Form
20-F
|
X
|
Form
40-F
|
Yes
|
No
|
X
|
Yes
|
No
|
X
|
Yes
|
No
|
X
|
Item
|
|
1
|
Financial
Statements as of June 30, 2008 and Comparative Information, Report of
Independent Public Accountants and Statutory Audit Committee's
Report
|
SOCIEDAD
ANONIMA
Financial
Statements as of June 30, 2008
and
Comparative Information
Limited Review
Report on Interim Period
Financial
Statements
Statutory
Audit Committee's Report
|
1.
|
Identification
of financial statements subject to limited
review
|
2.
|
Scope
of our work
|
3.
|
Limited
review report
|
Page
|
|
- Cover
|
1
|
- Consolidated
balance sheets
|
2
|
- Consolidated
statements of income
|
3
|
- Consolidated
statements of cash flows
|
4
|
- Notes to
consolidated financial statements
|
5
|
- Exhibits
to consolidated financial statements
|
16
|
- Balance
sheets
|
18
|
- Statements
of income
|
19
|
- Statements
of changes in shareholders' equity
|
20
|
- Statements
of cash flows
|
21
|
- Notes to
financial statements
|
22
|
- Exhibits
to financial statements
|
48
|
- Ratification
of lithographed signatures
|
54
|
Subscribed,
paid-in and
authorized
for stock
exchange
listing
(Note 4 to
primary
financial
statements)
|
||||
-Shares of
Common Stock, Argentine pesos 10 par value,
1 vote per
share
|
3,933,127,930 |
2008
|
2007
|
|||||||
Current
Assets
|
||||||||
Cash
|
105 | 196 | ||||||
Investments
(Note 2.a)
|
519 | 655 | ||||||
Trade
receivables (Note 2.b)
|
3,179 | 3,235 | ||||||
Other
receivables (Note 2.c)
|
2,053 | 4,361 | ||||||
Inventories
(Note 2.d)
|
2,854 | 2,573 | ||||||
Total current
assets
|
8,710 | 11,020 | ||||||
Noncurrent
Assets
|
||||||||
Trade
receivables (Note 2.b)
|
27 | 32 | ||||||
Other
receivables (Note 2.c)
|
854 | 809 | ||||||
Investments
(Note 2.a)
|
824 | 799 | ||||||
Fixed assets
(Note 2.e)
|
26,342 | 25,434 | ||||||
Intangible
assets
|
7 | 8 | ||||||
Total
noncurrent assets
|
28,054 | 27,082 | ||||||
Total
assets
|
36,764 | 38,102 | ||||||
Current
Liabilities
|
||||||||
Accounts
payable (Note 2.f)
|
4,784 | 4,339 | ||||||
Loans (Note
2.g)
|
2,602 | 471 | ||||||
Salaries and
social security
|
199 | 213 | ||||||
Taxes
payable
|
1,561 | 1,441 | ||||||
Net advances
from crude oil purchasers
|
- | 9 | ||||||
Reserves
|
508 | 466 | ||||||
Total current
liabilities
|
9,654 | 6,939 | ||||||
Noncurrent
Liabilities
|
||||||||
Accounts
payable (Note 2.f)
|
2,845 | 2,542 | ||||||
Loans (Note
2.g)
|
650 | 523 | ||||||
Salaries and
social security
|
134 | 164 | ||||||
Taxes
payable
|
24 | 21 | ||||||
Reserves
|
1,946 | 1,853 | ||||||
Total
noncurrent liabilities
|
5,599 | 5,103 | ||||||
Total
liabilities
|
15,253 | 12,042 | ||||||
Shareholders’
Equity
|
21,511 | 26,060 | ||||||
Total
liabilities and shareholders’ equity
|
36,764 | 38,102 |
2008
|
2007
|
|||||||
Net
sales
|
16,443 | 13,099 | ||||||
Cost of
sales
|
(10,901 | ) | (8,299 | ) | ||||
Gross
profit
|
5,542 | 4,800 | ||||||
Administrative
expenses (Exhibit H)
|
(429 | ) | (361 | ) | ||||
Selling
expenses (Exhibit H)
|
(1,102 | ) | (992 | ) | ||||
Exploration
expenses (Exhibit H)
|
(218 | ) | (247 | ) | ||||
Operating
income
|
3,793 | 3,200 | ||||||
Income on
long-term investments
|
67 | 29 | ||||||
Other expense,
net (Note 2.h)
|
(241 | ) | (18 | ) | ||||
Financial
income (expense), net and holding (losses) gains:
|
||||||||
Gains (losses)
on assets
|
||||||||
Interests
|
75 | 160 | ||||||
Exchange
differences
|
(18 | ) | 59 | |||||
Holding gains
on inventories
|
123 | 119 | ||||||
Losses on
liabilities
|
||||||||
Interests
|
(189 | ) | (145 | ) | ||||
Exchange
differences
|
279 | (19 | ) | |||||
Reversal of
impairment of other current assets
|
- | 69 | ||||||
Net
income before income tax
|
3,889 | 3,454 | ||||||
Income
tax
|
(1,635 | ) | (1,310 | ) | ||||
Net
income
|
2,254 | 2,144 | ||||||
Earnings
per share
|
5.73 | 5.45 |
2008
|
2007
|
|||||||
Cash
Flows from Operating Activities
|
||||||||
Net
income
|
2,254 | 2,144 | ||||||
Adjustments to
reconcile net income to net cash flows provided by operating
