—		641
Fuel, gas, energy and miscellaneous		1,431		314			544			123		2,412	⁽⁴⁾

		72,848		4,768			9,820			1,521		88,957

(1)	Includes approximately 1,170 corresponding to export withholdings.

(2)

Includes 12 corresponding to fees and remunerations of the Directors and Statutory Auditors of YPF’s Board of Directors. On April 26, 2019, the General and Extraordinary Shareholders’ Meeting of YPF resolved to ratify the fees of 65 corresponding to fiscal year 2018 and to approve the approximate sum of 87 as fees for such fees and remunerations for the fiscal year 2019.

(3)	The expense recognized in the condensed interim consolidated statement of comprehensive income corresponding to research and development activities amounted to 195.

(4)	Includes 974 and 238 corresponding to short-term leases and to the lease charge related to the underlying asset return and/or use, respectively.


	For the three-month period ended March 31, 2018
	Production costs⁽³⁾		Administrative expenses			Selling expenses			Exploration expenses		Total
Salaries and social security taxes		3,457		929			501			45		4,932
Fees and compensation for services		279		650	⁽²⁾		162			3		1,094
Other personnel expenses		1,054		103			46			9		1,212
Taxes, charges and contributions		672		64			992	⁽¹⁾		—		1,728
Royalties, easements and canons		5,793		—			10			8		5,811
Insurance		261		16			25			—		302
Rental of real estate and equipment		1,671		3			140			—		1,814
Survey expenses		—		—			—			37		37
Depreciation of property, plant and equipment		18,178		206			330			—		18,714
Amortization of intangible assets		213		29			5			—		247
Industrial inputs, consumable materials and supplies		1,730		6			34			5		1,775
Operation services and other service contracts		3,220		68			258			12		3,558
Preservation, repair and maintenance		5,566		107			175			15		5,863
Unproductive exploratory drillings		—		—			—			177		177
Transportation, products and charges		2,329		—			1,834			—		4,163
Provision for doubtful trade receivables		—		—			95			—		95
Publicity and advertising expenses		—		109			252			—		361
Fuel, gas, energy and miscellaneous		1,248		64			322			12		1,646

		45,671		2,354			5,181			323		53,529

(1)	Includes approximately 298 corresponding to export withholdings.

(2)

Includes 22 corresponding to fees and remunerations of the Directors and Statutory Auditors of YPF’s Board of Directors. On April 27, 2018, the General and Extraordinary Shareholders’ Meeting of YPF resolved to ratify the fees corresponding to fiscal year 2017 of 48.8 and to approve as fees on account for such fees and remunerations for the fiscal year 2018, the approximate sum of 62.

(3)	The expense recognized in the condensed interim consolidated statement of comprehensive income corresponding to research and development activities amounted to 114.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

25.

OTHER NET OPERATING RESULTS


	For the three-month period ended March 31,
	2019			2018
Result of companies’ revaluation⁽¹⁾		—			11,980
Result for sale of participation in areas		1,523	⁽²⁾		1,167
Construction incentive⁽³⁾		46			—
Lawsuits		(694	)		(359	)
Miscellaneous		(288	)		39

		587			12,827

(1)	See Note 3 to the annual consolidated financial statements.

(2)	See Note 4.

(3)	See Note 34.

26.

NET FINANCIAL RESULTS


	For the three-month period ended March 31,
	2019			2018
Financial income
Interest income		1,104			285
Exchange differences		23,854			7,614
Financial accretion		385			—

Total financial income		25,343			7,899

Financial loss
Interest loss		(8,600	)		(5,263	)
Exchange differences		(9,249	)		(743	)
Financial accretion		(2,148	)		(2,917	)

Total financial costs		(19,997	)		(8,923	)

Other financial results
Fair value gains on financial assets at fair value through profit or loss		1,312			1,142
Gains on derivative financial instruments		45			—
Result from net monetary position		1,320			—

Total other financial results		2,677			1,142

Total net financial results		8,023			118

27.

