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Good morning, and thank you for holding. Welcome to Braskem's first quarter of 2026 results conference call. With us here today we have Mr. Roberto Ramos, Braskem's CEO, Mr. Felipe Jens, Braskem's CFO, and Ms. Rosana Avolio, Investor Relations, Strategic Planning, and Corporate Market Intelligence Director. Please note that today's event is being recorded. The presentation will be delivered in Portuguese with simultaneous interpreting into English. In Zoom, participants may select their preferred audio language and view using the Interpretation and View Options buttons respectively. Captions are also available using the Show Captions buttons. Following Braskem's remarks, we will open the call for questions. Questions should be submitted through the Q&A button. I will now repeat these same instructions. The presentation will be held in Portuguese and simultaneously interpreted into English. You may select your preferred audio language and presentation view using the Interpretation and View Options buttons.

You may also switch between languages using a button in the same menu. Following the remarks, we will open the call for questions. Please submit them using the Q&A button. Please remember that you may send questions to Braskem to be answered after the call as well. Before we proceed, I'd like to note that any forward-looking statements made during this conference call regarding Braskem's business outlook, projections, and operating or financial targets are based on the beliefs and assumptions of the company's management, as well as on information currently available to Braskem. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties, and assumptions as they relate to future events, and therefore depend on circumstances that may or may not occur.

Investors and analysts should understand that general economic conditions, industry conditions, and other operating factors may affect Braskem's future results and could cause actual results to differ materially from those expressed or implied in these forward-looking statements. I'll now turn the call over to Ms. Rosana Avolio, Director of Investor Relations, Strategic Planning, and Market Intelligence. Ms. Avolio, please go ahead.

Good morning, ladies and gentlemen. Thank you for joining Braskem's earnings conference call for the first quarter of 2026. Following the agenda on slide number three, we will start with the company's main highlights for the period beginning on slide number four. In the first quarter of 2026, operations at Braskem's petrochemical complexes in Brazil delivered a utilization rate 10 percentage points higher than in the last quarter of 2025. In relation to the U.S. and Europe segment, the utilization rate was higher by 8 percentage points, and in the Mexico segment, the utilization rate was lower by 30 percentage points impacted by the feedstock supply and Braskem Idesa's liquidity needs.

Regarding safety, a non-negotiable value for the company, the average global frequency rate of accidents in the period was 0.18 events per 1 million hours worked, the best rate in the first quarter result in the last 10 years. In the quarter, the company reported consolidated recurring EBITDA of $192 million, up by 76% compared to the fourth quarter of 2025. Regarding cash flow, operating cash flow, the company presented an operating cash consumption of approximately $603 million in the period. Regarding indebtedness, the average maturity was approximately seven years, with 61% of the corporate debt maturing as of 2030. Braskem's cash position ended the first quarter of 2026 at $1.1 billion considering the standby facility maturing in December 2026.

Finally, it's worth highlighting Braskem's return to ISE B3, the Corporate Sustainability Index, integrating the 2026 portfolio. The return to the ISE is a recognition of the company's efforts and initiatives on the sustainability topics. Now moving on to the next slide. The performance of each segment of the company will be presented below, starting with Brazil on slide number six. The petrochemical plants in the Brazil segment had a higher average utilization rate when compared to the fourth quarter of 2025 by 10 percentage points, mainly explained by the normalization of operations at the petrochemical plant in Bahia after the scheduled maintenance shutdown started in the fourth quarter of 2025 and concluded in January 2026.

In addition, results were impacted by inventory buildup ahead of the scheduled maintenance shutdown at the Rio Grande do Sul petrochemical plant, which started in March and ended in April 2026. In addition, the higher feedstock supply to the São Paulo petrochemical complex during the period also contributed to the increase in the utilization rate in the quarter. Regarding sales, the volume of sales of resins in the Brazilian market was 5% higher compared to the previous quarter, impacted by higher sales of polyethylene and PVC, reflecting the beginning of the conflict in the Middle East. Chemical sales volume also increased by 5%, mainly due to higher product availability with which, with highlights including higher sales of gasoline, toluene, and benzene. Regarding results, the segment's recurring EBITDA was $241 million, an increase of 69% versus the previous quarter.

This was mainly driven by the segment's higher contribution margin explained by the PIS/COFINS credit on feedstocks purchases totaling $32 million, which had a positive impact on the segment's COGS. On the other hand, the appreciation of the average real against the average dollar by 3% in the period negatively impacted recurring EBITDA by about $10 million. Moving on to the next slide. In the first quarter of 2026, the green ethylene utilization rate was 3 percentage points lower when compared to the last quarter of 2025. During the period, sales of green polyethylene were impacted by the lower demand due to the Chinese New Year. I would like to highlight that in early April, Braskem announced that it will be the first chemical company to receive the Selo Verde Brasil certification.

The Selo Verde is a program of the Ministry of Development, Industry, Trade and Services designed to recognize products and services aligned with rigorous sustainability criteria based on a specific standard for renewable polymers in line with the Brazilian Association of Technical Standards. With this advancement, products in the Braskem's I'm green bio-based portfolio are positioned to become the first to receive the Selo Verde Brasil certification, which is expected to be concluded in the second half of this year. Let's move on to the next slide. In the quarter, the utilization rate of the U.S. and Europe segment was 8 percentage points higher when compared to the fourth quarter of 2025, mainly due to the normalization of the plants after maintenance shutdowns in Europe and in the increase in production in the United States.

