YPF plans to issue 760m dollars in bonds; Argentina fuel imports soar in June
Argentina’s nationalized YPF oil and gas corporation will issue bonds for 3.5 billion Pesos (760 million dollars) as part of its push to reduce fuel imports by investing in domestic output, the energy company said in a letter to regulators on Monday.
In May the government seized a 51% stake in YPF from Repsol after accusing the Madrid-based parent company of under-investing in Argentine production and planning to develop oil and gas resources in other world locations.
“The board of directors of YPF, at their August 10 meeting, approved the issuance of negotiable obligations up to 3.5 billion Pesos,” a letter from the company to local stock market regulators said.
The debt issuance will come under a one billion dollars 2008 shelf registration.
The nationalized company says it needs to invest 7 billion dollars per year in production capacity in order to regain energy self-sufficiency after years of insufficient drilling and rising fuel imports.
YPF opened a diesel fuel refinery near the city of La Plata last week, part of its plan for increasing fuel output by 26% by 2017 and on Friday the company reported an 8% year-on-year increase in second-quarter net profit to 833 million pesos (181 million dollars).
The nationalized corporation also informed that in the first five first months of the year overseas purchases of fuel had dropped significantly, but the Secretary of Energy also revealed that on the sixth month, last June, YPF imported a record 190 million dollars of different fuels.
The 190 million dollars is almost similar to the total imports of the first five months of 2012 and well above the average of the previous administration. Compared to June 2011 imports were up 21%.
Gas-oil grade 3 or Euro-diesel which is top of the quality list was the fuel most imported: 145.867 cubic metres for 127.71 million dollars. The rest, approximately 40 million was mostly for premium gasoline and 20 million natural dollars of gas.
According to YPF this happened in a context of full utilization of the company’s refining capacity which was taken “from 83% to almost 100% which is a new historic achievement”, said YPF CEO Miguel Galuccio.
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Enquiring minds want to know.
It's quite amusing though, that since the 'nationalisation' of YPF, Argentina has had to increase it's oil imports!
That's TMBOA's great economic model in practice.
The 190 million dollars is almost similar to the total imports of the first five months of 2012 and well above the average of the previous administration. Compared to June 2011 imports were up 21%.”
Now when was it the government stole the company? May? So Repsol-YPF had managed to “significantly” reduce fuel imports. Then the government stole YPF and promptly had to double imports. And this is good for argieland....how? And they did this by using another 17% of refining capacity? Does anybody think that if they'd had more “spare” refining capacity they might have increased imports even more? They don't know what they're doing, do they?
In May CFK made a populrist decision to nationilse YPF in order to bolster her flagging politcal support (current opion pools here in Argentina put her at arounf 40%). Not only has this lead to fuel shortages (not surpisingly in the same first five months that they say imports were down), it has also destryoed the reputation of Argentina as a serius country to do buisness in. YPF has been told by The USA they want nothing to do witht he oil and gas industries and even China has said they have no intrest on YPF. Argentina therefore has no other choice now that to sell YPF to Venezula, in fact the way things are going CFK will become puppet president for Chavez and Argentina a vassal nation of Venezula.
When will CFK admit her decision to nationilise YPF was wrong, reckless and born out of shoirt term populirst gain.
Prima facie your reading does seem to be correct however, I wonder if something has been lost in translation as, otherwise, this would seem to be a shocking set of results. I'm also suprised that they would even release this information. Can anyone confirm if this is the case?
I would guess the values are correct and are a legal requirment for YPF when issuing the bonds. i.e. they have to give the foreign markets information on their current financial situtation. if they didnt they could lead themselves open to law suits in the future.
Wether this information is circulated in the Argentina press is another matter. It didnt make it into the Buenos Aires Hearlds copy of the story for example.
www.buenosairesherald.com/article/108827/-ypf-to-issue-$760-million-in-bonds
Althought they did report an increase in year on year profits to $181 M. Oh well not even close to the $7Bn needed for investment this year alone even if they sell all the bonds issued.
This was part of the non investment of Repsol!!!!!
I don't see this getting any better any time soon. They lucked out with a warm winter this year.
Collapse is immanent I am wondering why the population is so apathetic.
Can you imagine if you couldn't get currency to travel? Or if your kid was in school in the USA UK EU and you couldn't send him $.