INVESTMENTS IN JOINT OPERATIONS

The assets and liabilities as of March 31, 2019 and December 31, 2018, and expenses for the three-month period ended on March 31, 2019 and 2018 of JO and other agreements in which the Group participates are as follows:


	March 31, 2019		December 31, 2018
Noncurrent assets⁽¹⁾		151,331		130,272
Current assets		3,789		4,024

Total assets		155,120		134,296

Noncurrent liabilities		14,911		11,484
Current liabilities		11,880		9,695

Total liabilities		26,791		21,179


	For the three-month period ended March 31,
	2019		2018
Production Cost		13,860		8,199
Exploration expenses		4		6

(1)	It does not include charges for impairment of property, plant and equipment because they are recorded by the partners participating in the JO.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

28.

SHAREHOLDERS’ EQUITY

The Company’s subscribed capital as of March 31, 2019, is 3,924 and 9 own treasury shares represented by 393,312,793 book-entry shares of common stock and divided into four classes of shares (A, B, C and D), with a par value of Pesos 10 and 1 vote per share. These shares are fully subscribed, paid-in and authorized for stock exchange listing

As of March 31, 2019, there are 3,764 Class A outstanding shares. As long as any Class A share remains outstanding, the affirmative vote of Argentine Government is required for: 1) mergers, 2) acquisitions of more than 50% of YPF shares in an agreed or hostile bid, 3) transfers of all the YPF’s production and exploration rights, 4) the voluntary dissolution of YPF or 5) change of corporate and/or tax address outside the Argentine Republic. Items 3) and 4) also require prior approval by the Argentine Congress.

The General Ordinary and Extraordinary Shareholders’ Meeting was held on April 26, 2019 and approved the financial statements of YPF for the fiscal year ended December 31, 2018 and additionally, approved the following resolution in relation to the allocation of profits: a) to allocate the sum of 280 to create a Reserve for the purchase of treasury shares in order to give the Board of Directors the possibility of acquiring treasury shares at the time it deems appropriate, and complying, during the execution of the plans, with the commitments assumed and to be assumed by them in the future; b) to allocate the sum of 33,235 to create a reserve for investments under the terms of article 70, third paragraph of the LGS; and c) to allocate the sum of 4,800 to a reserve for future dividends, empowering the Board of Directors, until the date of the next General Ordinary Shareholders’ Meeting at which the financial statements ended as of December 31, 2019 will be dealt with, to determine the time and amount for their distribution, taking into account the financial conditions and availability of funds as well as the operating results, investments and other matters that are deemed relevant in the development of the Company’s activities, or their allocation in accordance with the provisions set forth in article 224, second paragraph, of the LGS and other applicable regulations.

29.

EARNINGS PER SHARE

The following table shows the net income and the number of shares that have been used for the calculation of the basic and diluted earnings per share:


	For the three-month period ended on March 31,
	2019			2018
Net profit/(loss)		(8,185	)		6,067
Average number of shares outstanding		392,376,284			392,206,956
Basic and diluted earnings per share		(20.86	)		15.47

Basic and diluted earnings per share are calculated as shown in Note 2.b.13 to the annual consolidated financial statements.

30.

ISSUES RELATED TO MAXUS ENTITIES

•

Maxus Energy Corporation Liquidating Trust (“Liquidating Trust”) Claim

On April 1, 2019, the Company, together with the other companies of the Group that are part of the Claim, answered the complaint initiated by the Liquidating Trust, and on April 24, 2019, they filed the “Initial Disclosures” brief.

On May 3, 2019, the Liquidating Trust filed a request for the YPF Entities to deliver, under the Discovery process, a copy of certain documents that might be in their possession. On the same day, the Liquidating Trust filed an objection to the motion submitted by the YPF Entities so that the testimonies produced in the New Jersey lawsuit are allowed to be used.

Considering the preliminary status of the lawsuit, the complexity of the complaint and the evidence that both parties should submit, the Company will continuously reassess any changes in the aforementioned circumstances and their impact on the results and financial position of the Group as such changes occur.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

30.

