YPF Profit Fell After Argentina Ordered Gasoline Price Cuts

Crude oil output rose 2.3 percent while natural gas production jumped 18 percent in the quarter, the company said. Sales rose 13 percent to 34.7 billion pesos as costs increased by 13 percent from the same period in 2014.

In the downstream sector, which includes refining and marketing, sales increased 7.8 percent to 31.9 billion pesos, trailing the government’s 16.5 percent annual inflation rate. Private analysts estimate prices actually rose about 25 percent.

“Petrochemicals product sales reported less income in the local market due to a decrease in volume and cheaper prices in pesos,” YPF said.

The earnings report was released yesterday after the close of regular trading in Argentina. YPF’s American depositary receipts fell 3 cents to $30.25 at 12:09 p.m. in New York. The ADRs, equivalent to one ordinary share, have gained 14 percent year to date.

To contact the reporter on this story: Pablo Gonzalez in Buenos Aires at pgonzalez49@bloomberg.net. To contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net Tina Davis, Carlos Caminada