activities:
|
||||||||
Income on
long-term investments
|
(67 | ) | (29 | ) | ||||
Dividends from
long-term investments
|
37 | 52 | ||||||
Reversal of
impairment of
other current assets
|
- | (69 | ) | |||||
Depreciation
of fixed assets
|
2,046 | 2,012 | ||||||
Consumption of
materials and fixed assets retired, net of allowances
|
186 | 168 | ||||||
Increase in
allowances for fixed assets
|
2 | 73 | ||||||
Income
tax
|
1,635 | 1,310 | ||||||
Income tax
payments
|
(1,196 | ) | (1,020 | ) | ||||
Increase in
reserves
|
557 | 271 | ||||||
Changes in
assets and liabilities:
|
||||||||
Trade
receivables
|
61 | 2 | ||||||
Other
receivables
|
2,263 | 59 | ||||||
Inventories
|
(281 | ) | (460 | ) | ||||
Accounts
payable
|
499 | 211 | ||||||
Salaries and
social security
|
(32 | ) | (68 | ) | ||||
Taxes
payable
|
(269 | ) | (160 | ) | ||||
Net advances
from crude oil purchasers
|
(10 | ) | (46 | ) | ||||
Decrease in
reserves
|
(422 | ) | (380 | ) | ||||
Interests,
exchange differences and others
|
(204 | ) | (19 | ) | ||||
Net cash flows
provided by operating activities
|
7,059 | (1) | 4,051 | (1) | ||||
Cash
Flows used in Investing Activities
|
||||||||
Acquisitions
of fixed assets
|
(2,816 | ) | (2,529 | ) | ||||
Investments
(non cash and equivalents)
|
1 | (10 | ) | |||||
Net cash flows
used in investing activities
|
(2,815 | ) | (2,539 | ) | ||||
Cash
Flows used in Financing Activities
|
||||||||
Payment of
loans
|
(697 | ) | (355 | ) | ||||
Proceeds from
loans
|
3,018 | 501 | ||||||
Dividends
paid
|
(6,789 | ) | (2,360 | ) | ||||
Net cash flows
used in financing activities
|
(4,468 | ) | (2,214 | ) | ||||
Decrease
in Cash and Equivalents
|
(224 | ) | (702 | ) | ||||
Cash and
equivalents at the beginning of year
|
847 | 1,087 | ||||||
Cash and
equivalents at the end of period
|
623 | 385 | ||||||
Decrease
in Cash and Equivalents
|
(224 | ) | (702 | ) |
(1)
|
Includes (25)
and (55) corresponding to interest payments for the six-month periods
ended June 30, 2008 and June 30, 2007,
respectively.
|
1.
|
CONSOLIDATED
FINANCIAL STATEMENTS
|
a)
|
Consolidation
policies:
|
-
|
Investments
and income (loss) related to controlled companies in which YPF has the
number of votes necessary to control corporate decisions are substituted
for such companies’ assets, liabilities, net revenues, cost and expenses,
which are aggregated to the Company’s balances after the elimination of
intercompany profits, transactions, balances and other consolidation
adjustments.
|
-
|
Investments
and income (loss) related to companies in which YPF holds joint control
are consolidated line by line on the basis of the Company’s proportionate
share in their assets, liabilities, net revenues, cost and expenses,
considering intercompany profits, transactions, balances and other
consolidation adjustments.
|
b)
|
Financial
statements used for consolidation:
|
c)
|
Valuation
criteria:
|
2.
|
ANALYSIS
OF THE MAIN ACCOUNTS OF THE CONSOLIDATED FINANCIAL
STATEMENTS
|
a)
Investments:
|
2008
|
2007
|
||||||||||||||
Current
|
Noncurrent
|
Current
|
Noncurrent
|
|||||||||||||
Short-term
investments and government securities
|
519 | (1) | 170 | (3) | 655 | (1) | 168 | (3) | ||||||||
Long-term
investments
|
- | 853 | (2) | - | 837 | (2) | ||||||||||
Allowance for
reduction in value of holdings in long-term investments
|
- | (199 | )(2) | - | (206 | ) (2) | ||||||||||
519 | 824 | 655 | 799 |
(1)
|
Includes 518
and 651 as of June 30, 2008 and December 31, 2007, respectively, with an
original maturity of less than three
months.
|
(2)
|
In addition to
the amounts detailed in Exhibit C to the primary financial statements,
includes interest in Gas Argentino S.A. (“GASA”). As of June 30, 2008,
GASA must initiate a new debt restructuring process with its creditors,
due to the intention expressed by the Fund Marathon of concluding the
agreement celebrated on December 7, 2005. This option was contemplated in
the mentioned agreement.