ISSUES RELATED TO MAXUS ENTITIES (Cont.)

The Company, YPF Holdings, CLH Holdings, Inc. and YPF International will defend themselves, file the necessary legal remedies and exercise the defensive measures in accordance with the applicable legal procedure to defend their rights.

31.

CONTINGENT ASSETS AND LIABILITIES

Contingent liabilities and contingent assets are described in Note 28 to the annual consolidated financial statements.

31.a) Contingent liabilities

The recent events of the three-month period ended on March 31, 2019 are described below:

31.a.1) Contentious claims

•

Petersen Energía Inversora, S.A.U and Petersen Energía, S.A.U. companies (collectively, “Petersen”)

On April 17, the Court of Appeals for the Second Circuit returned the complaint to the District Court.

On April 18, 2019, the Company and the Argentine Republic filed a petition for reconsideration or clarification before the Court of Appeals for the Second Circuit in reference to the return of the complaint to the District Court. On the same day, the Company and the Argentine Republic requested the District Court to suspend the proceedings until the Court of Appeals resolved on the petition for reconsideration or clarification filed by the Company and the Republic.

On April 22, 2019, the District Court accepted the petition made by the Company and the Republic to suspend the proceedings until the Court of Appeals resolved on the petition submitted by the Argentine Republic. Also on April 22, Petersen filed an objection to the request for reconsideration or clarification of the Company and the Republic before the Court of Appeals. On the same day, the Company and the Republic replied to Petersen’s objection before the Court of Appeals for the Second Circuit.

On April 26, 2019, the Court of Appeals resolved to dismiss the petition submitted by the Argentine Republic.

On April 27, 2019, Petersen filed a motion to the District Court requesting a hearing to define the following steps of the procedure.

On April 28, 2019, the Company and the Argentine Republic filed a motion to the District Court requesting the suspension of the terms until the Supreme Court of the United States rules on the writ of certiorari.

On April 29, 2019, the Company and the Republic answered the request filed by Petersen for a hearing with the District Court. On the same day, Petersen answered the motions filed by the Company and the Republic on April 28 and 29.

On April 30, 2019, the Company and the Republic answered the brief filed by Petersen on April 29.

On May 1, 2019, the District Court resolved (i) to grant the petition for suspension of the litigation terms requested by the Company and the Argentine Republic and (ii) to dismiss the request for a hearing filed by Petersen.

On the other hand, on February 28, 2019, the Company filed a complaint in Spain against Petersen and Prospect Investments LLC (“Burford”) seeking the definition of the legal nature of the agreement that was subscribed by Burford and Petersen’s Trustee in Bankruptcy.

As of the date of issuance of these consolidated financial statements, there are no elements in YPF’s possession that allow quantifying the possible impact that this claim could have on the Company.

The Company categorically rejects the claims asserted in the complaint for being inadmissible and will file all necessary legal remedies and take all defensive measures in accordance with the applicable legal procedure in order to defend its rights.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

31	CONTINGENT ASSETS AND LIABILITIES (Cont.)

•

Eton Park Capital Management, L.P., Eton Park Master Fund, LTD. y Eton Park Fund, L.P. (jointly referred to as “Eton Park”)

In response to the presentations made in April 2019 by the Company and the Argentine Republic in the Petersen Case and the suspension of the process ruled by the Court, the procedural terms of Eton Park case are also on hold until the Supreme Court of Justice is issued in relation to the writ of certiorari.

As of the date of these financial statements, there are no factors that YPF can use to quantify the possible impact that this claim might have on the Company.

32.

