Repsol SA (ADR) (REPYY), YPF SA (ADR) (YPF): Energy in the Andes and Capital Flight on the Pampas

Meanwhile, despite it all, Repsol is on the rise

Despite its legal struggles with the Argentine state and Chevron, Repsol SA (ADR) (OTCMKTS:REPYY) is doing remarkably well. The company’s net profit in the second quarter rose 5.8% to 509 million euros, beating analysts’ forecasts. Observers suggest that new projects in Repsol’s upstream business have helped the company grow steadily despite losses in Latin America.

Long-term prospects for the Spanish energy giant are also looking great. Petrobras announced on August 8 that it has discovered a new oil deposit in the Santos Basin where Repsol SA (ADR) (OTCMKTS:REPYY) also has a share of the operating interest.

Studying the losses in profit and operating difficulties that YPF SA (ADR) (NYSE:YPF) and Chevron are undergoing, shares in Repsol SA (ADR) (OTCMKTS:REPYY) are likely to be a safer and stronger bet. This is not to suggest that there are no opportunities coming from the extraction of hydrocarbon fuel from Vaca Muerta, but investors should keep a close eye on developments in both the legal cases against Chevron and the political atmosphere in Buenos Aires. As it stands, investing in YPF and Chevron is risky business.

Yong Kwon has no position in any stocks mentioned. The Motley Fool recommends Chevron. 

The article Energy in the Andes and Capital Flight on the Pampas originally appeared on Fool.com.

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