|
(3)
|
Corresponds to
restricted cash as of June 30, 2008, and December 31, 2007, which
represents bank deposits used to pay labor claims and deposits used as
guarantees given to government
agencies.
|
b)
Trade receivables:
|
2008
|
2007
|
||||||||||||||
Current
|
Noncurrent
|
Current
|
Noncurrent
|
|||||||||||||
Accounts
receivable
|
3,223 | 27 | 3,142 | 32 | ||||||||||||
Related
parties
|
373 | - | 533 | - | ||||||||||||
3,596 | 27 | 3,675 | 32 | |||||||||||||
Allowance for
doubtful trade receivables
|
(417 | ) | - | (440 | ) | - | ||||||||||
3,179 | 27 | 3,235 | 32 |
c) Other receivables: |
2008
|
2007
|
||||||||||||||
Current
|
Noncurrent
|
Current
|
Noncurrent
|
|||||||||||||
Deferred
income tax
|
- | 470 | - | 517 | ||||||||||||
Tax credits
and export rebates
|
800 | 19 | 931 | 15 | ||||||||||||
Trade
|
151 | - | 97 | - | ||||||||||||
Prepaid
expenses
|
134 | 48 | 111 | 60 | ||||||||||||
Concessions
charges
|
17 | 56 | 17 | 79 | ||||||||||||
Related
parties
|
387 | (1) | 112 | (1) | 2,681 | (1) | - | |||||||||
Loans to
clients
|
17 | 105 | 14 | 90 | ||||||||||||
Advances to
suppliers
|
121 | - | 132 | - | ||||||||||||
From joint
ventures and other agreements
|
78 | - | 62 | - | ||||||||||||
Miscellaneous
|
478 | 96 | 438 | 98 | ||||||||||||
2,183 | 906 | 4,483 | 859 | |||||||||||||
Allowance for
other doubtful accounts
|
(130 | ) | - | (122 | ) | - | ||||||||||
Allowance for
valuation of other receivables to their estimated realizable
value
|
- | (52 | ) | - | (50 | ) | ||||||||||
2,053 | 854 | 4,361 | 809 |
|
(1)
|
In addition to
the amounts detailed in Note 3.c to the primary financial statements,
mainly includes 170 with Central Dock Sud S.A., which accrues interest
between 5.42% and 7.28% and 224 with Repsol Netherlands Finance B.V.,
which accrues interest at 2.70% as of June 30, 2008 and 51 with Repsol
Netherlands Finance B.V. as of December 31,
2007.
|
d)
Inventories:
|
2008
|
2007
|
||||||
Refined
products
|
1,711 | 1,612 | ||||||
Crude oil and
natural gas
|
791 | 646 | ||||||
Products in
process
|
36 | 46 | ||||||
Raw materials,
packaging materials and others
|
316 | 269 | ||||||
2,854 | 2,573 |
e)
Fixed assets:
|
2008
|
2007
|
||||||
Net book value
of fixed assets (Exhibit A)
|
26,389 | 25,481 | ||||||
Allowance for
unproductive exploratory drilling
|
(3 | ) | (3 | ) | ||||
Allowance for
obsolescence of material and equipment
|
(44 | ) | (44 | ) | ||||
26,342 | 25,434 |
f)
Accounts payable:
|
2008
|
2007
|
||||||||||||||
Current
|
Noncurrent
|
Current
|
Noncurrent
|
|||||||||||||
Trade
|
3,490 | 20 | 3,131 | 21 | ||||||||||||
Hydrocarbon
wells abandonment obligations
|
429 | 2,635 | 395 | 2,316 | ||||||||||||
Related
parties
|
325 | - | 140 | - | ||||||||||||
From joint
ventures and other agreements
|
352 | - | 373 | - | ||||||||||||
Environmental
liabilities
|
114 | 152 | 137 | 166 | ||||||||||||
Miscellaneous
|
74 | 38 | 163 | 39 | ||||||||||||
4,784 | 2,845 | 4,339 | 2,542 |
g)
Loans:
|
2008
|
2007
|
||||||||||||||||||||||
Interest
rates (1)
|
Principal
maturity
|
Current
|
Noncurrent
|
Current
|
Noncurrent
|
|||||||||||||||||||
Negotiable
Obligations – YPF
|
9.13 – 10.00 | % | 2009 – 2028 | 319 | 196 | 14 | 523 | |||||||||||||||||
Related
parties
|
4.90 – 15.50 | % | 2008 – 2010 | 64 | 454 | - | - | |||||||||||||||||
Other bank
loans and other creditors
|
3.37 – 22.00 | % | 2008 – 2009 | 2,219 | - | 457 | - | |||||||||||||||||
2,602 | 650 | 471 | 523 |
|
(1)
|
Annual fixed
interest rate as of June 30, 2008.
|
h)
Other expense, net:
|
Income
(Expense)
|
|||||||
2008
|
2007
|
|||||||
Reserve for
pending lawsuits and other claims
|
- | (10 | ) | |||||
Environmental
remediation
|
(256 | ) | (57 | ) | ||||
Miscellaneous
|
15 | 49 | ||||||
(241 | ) | (18 | ) |
3.
