YPF’s stock on Wall Street soared more than 38%: Milei said he plans to privatize it

The YPF tower in Puerto Madero
The YPF tower in Puerto Madero

“Everything that can be in the hands of the private sector, is going to be in the hands of the private sector,” said president-elect Javier Milei this morning in an interview with Edward Feinmanna Radio Miter

And he added: “YPF first has to be recomposed. Since Kicillof decided to nationalize it, the deterioration that has been done to the company in terms of results so that it is worth less than when it was expropriated… Obviously, the first thing to do is to rebuild it.”

“In the transition that we are thinking about in the energy issue, YPF and Enarsa have a role. As long as these structures are rationalized, they are put to create value so that they can be sold in a very beneficial way for Argentines,” emphasized the winner of the runoff.

Thus, the issue “YPF private again” was left on the table. The company that was already privatized in the 90s, when it passed into the hands of the Spanish Repsol during the presidency of Carlos Menemwas “renationalized” by Cristina Kirchner in 2012. That process was part of a long trial in the United States, where the company has been listed for 30 years: minority shareholders claimed that there was malpractice in the expropriation carried out by CFK. This year, the judge Loretta Preska, in charge of a court in the Southern District of Manhattan, said that the companies – which sold the right to litigate the English law firm Burford Capital – were right. And he condemned the Argentine State to pay a whopping USD 16,000 million.

The truth is that this morning, the state oil company leads the surge in Argentine stocks listed on Wall Street, with a jump that reached more than 38%; The paper went from almost USD 11 per unit last Friday to surpassing $15 at one point this morning. Thus, today – always according to the price of its shares – the company became worth about USD 1.8 billion more.

Javier Iguacel, who was mentioned as a possible president of YPF (and also in some position linked to Energy) said today in a radio interview that “today YPF is worth nothing and now Javier does not plan to do it (due to privatization). When it has value and serves the Argentines, maybe yes. I didn’t talk to him about charges at all,” he said. “YPF has to have professional management. “It is a publicly traded company and must be governed by the laws of the functioning of the free economy, that is the first thing to do and we share 100% with Javier,” he added.

Go up why Javier Miley Did you say you will privatize? The financial experts she spoke to Infobae They believe that in part yes, but they assure that they must spend a few more hours to analyze the real impact of the increase and its reasons.

“Go up because of what Milei said, who assured that she plans to make it private again. It may be a long road, it is not immediate, but the idea struck her. I think it is going to begin to explore the different reactions to something emblematic, the issue of oil at the national level is something that is very resisted, very combative obviously by the current ruling party, but that is why it is rising so strongly. Furthermore, there is general optimism for local ADRs,” he explained. Gustavo Neffade Research for Traders.

Javier Iguacel, former Minister of Energy, with Javier Milei
Javier Iguacel, former Minister of Energy, with Javier Milei

“I didn’t expect this reaction from the market, to be honest. In fact, I thought that perhaps it might not be so good, that a priori I expected a victory for Massa, but the market spoke and is being very clear,” the financial analyst told this medium. Cristian Buteler. “The market sees that with Milei Argentine assets have more potential. YPF is the same as Vaca Muerta and many associated businesses. In reality, the problems we had until Friday were not solved, you don’t even know what Milei’s plan is going to be. In this context, the main asset that Argentina has is YPF. The market spoke and is being very clear,” he concluded. Buteler.

Daniel Montamat, energy consultant and former president of the company, believes that the jump in prices has to do with the market seeing that a policy of aligning local prices with international prices will come. “That will benefit the price of YPF and other companies. It happens that YPF is the one that has the most committed reserve and marketing positions for crude oil and derivatives in the domestic market. The revaluation of the shares has to do with that and perhaps partly with the announcement of a possible privatization, something that is conditioned to a series of sequences that will have to occur,” summarized Montamat.

At Emilioformer Secretary of Energy, said that in addition to releasing hydrocarbon exports, the next government must “deactivate the monopoly concentration held by YPF, in combination with Enarsa, in the wholesale marketing and transportation of natural gas.”

“YPF must be transformed into an internationally competitive oil company. Today the company has an identity crisis after having been used by Kirchnerism to intervene in crude oil and fuel prices. YPF must not generate any distortion to competition. The National Executive, after modifying the hydrocarbons law, would have authorization to sell its shares in YPF. Privatizing it must arise as a consequence of these considerations: YPF is a means, not an end in itself and has nothing to do with energy sovereignty. Its future will also depend on the objective of exploiting Vaca Muerta on an international scale, whose resource, it is good to remember, belongs to the province,” Apud concluded.

The post first appeared on www.infobae.com

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