EXMAR has received written notification of force majeure from YPF S.A. (the “Notice”) under the Charter Agreement and Services Agreement for the TANGO FLNGbetween YPF S.A.and EXMAR (the “Agreements”).
YPF claims that effects of the coronavirus (COVID-19) pandemic both worldwide and in Argentina have hindered YPF’s ability to perform its obligations under the Agreements, including but not limited to its ability to pay the invoices due forservices performed for the period starting the second half of March2020. It results from EXMARS’ firstquarter results 2020, EBITDAfrom the TANGO FLNGcontributes 36% to total EBITDA for such period.
EXMAR considers the Notice to be unlawful, has reserved its rights and is considering its best option to defend its interests.
Irrespective of the outcome of the dispute with YPF S.A. in respect of the Notice, EXMAR is contemplating several measures to safeguard its liquidity position, which ison the basis of our current forecast, not at risk till the end of 2020.