CONTRACTUAL COMMITMENTS

Contractual commitments are described in Note 29 to the annual consolidated financial statements. Updates for the three-month period ended March 31, 2019 are described below:

32.a) Investment project agreements

•

Agreement for the development of Loma La Lata Norte and Loma Campana areas

In relation to the Investment Agreement entered into between the Company and subsidiaries of Chevron Corporation for the joint exploitation of non-conventional hydrocarbons in the province of Neuquén, in the Loma Campana area, for the three-month period ended March 31, 2019, the Company and Compañía de Hidrocarburo No Convencional S.R.L. (“CHNC”) have carried out transactions which include the purchase of gas and crude oil by YPF for 4,494. These transactions were executed based on the market’s general and regulatory framework. The net balance to be paid to CHNC as of March 31, 2019 is 2,848.

33.

MAIN REGULATIONS AND OTHER

Main regulations and others are described in Note 30 to the annual consolidated financial statements. Updates for the three-month period ended March 31, 2019 are described below:

33.a) Regulatory requirements for natural gas

•

Mechanisms for allocating the demand for natural gas

Extension of ENARGAS Resolution No. 59/18

ENARGAS Resolution No. 215/2019, published on April 16, 2019, extends the effective term of ENARGAS Resolution No. 59/18 (approves a Transitional Procedure for Shipment Management in the Emergency Executive Committee) for an additional period of 180 calendar days counted as from the expiry of the term set forth in ENARGAS Resolution No. 302/2018 for considering that the reasons that led to the resolution still persist.

Terms and Conditions for the Distribution of Natural Gas through Networks

SGE Resolution No. 32/19, published on February 11, 2019, approved the price auction mechanism for the provision of natural gas on a firm basis to meet the demand of full service users of the Distribution public utility service for the days of February 14, 2019 (for Neuquina, San Jorge Gulf, Santa Cruz Sur and Tierra del Fuego basins) and February 15, 2019 (for the Noroeste basin). SGE Resolution No. 32/2019 also approved the applicable price bidding model and instructed Mercado Electrónico de Gas Sociedad Anónima (“MEGSA”) to issue the supplementary rules required to organize and implement the approved bidding mechanism. Price auctions were carried out at MEGSA on the aforementioned scheduled dates and, based on the results obtained, YPF proceeded to implement the contracts for the volumes awarded in relation to the participating distribution licensees corresponding to fiscal year April 2019-March 2020.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

33.

MAIN REGULATIONS AND OTHER (Cont.)

33.b) Natural gas production incentive programs

•

Stimulus Program for Investment in Natural Gas Production Developments from Unconventional Wells

Regarding the Estación Fernández Oro Concession, on February 6, 2019, the Company filed an appeal for reconsideration against SGE Resolutions No. 356, 369, 370 y 371, which authorized payment to the Company of the final compensation for the first quarter of 2018 and the provisional compensation for the third quarter of 2018, establishing the amount of such compensations based on the volume of the Included Production declared by the Company when it adhered to the Program by reason of the aforementioned concession, without considering the actual volume of Included Production recorded in the first quarter of 2018 and the updated estimate for the Included Production submitted by the Company on October 2018 regarding the third quarter of 2018. By means of the remedies filed, the SGE was requested to proceed and assess the economic compensations to be paid based on the production volume timely reported by YPF in the tax returns Production submitted (for final compensations of the first quarter of 2018) or based on the estimated Included Production submitted on October 16, 2018 (for provisional compensations of the third quarter of 2018). As of the date of issuance of these condensed interim consolidated financial statements, the appeals for reconsideration filed by the Company have not yet been resolved by the SGE

•

Natural Gas Surplus Injection Stimulus Program

After the “Natural Gas Programs” Bonds were credited in April 2019 to the escrow account designated by YPF for a total amount of US$ 759 million, as of the date of issuance of these condensed interim consolidated financial statements, YPF received payment of the first three installments for a total amount of US$ 101.1 million.

33.c) Regulatory requirements applicable to natural gas distribution

•

Tariff Renegotiation

Transitional Agreement

SGE Resolution No. 146/2019, published on March 29, 2019, modified the discounts in the price of gas at the TSEP for Public Welfare Entities, setting them at 45% of P Users for the sub-areas not reached by the Subsidies of Residential Gas Consumption of Law 25,565 and 10% of residential users for the sub-areas reached by such subsidies.