In this context, sales volume in the quarter was 3% higher, mainly explained by the higher sales volume in the United States due to the geopolitical environment. The segment reported recurring EBITDA of $21 million, driven by the increase in the polypropylene spread in the United States and Europe, and by the allocation of part of the chemical expenses previously recorded in the U.S. and Europe segment to the Brazil segment to better reflect the commercial efforts in each region. Let's move on to the next slide.

In Mexico, the polyethylene plant utilization rate was 55%, 30 percentage points lower than in the previous quarter, explained by the lower average import ethane through the terminal of 17,800 barrels per day compared to 29,400 barrels per day in the fourth quarter of 2025, in line with Braskem Idesa's needs for liquidity. Also contributing to the lower utilization rate was the lower supply of ethane by PEMEX in the quarter of 14,800 barrels per day compared to 15,900 barrels per day in the fourth quarter of 2025. The polyethylene sales were lower by 37% impacted by the lower availability of product for sale due to the lower utilization rate.

The segment reported negative recurring EBITDA of $15 million, mainly impacted by lower sales volume due to lower product availability for sale associated with a lower utilization rate in the period and by the decrease in other revenues, partially offset by a positive impact in SG&A due to the ethane resale operation recorded in the fourth quarter of 2025. Moving on to the next slide. In the next section, I will present the company's consolidated performance. The consolidated recurring EBITDA in the first quarter of 2026 was $192 million, 76% higher when compared to the previous quarter.

This increase in relation to the last quarter is mainly explained by the increase of 16% in the average international spreads of resins in Brazil segment by the positive impact of $32 million related to the rate increase in the acquisition of raw materials in the Brazil segment and by the 6% increase in the international spread of polypropylene in the U.S. and Europe segment, and by the increase in polypropylene sales volume in the U.S. and Europe segment. Additionally, the reduction of approximately $30 million or BRL 180 million in other recurring expenses related to environmental provisions, fines, terminations, indemnities, and plant maintenance expenses recorded in the Brazil and South America segments in the fourth quarter of 2024 had a positive impact on the consolidated recurring EBITDA in the period.

These effects were partially offset by higher idle costs and the scheduled shutdown impacts across all reportable segments of approximately $41 million and by the 3% appreciation of the average Brazilian real against the average U.S. dollar during the period. Let's move on to the next slide. By the end of March 2026, work streams in Maceió continued to progress as planned. The relocation and compensation front ended the quarter with 99.9% of execution of the resident relocation program. The same percentage applies to the number of proposals submitted under the Financial Compensation and Relocation Support Program, with approximately 99.6% of the proposals being accepted and 99.6% being paid. In parallel, the execution of the closure and monitoring of the salt cavities remains under implementation.

On this front, all actions are provisioned, if necessary, to ensure that the 35 cavities reach a maintenance-free state in the long term. At the end of the first quarter of 2026, six caverns were naturally filled, six were completed, four with their technical limit filled, and six cavities being filled, and two were in the preparation phase. In relation to the financial provision, the total provision for the Alagoas event at the end of March 2026 was about BRL 18.1 billion, of which about BRL 14.4 billion have already been disbursed, and approximately BRL 1.2 billion have been reclassified to other obligations to be paid. The total balance provisioned by the end of the first quarter of 2026 was BRL 3.4 billion. Let's move on to the next slide.

The company reported an operating cash consumption of BRL 3.2 billion, mainly due to the negative change in working capital, explained by the reduction in the availability of certain payment arrangements with financial institutions and suppliers, and by the replenishment of inventories following the optimization carried out during the fourth quarter of 2025. The recurring cash consumption was impacted by interest payments on debt securities issued in the international market, which occur in the first and third quarters of any year. Finally, including Alagoas disbursements, the company reported a cash consumption of approximately BRL 5.0 billion in the period. Now let's move on to the next slide. By the end of the first quarter of 2026, Braskem's adjusted net debt, excluding Braskem Idesa, was $8.5 billion.

The weighted average cost of debt was foreign exchange variation +6.34%, the corporate leverage at the end of the first quarter was 16.81x. Finally, the available cash of $1.1 billion includes the withdrawal made in October of the standby line in the amount of $1 billion. Moving on to the next slide. In the next slides, I will comment on the petrochemical scenario. On slide 16, we provide an update on the global petrochemical scenario, focusing on the risks associated with the geopolitical environment. Since our last call with investors, the geopolitical environment has remained uncertain. On February 28th, the U.S. and Israel launched attacks against Iran. In retaliation, Iran closed the Strait of Hormuz, impacting global energy and petrochemical markets.

The closure of the strait represents one of the biggest disruptions to global energy supply. Brent has accumulated so far an increase of more than 50% since the beginning of the war at the end of February, with an estimated daily production deficit of 15MMbbl, only offset by oil exports via alternative routes and increased production in other regions. Naphtha has followed the volatility of oil, putting pressure on the cost of the global petrochemical chain. The prices of chemical and petrochemical products in the international market have increased significantly due to the direct impact of the increase in the price of naphtha. The disruption in the international logistics brought changes in the global flows, partially reflecting on import parities and prices in the Brazilian market.

