YPF 4Q18

The Upstream operating income continued improving during 4Q18,. Before partial reversal of the charge on the impairment of assets, operating income stood at $ 2.352 million from a loss of $ 1.530 million in 4Q17. Higher productive efficiency continued in Upstream, where lifting costs decreased 10% YoY in 4Q18, although they grew 16% compared to 3Q18, which triggers an alarm signal to consider forward. However, the increase in lifting costs during 4Q18 (vs. 3Q18) was related to the nominal appreciation of argentine peso against the dollar something that we are not forecasting to happen again during 2019. Rating: Market Performer