What i find pretty amazing is the grey mkt U$ is over $6.50 even with the HUGE influx from the bond payments! When they levels out whew watch out below!
Frightful set of circumstances and highly illegal in civilized countries...but I guess ok in banana republics.
I see it when I speak to Argentinean friends over here and in Argentina. Each time a new measure is introduced they admit that they don’t like it and it angers them but feel that it doesn’t so far as to materially impact them. However, when you take the whole clamp as it were it does materially impact them. I have an intense dislike for these types of actions that go against every value of libertarianism.
I hear in Uruguay it's 8/1 now with a $3000 max. I wonder what it will be in Summer!
Rgs deserve the misery they endure since it is all self inflicted. Time and again they refuse to “do the right thing”, “take the esasy way out” prefer short term solutions over long term. These foolish measures has destroyed 4 generations of people's wealth and it is only going to get worse.
I hope the population wakes up sometime soon. Maybe at 10/1 or when BA, Sante Fe, Cordoba start to issue Patacones. It is not too far away now.
BTW the U$760 is a way for CFK to get more U$ into the treasury and print more Arg$. YOu know they Arg Fed still can't issue Int'l bonds. That is the real reason she needed YPF. Watch and learn.
1) who in their right mind will actually pay money for these 'Bonds'? Only an idiot or somebody who has never heard of TMBOA and her robbing ways (is there anyone?);
2) significant purchase of Type 3 shows that the refining technology presently used is woefully incapable of keeping up with modern vehicle design. All the cars beloved by wealthy Argies such as diesel Mercs, BMW, etc have to use this fuel to keep from wrecking the engine fuel injector system. It seems even the latest diesel refinery built by Repsol / YPF is unsuitable for the production of this fuel.
It would appear that the imports of these types of fuels will only increase thus draining what few dollars TMBOA has disclosed that the country possesses.
All good news then!
Mess.
I can understand LPG, CNG (methane) requires much different storage and very high pressure tanks on the vehicles which makes them unsuitable for cars.
A friend of mine was awarded an MBE for services to CNG in the automotive sector, but that was only for heavy trucks.
Even LPG (propane) needs a petrol based feedstock so would need to be imported.
I assume that the next step will be the new head saying that he is going to issue a review which will take 100 days aimed solely at trying to increase production...after all, to keep up with the increase in monetary based they will have to get those printing machines working overtime.
@7 Not surprised. She does like to steal, doesn't she?
@13 Simple answer? No! But then you knew that.
@18 Your driver? Wow. But there IS a real benefit to LPG in argie vehicles. It REALLY explodes!
The trouble is that I've been under the impression that Argentina's sabre rattling was merely preparing the ground for an attack on the Falkland Production Platforms in the next couple of years. But if the fuel crisis is this bad, then La Kretina will need a 'diversion' sooner than we think.
I wonder how many suitcases of money Chávez will be sending TMBOA. If he sends her a cheque, she'll have to cash it quick, just in case Hugo kicks the bucket beforehand.
It might help if HM Gov deploys a full squadron of Typhoons to MPA, as well as the entire Ghurka regiment & commissions HMS Ambush early. Looks like we'll need them.
They know that this country is collapsing. It's apparent to many outsiders. It appears that it may be a great deal sooner than previously estimated. Let's hope (for your sake) that La Kretina doesn't blame you for her downfall when she is strung up. After all, you were supposed to be the 5th column working against the evil empire trying to bring her down.
Yes, you are quite correct about the Victory Bonds, BUT they were paid back. Your own stupid vision of TMBOA consistently skews any reasoned intelligence you may once have had in this matter.
YPF Bonds are going to fail, simply because anyone with half-a-brain knows that they will never be able to redeem them. They will be up against the Argie mentality of 'we don't have to pay the principal back if we have paid the interest'.
The Argies are simply dishonest and have been brought up that way starting with their teachers feeding them a bunch of lies. At least children have that excuse.
You, on the other hand are nothing but a traiterous Scott toward Britain: you have NO excuses.
They will be bought discretely by the Argentine national bank, and it will be called a success issue.
www.youtube.com/watch?v=-dOqouGS0xQ
She hasn't a chance, as no one is going to buy into YPF and with US$760 million YPF will not be able to do a damn thing!!!!!
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