YPF Reports $198 Million Q3 Loss Amid Higher Tax Expenses and Declining Revenue

Argentina’s state-controlled energy giant YPF reported a net loss of $198 million in the third quarter of 2025, reversing its profit from the previous year. The company attributed the loss primarily to a significant rise in its income tax expense, particularly due to a deferred tax charge.

Despite the setback, YPF’s adjusted EBITDA — a key profitability indicator for the energy industry — reached $1.36 billion during the July-to-September period. This marked a slight 1% decline year-over-year, aligning with analyst forecasts compiled by LSEG.

The company’s revenue fell 12% to $4.64 billion, slightly below the market expectation of $4.76 billion. The dip reflects broader challenges faced by Argentina’s energy sector, including fluctuating commodity prices and operational headwinds.

Total production averaged 523,100 barrels of oil equivalent per day, down 6% compared to the same quarter last year. However, the company’s shale oil output surged 35% year-over-year to 170,000 barrels per day, underscoring the growth potential of Argentina’s Vaca Muerta shale formation — one of the largest shale oil and gas reserves globally. When excluding the impact of YPF’s sale of a 49% stake in Aguada del Chañar, shale production would have risen 43%, signaling continued investment momentum in unconventional energy development.

YPF’s latest results highlight the company’s resilience amid a challenging economic environment. While tax-related expenses weighed heavily on profitability, the growth in shale production suggests that YPF remains focused on expanding its upstream operations and leveraging Argentina’s abundant energy resources. As the company continues to optimize efficiency and manage fiscal pressures, analysts will be watching closely for signs of recovery in the coming quarters.