Argentina's YPF makes a profit from higher prices and more shale production
YPF, Argentina's'state oil company, reported a net profit? of $409 mln in the first 3 months of 2026. This is a reversal of a net loss? of $10 mln a year earlier. The firm cited higher oil prices and increased shale production as the reasons for the turnaround.
Analysts polled by LSEG had predicted revenues of $5.20 billion for the state-run producer. However, they only reached $4.95bn in the period from January to March.
The adjusted quarterly earnings before taxes, depreciation and amortization (EBITDA), a key measure of profitability, reached $1.59 billion. This is up 28% over the previous year and slightly above the $1.56 million?estimate by LSEG analysts.
YPF attributed this growth to 'better prices' and a higher shale production, but added that the higher costs of oil purchased from third parties partially offset it.
YPF’s performance is a crucial indicator for Argentina’s economy. The country relies on Vaca Muerta to boost energy exports. This helps Argentina maintain a stable exchange rate, strengthen its dollar reserves and boost investor confidence.
The development of Vaca Muerta –?the second largest unconventional gas reserve in the world and the fourth largest oil?reserve – has helped Argentina reverse an energy?deficit that peaked at $7 billion in 2013.
Shale oil production grew 39% on average per year to 205,000 barrels.
YPF produced around 271,000 barrels per day of oil equivalence, a slight increase over a year ago. However, liquefied gas production increased by 1%, and natural gas production fell by 12%. (Reporting and editing by Nicolas Misculin, Sarah Morland)
(source: Reuters)