I emphasize that although negotiations between the United States and Iran are ongoing, the outcome remains uncertain, and the company will continue to monitor these developments continuously. I also reinforce that the impact presented on this slide represent hypotheses and may or may not materialize, depending on the evolution of the geopolitical scenario and possible logistical constraints, such as those in the Strait of Hormuz. Now let's move on to the next slide. Regarding petrochemical spreads, according to external consultancies, a material improvement trajectory is expected throughout the second quarter of 2026 in the company's three segments, driven by the global supply shock resulting from the conflict. From the third quarter of 2026, spreads tend to follow a normalization path in line with expectations of lower feedstock costs and greater supply availability.

This dynamic is also in line with expectations for the year 2026 as a whole, although relevant uncertainties remain regarding the duration and potential resolution of the conflict. It's important to note that the projections above incorporate the hypothesis that the conflict will end during May. An eventual extension of the conflict beyond this horizon could further impact spreads in the short term, as well as increased risks to global demand growth and feedstocks costs. Let's move on to the next slide. I will comment on the company's priorities for the year 2026. Next slide. I would like to highlight the company's main priorities for 2026, aligned with Braskem's strategic direction, considering the global petrochemical industry scenario and the preservation of business sustainability.

As a first priority, we will continue the reorganization of the company's capital structure with the objective of creating necessary conditions to ensure the business continuity across petrochemical cycles. We will also continue with implementation of the resilience plan, with a focus on preserving the company's financial liquidity through strict control of costs and discipline in capital allocation. As a third priority, we have initiatives under the transformation plan to strengthen the company's competitiveness. In the context of sustainability, the company will also continue exploring opportunities to expand its portfolio of products with sustainable attributes. Additionally, we will maintain our commitment to the full compliance with the agreements related to the geological event in Alagoas. Finally, safety, a perpetual and non-negotiable value for the company, continues to guide the operations so that they can be safe and reliable in line with the best practices of the global industry.

We conclude the presentation of Braskem's results for the first quarter of 2026. Thank you very much for your attention. We will now start the Q&A session.

Ladies and gentlemen, we will now begin the Q&A session. Please note that questions must be submitted in writing using the Q&A button on Zoom. I will now turn the floor over to the company for their remarks.

Thank you very much. Good morning, everyone. As a guidance, I'm going to take the questions beginning from Vicente, speaking of Bradesco. He asks about the gross indebtedness. He asks us, "What's the gross indebtedness? With this indebtedness above $9 million, what would the company consider as sustainable?" Felipe will answer this. Thank you, Vicente, for the question.

Good morning. Good morning, everyone. Thanks again for joining us for this earnings conference. This question is, of course, strongly linked to the two ratings that compose leverage, net debt and EBITDA. As you know, this company's EBITDA has been updated constantly due to the events occurring in the Middle East, which has raised spreads, and this is not marginal when it comes to the positive economic impacts, when it comes to improving the company's EBITDA. That being said, what the company always holds is that in low cycles, that means when the EBITDA is lower than the company's generation ability, we, the company, aims or accepts a indebtedness or leverage that is roughly around 4.5%. In high cycles, this leverage can be reduced to 3x or 2.5x.

We're looking not just at the gross indebtedness level, but also the cash generation ability and EBITDA, which makes that sustainable in the medium and long term, resulting in the leverage levels that I've just mentioned. Thank you.

Thank you, Felipe. Moving on, there is a number of questions we received also about the indebtedness and potential alternatives that are being considered by the company. Equity support are included in the question. I'll turn over to Felipe for him to provide updates, how this process goes in relation to the reorganization of the capital structure. Over to you, Felipe.

Excellent. Thanks once again for the question. I'll answer in two parts. First is liquidity. As you've been seeing in our presentations and relevant facts, the company has been employing significant efforts to improve and maintain its working capital over the past few quarters, which has been kept at a level that allows the company to keep its operating abilities and functions while also keeping our cash and working capital at good levels. As I've said, this scenario starts really inflecting starting in March, so Q1, as we've confirmed now in April and May. All of this has, of course, economic impacts on the company. Now, in a broader sense, when we talk about restructuring Braskem's capital structure, I need to make it very clear that at the present moment, there's nothing that is off the table, nor is there anything that has been defined with governance bodies and entities.

Everything pertains to discussions that occur. These are ongoing discussions. We have kept all of you apprised since the second half of last year. The company has been updating all of our stakeholders. It's important to note that, yes, some very important marks, very important points have occurred with regard to shifts in the company's controlling stakeholders as pertains to Petrobras and an MOU and other documents signed with Novonor and IG4. This has also been announced to the market vis-a-vis a new shareholder agreement, a potential new shareholder agreement. No shares have been transferred yet. This is in under discussion. This has also already produced important changes to the company's boards.

There are members in Petrobras that now occupy positions in Braskem's board, starting with President Magda, who is now the president of Braskem's administrative board, and also discussions with members of IG4 who participate and interact with the company already in the sense of better understanding the company's dynamics and also respecting the fact that they have not, at the present time, assumed any responsibilities because they are not, at the moment, shareholders of the company. They are firmly aware that this capital restructuring is an ongoing project, as we've been discussing.

Of course, they contribute to discussions, of course, and that pertains both to creditors in the capitals market and our financial creditors who are the object of these discussions and the potential restructuring of the company's finances and keeping its financial creditors and operating vendors and suppliers and strategic vendors also intact.

