LatAm Oil & Gas Lighthouse: PBR (3x), YPF, UGPA, ALPEKA, Fuel Dist, Petchems, Global (4x)

Research evidence excerpt

LatAm Oil & Gas Lighthouse: PBR (3x), YPF, UGPA, ALPEKA, Fuel Dist, Petchems, Global (4x)

east conflict’s impacts, among which subsidies and monitoring fuel stations and fuel

dist distributors.

We view the news as positive for Ultrapar and the industry. As broadly mentioned,

LPG distributors have argued that potential changes could increase competition

from irregular players and reduce operational safety.

Fuel Distribution: Justice conceived a preliminary injunction

establishing the delay on the timing for a public hearing related to

metrics to characterize abusive increase in fuel prices

Federal Justice Court from the Federal District conceived a preliminary injunction,

following a request from Fecombustíveis, establishing the delay on the timing for a

public hearing related to metrics to characterize abusive increase in fuel prices.

Now, ANP has to increase the public hearing timing to 45 days, while before it was

set in only 5 days. The definition of “abusive fuel prices” is relevant for ANP, so have

the mechanisms set to monitor the industry.

Since the beginning of the Middle East conflicts, the government has been quite

vocal about softening the impact for final consumers. While we view some

measures as positive for the industry, such as subsidies, not only reducing the

pressure at the pump, but also providing some additional support for Petrobras, we

view others as negative, such as the higher oversight, and control, to some extent,

over fuel stations.

Petrochemicals

Alpek: "Uncertainties on normalization after strong momentum, yet

positive signals for dividends"

As we incorporate 1Q26 results and the latest petrochemical spreads following

Middle East developments, we raised our price target to P$14/sh from P$10/sh

while maintaining a Neutral rating.