South America








Oil & Gas

Fossil Fuels

Fossil Fuels

Profits of forestry giant Copec fall as revenues beat forecasts

Empresas Copec, a Chilean conglomerate of industrial companies, reported a 21% decline in its second-quarter profits despite revenue exceeding expectations. The forestry giant is facing falling pulp prices as well as trade war impacts due to the U.S. and China. The net profit for the quarter ended June was $228 million, which is in line with expectations of LSEG's analysts. Revenues were down 1% at $7.18 billion. The revenue of Copec, the owner of a large forestry company, as well as fuel distribution and mining operations, was higher than analysts' estimates at $6.84 billion. Copec attributes the drop in sales...

Oil & Gas Refining

US court reschedules final sale hearing of Citgo parent

According to a filing, a U.S. Federal Court approved on Thursday the rescheduling a long-anticipated sale hearing that was originally scheduled for next week. The hearing would have determined the winner of the auction of shares of the parent company of Venezuelan-owned refiner Citgo Petroleum. After a court officer who was overseeing the auction recommended that a unit from miner Gold Reserve submit a different bid, two uninvited bids submitted recently by affiliates of hedge-fund Elliott Investment Management and commodities company Vitol were approved. Delaware Judge Leonard Stark stated in his order that a new date will be set for...

Fossil Fuels

Citgo Petroleum returns to profitability in the second quarter

Citgo Petroleum, a U.S. refiner owned by Venezuela, reported a net profit of $100 million for the second quarter, compared to a loss of $25 million during the same period last year. The company ended the quarter with 2.6 billion dollars in liquid assets, the company said on Thursday. Before its second quarter results, the Houston-based refiner recorded two consecutive quarters with losses due to weak margins. PDV Holdings is the parent company. is being auctioned The seventh largest U.S. refiner, which processes an average of 858, 000 barrels of crude oil per day, increased its processing from 833,000 barrels...

Oil & Gas Refining

Elliott affiliate bids for Citgo parent company as competition heats-up

A filing updating the court-organized auction shows that an affiliate of hedge fund Elliott Investment Management raised its bid on the Venezuelan-owned parent of U.S. refiner Citgo Petroleum, bringing the total to $8.82 billion. The auction of PDV Holding was relaunched by the government in January, after a yearlong process that ended in chaos amid disputes over Citgo’s value and parallel legal proceedings. Last month, an officer of the Delaware Court supervising this auction recommended that a group headed by Gold Reserve bid $7.4 billion. The court received an $8.45 billion offer from a Vitol subsidiary last week, while the...

Fossil Fuels

Petrobras Brazil sees little chance of additional dividends in this year

Fernando Melgarejo, the Chief Financial Officer of Brazil's state-owned oil giant Petrobras, said that the company has little hope of paying out extraordinary dividends in this year. He cited lower revenues due to a fall in oil prices worldwide. Melgarejo said that the company is not planning to change its dividend policy. The executive said that if revenue was lower, it would be more difficult to pay out extraordinary dividends. This statement came during a conference call with analysts following the company's results for the second quarter. We see low chances of having the extra cash this year to make...

Fossil Fuels

Kepler, a Brazilian silo manufacturer, reports weak results and looks to Argentina for growth

Kepler Weber, a maker of silos, posted lower quarterly results due to a weaker operational scenario in Brazil. However executives expressed optimism about the company's growth in Argentina. High interest rates and low grains prices have hurt Brazil's business prospects and profitability, but CEO Bernardo Nogueira says Argentina is a new avenue for growth as the economy and inflation in Argentina improve. Nogueira stated that the situation in Brazil was "dismal" as farmers had produced a record-breaking soy crop, which has pushed prices down globally. Brazil is one of the largest producers and exporters of corn, among other staple foods....

Fossil Fuels

Colombia's exports in the first half of the year are up, as a coffee boom offsets a dip in energy.

Data showed that the value of Colombian exports increased by 1.6% in the second half of last year, compared to the same period a year ago, as an increase in sales of coffee and foods offset a decline in the extractive industry. The exports of agricultural goods, food and drinks jumped 36.5% on an annual basis to $7.63billion in the period from January to June. Colombia's National Statistics Department reported that coffee exports soared 83.2%, to $2.69 Billion. Oil exports, on the other hand, fell by 15% to $6.49 Billion. Coal sales dropped 33%, to $2.37billion. Ferronickel sales also fell...

