Last Thursday, YPFthe Argentine energy company, managed to close an agreement in the United States that allowed it to avoid charges of more than US$ 14,000 millionfollowing being in litigation for 20 years if Maxus.
The The news was very well received by the financial marketsand especially for Wall Streetwhere the shares of the state oil company increased their value by 10.22%. In the local square he also showed a positive result, with an increase of 5.71% in the price of your listing.
This agreement represents a big step for YPFsince it will allow you to resolve a long legal dispute and strengthen its position in the energy market. In addition, following this event it might generate greater confidence among investors and fuel interest in investing in the state company in the future.
Given the positive trend, is it a good time to buy YPF shares?
Over the course of the last year, YPF’s share has experienced a notable increase in its valuation, which makes it an attractive alternative for investors. According to Price to Earnings Ratio of YPF the company it is profitable and its stock is relatively well priced in the market.
Besides, YPF has given good signals to investors who want to trade in the stock market. For example, regarding its track record or the large number of investments in which the segment of shale oil that is generated in Dead cowwhich grew more than 80% only in 2022, as well as greater business efficiency and better results.
Despite the competition that exists in the hydrocarbons sector, YPF has managed to maintain a solid position and shows a constant increase in its performance. In short, the notable growth experienced by YPF in the last year makes it in a very interesting option for those investors seeking to enter the energy market.
tailwind
“The improvement in the prices of YPF shares these days has to do with the fact that the company has just had two significant judicial novelties. On the one hand, as a company it will not have to face costs due to the expropriation arranged years ago, only the unfavorable sentence fell on the State”, he began by explaining Walter Naumanncertified financial adviser (AFC) and Ideal in Capital Markets in statements to PROFILE.
“This trial, although the final amount of the sentence plus interest has not yet been defined, might imply a really considerable amount, which YPF will not have to pay now” and added: “On the other hand, He has just closed a judicial agreement for another very important cause and that it was estimated it would be very expensive for the company for the Maxus case. YPF will now have to pay less than 300 million dollars to settle a dispute that was feared might cost billions of dollars.”
“Nevertheless, YPF has been having an improvement in its share prices since last year. Argentine assets were really cheap, the share of the oil company cost less than 3 dollars less than 1 year ago. Today it is worth more than 12 dollarsNauman commented. “We are talking regarding the fact that it multiplied its value in dollars by 4 in less than 9 months.”.
YPF’s potential for the future
“YPF has great growth potential for the future thanks to its strategic position, which is known by all. The oil company has the opportunity to exploit the potential of Vaca Muerta and new areas that are beginning to be profitable. Besides, has diversified its portfolio with the inclusion of projects such as Litio, YPF Agro, YPF Luz and stakes in gas transportation companies,” Naumann said in statements to PROFILE.
The data that investors analyze
“YPF continues to report a more than interesting performance. The company reported a positive result of US$ 464 million. The advertised profit represents un growth of almost 70% compared to the US$ 274 million reached in the fourth quarter of the previous year,” said Maximilian Donzelli in statements to this medium.
“In this same line, the adjusted EBITDA reached almost US$ 5,000 million, being the third highest in the history of the oil company, which is explained by a greater production of hydrocarbons and the improvement in sales prices. While, Shale crude oil and shale gas production maintained healthy growth rateswith annual growth of 48% and 22% respectively”, and added: “It continues to improve in operating efficiency setting new fracture and drilling speed records”, added the Head of Research of IOL invertironline.
YPF breaks the US$10 barrier on Wall Street and investors are closely following it
Donzelli points out that another of the high points is the one referring to debt management. YPF continues to reduce the deficit level in absolute terms, which leads it to present one of the best solvency ratios in the industry, totaling a net debt over EBITDA indicator of 1.2x.
What depends on whether YPF continues with the upward trend?
“Despite the fact that it has attractive valuation ratios, the stock has just shown an increase of more than 270% in less than eight months. To this we must add that It will be of vital importance that YPF can maintain a high growth rate during 2023Donzelli said.
For his part, Naumann replied: “The investor should keep in mind that it is a company that will always be with an important political seasoning, being state”, warned the analyst who added: “YPF also has a possible project on the horizon: maritime exploration. Although its viability is not yet confirmed, if it were to be carried out, it would be a great achievement for the company”.
Analysts explain why the YPF share grew more than 100% in two months
In summary, YPF has a promising future thanks to its position as a state companyits potential in Vaca Muerta and in new areas, its diversification and possible maritime exploration. All this makes it a company with great growth potential in the future. Ergo, one of the main reasons why YPF whets the appetite of investors is its long-term growth potential.
Yes ok its status as a state company can be seen as a risk factor for some, it is true that it also provides a stability and strong support for the company in a market volatile as energetic. In addition, the company has demonstrated be able to work efficiently and competitively in an environment regulated For the state.
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