Thank you, Felipe. I'm going to ask a question from Alejandra. This is her question: Considering the cash position at the end of the first quarter of about $1 billion, how is the company managing its operations for the second quarter of 2026? Inventory reductions suggest, or is the company working with operation rates lower than those that were posted for this first quarter? I'm going to start answering the question, and then, you can add. Thank you, Alejandra, for the question. First, speaking of the cash position of $1 billion, I'm going to explain why we posted that drop.

If you observe any first quarter of the company, there is a natural movement of inventory formation of any year so that the company can start serving, especially the Brazilian market, which is our main priority when I talk about Brazil operations, supply Brazilian market. We always see a beginning of a demand recovery along the first quarter. This is why you usually increase these stock levels, and you saw the consumption of about BRL 1 billion. Another main impact was the reduction of exposures that we have with suppliers and the financial institutions of about BRL 1 billion. The third impact was on the receivables account. Because of lower sales of the previous quarter, we have 35 days to for receive the accounts. This was the impact that we felt in the first quarter.

In relation to the second quarter, there was a material change in the external scenario that had been supporting the spread in the international market for the interest in Braskem. Braskem has its local supplier in Brazil and also suppliers outside Brazil by means of agreements, so we have a very important collaterals in the receiving of, feedstocks, and this allows us to capture all those spreads that we have been observing. From the cash viewpoint, and this has been the biggest, short-term challenge that we have, this, cash management, when we see the turnover of, receivables accounts and, payable accounts. We have been making weekly decisions.

Whenever there is a material change in the scenario, the company gets together, and we discuss on a weekly basis to make decisions. Especially in relation to production and sales, which is the heart of the company. So far, we made a decision to have the operation similar to what we've been doing so far, so that we can capture the advantages. In relation to the cash flow, the challenge that I just mentioned, there is a very important work done by the commercial team so that we can have a reduction of the accounts receivable. We have been very successful so far. Of course, the difficulty is to maintain as such for the months to come. The company has been talking to the main suppliers of feedstock, so that we can increase the credit limits and also expand the payment terms.

Alejandra, this is how we have been managing, in other words, in a very cautious way because the scenario is very uncertain and they bring opportunities to the industry and Braskem can. We have to be very cautious, and we have to be on the lookout of the cash position and preserving the liquidity of the company. Well, moving on to the next question, the question is the following. In relation to the spread increase that was observed in March, it's already captured in the first quarter versus what's to expect for the second quarter. What's the current expectation for the average spreads for the next quarter considering the continuation of the conflict? How do you see the short-term scenario and the structure of the sector after the war?

In relation to the first quarter of 2026, we wanted to have everything very transparent in the earnings release. In fact, we did not see any material impact. If we observe the average spread of January, February, and March. In March, we saw a significant increase in the prices of feedstock and the petrochemical product prices. We didn't see a lot of impact yet, because so far our decision, our commercial policy of pricing is done on a monthly basis. Month had a lot of planning. I go back to what I've said in relation to preserving cash and preserving liquidity. March was a month when we were getting prepared, when we were defining our strategy in order to capture the highest possible value without hurting the liquidity of the company.

The impact of those spreads that we even included the view from external consulting firms. This is not our vision, but the market consulting firm's vision. Consulting firms have expectation that chemical spreads will increase. Bringing numbers as a reference. During the presentation, we mentioned that the historical level of the spreads of chemicals in Brazil and the historical average refers to years of to 2010 and 2025. We consider 5x. We consider the mid-cycle. This is the size of the cycle. We consider an increase of about 30% of the spread of chemicals in Brazil. For the second, third quarter of the year in relation to resins, we expect an increase of 20% considering the historical, based on the consulting firms.

We see the same movement in relation to other regions where the company operates. We are very confident for the second quarter, but we have been very cautious, as I said, and this has been the main driver of the company. In other words, the preservation of the liquidity. Providing an overview when you asked about the short-term and long terms. We have been working with some scenarios. The conflict in the Middle East. It's hard to find a historical benchmark to understand what would be the potential impact to expect for the next months should the conflict continue. What are those scenarios?

Those are scenarios that vary according to the time of the conflict and the time for the things return to normal after the conflict, as our case base is based on the consulting firms, so the conflict might end in three months. In other words, it might end in the next weeks. Everybody has been watching the news, we see that prices change throughout the day. If we consider a three-month conflict, we believe that this normality will happen in 10 months. In other words, we observe in line with the consulting firms, a better spread estimated for this year as just as for next year. Now let's go back to the industry foundations. After the conflict, regardless how long the normality will happen, the foundation of the industry is still as of a surplus.

It's a foundation where we continue observing new capacities, we continue observing regions that are searching for self-sufficiency. In fact, this trend of new offers across the world of polypropylene, of polyethylene, tend to materialize. Of course, with a demand that is growing, but still we're gonna have an oversupply where the global market is likely to be close to reach a balance at the end of the decade. Just a consideration to mention, depending on the time of conflict, because if we believe that if the conflict lasts longer than six months, we'll start to see impact or an expectation of an impact on the growth on the global demand, and that can even hurt the spreads in the long term. Roberto? He's gonna add to what I said.