SGE Resolution No. 148/2019, published on April 1, 2019, established discounts of 27% and 12% in the price of gas at the TSEP for residential users for April and May consumptions, respectively. In its recitals, the resolution provides that the discount for residential users will bear the corresponding reimbursement to gas providers, pursuant to the methodology and with the prior controls to be established on a timely basis.

ENARGAS Resolution No. 198/2019, published on April 1, 2019, declared Public Hearing No. 98 valid and approved Metrogas Tariff Schemes effective as from April 1, 2019 (winter period 2019).

33.d) Regulatory requirements applicable to the petroleum liquid gas industry

•

Benchmark prices for the butane and propane commercialization chain

SGE Resolution No. 15/2019, published on January 28, 2019, updated benchmark prices (at the producer’s plant) for the commercialization of butane and propane effective as from February 1, 2019 and set the economic compensation to producers at $ 0 as from the same date.

Regulation No. 29/2019 issued by the Undersecretariat of Hydrocarbons and Fuels, published on April 24, 2019, replaced section VI of the Annex to Resolution 49/2015 of former Secretariat of Energy, in relation to the methodoloty to determine the contributions of butane and propane by producing companies and the quotas assigned to the fractionating companies.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

33.

MAIN REGULATIONS AND OTHER (Cont.)

33.e) Fiscal regulations

•

Tax Revaluation

On March 28, 2019, the Company adhered to the tax revaluation established in Law No. 27,430 for the “Mines, quarries, forests and analogue assets” category, establishing a special tax of 4,562. The adherence will allow a higher deduction of the depreciation of the assets revaluated in the income tax, and therefore will affect the recording of the deferred income tax. See Note 17.

33.f) Other regulatory requirements

•

CNV Regulatory Framework (N.T. 2013)

a) CNV General Resolution No. 622

i.	Pursuant to section 1, Chapter III, Title IV of such Resolution, a description of the notes to the consolidated financial statements containing information required under the Resolution in the form of exhibits follows.


Exhibit A – Fixed Assets		Note 9 Property, plant and equipment
Exhibit B – Intangible assets		Note 8 Intangible assets
Exhibit C – Investments in companies		Note 11 Investments in associates and joint ventures
Exhibit D – Other investments		Note 7 Financial instruments by category
Exhibit E – Provisions		Note 14 Trade receivables Note 13 Other receivables Note 11 Investments in associates and joint ventures Note 9 Property, plant and equipment Note 16 Provisions
Exhibit F – Cost of goods sold and services rendered		Note 23 Costs
Exhibit G – Assets and liabilities in foreign currency		Note 36 Assets and liabilities in currencies other than the Peso

ii.

On March 18, 2015, the Company was registered with the CNV under the category “Settlement and Clearing Agent and Trading Agent - Own account”, record No. 549. Considering the Company’s business, and the CNV Rules and its Interpretative Criterion No. 55, the Company will not, under any circumstance, offer brokerage services to third parties for transactions in markets under the jurisdiction of the CNV, and it will also not open operating accounts to third parties to issue orders and trade in markets under the jurisdiction of the CNV.

Likewise, in accordance with Section VI, Chapter II, Title VII of the CNV Rules and its Interpretative Criterion No. 55, the Company’s equity exceeds the minimum required equity under such rules, which is 15, while the minimum required counterparty capital, which is 3, is comprised of 2,974,520 Units of Investment MAF MONEY MARKET - Class B Mutual Fund with immediate liquidation, the total value of the Company’s Units as of March 31, 2019 being 10.

b) CNV General Resolution No. 629

Due to General Resolution No. 629 of the CNV, the Company informs that supporting documentation of YPF’s operations, which is not in YPF’s headquarters, is stored in the following companies:

•

Adea S.A. located in Barn 3 – Route 36, Km. 31.5 – Florencio Varela – Province of Buenos Aires.

•

File S.R.L., located in Panamericana and R.S. Peña – Blanco Encalada – Luján de Cuyo – Province of Mendoza.