Energy Markets

Chevron CEO: Exports of Venezuelan crude oil to resume in this month

The chief executive of U.S. oil company Chevron said that the company expects to resume its exports to the U.S. this month. This follows a limited license issued by the U.S. Treasury Department this week to operate in Venezuela and to do oil swaps. Mike Wirth, CEO of Chevron, said that exports would begin with "a limited amount" and that he did not expect them to have an impact on the third-quarter results. Chevron has not exported Venezuelan oil since April when the state-owned PDVSA cancelled cargoes scheduled for its joint venture partner due to payment issues related to U.S....

Oil & Gas Refining

Trump tariffs spark 'deep concern' among Brazil chemical firms

A Brazilian association of chemical companies, which includes large U.S. companies like ExxonMobil, Dow Chemical, and ExxonMobil, has expressed "deep concerns" about a U.S. Executive Order that raised tariffs on Brazilian imports to 50%. Abiquim, in a Friday statement, said that the Brazilian chemical industry is inextricably linked with the United States. The relationship was marked by "integration," and "cross investments." Andre Cordeiro said that the impact on Brazilian chemical exports would be significant, as it would compromise supply chains, jobs and investments both in Brazil and in the U.S. Abiquim reported that more than 20 of the chemical companies...

Fossil Fuels

Codelco Chile says it is still searching for missing workers at El Teniente Mine

Andres Musik, El Teniente’s general manager, said that Codelco had not yet contacted five workers who were missing at the Andesita Unit of El Teniente following a seismic event which killed one person. He said that Codelco expected the aftershocks to subside in the next twelve hours, which would allow it to start efforts to contact the workers. Music stated in a recent press conference that "the event we recorded yesterday was one of, if not the biggest event" the El Teniente Mine has ever experienced. He noted that the incident was a magnitude 4.2 earthquake. Andesita was one of...

Crude Oil

Sources say that the US is considering limiting authorizations to oil companies in Venezuela

Four sources familiar with the situation said that the U.S. administration of President Donald Trump is in talks with key partners, including Chevron, of Venezuela's PDVSA state-run oil company, to allow them to continue to operate within certain limits, in the sanctioned OPEC nation. The Washington pressure strategy adopted earlier in the year would be radically altered if Chevron and perhaps also PDVSA's European Partners were granted authorizations. In a statement, a senior State Department official stated that they couldn't speak about specific licenses granted to PDVSA partners. However, the U.S. wouldn't allow the government of President Nicolas Maduro to...

Fossil Fuels

Anglo American's production of copper and diamonds falls in the first half

Anglo American, a global miner, reported on Thursday a 13% drop in copper production for the first half of this year, to 342,200 tons. It also reported a 26% decline in rough diamonds as the demand remains weak. The London-listed company still expects 690,000-750,000 tonnes of copper to be mined this year. This is down from 773,00 tons in 2024. Metal is used for electrical wiring, and demand will increase as electric vehicles and renewable infrastructure are developed. After BHP failed to acquire the miner last year, it is now restructuring its business, focusing mainly on iron ore and copper....

Environment

Climate Change

Brazil's "soy Moratorium" site is offline following antitrust ruling

The Brazilian antitrust authority suspended the "soy moratorium" on Tuesday, a private agreement enforced globally by grain traders to protect Amazon rainforests from deforestation caused by soy. This is in response to the set of measures implemented by the agency Monday, which included launching a full-blown investigation into 30 traders and groups for alleged practices anti-competitive. The soy ban, which has been hailed for years as one of most successful initiatives in protecting the Amazon rainforests, prohibits soybean traders from purchasing from farmers that cleared land after July 2008. The CADE General Superintendent regulator ruled, however, that the soy moratorium...

