Cars drive past a gas station of Argentina's state energy company YPF, in Buenos Aires, Argentina February 10, 2021. Picture taken February 10, 2021. REUTERS/Matias Baglietto

BUENOS AIRES (Reuters) -Argentine state-controlled energy company YPF swung to a net loss of $198 million in the third quarter, the company said on Friday, saying the loss reflected a deferred tax charge.

The company's adjusted earnings before interest, tax, depreciation and amortization (EBITDA), a key measure of industry profitability, stood at $1.36 billion for the July-to-September period, down 1% from a year earlier and in line with expectations of analysts polled by LSEG.

Revenues were $4.64 billion, YPF said, down 12% from the same quarter last year and a touch below analysts' $4.76 billion estimate.

The company said its total hydrocarbon production was down 6% to 523,100 barrels per day.

Shale oil production, however, surged by 35% year-on-year to average 170,000 barrels per day, and now represents 70% of the company's total oil output.

Shale production reached a record in October, YPF said in a separate statement on Friday, reaching 190,000 bpd.

YPF's performance is a critical indicator for Argentina's economy, which relies on the company's Vaca Muerta operations in its push to become a net energy exporter.

The huge formation in western Argentina accounts for 64% of the country's oil production even though only 8% of it is under development.

The formation is also vital to President Javier Milei's government, which needs to increase Argentina's energy exports to bolster its dollar reserves and build confidence in the government's ability to maintain a stable currency.

In YPF's downstream business, which includes refining and marketing, refinery utilization was at 97%. Domestic fuel sales volume rose by 3% from the second quarter, as YPF gained market share.

(Reporting by Eliana Raszewski and Brendan O'Boyle; Editing by Sarah Morland and Leslie Adler)