Nicolas Barros

Nicolas Barros asked for more details on Vista's trading arm, VASA, which began operations this quarter, and expectations for how it can unlock more value for the company.

Answer

Miguel Galuccio, Founder, Chairman, and CEO of Vista Energy, explained that VASA, a fully-owned subsidiary, is part of Vista's export-oriented strategy to improve market reach and competitiveness by selling cargoes on a delivered basis. He noted that oil exports doubled in 2025 to 22 million barrels, generating $1.4 billion in revenue, with plans to double again by 2028. While not expecting material margin impact, VASA adds flexibility to short-term hedging programs for cash flow management.

Nicolas Barros inquired about the new trading arm, PEPASA, which started operations this quarter, and how it is expected to unlock more value for the company.

Answer

Miguel Galuccio, Founder, Chairman, and CEO of Vista Energy, explained that PEPASA's creation is part of Vista's export-oriented strategy, noting 22 million barrels of oil exported in 2025 (a 110% increase over 2024), generating $1.4 billion in revenues, with plans to double by 2028. PEPASA, a fully owned subsidiary, aims to improve market reach, develop more clients, and enhance competitiveness by selling cargoes on a delivered basis. He expects margins not to be material but anticipates added flexibility for short-term hedging programs to manage cash flow.

Nicolas Barros asked about the competitive landscape and market share recovery since the implementation of higher import taxes, and for an outlook on industry capacity rationalization, prices, and utilization rates in the medium term, particularly in comparison to Europe.

Answer

Executive Rosana Avolio explained that while the increased import tariff and a depreciated local currency are helpful, the company must still balance profitability and market share against competitively priced imports, with the full effect expected in 2025. She noted the global market is in an elongated down-cycle due to oversupply. Avolio detailed that Braskem's internal forecasts for capacity rationalization are more aggressive than those of external consultants, especially for polyethylene, which could rectify spreads. She identified Europe and Asia as regions with higher profitability risks due to energy and raw material costs.

Nicolas Barros of Itau BBA asked about the competitive landscape and margin recovery following the implementation of higher import taxes in Brazil. He also inquired about Braskem's outlook on global capacity rationalization, particularly how it differs from external consultants, and the forecast for margins and utilization rates.

Answer

Executive Rosana Avolio explained that while the full benefits of the import tariff increase will materialize in 2025, a depreciating local currency has already aided profitability. She stated that Braskem's internal forecast for global capacity rationalization is more aggressive than that of external consultants, expecting a hypothetical rationalization of 8 million tons for polyethylene versus the 3 million tons forecasted by consultants. Avolio noted that despite a challenging low-level cycle, the company will focus on its resiliency strategy to strengthen cash generation.