Climate Change

Brazil's "soy Moratorium" site is offline following antitrust ruling

The Brazilian antitrust authority suspended the "soy moratorium" on Tuesday, a private agreement enforced globally by grain traders to protect Amazon rainforests from deforestation caused by soy. The soy ban has been touted as one of most effective initiatives to protect Amazon rainforests because it prohibits soybean traders from purchasing from farmers that cleared land in the Amazon after July 2008. The General Superintendent of the Brazilian antitrust regulator CADE ruled on Monday that this represents a possible breach of Brazilian competition laws. After completing a preliminary inquiry, Superintendent Alexandre Barreto de Souza issued an order to firms that they...

Environment

Cooperative says that a cold snap will reduce the next coffee crop in a key Brazilian region.

The cold snap that hit Brazil's Cerrado Mineiro region earlier this month has reduced the size of the next crop by about 412,000 60 kg bags or 5.5%. This was revealed in a report released on Tuesday by the coffee cooperative Expocacer. Expocacer reported in a recent report that temperatures in the area plummeted to just 2 degrees Celsius (35,6 degrees Fahrenheit). Glaucio Castro, President of the Cerrado Coffee Growers Federation told reporters at the time the cold snap could have damaged the buds on the coffee trees, reducing the flowering potential for the 2026 harvest. According to the latest...

Mining

Mineral Resources

Mineral Resources

SQM's quarterly net profit in Chile falls by 59% due to lower lithium prices

SQM Chile, the second largest lithium producer in the world, reported on Wednesday a 59% drop in its quarterly profit due to lower prices for lithium. LSEG data shows that the company's second-quarter profit was $88.4 millions, which is below analysts' expectations of $143.01million. Analysts had predicted $1.064 billion for the third quarter. The company's $1.04 billion revenue was in line with that. The company reported that lithium prices have dropped by 34% in the last year. Since their peak at the end of 2022, global prices for lithium - a key component in electric vehicle batteries - have fallen...

Mineral Resources

Social media is the new source of information for youth voting in Bolivia's election

Young Bolivians can influence the outcome of general elections Doria Medina, presidential candidate, has a strong presence on social media Social media is a source of news for more young Bolivians By Nathalie Iriarte The young people of the country seem to be enjoying the lively and entertaining posts made by the business magnate. "I don’t know why but I like Him." "I see other politicians that look forced and they don’t use social media the way he uses," said Veronica Mamani (19), a first time voter. Bolivia has a young electorate, with nearly half the population under 35 years...

Mineral Resources

Antofagasta's half-year earnings jump 60% due to higher copper prices and demand

The Chilean miner Antofagasta reported a 60% increase in its core earnings for the first half of this year, thanks to higher production and prices paid by customers for copper used as an energy transition material. The EBITDA for the first half of this year rose from $1.39 to $2.23, slightly exceeding analysts' expectations. Antofagasta is majority owned by the Luksic Family of Chile. The company announced a dividend per share of 16.6 cents, up from 7.9 cents in the interim last year. Copper is a key material for power and construction industry applications, as well as for green energy...

Mineral Resources

Chile lowers its copper production estimate for 2025

Chile's copper state commission has lowered its estimate of growth for 2025, saying that it expects a 1.5% increase from last year. This is half the growth estimated by the commission in May, which was 3%. Cochilco announced on Wednesday that the production of the world's largest copper exporter will reach 5.58 millions metric tons in this year. The commission also maintained its forecast for copper prices to average $4.30 per pound in 2025-2026. The Commission said that the decline in growth forecast was due to the June decrease in production of BHP's Escondida Mine, the world's largest copper deposit,...

Mineral Resources

Chilean prosecutor meets Codelco to investigate fatal mine accident

A top prosecutor in Chile said that on Friday, the country's prosecutors met with Codelco technical experts to investigate an accident last week at the El Teniente Copper Mine which killed six workers. Aquiles Cuillos, the prosecutor for the O'Higgins area, told reporters his office was in need of Codelco explaining various operations within the mine. He described them as "things which have been revealed by the investigation." He said that after the staff meetings his team reviewed four damaged levels in the mine. These do not include those where injuries and deaths took place. Investigators are taking photos of...