|
COMMITMENTS
AND CONTINGENCIES IN CONTROLLED
COMPANIES
|
-
|
YPF Holdings
Inc. has been conducting similar studies under their own auspices for
several years.
|
-
|
The EPA and
other agencies are addressing the lower Passaic River in a joint federal,
state, local and private sector cooperative effort designated as the Lower
Passaic River Restoration Project (“PRRP”). Tierra, along with other
entities, participated in an initial remedial investigation and
feasibility study (“RIFS”) in connection with the PRRP. The parties are
discussing the possibility of further work with the EPA. The entities have
agreed the allocations of costs associated with the RIFS, based on a
number of considerations.
|
-
|
In 2003, the
DEP issued Directive No. 1 to Occidental and Maxus and certain of their
respective related entities as well as other third parties. Directive No.
1 seeks to address natural resource damages allegedly resulting from
almost 200 years of historic industrial and commercial development of the
lower 17 miles of the Passaic River and a part of its watershed. Directive
No. 1 asserts that the named entities are jointly and severally liable for
the alleged natural resource damages without regard to fault. The DEP has
asserted jurisdiction in this matter even though all or part of the lower
Passaic River has been designated as a Superfund site and is a subject of
the PRRP. Directive No. 1 calls for the following actions: interim
compensatory restoration, injury identification, injury quantification and
value determination. Maxus and Tierra responded to Directive No. 1 setting
forth good faith defenses. Settlement discussions between the DEP and the
named entities have been held; however, no agreement has been reached or
is assured.
|
-
|
In 2004, the
EPA and Occidental entered into an administrative order on consent (the
“AOC”) pursuant to which Tierra (on behalf of Occidental) has agreed to
conduct testing and studies to characterize contaminated sediment and
biota in the Newark Bay. The initial field work on this study, which
includes testing in the Newark Bay, has been substantially completed.
Discussions with the EPA regarding additional work that might be required
are underway. EPA has notified other companies in relation to the
contamination of the Newark Bay. Nowadays, Tierra is holding meetings with
these companies to organize the coalition of a group similar to the
Passaic´s, in order to share the costs associated with works in the Newark
Bay. Additionally, Tierra, acting on behalf of Occidental, is performing a
separate RIFS to characterize sediment contamination and evaluate
remediations, if necessary, in certain portions of the Hackensack River,
the Arthur Kill River, and the Kill van Kull
River.
|
-
|
In December
2005, the DEP issued a directive to Tierra, Maxus and Occidental directing
said parties to pay the State of New Jersey’s costs of developing a Source
Control Dredge Plan focused on allegedly dioxin-contaminated sediment in
the lower six-mile portion of the Passaic River. The development of this
plan is estimated by the DEP to cost approximately US$ 2 million.
This directive was issued even though this portion of the lower Passaic
River is a subject of the PRRP. The DEP has advised the recipients that
(a) it is engaged in discussions with the EPA regarding the subject matter
of the directive, and (b) they are not required to respond to the
directive until otherwise notified. Additionally, in December 2005, the
DEP sued YPF Holdings Inc., Tierra, Maxus and other several companies,
besides to Occidental, in connection with the dioxin contamination
allegedly emanating from Chemicals’ former Newark plant and contaminating
the lower portion of the Passaic River, Newark Bay, other nearby waterways
and surrounding areas. The DEP seeks remediation of natural resources
damaged and punitive damages and other matters. The defendants have made
responsive pleadings and filings. The Court has recently denied motions to
dismiss by Occidental Chemical Corporation, Tierra and Maxus. However, the
motion to dismiss by the Company on local jurisdiction grants remains
still pending.
|
-
|
In June 2007,
EPA released a draft Focused Feasibility Study (the “FFS”) that outlines
several alternatives for remedial action in the lower eight miles of the
Passaic River. These alternatives range from no action, which would result
in comparatively little cost, to extensive dredging and capping, which
according to the draft FFS, EPA estimated could cost from US$ 0.9 billion
to US$ 2.3 billion and are all described by EPA as involving proven
technologies that could be carried out in the near term, without extensive
research. Tierra, in conjunction with the other parties of the PRRP group,
submitted comments on the draft FFS to EPA, as did other interested
parties. In September 2007, EPA announced its intention to spend further
time considering these comments, to issue a proposed plan for public
comment by the middle of 2008 and to select a clean-up plan in the last
quarter of 2008. Tierra will respond to any further EPA proposal as may be
appropriate at the time.
|
-
|
In August
2007, the National Oceanic Atmospheric Administration (“NOAA”) sent a
letter to the parties of the PRRP group, including Tierra and Occidental,
requesting that the group enters into an agreement to conduct a
cooperative assessment of natural resources damages in the Passaic River
and Newark Bay. The PRRP group has responded through its common counsel
requesting that discussions relating to such agreement be postponed until
2008, due in part to the pending FFS proposal by EPA. Tierra will continue
to participate in the PRRP group with regard to this matter. In January
2008, the NOAA sent a letter to YPF S.A., YPF Holdings Inc., CLH Holdings
Inc. and other entities, designating them as potentially responsible party
(“PRP”).
