Rodrigo Reis de Almeida

Rodrigo Almeida asked for an update on the oilfield services business in Argentina, how it might impact results in the coming quarters, and for color on South American operations, specifically how a new Petrobras contract might offset the conclusion of the Raya project.

Answer

Chairman and CEO Paolo Rocca explained that improved financing access for Argentinian oil companies post-election will lead to additional rigs, increased fracking operations, and higher sales for Tenaris's fracking division and pipe/services over time. He also noted progress on the CESAR LNG project. COO Gabriel Podskubka detailed that steadily increasing drilling activity by Petrobras and other majors in Brazil, along with long-term agreements for OCTG, seamless casing, and completions, plus new seamless pipeline bookings (Búzios 9 and 11), will contribute to offsetting the conclusion of the Rota 3 pipeline.

Rodrigo Almeida asked for an update on the oil field services business in Argentina, how things are evolving, and how this business could contribute to results over the next few quarters.

Answer

Paolo Rocca, Chairman and CEO, reiterated that increased access to financing for oil companies in Argentina, following election results, will lead to additional rigs coming into operation gradually, boosting fracking operations and sales of pipe and services, with an impact expected in the coming quarters. He also mentioned the CESAR LNG project and pipeline construction starting in 2026, enhancing the market. Rodrigo Almeida also inquired about South America, specifically a new contract with Petrobras, and how this could offset the recently ended Raya project. Gabriel Podskubka, COO, noted steadily increasing drilling activity by Petrobras and other majors in Brazil's deepwater. He detailed Tenaris's long-term agreements with Petrobras for large OD connectors, seamless casing, and completions, along with seamless pipeline bookings (Búzios 9 and 11), which are expected to offset the conclusion of the Rota 3 pipeline.

Requested details on the 'GreenCo' entity, including which assets would be included and its potential size. He also asked about logistics investments in Brazil for importing feedstocks and whether there are expansion plans for the Braskem Idesa plant in Mexico.

Answer

The company confirmed that assets in Brazil and Thailand are potential candidates for GreenCo, but final decisions are pending proposals from interested parties. Logistics investments in Brazil are being considered to support the transformation plan, but specifics are not defined. For Braskem Idesa in Mexico, the immediate focus is to run the plant at full capacity with the new terminal; an expansion is being discussed but is not a short-term certainty.

Rodrigo Reis de Almeida asked about the impact of recent import tariffs on Braskem's market share in Brazil and how shipping price changes have affected product costs. He also requested details on the new ethane import terminal in Mexico, specifically regarding feedstock pricing structure and contracts.

Answer

Executive Roberto Ramos explained that Braskem is lowering shipping costs by leasing its own vessels for ethane transport to Mexico and that its trading arm, BT&S, manages a portfolio of short- to long-term ethane purchase contracts. Executive Rosana Avolio added that the Mexico terminal is now operational, ensuring feedstock supply. She noted that while it's difficult to isolate the tariff impact, Braskem's market share was slightly above its goals, reflecting a successful commercial strategy focused on the domestic market.

Rodrigo Reis de Almeida asked about the impact of recent import tariffs on Braskem's market share in Brazil. He also inquired about how spread pricing changes have affected costs in Mexico and requested details on the pricing structure for feedstock at the new Mexican import terminal.

Answer

Executive Roberto Ramos explained that the 'Seas of the Future' program, involving leased vessels, is already reducing ethane shipping costs to Mexico. He noted that the Braskem Trading and Shipping (DT&S) unit manages ethane procurement through a diversified portfolio of short, medium, and long-term contracts. Executive Rosana Avolio added that while it's difficult to isolate the tariff effect, Braskem's market share was slightly above its internal goals, reflecting a successful commercial strategy focused on the domestic market. She also mentioned that normalizing freight rates have positively impacted import parity.

Rodrigo Reis de Almeida inquired about the demand outlook in Brazil for Q3, updates on import tariff discussions with Comex, and the spread outlook for the U.S. market, including recent pricing actions.

Answer

Pedro van Langendonck Teixeira de Freitas, an executive, noted that while Brazilian polymer demand is growing, Braskem's sales are slower due to strong import competition. He confirmed alignment with ABIQUIM on seeking higher tariffs and expects a government decision in Q3. For the U.S., he explained that flexible contracts lead to lower propane costs than spot prices and that while spreads may improve slightly, it won't be a "game changer." He also confirmed that July was shaping up to be a strong month, in line with typical Q3 seasonality.

Rodrigo Reis de Almeida from Santander inquired about the demand outlook in Brazil for the third quarter, the status of import tariff discussions with Comex, and the spread outlook for the U.S. market, including recent pricing and input cost dynamics.

Answer

Executive Pedro van Langendonck Teixeira de Freitas explained that while Brazilian polymer demand is forecast to grow 13%, Braskem's sales are recovering more slowly at 2-3% due to strong import competition. He confirmed Braskem's alignment with ABIQUIM in requesting a 20% import tariff and expects a decision from Comex in Q3. For the U.S., he noted that while improved demand might slightly increase spreads, it would not be a 'game changer.' He also confirmed that July was trending as a seasonally strong month for the company.

Rodrigo Reis de Almeida requested an update on the Equatorial Margin licensing process and asked about the long-term funding strategy for developing the region, including potential partnerships.

Answer

Sylvia dos Anjos, Executive Director of E&P, and Clarice Coppetti, Executive Director of Corporate Affairs, responded. They confirmed that all requirements have been submitted to the environmental agency (Ibama) and they are ready to drill. The current plan allocates $3 billion for exploration in the margin, with development funding to be addressed in future plans post-discovery. They also highlighted a successful emergency response simulation, demonstrating operational readiness.

Rodrigo Reis de Almeida of Banco Santander, S.A. inquired about the strategic agenda for Hidrovias, specifically asking if there are any operational synergies being pursued with Ultracargo on a daily basis.

Answer

An Ultrapar executive stated that there are no relevant operational synergies identified between Ultracargo and Hidrovias at present. The primary benefit is leveraging competent people from Ultrapar's ecosystem, such as installing Decio as the main executive at Hidrovias, rather than integrating day-to-day operations.

Rodrigo Reis de Almeida asked about Ultragaz's role as a growth platform, seeking details on the most promising new business areas for long-term returns. He also requested clarification on the drivers of working capital improvement, specifically inventory reduction, and questioned the strategic shift that led to the initiation of a share buyback program.

Answer

Executive Tabajara Costa highlighted that new energy solutions contribute about 5% to Ultragaz's EBITDA and are growing, with biomethane and free-market energy trading being particularly exciting. Ipiranga CFO Pedro Guedes confirmed that working capital improved due to deliberate inventory management, especially reducing biofuel levels. He also explained the share buyback was a response to a lower share price, viewing it as an attractive capital return method alongside a 35% dividend payout.