Brazil Fuel Distribution: Hit the Pump: 2Q data suggest a strong quarter

研报英文原文证据摘录

Brazil Fuel Distribution: Hit the Pump: 2Q data suggest a strong quarter

ries Maintenance 22

March). For a hypothetical distributor sourcing 100% from PBR quotas, margin rose to LPG market 23

R$1.09/liter (vs. R$0.94/liter in March). We expect an even stronger 2Q performance on Lubricants 24

top of already solid 1Q levels. While we do expect some degree of normalization, we Acronyms 25

believe this will occur gradually and at levels still above those seen at the beginning of

the year.

Leonardo Marcondes >>

Research AnalystCrackdown on tax delinquency gains traction Merrill Lynch (Brazil)

On the regulatory front, following the enactment of the Habitual Tax Debtor Law +55 11 3140 4801

(Devedor Contumaz) in January, initial enforcement actions have taken place. Last week, leonardo.marcondes@bofa.com

Brazil’s Federal Revenue Service launched the second phase of enforcement, issuing IsabellaResearchSimonatoAnalyst >>

notifications to 61 companies in the fuel sector, which collectively account for R$30.7bn Merrill Lynch (Brazil)

in outstanding tax liabilities. These companies have 30 days to regularize their tax Caio Ribeiro >>

positions post the notification. Failure to comply may result in restrictions such as loss ResearchMerrill LynchAnalyst(Brazil)

of tax benefits and inability to file for judicial recovery, among other penalties. caio.ribeiro@bofa.com

Sell-out pricing & market share NicolasResearchBarrosAnalyst>>

In diesel, sell-out premiums charged by major distributors are already very close to pre- Merrillnicolas.barros@bofa.comLynch (Brazil)

war levels, indicating that branded stations have largely rebuilt margins and restored Julia Zaniolo >>

historical premiums (Exhibit 30). By contrast, in gasoline, premiums remain well below Research Analyst