|
-
|
In June 2008,
the EPA, Occidental, and Tierra entered into an AOC, pursuant to which
Tierra (on behalf of Occidental) will undertake a removal action of
sediment from the Passaic River in the vicinity of the former Diamond
Alkali facility. This action will result in the removal of approximately
200,000 cubic yards of sediment, which will be carried out in two
different phases. The first phase, which will encompass the removal of
40,000 cubic yards, is scheduled for completion within 30 months, from the
effective date of the AOC (June 2008). The second phase involves the
removal of approximately 160,000 cubic yards of sediment. This second
phase will start once the first one is completed. As of June 30, 2008, the
due date of this phase is not estimated. During the removal action,
contaminants not produced by the former Diamond plant, such as PCBs and
mercury, will necessarily be removed along with dioxin. Although having
recognized the estimated costs related to all works mentioned above, YPF
Holdings and its subsidiaries may seek cost recovery from the parties
responsible for such contamination, provided contaminants’ origins were
not from the Diamond Alkali plant. However, as of June 30, 2008, it is not
possible to make any predictions regarding the likelihood of success or
the funds potentially recoverable in a cost-recovery
action.
|
4.
|
CONSOLIDATED
BUSINESS SEGMENT INFORMATION
|
Exploration
and Production
|
Refining
and
Marketing
|
Chemical
|
Corporate
and
Other
|
Consolidation
Adjustments
|
Total
|
|||||||||||||||||||
Six-month
period ended June 30, 2008
|
||||||||||||||||||||||||
Net sales to
unrelated parties
|
2,198 | 11,279 | 1,349 | 121 | - | 14,947 | ||||||||||||||||||
Net sales to
related parties
|
523 | 973 | - | - | - | 1,496 | ||||||||||||||||||
Net
intersegment sales
|
5,715 | 571 | 542 | 203 | (7,031 | ) | - | |||||||||||||||||
Net
sales
|
8,436 | 12,823 | 1,891 | 324 | (7,031 | ) | 16,443 | |||||||||||||||||
Operating
income (loss)
|
2,010 | 1,525 | 658 | (328 | ) | (72 | ) | 3,793 | ||||||||||||||||
Income on
long-term investments
|
57 | 10 | - | - | - | 67 | ||||||||||||||||||
Depreciation
|
1,758 | 209 | 54 | 25 | - | 2,046 | ||||||||||||||||||
Acquisitions
of fixed assets
|
2,629 | 327 | 64 | 147 | - | 3,167 | ||||||||||||||||||
Assets
|
21,463 | 9,904 | 2,179 | 4,065 | (847 | ) | 36,764 | |||||||||||||||||
Six-month
period ended June 30, 2007
|
||||||||||||||||||||||||
Net sales to
unrelated parties
|
1,607 | 8,885 | 1,213 | 56 | - | 11,761 | ||||||||||||||||||
Net sales to
related parties
|
331 | 1,007 | - | - | - | 1,338 | ||||||||||||||||||
Net
intersegment sales
|
6,057 | 880 | 418 | 169 | (7,524 | ) | - | |||||||||||||||||
Net
sales
|
7,995 | 10,772 | 1,631 | 225 | (7,524 | ) | 13,099 | |||||||||||||||||
Operating
income (loss)
|
2,155 | 1,087 | 321 | (301 | ) | (62 | ) | 3,200 | ||||||||||||||||
Income on
long-term investments
|
19 | 10 | - | - | - | 29 | ||||||||||||||||||
Depreciation
|
1,761 | 184 | 44 | 23 | - | 2,012 | ||||||||||||||||||
Acquisitions
of fixed assets
|
2,050 | 321 | 58 | 100 | - | 2,529 | ||||||||||||||||||
Year
ended December 31, 2007
|
||||||||||||||||||||||||
Assets
|
19,893 | 11,199 | 2,220 | 5,421 | (631 | ) | 38,102 | |||||||||||||||||
2008
|
||||||||||||||||||||
Cost
|
||||||||||||||||||||
Main
account
|
Amounts
at beginning of year
|
Translation
net effect (5)
|
Increases
|
Net
decreases, transfers and reclassifications
|
Amounts
at end of period