Good morning, everyone. I'd just like to add that it's hard to make a firm assessment, but we are working on that, to see what exactly is the extent of the damage caused to the cracker at polyethylene and polypropylene plants in the conflict region, but also to the gas generation fields. A major change that occurs in the industry to progressively abandon naphtha and move toward ethane as a feedstock has been possible because there were major ethane producers. In the region, that means Qatar. Qatar and Iran share the largest gas field in the planet, which is 1,000 Tcf of gas. In Qatar, this is called the North Field or the North Dome. Qatar produces 77 million tonnes a year of LNG and ethane as well.

They are major supplier of ethane, including for China. This field has been attacked by Iran. As you know, Iran and Qatar share this geological structure, and Iran attacked Qatar, but that's what happens in a war. We now need to reassess these fields because the situation may have changed. I don't know if you've been following, but since Trump applied the U.S. gas export tariffs, China stopped buying it from the U.S. and started buying ethane exclusively from Qatar and Russia. With this recent visit that Trump made to Beijing, conversations have resumed between the U.S. and China, working toward attempting to reduce those tariffs, aiming for China to once again buy ethane from the U.S.

To me, this seems like an indication that part of Qatar's export capacity is out of order, and therefore may have suffered damage that could take a while to be repaired. If they need to replace a compressor, that takes two years to produce a compressor, for one example. What I think will happen is that we will see greater stress when it comes to obtaining feedstocks, and many companies are going to end up short on feedstocks. This, in turn, will translate into higher prices, because if you have a permanent increase in feedstocks, then you need to raise your prices.

In my view, it could be that spreads may not evolve, but the nominal spreads will need to remain at a high level because the increase in feedstocks, whether that's naphtha or ethane, I believe it's going to be permanent for a number of years until there is a complete replenishment of these products and feedstocks and everything that has been impacted by the attacks, including naphtha.

Thank you, Roberto. Moving on. Rodrigo with BTG asked the following: "I would like to discuss the working capital of the company, especially in the light of the higher prices of feedstock in Brazil and the financing restrictions. It would be important to understand if the increase of feedstock prices have fully reported in the balance of the first quarter of 2026, or because of the delay in pricing, we're gonna have higher expenses with feedstock in 2026. If I'm not mistaken, the third quarter is the best demand period. How can we think about the formation of inventory in the next months, especially in a moment when imported resins may be losing competitiveness in the local market?" I'm gonna start answering the question, and then Roberto, Felipe can complement.

In relation to the working capital and the dynamics of prices of feedstock, both feedstock in Brazil and imported feedstock, a reminder, naphtha in Brazil, considering the current operation level, it's about 45%-50% from local suppliers, and the remaining amount is imported, and we pay cash practically. In the first quarter, and considering the average of the previous month, when I talk about the local suppliers, in the first quarter, March, naphtha price increased almost 50%. In fact, this consumption in the inventory depending on how we are modeling the analysis is gonna be observed especially in the second quarter. The first price increase between March and April, especially in April and in the months of May because of the transit inventory that would demand a longer period.

Now considering the average of their term of payment, I'm considering those, the feedstock and other suppliers of the company. In a general way, I'm talking about accounts, payable accounts. The average price of payment considering the historical levels of the company is about 20 days. When I observe the receiving term, because what we have seen is that the price of the resin is increase in relation to the feedstock, and we have seen that the industry, not only the company, but the industry at large, whoever has availability would pass through the increases in the feedstock in their prices.

The receiving price has been about 30 or 35 days, and historically I mentioned 35 days, but in the short term, I even mentioned previously in when I answered the question I answered at the beginning of the call, there is a work which is very important that is done by the commercial teams trying to find an alignment with our cashflow alignment. The impact of the war, material impacts on the EBITDA of the company or on the cash flow of the company, we are going to start observing them as of the second quarter as we have already observed in the month of April. In relation to your question, when you ask about the demand, what's the best demand? You're right when you say that.

Usually the third quarter is the best with the best global demand and also in the regions, especially because it's an anticipation of clients, form their inventories for the year-end parties. This year, because of the conflict, the trend will be different. We have seen a level of demand in the world, and I, my comment is at the global level that the demand is different from the others. The conflict started on February 28th, and we started receiving additional orders due to the uncertainties. Now if we consider what the external consulting say, they consider that the conflict will end at the end of this month. We see that the demand has weakened because the expectation is that the conflict will end. Of course, we will still need a moment of normality, but prices tend to fall.

Rodrigo, this seasonality of the demand may be different from what we usually observe. Roberto, over to you.

Hi, Rodrigo. I'd just like to add that if you want to imagine a proxy between reduced oil demand and reduced naphtha and consequently resin demand, the International Energy Agency yesterday revised their oil demand to, by 400,000 bbl and reduced the same forecast by 200,000 bbl. That's something between 0.2% and 0.4% of the daily use of oil. I believe it's still a moderate impact. They're obviously doing the math. For me, in my opinion, that's based on assuming that a conflict will begin resolving starting at the end of May. That's the question everyone is asking and no one has the answer to, which is how much longer is that region going to remain in a state of war?

The fact that there is no bombing currently occurring, but the Strait of Hormuz is still closed, makes the risk rate to remain very high, and as a result, you don't have any guaranteed feedstock provisions coming out from there. It's not just the case of naphtha and gas, which is our working area, we work with, but Iran also is a major producer of sulfur, benzene, ethylene. These are all products that are produced at those refineries, which today are embargoed. Yes, there's going to be lower demand. It's very difficult to estimate because it's difficult to estimate not when the conflict will end, because the conflict is, in theory, is suspended, but I mean, when will the conflict be resolved? What are the conditions that will allow this conflict to be resolved?