Mineral Resources

China's steel exports rose in July despite protectionist backlash

China's steel imports increased in July. This continued a record-breaking trend despite countries erecting trade barriers to prevent a flood of Chinese products. Data from the General Administration of Customs on Thursday showed that steel exports rose by 1.7% in July from June, to 9.84 metric tons. This brings total exports for this year to 67.98 metric tons. The total for the year is at its highest level since 1990. Steel exports by the largest steel producer in the world have led to a global protectionist backlash. Since January of last year, almost 40 countries have launched anti-dumping investigations. Vietnam...

Mineral Resources

Brazil's iron ore exports in July hit a record volume

Official data released on Wednesday showed that Brazil exported 41.1 millions metric tons (metric tons) of iron ore during July, breaking its previous record of 39.5 million tons, set in December 2015. Why it's important Brazil is the second largest exporter of iron after Australia. Brazil exports iron ore, along with soybeans and oils. Brazil reported a trade surplus of $7.1 billion for July, a 6.3% decline from the previous year. By the Numbers Brazilian iron ore exports, led by Vale, grew 4.7% from July last year. However, revenues fell 8.8%, to $2.62billion, as prices dropped about 13%. KEY QUOTE...

Mineral Resources

BHP and Lundin are requesting Argentina incentives but other miners fear they will miss out

BHP and Lundin intend to apply soon for a new Argentine incentive scheme for their Vicuna Copper Project, but executives at a mining convention this week expressed concern that they might be left out by the program's deadline of a year. The Large Investment Incentive Program, or RIGI in Argentina, was implemented by President Javier Milei on October 1, 2018. It offers long-term tax breaks as well as access to international dispute tribunals for investments above $200 million. The program will last until July 2026, with the possibility of an additional year. The mining companies welcomed the measure, which they...

Mineral Resources

Gold Fields anticipates a bumper profit as the gold price and volumes surge

Gold Fields South Africa expects to see its half-year profits rise by up to 236% on Monday. This is due to higher gold production as well as record high bullion price. Gold Fields, in a trading update said that its headline earnings per common share will be between $1.09 to $1.21 for the six-month period ending June 30 compared to $0.36 last year. The spot gold rate is up by more than 30% on a year-on-year basis. It peaked at $3,500 an ounce in April before dropping to its current level of around $3,356.91. Prices of bullion are expected to...

Mineral Resources

Mitsubishi Materials, Japan, may reduce copper smelting because of declining margins

Mitsubishi Materials, Japan's copper concentrate processor, is looking at reducing the amount of copper concentrate processed in its Onahama Smelter & Refinery due to falling treatment and processing costs (TC/RCs), it announced on Monday. JX Advanced Metals, a competitor, announced in June that it would also consider reducing copper production due to the significant decline in ore purchasing terms. Mitsubishi Materials warned that the worsening TC/RCs of miners would further reduce smelting profits. The company stated that in order to maintain and improve profits, it was necessary to increase the proportion of recycled raw materials. It also needed to accelerate...

Mineral Resources

Five trapped mine workers found dead in Chilean Codelco mine

A regional prosecutor announced on Sunday that all five trapped workers were found dead at Codelco’s El Teniente Copper Mine. Rescue teams had cleared underground passageways of more than 20 meters (78 feet), which collapsed during a powerful tremor. On Sunday afternoon, Aquiles Cuillo, the prosecutor of O'Higgins Region, announced that the body was found of the fifth trapped worker. Six people have now died in the accident, including the one who was killed at the time the incident occurred on Thursday night. Codelco found the trapped worker Saturday, and three more on Sunday. The company has yet to comment...

Mineral Resources

Tariffs increase US operations, but Gerdau's adjusted profits fall by nearly 9%.

The Brazilian steelmaker Gerdau reported a 8.6% drop in its adjusted net profit for the second quarter of 2018, compared to last year. This was slightly lower than analysts' expectations, despite a stronger performance by North American operations because of U.S. Tariffs. Gerdau, the largest Brazilian steelmaker in terms of market capitalization with mills throughout the Americas reported a net profit of 864 million reais (154.26 millions dollars) for the three-month period ending June 30. LSEG polled analysts who expected 847 million reais. Gerdau stated in its earnings report that the decline in profits was primarily due to the results...