Hidrovias do Brasil Shares Dive on Drought-Driven Loss, Debt Concerns
Key Highlights:
* Hidrovias do Brasil SA, a Brazilian barge operator, extends losses to six days.
* Shares plunge up to 13% on Sao Paulo exchange, reaching a year-to-date decline of nearly 30%.
* Fourth-quarter losses double year-over-year as transported volumes decrease due to severe drought.
* Drier conditions restrict navigation conditions, hindering cargo movement on Amazon river tributaries.
* CEO Fabio Schettino anticipates improved sailing conditions on Tapajos river in the second half of 2025.
* Hidrovias do Brasil plans a capital increase to fund capacity expansion.
* Debt-to-earnings ratio rises to 6.6x, raising concerns.
* $398 million notes due in 2031 trade below 88 cents on the dollar.