Definitely the extent of which, if you want to set up a proxy with oil, something between 0.2% and 0.4%. We'll see what happens.

Thank you, Roberto. There are some questions related to the working capital. I have already addressed that topic, but I'm gonna turn over to Felipe for him to talk about the initiatives. As to mitigate the potential working capital consumption based on what has been explained before. In other words, what are the main frames that are being implemented to mitigate the effect of the conflict on the cash flow of the company?

Thank you, Rosana. The broader explanation has been given. Rosana mentioned the economic and stocks and sales aspects. Looking at the more micro and operational aspects, we have been engaging in operations, focusing on true sales of our receivables to anticipate future receivables through programs done with financial institutions. We are also in negotiation, and have completed some negotiations already, with some important suppliers of the company that will allow working capital to build up and, as a result, improve our spreads. As we mentioned recently, this will allow us to capitalize on the company's economic condition. We've also been discussing maintenance of a program that has been in practice since last year to monetize what we call non-liquid assets. Contingent and future assets of the companies that do have some economic value, sometimes very large, but difficult to establish exactly.

We keep an economic gain that we call an earn-out for Braskem, but in a way that also allows us to use these assets, so to give us immediate liquidity in the cash. Some of these have already been completed, and others are in the final implementation phase.

Thank you, Felipe. Moving on, I have a question by Rahul with Ninety One. This is his question: If the company has had a higher liquidity, the utilization rate of the petrochemical activities and assets in general would be higher as well?

Undoubtedly. The answer is an outright yes. The challenge we have today is how can we raise funds that will allow us to increase utilization percentage. They're currently at 70%, but we could work at 90%+ because the market demands resins, and part of the resin production capacity is currently reduced, whether it's because of the conflict zone or because of a lack of feedstocks. This is our challenge. Our process of trying to handle this is trying to convince all stakeholders, and I do mean all stakeholders, that includes shareholders and resource donators, that if we have greater access to working capital, we will have more EBITDA and in turn, more cash. It's immediate payback during the calendar year itself. I understand that the market perceives risk.

I understand the risk perception, having access to feedstocks, essentially we consume naphtha from the U.S. or African markets. In other words, from outside the epicenter of the war. We, of course, we have access to feedstocks, it could be higher. The demand level for resins, both in the Brazilian market and internationally, is significant. This is also very much true for our operations in Mexico. We're working with a very low load in Mexico. We could triple our current utilization there. Our challenge is: How can we gain access to these resources that will allow us to purchase feedstocks and sustain this working capital delta for that number of days? Do some math, see how much Braskem gets in sales per month, and find out what a 15-day investment in our cash flow will be. That's our challenge, to increase our operational capacity.

Thank you, Roberto. I'm gonna ask a question that came up for a couple of times from some analysts and investors of the company. They're related to the standby facility. Remember that we used it at the end of last year in the amount of $1 billion. The question is related to the renegotiation of the standby, which will mature at the end of the year, Felipe?

Thank you. Yes, this is a relevant liability for the company in 2026, as we have published in our statements and our conference calls. Without any doubt, this renegotiation of the standby is part of the entire context of the capital restructuring. It's not specifically being discussed in any particular place because since the last year, we've received a proposal to restructure the company's capital in a very broad way in order to stabilize the company and its finances. In other words, we don't want to attack or reorganize any one specific financial covenant or agreement. What we're talking about is a major, a broad restructuring that we're interested in and something that will please all of our stakeholders, financial shareholders, and everyone.

This is a very relevant discussion, and it's at the crux of every discussion we have with all of our stakeholders and all of our financial stakeholders and shareholders as well. We're going to do that without any chance of breakage here at the company.

Thank you, Felipe. In relation to EBITDA level, this is from Regis with XP. Could you comment on the level of possible EBITDA considering the current spread level? In the past 10 years it would come to $2.4 billion. He asks if it would make sense to think that in the second quarter we are going to have the recurring level considering the inventory levels are lower. Thank you, Regis, for your question. Let's talk about the expectations from the consultancy companies in relation to the second quarter of 2026. I'm going to make a comparison considering the average of spreads from 2017 to 2025, almost 10 years, excluding the outlier such as 2021, which had a different impact on the spreads.

We are saying that the potential of average spreads for the second quarter, according to external consultancies in relation to the history, is a spread of nearly $800. This average in this period that I mentioned is something about $470 per tonne. If we continue observing this level of spread, also considering the conflict, the continuity of the conflict as we have explained here, and even comparing with some quarters where we had this level of spread. The EBITDA potential is a potential close to a high cycle moment. This high cycle we would have in 2017. The first quarter as a reference. The first quarter of 2017 when we had similar levels of spreads realized in this first quarter of 2027 when compared to current expectations.

In the first quarter of 2027, the EBITDA was nearly $1 billion. Of course, just using as a reference. The contexts are different, only using spread as a reference. You're right when you say that there is a potential of creating value when at the operational level. Putting together everything that was mentioned in this call in relation to the challenges, liquidity, and how you have been searching solutions to mitigate the impact of the 15 days of the management of the cash of the company for the second quarter of 2026.

Ladies and gentlemen, we now conclude the question and answer session, as well as Braskem's earnings conference call. We thank you all for joining us. Have a great day.

