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YPF S.A. Message Board

  • gatech38 gatech38 Oct 26, 2011 1:22 PM Flag

    Argentina Orders Oil, Gas, Mine Companies to Repatriate All Export Revenue

    This is the link to the story. Not good news. I will not sell out yet as this hasn't all shaken out, but we need clarification soon!!


    http://www.bloomberg.com/news/2011-10-26/argentine-oil-mine-exporters-ordered-by-government-to-repatriate-funds.html

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    • hopeful that the dividend will be paid next month. i will hang on until it happens then i intend to get out because the countries president is anti business and a progressive socialist!

      • 1 Reply to boreasgm
      • Typical latin cultural, and especially Argentine response. Think she thinks she is the new Evita........ The people down there seem used to this, party like drunken sailors (spending/inflation), then wake up in few years with crash and no pesos, with looks of confusion (economic collapse). He but it works for them ! Wash,rinse, repeat.

    • Company spokesman made a statement saying he supported the Presidents' order....course what else would one say faced with emotional instability. Hopefully will affect mining industry more, as edict requires repatriation of $ to pesos, i think more YPF income is already transacted in pesos...

      • 2 Replies to sherrylsvgs
      • Fidelity research had a good article explaining the new issue. It levels the playing field for all companies, including insurance. In part, "Mining sector sources said the measure will increase company costs because they will be forced to trade their dollars into pesos in Argentina and then repurchase the greenbacks to make payments abroad. This will also be taxed." So now instead of keeping their dollars outside of Argentina and using them to pay foreign creditors, they have to bring in those dollars and exchange them in Argentina for pesos. Then they will have to buy back dollars to use for paying foreign creditors. Another aryticle indicated YPF would have no problem paying their dividends, just more cumbersome this way. There currently is no tax for U.S. ADR dividend, maybe they will just institute a tax. Fitch then downgraded YPF along with several other companies. I am hoping this will stabilize and come back up.

      • Unfortunately I am now out of this company. Leaders who are bad for business will be a big drain on their country.

    • It only gets worse from here. She cannot stop capital flows as investors flee the country. YPF is essentially nationalized as all export profits have been seized and there are caps on energy prices. The dividend is now in question as it is a capital flow out. This stock is vulnerable.

    • It only gets worse from here. She cannot stop capital flows as investors flee the country. YPF is essentially nationalized as all export profits have been seized and there are caps on energy prices. The dividend is now in question as it is a capital flow out. This stock is vulnerable.

    • Already a 100 percent tax is levied on oil exports above about $45 per barrel and now the company is further required to keep at least 30 percent of the pretax export revenue in the country. This repatriation requirement inhibits the payment of dividends to foreigners by at least 30%.

 
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