YPF Faces Mountain Of Debt Payments

Instant Max AI

(Energy Analytics Institute, 11.Nov.2020) — Argentina’s state owned oil and gas entity YPF will face around $8.05bn in debt payments between the fourth quarter of 2020 and 2026 and beyond.

Despite the taunting payment schedule, YPF has made some strides, company executives said 11 November 2020 during the company’s presentation of its results for the third quarter of 2020.

Key debt related highlights follow:

— In July, YPF completed a market friendly liability management exercise on the 2021 notes reaching an acceptance level of 58.7% ($587mn),

— YPF is analyzing the impact and refinancing options considering latest Central Bank regulations,

— Approximately 93% of debt denominated in US dollars,

— The average interest rate in US dollars is 7.5%, while it was 33.8% in Argentine pesos,

— The average life is 5.8 years,

— The net leverage ratio is at 3.7x on reduced EBITDA, partially limiting ability to raise new debt due to financial covenants, though having no impact on refinancing needs.

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By Aaron Simonsky. © Energy Analytics Institute (EAI). All Rights Reserved.

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