Good morning, and thank you for waiting. Welcome to Braskem's video conference to discuss our results for Q4 2025 and the year 2025. Today, we have with us Mr. Roberto Ramos, CEO; Felipe Jens, CFO; and Rosana Avolio, Investor Relations, Strategic Planning and Market Intelligence. Please note that this event is being recorded. The presentation will be delivered in Portuguese with live translation and simultaneous interpreting into English. [Operator Instructions] Before we proceed, we'd like to clarify that any statements that may be made during this conference call regarding Braskem's business prospects, projections, operational and financial goals constitute beliefs and assumptions of the company's management as well as information currently available to Braskem. Future considerations are not a guarantee of performance and involve risks, uncertainties and assumptions as they refer to future events and therefore, depend on circumstances that may or may not occur. Investors and analysts should understand that general conditions, industry conditions and other operational factors may affect Braskem's future results and may lead to results that differ materially from those expressed in such future conditions. Now I'll turn the conference over to Rosana Avolio, Investor Relations, Strategic Planning and Corporate Market Intelligence Director. Ms. Avolio, you may begin your presentation.

Good morning, everyone. Thank you for participating in Braskem's conference call for the fourth quarter and the full year 2025. As indicated in the agenda shown on Slide 3, I will begin the presentation with the company's main highlights for the period, starting on Slide 4. During 2025, the petrochemical industry remained impacted by the prolonged downcycle with international petrochemical spreads below the historical industry average due to the continued imbalance between global supply and demand. These dynamics significantly affected the profitability and liquidity indicators of the global industry and therefore, the company in 2025. As a result, the utilization rate of the petrochemical complexes in Brazil in 2025 was 4 percentage points lower compared to the previous year. This reduction is mainly explained by the adjustments to production levels in line with demand, ensuring the Brazilian market demand remains supplied and prioritizing higher value sales. In relation to international businesses in the United States and Europe, utilization rates remained in line with those recorded in 2024. In Mexico, production levels were lower than in 2024 due to the first general maintenance shutdown of the petrochemical complex in the country since the beginning of its operations completed at the end of July 2025. Regarding safety, the global accident frequency rate was 0.80 events per million hours worked. This was the second lowest rate since 2002, reinforcing that safety is and will always be a nonnegotiable value to the company. In relation to the financial results, the company recorded recurring consolidated EBITDA of $109 million in the quarter. And for the full year, recurring consolidated EBITDA was $557 million. Regarding operating cash flow, the company posted operating cash generation of approximately $13 million in the quarter, and operating cash consumption was $246 million for the year, reflecting the lower EBITDA. Finally, the corporate cash at the end of the fourth quarter of 2025 totaled approximately $2.1 billion, including $1 billion standby facility maturing in December 2026, and corporate leverage was approximately 14.74x. Moving to the next slide. In 2025, the global macroeconomic environment was marked by volatile trade conditions driven by commercial tensions, geopolitical fragmentation and the economic slowdown of major economies, including China. These uncertainties impacted production decisions and inventory replenishment throughout the transformation. Thus considering the weakened demand and the global oversupply that has been occurring in recent years, international resin spreads, which are references for the products sold in the regions where we operate were lower when compared to 2024. In Brazil, after a 6% growth in resin demand in 2024, downstream converters sought to optimize inventory levels in light of global macroeconomic uncertainties. This resulted in a decline of approximately 2% in domestic resin demand in 2025. The same movement was observed in the United States, considering the growth in industrial activity. Now moving to the next slide. The performance of each business segment will be presented next, beginning with Brazil on Slide 7. In the fourth quarter, utilization rates at the petrochemical complexes in Brazil were 6 percentage points lower when compared to the third quarter of 2025, mainly due to the scheduled maintenance shutdown at the Bahia complex completed in January 2026 and the continued adjustments in production levels to reflect lower seasonal demand while ensuring supply to the Brazilian market. These effects also impacted the 2025 utilization rate versus the prior year. Domestic values -- sales volumes were 6% lower, mainly due to weaker seasonal demand in the period. Chemical sales were also lower due to reduced product availability resulting from lower utilization rates, as mentioned previously, especially at the Bahia complex. In this context, recurring EBITDA for the Brazil segment in 2025 was $698 million, 22% lower than in 2024, mainly due to the lower resin and chemical sales volumes and the lower average spreads, partially offset by the depreciation of the Brazilian real and cost reduction initiatives. Moving to the next slide. In the quarter, United States and Europe segment posted utilization rates 8 percentage points lower when compared to the third quarter of 2025, mainly to the scheduled shutdowns at European plants completed in the fourth quarter of 2025 and also the inventory optimization in both regions. Lower quarterly volumes also reflect seasonality. For the year, utilization rates and sales volumes remained broadly stable. Recurring EBITDA for the year was negative $52 million, impacted by lower polypropylene, polyethylene spreads in Europe, inventory effects on the cost of goods sold in the United States and the reclassification of the expenses from the corporate into this segment following an organization change. Moving to the next slide. In Mexico, polyethylene utilization in the fourth quarter of 2025 reached 85%, an increase of 38 percentage points versus the third quarter of 2025, driven by the ramp-up after the general maintenance shutdown completed in July of this year and higher imported ethane supply through the import terminal. For the year, utilization was 64%, a reduction of 14 percentage points compared to 2024 due to the same shutdown as