LatAm Oil & Gas: LightHouse: PBR, YPF, EC, ALPEKA, ORBIA, Brazil O&G, Fuel Dist., Global (2x)

Research evidence excerpt

LatAm Oil & Gas: LightHouse: PBR, YPF, EC, ALPEKA, ORBIA, Brazil O&G, Fuel Dist., Global (2x)

Petrochemicals

Alpek: 2Q26 call highlights

Yesterday, ALPEKA held its conference call to discuss 2Q26 earnings results (see

“Riding the crest of the spreads wave”). Main highlights below:

Spreads perspectives: Chinese integrated PET margins approached US$300/

ton during 2Q26, supported by supply disruptions and tighter market

conditions. While the company continues to assume underlying industry

overcapacity and expects spreads to gradually normalize during 2H26, it

emphasized that normalization does not necessarily imply a return to the

depressed margin levels seen in 2025. Management also noted that additional

supply disruptions could support margins above prior trough levels. PET

margins assumed in 2H26 is between US$170-200/ton, and management

indicated that July so far is averaging US$215/ton. PP margins have also been

guided at 17cpp in 2H26, with July average so far reaching the same level.

Capital allocation: The company reiterated that capital allocation remains

centered on deleveraging, with no expectation of resuming dividend

payments during 2H26. The focus remains on preserving financial flexibility,

maintaining balance sheet strength and assessing the sustainability of current

margins before revisiting shareholder distributions. Alpek also continues to

advance the monetization of non-core assets as part of its broader capital

allocation strategy.

Contracts and consumer diversification: Customer discussions remained

constructive throughout the quarter, allowing Alpek to pass through higher

feedstock and logistics costs associated with supply disruptions. At the same

time, the company benefited from a meaningful increase in spot sales amid