Argentina oil giant YPF posts first-quarter net profit of 6.3 billion pesos after year-earlier net loss

BUENOS AIRES (Reuters) - Argentina state energy giant YPF YPFD.BA reported first-quarter net earnings on Monday of 6.3 billion pesos ($93.5 million), compared with a net loss in the same period last year.

YPF’s revenues grew 33.4%, reaching 174.7 billion pesos, the company said in a statement. The firm posted a net loss of 8.153 billion pesos ($180.3 million) in the first quarter of 2019.

“It should be clarified that, from the second half of March 2020, some indicators began to be impacted by the mandatory isolation measures to prevent the circulation and spread of the COVID-19 virus,” the statement said.

“This phenomenon has affected the industry globally, and in this context, YPF is not exempt.”

YPF announced salary cuts of between 10% and 25% that are expected to last for several months until the impact of the coronavirus begins to subside, according to a YPF source.

The South American nation, which is home to the huge Vaca Muerta shale play, was rattled last year by recession, high inflation, volatile markets and a mounting debt crisis that has hurt domestic production and investment.

Reporting by Eliana Raszewski; Writing by Cassandra Garrison; Editing by Peter Cooney