Additionally, it is placed on record that the detail of the documentation given in custody is available at the registered office, as well as the documents mentioned in section 5, subsection a.3), Section I, Chapter V, Title II of the CNV Rules.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

34.

BALANCES AND TRANSACTIONS WITH RELATED PARTIES

The information detailed in the tables below shows the balances with associates and joint ventures as of March 31, 2019 and December 31, 2018 and transactions with the mentioned parties for the three-month period ended March 31, 2019 and 2018.


	March 31, 2019						December 31, 2018
	Other receivables		Trade receivables		Accounts payable		Other receivables		Trade receivables		Accounts payable
	Current		Current		Current		Current		Current		Current
Joint ventures:
YPF EE		216		551		679		218		1,552		1,301
Profertil		9		628		303		2		461		428
MEGA		—		2,377		108		—		2,441		6
Refinor		—		582		100		—		770		5
Bizoy S.A.		12		—		—		11		—		—
Y-GEN I		—		2		—		—		2		—
Y-GEN II		—		—		—		—		—		—
Petrofaro S.A.		—		393		213		—		267		151
Oleoducto Campana - Lago Pellegrini S.A.		2,312		—		—		1,884		—		—

		2,549		4,533		1,403		2,115		5,493		1,891

Associates:
CDS		—		445		—		—		518		—
YPF Gas		683		223		58		637		414		62
Oldelval		—		36		348		—		34		272
Termap		—		—		149		—		—		102
OTA		6		—		10		5		—		14
OTC		6		—		—		7		—		—
Gasoducto del Pacífico (Argentina) S.A.		4		—		129		4		—		80
Oiltanking		71		—		188		21		—		147
Gas Austral S.A.		2		17		—		2		16		—

		772		721		882		676		982		677

		3,321		5,254		2,285		2,791		6,475		2,568


	For the three-month period ended March 31,
	2019							2018
	Revenues		Purchases and services		Net interest gain (loss)			Revenues			Purchases and services			Net interest gain (loss)
Joint ventures:
YPF EE		752		830		—			41	⁽¹⁾		173	⁽¹⁾		13	⁽¹⁾
Profertil		904		295		—			486			106			—
MEGA		2,657		98		—			1,324			124			—
Refinor		578		83		(16	)		341			38			—
Y-GEN I		—		—		—			4			—			—
Y-GEN II		—		—		—			—			—			—
Petrofaro S.A.		80		54		—			14			61			—

		4,971		1,360		(16	)		2,210			502			13

Associates:
CDS		551		—		—			58			—			—
YPF Gas		428		56		54			303			10			31
Oldelval		39		436		—			—			199			—
Termap		—		268		—			—			113			—
OTA		—		9		—			—			7			—
Gasoducto del Pacífico (Argentina) S.A.		—		81		—			—			61			—
Oiltanking		1		276		—			—			134			—
Gas Austral S.A.		45		—		—			26			—			—

		1,064		1,126		54			387			524			31

		6,035		2,486		38			2,597			1,026			44

(1)	On March 20, 2018, YPF EE was reclassified as a joint venture. Includes transactions following the loss of control over YPF EE. See Note 3 to the annual consolidated financial statements.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

34.

BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Cont.)

Additionally, in the normal course of business, and considering being the main energy group in Argentina, the Group’s client/suppliers portfolio encompasses both private sector entities as well as national public sector entities. As required by IAS 24 “Related party disclosures”, among the major transactions above mentioned the most important are:


		Balances						Transactions
		Credits / (Liabilities)						Income / (Costs)
		March 31, 2019			December 31, 2018			For the three-month period ended March 31,
Customers / Suppliers	Ref.	March 31, 2019			December 31, 2018			2019			2018
MINEM	(1)(15)		31,343			26,978			—			—
MINEM	(2)(15)		1,500			1,211			739			563
MINEM	(3)(15)		93			282			21			36
MINEM	(4)(15)		174			192			7			23
MINEM	(5)(15)		182			1,255			96			—
MINEM	(6)(15)		4,180			3,535			522			—
Ministry of Transport	(7)(15)		2,620			3,044			1,397			1,469
Secretariat of Industry	(8)(15)		44			—			46			—
CAMMESA	(9)		3,208			3,822			1,984			5,541
CAMMESA	(10)		(429	)		(444	)		(766	)		(623	)
IEASA	(11)		5,609			4,326			1,389			1,544
IEASA	(12)		(601	)		(745	)		(49	)		(32	)
Aerolíneas Argentinas S.A. and Austral Líneas Aéreas Cielos del Sur S.A.	(13)		4,983			3,454			3,369			1,348
Aerolíneas Argentinas S.A. and Austral Líneas Aéreas Cielos del Sur S.A.	(14)		—			—			—			(8	)

(1)	Benefits of the incentive scheme for the Additional Injection of natural gas.

(2)	Benefits from the Program to Encourage Investments in the Development of Natural Gas Production from Unconventional Reservoirs

(3)	Benefits for the propane gas supply agreement for undiluted propane gas distribution networks.

(4)	Benefits for the bottle-to-bottle program.

(5)	Procedure to compensate for the lower income that Natural Gas Piping Distribution Service Licensed Companies receive from their users for the benefit of Metrogas.

(6)	Procedure to compensate the payment of the daily differences accumulated on a monthly basis between the price of the gas purchased by Natural Gas Piping Distribution Service Companies and the price of the natural gas included in the respective tariff schemes for the benefit of Metrogas.

(7)	The compensation for providing gas oil to public transport of passengers at a differential price.

(8)	Incentive for domestic manufacturing of capital goods, for the benefit of AESA.

(9)	The provision of fuel oil and natural gas, and electric power generation corresponding to YPF EE until the date of loss of control by YPF.

(10)	Purchases of energy.

(11)	Rendering of regasification service in the regasification projects of LNG in Escobar. Furthermore, it included the regasification projects of LNG in Bahía Blanca for the three-month period ended on March 31, 2018.

(12)	The purchase of natural gas and crude oil.

(13)	The provision of jet fuel.

(14)	The purchase of miles for the YPF Serviclub program.

(15)	Income recognized under the guidelines of IAS 20.

Additionally, the Group has entered into certain financing and insurance transactions with entities related to the national public sector. Such transactions consist of certain financial transactions that are described in Notes 15 and 19 to these condensed interim consolidated financial statements, and transactions with Nación Seguros S.A. related to certain insurance policies contracts.

In addition, the Group holds BONAR 2020 (see Note 30.g to the annual consolidated financial statements) and 2021, classified as “Investments in financial assets”.

Furthermore, in relation to the investment agreement signed between YPF and Chevron Corporation subsidiaries, YPF has an indirect non-controlling interest in CHNC with which YPF carries out transactions in connection with the mentioned investment agreement. See Note 29.b to the annual consolidated financial statements and see Note 32.a to this condensed interim consolidated financial statements.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

34.

BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Cont.)

The table below discloses the compensation for the YPF’s key management personnel, including members of the Board of Directors and Vice presidents (managers with executive functions appointed by the Board of Directors), for the three-month period ended March 31, 2019 and 2018:


	For the three-month period ended March 31,
	2019⁽¹⁾		2018⁽¹⁾
Short-term employee benefits ⁽²⁾		89		69
Share-based benefits		22		11
Post-retirement benefits		4		3

		115		83

(1)	Includes the compensation for YPF’s key management personnel which developed their functions during the mentioned period.

(2)	Does not include Social Security contributions of 20 and 11 for the three-month period ended March 31, 2019 and 2018, respectively.

35.