|
|||||||||||||||
Land and
buildings
|
2,391 | - | - | 45 | 2,436 | |||||||||||||||
Mineral
property, wells and related equipment
|
51,595 | (25 | ) | 351 | 1,733 | 53,654 | ||||||||||||||
Refinery
equipment and petrochemical plants
|
9,227 | - | 3 | 84 | 9,314 | |||||||||||||||
Transportation
equipment
|
1,887 | - | - | 13 | 1,900 | |||||||||||||||
Materials and
equipment in warehouse
|
791 | - | 362 | (298 | ) | 855 | ||||||||||||||
Drilling and
work in progress
|
4,617 | 1 | 2,273 | (1,662 | ) | 5,229 | ||||||||||||||
Exploratory
drilling in progress
|
147 | - | 147 | (116 | ) | 178 | ||||||||||||||
Furniture,
fixtures and installations
|
622 | - | 4 | (1 | ) | 625 | ||||||||||||||
Selling
equipment
|
1,406 | - | 1 | 19 | 1,426 | |||||||||||||||
Other
property
|
377 | (1 | ) | 26 | (20 | ) | 382 | |||||||||||||
Total
2008
|
73,060 | (25 | ) | 3,167 | (2) | (203 | )(1) | 75,999 | ||||||||||||
Total
2007
|
61,939 | 3 | 2,529 | 5,045 | (1)(6) | 69,516 |
2008
|
2007
|
|||||||||||||||||||||||||||||||
Depreciation
|
||||||||||||||||||||||||||||||||
Main
account
|
Accumulated
at beginning of year
|
Net
decreases, transfers and reclassifications
|
Depreciation
rate
|
Increases
|
Accumulated
at end of period
|
Net
book value as of
06-30-08
|
Net
book value as of
06-30-07
|
Net
book value as of
12-31-07
|
||||||||||||||||||||||||
Land and
buildings
|
1,108 | (1 | ) | 2 | % | 27 | 1,134 | 1,302 | 1,277 | 1,283 | ||||||||||||||||||||||
Mineral
property, wells and related equipment
|
37,131 | (2 | ) | (4) | 1,732 | 38,861 | 14,793 | (3) | 13,425 | (3) | 14,464 | (3) | ||||||||||||||||||||
Refinery
equipment and petrochemical plants
|
6,139 | (2 | ) | 4 – 10 | % | 202 | 6,339 | 2,975 | 3,000 | 3,088 | ||||||||||||||||||||||
Transportation
equipment
|
1,324 | (1 | ) | 4 – 5 | % | 30 | 1,353 | 547 | 561 | 563 | ||||||||||||||||||||||
Materials and
equipment in warehouse
|
- | - | - | - | - | 855 | 645 | 791 | ||||||||||||||||||||||||
Drilling and
work in progress
|
- | - | - | - | - | 5,229 | 4,467 | 4,617 | ||||||||||||||||||||||||
Exploratory
drilling in progress
|
- | - | - | - | - | 178 | 129 | 147 | ||||||||||||||||||||||||
Furniture,
fixtures and installations
|
523 | (1 | ) | 10 | % | 18 | 540 | 85 | 120 | 99 | ||||||||||||||||||||||
Selling
equipment
|
1,056 | - | 10 | % | 29 | 1,085 | 341 | 334 | 350 | |||||||||||||||||||||||
Other
property
|
298 | (8 | ) | 10 | % | 8 | 298 | 84 | 80 | 79 | ||||||||||||||||||||||
Total
2008
|
47,579 | (15 | )(1) | 2,046 | 49,610 | 26.389 | ||||||||||||||||||||||||||
Total
2007
|
39,377 | 4,089 | (1)(6) | 2,012 | 45,478 | 24,038 | 25,481 |
(1)
|
Includes 2 and
73 of net book value charged to fixed assets allowances for the six-month
periods ended June 30, 2008 and 2007,
respectively.
|
(2)
|
Includes 351
corresponding to the future cost of hydrocarbon wells abandonment
obligations for the six-month period ended June 30,
2008.
|
(3)
|
Includes 764,
920 and 851 of mineral property as of June 30, 2008 and 2007 and December
31, 2007, respectively.
|
(4)
|
Depreciation
has been calculated according to the unit of production
method.
|
(5)
|
Includes the
net effect of the exchange differences arising from the translation of
fixed assets net book values at beginning of the year in foreign
companies.
|
(6)
|
Includes 5,291
of cost and 4,094 of accumulated depreciation corresponding to oil and gas
exploration and producing areas, which were disclosed as held for sale as
of December 31, 2006.
