YPF Posts Q4 Loss While Annual Profits Soar, Oil Prices Guide Future Investments

Argentina’s leading oil company YPF reported a $284 million loss in the fourth quarter of 2024, Bloomberg data revealed Friday. The figure disappointed analysts who expected a $156 million profit but improved significantly from the $1.861 billion loss during the same period in 2023.

YPF’s ADR on Wall Street dropped 2.93% to $32.37 following the announcement. The company blamed lower seasonal gas sales and rising costs in conventional fields for the disappointing results.

Despite the quarterly setback, YPF celebrated strong annual performance with $2.393 billion in profits for 2024. This marks a dramatic turnaround from 2023 when the company posted $1.277 billion in losses.

President and CEO Horacio Marín addressed falling oil prices during an investor call. “If prices continue downward, we will review our 2025 investment amount, but not yet,” Marín stated.

The company plans to announce its investment budget on April 5 from the New York Stock Exchange. Production figures showed promising growth with crude oil reaching 269,800 barrels daily in Q4, up 5% from the previous quarter.

YPF significantly expanded its petroleum exports, primarily to Chile, by 174% year-over-year to 35,000 barrels daily. The company maintains ambitious plans for its unconventional shale operations in Vaca Muerta.

YPF expects to increase shale oil production by 30-40% in 2025, building on strong 2024 performance where production rose 26%. YPF spent $5.041 billion on investments during 2024, with 63.5% directed toward unconventional resources.

The company continues its strategic shift away from conventional fields where extraction costs average $15.6 per barrel compared to just $5.2 for unconventional production.

Major investment banks maintain optimistic price targets for YPF shares despite recent market volatility. JPMorgan, Itaú, and Santander project $55 per share, while Morgan Stanley targets $45 and Goldman Sachs aims for $40.20.