MEXICO CITY, May 7 (Reuters) - Argentine state oil

company YPF sank into the red in the first quarter, it reported

on Wednesday, swinging to a net profit loss of $10 million, hurt

by lower seasonal demand and weaker export volumes.

The loss compares to last year's net profit of $657 million

in the first quarter of 2024.

Revenues, meanwhile, inched up 7% from a year ago to reach

$4.61 billion, hurt by lower seasonal demand for diesel and

fertilizers and a decrease in oil export volumes but partially

offset by higher local fuel prices.

YPF, one of Argentina's top domestic fuel suppliers,

said its total production increased 5% year-on-year in the first

quarter, including a 6% increase in crude production.

The firm operates the massive Vaca Muerta shale

formation, which Argentina is betting on to cement its status as

a net energy exporter and to replenish depleted foreign

reserves.

The firm's first-quarter core earnings, or adjusted

earnings before interest, taxes, depreciation and amortization

(EBITDA) stayed stagnant from a year earlier to $1.25 billion.

Operating costs grew by 26.4% year-on-year.