|
2008
|
2007
|
|||||||||||||||||||||||
Production
costs
|
Administrative
expenses
|
Selling
expenses
|
Exploration
expenses
|
Total
|
Total
|
|||||||||||||||||||
Salaries and
social security taxes
|
485 | 97 | 98 | 25 | 705 | 604 | ||||||||||||||||||
Fees and
compensation for services
|
98 | 166 | 21 | 1 | 286 | 213 | ||||||||||||||||||
Other
personnel expenses
|
158 | 47 | 12 | 9 | 226 | 179 | ||||||||||||||||||
Taxes, charges
and contributions
|
139 | 13 | 188 | - | 340 | 250 | ||||||||||||||||||
Royalties and
easements
|
1,138 | - | 3 | 7 | 1,148 | 984 | ||||||||||||||||||
Insurance
|
55 | 3 | 5 | - | 63 | 60 | ||||||||||||||||||
Rental of real
estate and equipment
|
189 | 3 | 34 | - | 226 | 185 | ||||||||||||||||||
Survey
expenses
|
- | - | - | 50 | 50 | 100 | ||||||||||||||||||
Depreciation
of fixed assets
|
1,970 | 23 | 52 | 1 | 2,046 | 2,012 | ||||||||||||||||||
Industrial
inputs, consumable materials and supplies
|
279 | 3 | 25 | 2 | 309 | 328 | ||||||||||||||||||
Operation
services and other service contracts
|
526 | 10 | 40 | 5 | 581 | 345 | ||||||||||||||||||
Preservation,
repair and maintenance
|
917 | 10 | 22 | 1 | 950 | 801 | ||||||||||||||||||
Contractual
commitments
|
156 | - | - | - | 156 | 232 | ||||||||||||||||||
Unproductive
exploratory drillings
|
- | - | - | 109 | 109 | 73 | ||||||||||||||||||
Transportation,
products and charges
|
448 | - | 549 | - | 997 | 838 | ||||||||||||||||||
Allowance for
doubtful trade receivables
|
- | - | (22 | ) | - | (22 | ) | 34 | ||||||||||||||||
Publicity and
advertising expenses
|
- | 30 | 42 | - | 72 | 62 | ||||||||||||||||||
Fuel, gas,
energy and miscellaneous
|
577 | 24 | 33 | 8 | 642 | 372 | ||||||||||||||||||
Total
2008
|
7,135 | 429 | 1,102 | 218 | 8,844 | |||||||||||||||||||
Total
2007
|
6,072 | 361 | 992 | 247 | 7,672 |
2008
|
2007
|
|||||||
Current
Assets
|
||||||||
Cash
|
58 | 120 | ||||||
Investments
(Note 3.a)
|
255 | 242 | ||||||
Trade
receivables (Note 3.b)
|
3,014 | 3,148 | ||||||
Other
receivables (Note 3.c)
|
1,819 | 4,937 | ||||||
Inventories
(Note 3.d)
|
2,468 | 2,284 | ||||||
Total current
assets
|
7,614 | 10,731 | ||||||
Noncurrent
Assets
|
||||||||
Trade
receivables (Note 3.b)
|
27 | 31 | ||||||
Other
receivables (Note 3.c)
|
1,195 | 788 | ||||||
Investments
(Note 3.a)
|
2,419 | 2,718 | ||||||
Fixed assets
(Note 3.e)
|
24,438 | 23,585 | ||||||
Total
noncurrent assets
|
28,079 | 27,122 | ||||||
Total
assets
|
35,693 | 37,853 | ||||||
Current
Liabilities
|
||||||||
Accounts
payable (Note 3.f)
|
4,865 | 5,115 | ||||||
Loans (Note
3.g)
|
2,423 | 288 | ||||||
Salaries and
social security
|
148 | 167 | ||||||
Taxes
payable
|
1,432 | 1,293 | ||||||
Net advances
from crude oil purchasers
|
- | 9 | ||||||
Reserves
(Exhibit E)
|
319 | 323 | ||||||
Total current
liabilities
|
9,187 | 7,195 | ||||||
Noncurrent
Liabilities
|
||||||||
Accounts
payable (Note 3.f)
|
2,822 | 2,519 | ||||||
Loans (Note
3.g)
|
650 | 523 | ||||||
Taxes
payable
|
6 | 8 | ||||||
Reserves
(Exhibit E)
|
1,517 | 1,548 | ||||||
Total
noncurrent liabilities
|
4,995 | 4,598 | ||||||
Total
liabilities
|
14,182 | 11,793 | ||||||
Shareholders’ Equity
(per corresponding statements)
|
21,511 | 26,060 | ||||||
Total
liabilities and shareholders’ equity
|
35,693 | 37,853 |
2008
|
2007
|
|||||||
Net sales
(Note 3.h)
|
15,161 | 12,191 | ||||||
Cost of sales
(Exhibit F)
|
(10,284 | ) | (7,853 | ) | ||||
Gross
profit
|
4,877 | 4,338 | ||||||
Administrative
expenses (Exhibit H)
|
(363 | ) | (310 | ) | ||||
Selling
expenses (Exhibit H)
|
(1,045 | ) | (939 | ) | ||||
Exploration
expenses (Exhibit H)
|
(200 | ) | (230 | ) | ||||
Operating
income
|
3,269 | 2,859 | ||||||
Income on
long-term investments
|
128 | 189 | ||||||
Other income,
net (Note 3.i)
|
29 | 34 | ||||||
Financial
income, net and holding (losses) gains:
|
||||||||
Gains (losses)
on assets
|
||||||||
Interests
|
70 | 157 | ||||||
Exchange
differences
|
(22 | ) | 53 | |||||
Holding gains
on inventories
|
99 | 111 | ||||||
Losses on
liabilities
|
||||||||
Interests
|
(180 | ) | (139 | ) | ||||
Exchange
differences
|
278 | (20 | ) | |||||
Reversal of
impairment of other current assets (Note 2.j)
|
- | 69 | ||||||
Net
income before income tax
