SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Embraer reported its first quarterly profit since 1Q2018 on Friday driven by a partial recovery in travel. The aerospace manufacturer reported a net income increase to $40.5mn from a loss of -$199mn in 2Q2020. Net revenues were up 110% YoY to $1.1bn in 2Q2021 and rose by 66% to $1.94bn in 2H2021. In terms of divisional revenues during the first half, executive aviation rose by 50%, defense and security by 61%, service support by 21% and commercial aviation by 167%. Free cash flows increased to $45mn from negative -$472mn in 2Q2020. Embraer projects a revenue increase to $4-4.5bn, an adjusted EBITDA margin increase to 8.5-9.5% and free cash flow of $150mn to breakeven by the end of 4Q2021, excluding M&A projects. CFO Antonio Carlos Garcia said, “Embraer is poised to post a stronger performance next year, and he is “very optimistic” about finding a partner for the turboprop”. Embraer’s liquidity stood at $2.49bn in the quarter, higher than its $2bn in 2Q2020.

Embraer dollar bonds were trading stable with its 5.696% 2023s trading at 106.779, yielding 2.33%.

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