May 08, 2025 [Reuters]- Argentine state oil company YPF sank into the red in the first quarter, it reported on Wednesday, swinging to a net profit loss of $10 million, hurt by higher costs and capital expenditures and rising debt.

The loss compares to last year’s net profit of $657 million in the first quarter.

In a statement on Wednesday, YPF said operating costs grew by 26.4% year-on-year. Capex meanwhile grew 4% in the quarter, driven by shale expansion, while net debt grew 16% year-on-year, reaching $8.34 billion.

YPF, one of Argentina’s top domestic fuel suppliers, said its total production increased 5% year-on-year in the first quarter, including a 6% increase in crude production.

Revenues, meanwhile, inched up 7% from a year ago to reach $4.61 billion, hurt by lower seasonal demand for diesel and fertilizers and a decrease in oil export volumes but partially offset by higher local fuel prices.

The firm’s first-quarter core earnings, or adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stayed stagnant from a year earlier at $1.25 billion.

The firm operates the massive Vaca Muerta shale formation, the second largest unconventional gas reserve in the world and the fourth largest oil reserve, which Argentina is betting on to cement its status as a net energy exporter and to replenish depleted foreign reserves.

YPF produced an average of 147,000 barrels per day (bpd) of shale oil between January and March, a 31% growth over the same period in 2024, representing 55% of YPF’s total oil production.

Oil exports rose 34% in the period from the year-ago quarter to an average of 36,000 bpd, driven by growth in shale oil expansion.

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