By Reuters

(Reuters) - Argentina's state oil firm YPF on Monday reported a net profit of $1.21 billion in ​the second quarter of 2026, compared with $58 million ‌seen a year earlier, citing higher shale production, record processing levels and a hike in international prices.

The state-run producer's revenues reached $6.57 ​billion during the April-to-June period, up 42% from ​a year earlier, and above the $6.10 billion predicted ⁠by LSEG.

Adjusted quarterly earnings before interest, taxes, depreciation, and ​amortization (EBITDA), hit $2.80 billion, up 149% from the year before. The ​company called it the highest adjusted EBITDA in YPF's history.

YPF's performance is a critical indicator for Argentina's economy, which relies on ​the company's Vaca Muerta operations to boost energy exports, ​helping Argentina strengthen dollar reserves, maintain a stable currency and bolster ‌investor ⁠confidence.

Shale oil production rose 47% year-on-year to average 213,000 barrels per day. The company said it is aiming to reach 250,000 barrels per day by year-end.

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YPF's total ​crude oil production ​reached 266,000 ⁠barrels per day, yet natural gas production shrank 6% compared to a year prior.

The ​results come as YPF pushes ahead with ​an ambitious ⁠expansion plan for Vaca Muerta — the world's second-largest unconventional gas reserve and fourth-largest oil reserve. Boosting production at the formation ⁠is ​a cornerstone of President Javier ​Milei's economic strategy, which seeks to boost Argentina's financial stability through increased ​energy exports.

Reporting by Iñigo Alexander, Editing by Daina Beth Solomon

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