Investors Shrug Off Loss Of YPF Concessions In Argentina
First Published Thursday, 15th March 2012 05:02 pm - © 2012 Dow Jones
BUENOS AIRES -(Dow Jones)- Investors on Thursday shrugged off news that two Argentine provinces had moved to revoke concessions held by the oil and gas giant YPF SA (YPF, YPFD.BA), deciding to buy the stock anyway.
YPF shares were up almost 2% at ARS135 on the Buenos Aires Stock Exchange in early afternoon trading. They company's ADRs were up about 1.9% at $27.27 in New York.
On Wednesday, Chubut Governor Martin Buzzi and Santa Cruz Governor Daniel Peralta said they were revoking concessions held by the company--two in Chubut and possibly three in Santa Cruz--in a dispute over investment and production.
YPF said it has invested millions in the provinces and will defend itself in court.
The company has not yet received details about Santa Cruz's plans and is not sure how they might differ from those in Chubut, where the two concessions in question account for about 7% of YPF production around the country.
YPF says it invested $380 million in Santa Cruz in 2011 and $350 million in Chubut last year.
YPF is majority owned by Spain's Repsol YPF SA (REPYY, REP.MC).