EMPLOYEE BENEFIT PLANS AND SIMILAR OBLIGATIONS

Note 2.b.10 to the annual consolidated financial statements describes the main characteristics and accounting treatment for benefit plans implemented by the Group.

i.	Retirement plan

The total charges recognized under the Retirement Plan amounted to approximately 38 and 22 for the three-month period ended March 31, 2019 and 2018, respectively.

ii.	Performance Bonus Programs and Performance evaluation

The amount charged to expense related to the Performance Bonus Programs was 690 and 462 for the three-month period ended March 31, 2019 and 2018, respectively.

iii.	Share-based benefit plan

The amount charged to expense in relation with the share-based plans, which are disclosed according to their nature, was 103 and 53 for the three-month period ended March 31, 2019 and 2018, respectively.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

36.

ASSETS AND LIABILITIES IN CURRENCIES OTHER THAN THE PESO


	March 31, 2019						December 31, 2018
	Amount in currencies other than the Peso		Exchange rate in force⁽¹⁾		Total		Amount in currencies other than the Peso		Exchange rate in force⁽¹⁾		Total
Noncurrent assets
Other receivables
U.S. Dollar		10		42.30		423		10		37.50		375
Chilean peso		12		0.06		1		11		0.05		1
Trade receivables
U.S. Dollar		416		42.30		17,597		489		37.50		18,338

Total noncurrent assets						18,021						18,714

Current assets
Trade receivables
U.S. Dollar		1,007		42.30		42,596		907		37.50		34,013
Chilean peso		12,892		0.06		774		15,285		0.05		764
Other receivables
U.S. Dollar		211		42.30		8,925		191		37.50		7,163
Euro		2		49.00		98		2		42.84		86
Chilean peso		6,107		0.06		366		6,253		0.05		313
Investments in financial assets
U.S. Dollar		273		42.30		11,564		292		37.50		10,941
Cash and cash equivalents
U.S. Dollar		1,026		42.30		43,400		900		37.50		33,750
Chilean peso		1,353		0.06		81		1,097		0.05		55

Total current assets						107,804						87,085

Total assets						125,825						105,799

Noncurrent liabilities
Provisions
U.S. Dollar		1,982		44.30		87,803		1,956		37.70		73,741
Lease liabilities
U.S. Dollar		347		44.30		15,371		—		—		—
Loans
U.S. Dollar		6,375		44.30		282,406		6,475		37.70		244,094
Other liabilities
U.S. Dollar		12		44.30		534		14		37.70		523
Accounts payable
U.S. Dollar		3		44.30		133		3		37.70		113

Total noncurrent liabilities						386,247						318,471

Current liabilities
Provisions
U.S. Dollar		73		44.30		3,234		73		37.70		2,752
Taxes payable
Chilean peso		1,851		0.06		111		1,752		0.05		88
Lease liabilities
U.S. Dollar		255		44.30		11,305		—		—		—
Salaries and social security
U.S. Dollar		6		44.30		266		6		37.70		226
Chilean peso		159		0.06		10		274		0.05		14
Loans
U.S. Dollar		1,240		44.30		54,930		1,206		37.70		45,475
Swiss franc		305		43.59		13,281		302		38.31		11,563
Other liabilities
U.S. Dollar		7		44.30		310		12		37.70		452
Accounts payable
U.S. Dollar		1,034		44.30		45,806		1,087		37.70		40,980
Euro		20		51.00		1,020		21		43.16		906
Chilean peso		2,084		0.06		125		2,202		0.05		110
Yen		88		0.39		34		13		0.34		4

Total current liabilities						130,432						102,570

Total liabilities						516,679						421,041

(1)	Exchange rate in force at March 31, 2019 and December 31, 2018 according to BNA.

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF MARCH 31, 2019 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

37.

SUBSEQUENT EVENTS

As of the date of issuance of these consolidated financial statements, there are no other significant subsequent events that require adjustments or disclosure in the financial statements of the Group as of March 31, 2019, or their description in a note to these consolidated financial statements, which were not already considered in such consolidated financial statements according to IFRS.

MIGUEL ANGEL GUTIERREZ

President

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	YPF Sociedad Anónima

Date: May 17, 2019	By:	/s/ Ignacio Miguel Rostagno
	Name:	Ignacio Miguel Rostagno
	Title:	Market Relations Officer