RIO DE JANEIRO, BRAZIL – The measures taken by Latin American oil and gas companies to protect liquidity were “only partially successful,” according to an assessment by Moody’s rating agency.
According to Nymia Almeida, Senior Vice President at Moody’s, Petrobras seems to present a more favorable scenario, particularly with its US$8 billion (R$40 billion) in committed credit lines maturing in 2023 and 2024, and the Brazilian state-owned company’s plan to cut expenses by about US$3 billion this year.
Moody’s points out that over half of the oil companies in the region are controlled by their countries’ governments, which reduces the risk of default on creditors.
According to Almeida, Mexico‘s Pemex is expected to need to raise more funds abroad by 2021, while Chile’s ENAP and Argentina’s YPF are expected to suffer from slumps in both price and demand.
“Oil prices and low fuel demand will have a lower impact on Ecopetrol’s credit metrics due to its strong cash flow, but the company cut its investment plans in 2020 from US$3.3 to US$4.3 billion, compared to the original US$4.5 to US$5.5 billion, along with other expenses,” Moody’s explained about the Colombian company.
Source: Estadão Conteúdo