|
3,671 | 3,313 | ||||||
Income tax
(Note 3.j)
|
(1,417 | ) | (1,169 | ) | ||||
Net
income
|
2,254 | 2,144 | ||||||
Earnings per share (Note
1)
|
5.73 | 5.45 |
2008
|
||||||||||||||||
Shareholders’
Contributions
|
||||||||||||||||
Subscribed
Capital
|
Adjustment
to Contributions
|
Issuance
Premiums
|
Total
|
|||||||||||||
Balances
at the beginning of year
|
3,933 | 7,281 | 640 | 11,854 | ||||||||||||
As decided by
the Board of Directors’ meeting of March 6, 2007:
|
||||||||||||||||
- Cash
dividends (6 per share)
|
- | - | - | - | ||||||||||||
As decided by
the Board of Directors’ meeting of February 6, 2008:
|
||||||||||||||||
- Cash
dividend (10.76 per share)
|
- | - | - | - | ||||||||||||
As decided by
the Ordinary and Extraordinary Shareholders’ meeting of April 24,
2008:
|
||||||||||||||||
- Cash
dividends (6.5 per share)
|
- | - | - | - | ||||||||||||
-
Appropriation to Legal Reserve
|
- | - | - | - | ||||||||||||
- Reversal of
Reserve for Future Dividends
|
- | - | - | - | ||||||||||||
-
Appropriation to Reserve for Future Dividends
|
- | - | - | - | ||||||||||||
Net decrease
in deferred earnings (Note 2.i)
|
- | - | - | - | ||||||||||||
Net
income
|
- | - | - | - | ||||||||||||
Balances
at the end of period
|
3,933 | 7,281 | 640 | 11,854 |
2008
|
2007
|
|||||||||||||||||||||||
Legal
Reserve
|
Deferred
Earnings
|
Reserve
for Future Dividends
|
Unappropriated
Retained Earnings
|
Total
Shareholders’ Equity
|
Total
Shareholders’ Equity
|
|||||||||||||||||||
Balances
at the beginning of year
|
2,020 | (135 | ) | 4,584 | 7,737 | 26,060 | 24,345 | |||||||||||||||||
As decided by
the Board of Directors’ meeting of March 6, 2007:
|
||||||||||||||||||||||||
- Cash
dividends (6 per share)
|
- | - | - | - | - | (2,360 | ) | |||||||||||||||||
As decided by
the Board of Directors’ meeting of February 6, 2008:
|
||||||||||||||||||||||||
- Cash
dividends (10.76 per share)
|
- | - | (4,232 | ) | - | (4,232 | ) | - | ||||||||||||||||
As decided by
the Ordinary and Extraordinary Shareholders’ meeting of April 24,
2008:
|
||||||||||||||||||||||||
- Cash
dividends (6.5 per share)
|
- | - | - | (2,557 | ) | (2,557 | ) | - | ||||||||||||||||
-
Appropriation to Legal Reserve
|
204 | - | - | (204 | ) | - | - | |||||||||||||||||
- Reversal of
Reserve for Future Dividends
|
- | - | (352 | ) | 352 | - | - | |||||||||||||||||
-
Appropriation to Reserve for Future Dividends
|
- | - | 4,003 | (4,003 | ) | - | - | |||||||||||||||||
Net decrease
in deferred earnings (Note 2.i)
|
- | (14 | ) | - | - | (14 | ) | (3 | ) | |||||||||||||||
Net
income
|
- | - | - | 2,254 | 2,254 | 2,144 | ||||||||||||||||||
Balances
at the end of period
|
2,224 | (149 | ) | 4,003 | 3,579 | 21,511 | 24,126 |
2008
|
2007
|
|||||||
Cash
Flows from Operating Activities
|
||||||||
Net
income
|
2,254 | 2,144 | ||||||
Adjustments
to reconcile net income to net cash flows provided by operating
activities:
|
||||||||
Income
on long-term investments
|
(128 | ) | (189 | ) | ||||
Dividends
from long-term investments
|
504 | 401 | ||||||
Reversal
of impairment of other current assets
|
- | (69 | ) | |||||
Depreciation
of fixed assets
|
1,994 | 1,961 | ||||||
Consumption
of materials and fixed assets retired, net of allowances
|
187 | 164 | ||||||
Increase
in allowances for fixed assets
|
2 | 73 | ||||||
Income
tax
|
1,417 | 1,169 | ||||||
Income
tax payments
|
(1,045 | ) | (878 | ) | ||||
Increase
in reserves
|
299 | 254 | ||||||
Changes
in assets and liabilities:
|
||||||||
Trade
receivables
|
138 | (30 | ) | |||||
Other
receivables
|
1,926 | (239 | ) | |||||
Inventories
|
(184 | ) | (446 | ) | ||||
Accounts
payable
|
499 | 278 | ||||||
Salaries
and social security
|
(19 | ) | (35 | ) | ||||
Taxes
payable
|
(185 | ) | (158 | ) | ||||
Net
advances from crude oil purchasers
|
(10 | ) | (46 | ) | ||||
Decrease
in reserves
|
(334 | ) | (323 | ) | ||||
Interests,
exchange differences and others
|
(238 | ) | 55 | |||||
Net
cash flows provided by operating activities
|
7,077 | (1) | 4,086 | (1) | ||||
Cash
Flows used in Investing Activities
|
||||||||
Acquisitions
of fixed assets
|
(2.685 | ) | (2,325 | ) | ||||
Capital
contributions on long-term investments
|
- |