YPF Quarterly Profit Slides on Losses From Fire at La Plata Unit

YPF SA (YPF), Argentina’s largest oil company, said second-quarter profit slid 36 percent after losses from a fire at the country’s largest refinery.

Net income dropped to 535 million pesos ($97 million), or 1.36 pesos a share, from 833 million pesos, or 2.12 pesos, a year earlier, Buenos Aires-based YPF said in a regulatory filing today.

YPF had said it would have to spend an extra $400 million to import fuel to supply its gas stations after output was reduced by a flood and fire April 2 at its La Plata refinery. The refinery cut daily output of 28,500 cubic meters (180,000 barrels) by 15 percent until at least the end of this year, the company said April 8.

“Activities in the second quarter were affected by unprecedented storms impacting the La Plata refinery,” YPF said in the filing. “This event not only caused physical damage to certain assets of the company but also impacted on operating margins.”

President Cristina Fernandez de Kirchner’s government seized a 51 percent YPF stake from Spain’s Repsol SA in April 2012 to stem fuel imports that doubled to $9.4 billion in 2011 and cost the country $10 billion in 2012. Chevron Corp. signed a $1.24 billion accord July 16 to help YPF develop the Vaca Muerta shale formation and is seeking more partners for a $37 billion 5-year expansion plan at the world’s second-largest shale gas deposit and fourth-largest shale oil reservoir.

YPF is scheduled to have an earnings conference call with investors at 12 p.m. New York time today.

To contact the reporter on this story: Pablo Gonzalez in Buenos Aires at pgonzalez49@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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