YPF will convert its earnings into shares to generate investment
March 21, 2012
YPF’s board approved today an initiative to turn profits in 2010 and 2011 into stocks and seek profits in the financial market to expand production of fuel. The Government rejected the initiative, claiming that it would create a leak of dollars overseas.
At today’s meeting, it was decided to increase the corporate capital by a total of 5,296 million pesos coming from the profits of the last two years, rather than distribute them in dividends.
After the meeting, the Deputy Economy Minister Axel Kicillof, said the meeting raised the alternative of creating a “stock investment” with the utilities to begin exploration work and expansion of production, which was refused to distribute “more actions shareholders. “
“They propose that the utilities be turned into actions in proportion to the holding of each shareholder. This role is very fluid, even quoted in the New York Stock Exchange and quietly these roles can become those dollars that would have run away now, “the official concluded.
Meanwhile, since the company said the decision “demonstrates the commitment of shareholders to reinvest in the company and the country.”