Strongbridge Biopharma plc (NASDAQ:SBBP) Q2 2018 Earnings Conference Call - Final Transcript
Aug 08, 2018 • 08:30 am ET
Welcome to the Q2 2018 YPF Sociedad Anonima Earnings Conference Call. My name is Richard, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. (Operator Instructions) I will now turn the call over to Mr. Diego Celaa. You may begin.
Great. Thank you, Richard. Good morning, ladies and gentlemen. My name is Diego Celaa, Head of IR at YPF. I would like to thank you for joining the YPF second quarter of 2018 earnings webcast.
The presentation will be conducted by our CEO, Mr. Daniel Gonzalez; our VP of Strategy and Business Development, Mr. Sergio Giorgi and myself. During the presentation, we will go through the main aspects and events that explain our second quarter results. And finally, we will open up the call for questions.
(Forward-Looking Cautionary Statements)
Also, our financial statement figures are stated in Argentine pesos and in accordance with International Financial Reporting Standards, IFRS. In addition, certain financial figures have been adjusted to reflect additional information to let you better understand our key financial and operating results.
Please Daniel, go ahead.
Well, good morning. And before Sergio Giorgi go through the details of the quarter, I would like to provide some context. This was a difficult quarter for Argentina where the currency devalued by more than 40%, interest rates skyrocketed and the economy started to soften. Under these conditions, I am acknowledging that we were kind of slow in passing through the prices the effects of devaluation.
Results were again strong and our growth plans for the future remain essentially unchanged. Revenues were up by 55% in pesos and EBITDA by 53%, both also up in dollar terms despite the devaluation. Total hydrocarbon production was 1% below last year, very strong in unconventional but mixed in conventional, especially natural gas. And again, we were free cash flow positive as operating cash flow more than doubled to ARS27.8 billion, while CapEx amounted to ARS19.3 billion. So, with that please, Diego, go ahead.
Okay, thanks, Daniel. Moving now into our main financial figures measured in US dollars. In this second quarter, the local currency depreciated by almost 50% when compared with the same quarter of 2017. However, revenues were up by 3.3%, driven by a strong demand of our main products, gasoline and diesel. Increase (inaudible) to offset the lower prices in dollars for both products. Exports increased due to a combination of higher international prices and higher exported volumes.
On the other hand, price of natural gas was down in average 1.9%, as a former playing gas expired in December 2017 and less volumes are now eligible for the non-intensive plan for our conventional new gasolines. Cash costs expressed in US dollars remained essentially flat, lifting our refining cost in dollars decreased by 40% and 22.8% in absolute terms respectively.
Royalties, which is the only cost component fully denominated in dollars were up close to 26%, in line with