Brazil’s Corporate Friday: Buybacks, Payouts and a Ratings Upgrade

Petrobras ADR rose 3.2% to $21.65 as G7 announced a release of 100 million barrels of diesel and crude. Ecopetrol and YPF also gained, despite a 1.77% drop in the US Oil Fund tracking WTI. The move was driven by political intervention to ease fuel market shortages.

Petrobras and Cheniere Energy (LNG exporter) signed a 22-year deal for 0.8 million tonnes/year of LNG. The agreement aims to reduce Petrobras' market volatility exposure and secure supply. Cheniere operates Sabine Pass and Corpus Christi LNG terminals with 56 mtpa capacity.

Cheniere Energy's subsidiary signed a 22-year LNG sale agreement with Petrobras for 0.8 mtpa. The deal reinforces Cheniere's global LNG position and provides long-term cash flow visibility, according to the company.

Petrobras (PBR) is participating in Brazil's fuel-subsidy programs, receiving R$12.2 billion in reimbursements. The company's board approved a new R$1-per-liter diesel subsidy for 30 days, extendable for another 30. While subsidies support Petrobras, the gap between international and domestic diesel prices remains a concern, with imports at higher prices squeezing margins.

Petrobras CEO Magda Chambriard stated the company will not increase its stake in Braskem unless other shareholders do the same. Braskem, which has $11B in debt, is negotiating restructuring with creditors. Petrobras aims to finalize preliminary terms by October 9. Petrobras owns 36.1% of Braskem, with 47% voting rights.

Petrobras redeemed $1.09B in 5.999% Global Notes due 2028 using cash on hand, settling on 25 September 2026. The move reduces debt and signals financial strength. Additionally, Petrobras signed a memorandum with Mozambique's ENH for potential oil and gas cooperation, though no specific projects or investments were announced.