YPF’s sales hit pre-pandemic levels in 3Q

Argentine state oil company YPF said its revenues had returned to pre-pandemic levels in the third quarter of 2021, helping it post a net profit of $237 million in the period on rebounding shale oil and gas production.

The firm, which leads development of the South American country’s massive Vaca Muerta shale formation, posted revenues of $3.621 billion, the highest since the second quarter of 2019 before the COVID-19 pandemic hit in early 2020.

YPF said that oil and gas production expanded 7.5% in the quarter against the previous period, and was up 17.2% so far this year. That was led by a recovery in natural gas production, part of a state Plan GasAR to bolster domestic gas supply.

The state energy firm spearheads hydrocarbon production in the Vaca Muerta shale formation, an area the size of Belgium and estimated to be the world’s fourth largest reserve of shale oil and the second for unconventional gas.

YPF said that shale oil production was up 27.7% in the quarter against a year-earlier period, while shale gas output from its operated areas was up 120.5% year-on-year to what the firm said was a “historical record”.

“Unconventional activity continues to show excellent results and currently represents a third of the company’s consolidated production,” YPF said.