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It was a busy week for LatAm markets as earnings season gathered pace. Oil producers generally benefited from higher prices, with unhedged names such as Petrobras and Vista capturing more of the upside than more heavily hedged GeoPark, Brava Energia and Pampa Energia. Vaca Muerta players also doubled down on growth, unveiling significant investment plans across their blocks.
In Brazil, Petrobras, Prio and Brava posted strong Q2 results while signaling proactive liability management. Petrobras delivered one of its strongest quarters on record and reduced net debt to $60.4bn, Prio plans to push more than $350m of 2027 maturities into 2028–29, and Brava flagged a potential tender for its $500m 10% bond once callable in February. The main sector headwind is Brazil’s new 12% crude export tax, which cost Prio $111m in Q2 and is being factored into forecasts through 2027.
FX was another recurring theme across Latam earnings calls. Stronger local currencies squeezed margins for companies with US dollar revenues but significant domestic costs, including LATAM Airlines, Cencosud, Nutresa, CMPC, Tupy, Vale and Mercado Libre.
Aegea Saneamentoappears to be back on an upward trajectory after a chaotic start to...
