Page 14 - LatAmOil Week 14 2022

LatAmOil NEWS IN BRIEF LatAmOil

INVESTMENT
Petrobras reports on

payment for sale of NTS

Petrobras, following up on the releases dis-
closed on September 23, 2016, and April 4,
2017, informs that it received today from Nova
Infraestrutura Gasodutos Participações SA
(NISA), a company held by Nova Infraestru-
tura Fundo de Investimentos em Participações
Multiestratégia (FIP), an investment fund man-
aged by Brookfield Brasil Asset Management
Investimentos Ltda (Brookfield), and by Itaúsa
SA (Itaúsa), the amount of $1bn.
This amount corresponds to the last install-
ment of the sale of 90% of Petrobras’ shares in Co. of Peru LLC, Suc. Del Peru’s corporate fam- ring-fence Hunt Peru from its parent, to be bene-
Nova Transportadora do Sudeste (NTS) to FIP ily rating and its senior unsecured rating to Ba1 ficial to its credit profile since the notes represent
and Itaúsa. This last installment, of $850mn up from Ba2, given its robust cash generation and 100% of the company’s debt.
to date, had already been scheduled for payment declining debt, as well as the improved credit Hunt Peru has good liquidity. Cash in the
in five years after the closing of the transaction, profile of its parent company, Hunt Oil com- amount of about $140mn in December 2021
which occurred on April 4, 2017. pany; the rating outlook is stable. plus around $500mn in cash from operations
Petrobras, April 4 2022 Upgrades: Issuer: Hunt Oil Co. of Peru through mid-2023, as expected by Moody’s, will
LLC, Suc. Del Peru Corporate Family Rating, fund $75mn in debt amortisation, $40mn in cap-
Petrobras reports on Upgraded to Ba1 from Ba2; Senior Unsecured ital spending, plus interest payments and divi-
Regular Bond per dayebenture, Upgraded to Ba1 dends in the period. Hunt Peru also counts on
divestment process from Ba2. Outlook Actions: Issuer: Hunt Oil Co. a $30mn three-year committed revolving credit
of Peru LLC, Suc. Del Peru. Outlook, Remains facility that matures in May 2024.
for Marlim cluster Stable. Factors that could lead to an upgrade or
Ratings rationale: Hunt Peru’s ratings downgrade of the ratings: Hunt Peru’s Ba1 rat-
Petrobras, following up on the release disclosed upgrade reflects the company’s sustained robust ings are constrained by its production size and
on December 14, 2020, informs that its Exec- cash generation and Moody’s expectation that it the high dividend payout to its parent company.
utive Board has approved the end of the com- will reduce debt and maintain its strong capital A dividend policy that protects creditors or a
petitive process, which was in the non-binding structure unchanged in the foreseeable future. significant debt reduction on a sustained basis,
phase, for the sale of 50% of its stake in the The rating upgrade also reflects the improved without affecting its operating performance,
Marlim, Voador, Marlim Leste and Marlim Sul credit profile of Hunt Peru’s parent company, could trigger a positive rating action on Hunt
concessions, jointly denominated Marlim Clus- Hunt Oil. Peru’s ratings. The credit profile of Hunt Peru’s
ter, predominantly located in deep waters in the The Ba1 corporate family rating on Hunt parent company, Hunt Oil Company, would be
Campos Basin. Peru considers the company’s small production relevant information for Moody’s to consider a
Petrobras constantly evaluates its portfolio size; asset concentration in only two gas blocks; positive action on Hunt Peru’s rating.
and, considering the alignment of the conces- operating dependence on only two pipelines, Hunt Peru’s Ba1 ratings could be downgraded
sions to the company’s strategy and the improve- owned by Transportadora de Gas del Peru if it faces extended operational disruptions or if
ment of its economic and financial indicators, (TGP) (Baa1 stable); no operating control over its production declines significantly. An interest
the Marlim Cluster was kept fully in the port- the gas blocks; vulnerability to commodities coverage ratio, as measured by EBITDA/inter-
folio, and its production has already been incor- prices; high dividend payout rate and Moody’ est expense, below five times could also trigger a
porated in the 2022-26 Strategic Plan horizon. expectation of continued volatile natural gas and negative rating action.
Petrobras reinforces its commitment to the natural gas liquids prices. Moody’s Investors Service, March 28 2022
comprehensive transparency of its divestment On the other hand, Hunt Peru’s ratings are
projects and portfolio management and affirms supported by the company’s solid credit metrics
its focus on deepwater and ultra-deepwater for its rating category; large proved gas reserves, PERFORMANCE
assets, where it has shown great competitive edge equivalent to about 18 years of life based on 2021
over the years, with high productivity and lower production; strong asset base in the world-class, Petrobras comments on
greenhouse gas emissions. prolific Camisea gas fields; low volume risk given
Petrobras, April 1 2022 solid demand both in the local and international Court of Justice decision
markets; the strategic importance of the Camisea
Moody’s upgrades fields to the Government of Peru (Baa1 stable); Petrobras informs that the Court of Justice of Rio
and the company’s experienced management de Janeiro (TJ-RJ) decided, by majority vote, to
Hunt Oil Peru to Ba1 team. grant the appeal of the company Paragon Off-
shore Nederland BV, former supplier of rigs for
Moody’s considers the debt agreement’s pro-
Moody’s Investors Service upgraded Hunt Oil visions in Hunt Peru’s unsecured notes, that help oil and gas prospection.

P14 www. NEWSBASE .com Week 14 07•April•2022