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YPF SA (YPFD), Argentina’s largest oil company, said first-quarter net income dropped 19 percent as costs increased.
Profit in the first three months of the year slid to 1.29 billion pesos ($284 million), or 3.29 pesos a share, from 1.6 billion pesos, or 4.06 pesos, a year ago, according to a statement posted today on the securities regulator’s website.
Sales costs jumped 24 percent in the quarter amid higher production costs while investments climbed 17 percent to 2.13 billion pesos, YPF said. The company was given more time to report first-quarter results to form a new board following the 51 percent nationalization of the company in April.
No conference call is scheduled to discuss first-quarter results. Second-quarter earnings may be released late August.
Argentina seized 51 percent of YPF from Spain’s Repsol SA as President Cristina Fernandez de Kirchner’s government seeks to halt declining oil output and stem fuel imports that doubled to $9.4 billion last year. YPF’s American depositary receipts gained 0.2 percent to $12.31 at the close in New York. The ADRs have plunged 65 percent this year.
YPF will invest $7 billion in 2013 as it plans to double exploration in five years and boost refining, Chief Executive Officer Miguel Galuccio said June 6. The company targets investments of $1.2 billion in shale oil next year, he said.
YPF appointed on June 4 a new 17-member board, in which Repsol’s representative Luis Garcia del Rio is the sole minority stakeholder member. Repsol, which holds a 12 percent stake in YPF, said the nationalization was illegal and has filed a lawsuit in New York.
Daniel Gonzalez was appointed chief financial officer, YPF said in an separate statement today. Gonzalez, 42, headed Bank of America Merrill Lynch’s Southern Cone operations.
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