previously mentioned. In the quarter, higher imported ethane volumes supported the gradual recovery after the shutdown, partially offset by continued lower deliveries from PEMEX. Recurring EBITDA for the segment totaled $2 million. The decline in comparison to the previous year reflects lower product availability due to the shutdown associated with the lower international polyethylene, ethane spreads. Now moving on to the next slide. The next chapter covers consolidated performance of the company. Recurring consolidated EBITDA for the fourth quarter 2025 was $109 million. For the full year 2025, recurring consolidated EBITDA was $557 million, a 49% decrease versus 2024. The decline was mainly due to the lower contribution margins resulting from continued pressure on petrochemical spreads. Lower sales volumes reflected weaker resins and chemical volumes in Brazil and lower polyethylene sales in Mexico. These effects were partially offset by higher revenues from tax credit recoveries and by the depreciation of the Brazilian real, which averaged approximately $0.20. Now let's move on to the next slide. By the end of December 2025, all work fronts in Maceio continue to advance as planned. The relocation and compensation program ended the quarter with 99.9% of relocation execution completed. The same percentage applies to proposals submitted, of which 99.6% were accepted and 99.5% were already paid. Together with that, the sealing and the monitoring of salt cavities continued as planned. All necessary actions to ensure the 35 cavities reach a long-term maintenance-free condition have already been provisioned for the long term. By the end of 2025, 6 cavities were naturally filled, 6 were completed and 4 of those cavities reached their technical filling limit and 6 cavities remained in the filling process. Thus, the total provision for Alagoas event was approximately BRL 18 billion, of which around BRL 13.9 billion had already been disbursed and approximately BRL 1.4 billion have been classified to other payables. With this, the remaining provision at the end of the fourth quarter of 2025 was BRL 3.5 billion. Now let's move on to the next slide. For the year, the company posted operating cash consumption of BRL 1.4 billion, mainly due to lower EBITDA in 2025 as a result of the prolonged downcycle as seen in the petrochemical industry. The working capital consumption increase was due to lower availability of certain payment arrangements with financial institutions and suppliers. Recurring cash consumption was impacted by higher interest payments resulting from higher gross debt. Including Alagoas' disbursement, total cash consumption reached approximately BRL 7.3 billion in the period. Next slide. At the end of 2025, Braskem's adjusted net debt was $7.5 billion, excluding Braskem Idesa. The weighted average cost was currency variation plus 6.2% per year, and the corporate leverage ended the year at 14.74x. Available cash of $2.1 billion includes the drawdown made in October from the $1 billion standby facility maturing in December 2026. Following our agenda, let's move on to Slide 15. Global macroeconomic volatility, combined with the prolonged petrochemical downcycle has resulted in lowest industry operating rates in decades. Demand declined by approximately 3 million tons of polyethylene and polypropylene globally. So it reflects a lower consumption in the main regions. Operating rates reached historically low levels of 79% for polyethylene and 74% for polypropylene, pressurizing the profitability of the global industry. So the company tried to use the global program of resilience with the purpose of minimize the downturn cycle, preserving cash levels and maintain the sustainability of the business. Throughout 2025, we implemented more than 70 action plans of over 700 initiatives across 6 major fronts: institutional agenda, supplier negotiations, commercial initiatives, asset monetization, optimization of employed capital and operational [indiscernible]. These were fundamental to minimize the effect of adverse scenario, preserve liquidity and reinforce the competitiveness of the company and of the Brazilian industry. At the same time, it continues moving forward with this restructuring agenda and also with transformation initiatives. Now let's move on to Slide 16. The next slides cover the global petrochemical scenario. On Slide 17, we bring an update on the global petrochemical scenario, focusing on the risks associated with the geopolitical environment. In recent weeks, we have observed an escalation of tensions in the Middle East involving the United States Israel and Iran. This movement has reflected in greater volatility in commodity prices, especially Brent crude oil and naphtha in addition to additional pressures on international freights. Since the beginning of the conflict, Brent prices have shown significant increase, reflecting the strategic importance of the Middle East region for oil production and export. Naphtha has followed this volatility given its direct link to oil, which can impact the costs of the petrochemical chain, especially for marginal producers with greater exposure to this feedstock. The prices of chemicals and petrochemicals have increased in the international market due to the direct impact of the increase in the price of naphtha. It's important to emphasize that impacts presented on the slide represent hypothesis. And this has to do with the additional increases of freight that can impact the parity of the export and the prices in the Brazilian market. As I said, it's important to point out that all those impacts are hypothesis that can or not materialize. And that would depend the geopolitical scenario and possible logical restrictions such as the Strait of Hormuz. On this slide, we hypothetically explore the potential global productive impact resulting from a possible logistical restriction of the Strait of Hormuz should the geopolitical conflict intensify further. Strait of Hormuz is a critical point for the flow of feedstock and resins produced in the Middle East. In a scenario restriction, estimates indicate that global supply of polyethylene could be reduced between 6 million and 19 million tons, which represents about 4% to 11% of the global operating rate. In the case of polypropylene, the potential supply reduction could range between 7 and 10 million tons, equivalent to 4% to 5% of the global operating rates. From the regional perspective, the effect would be very different. In North America, the combination of feedstock availability and structural competitive advantage could allow for the maximization of operation rates and eventual value capture through prices, both in polyethylene and polypropylene. In Europe, the expectation would be a reduction in import pressure in the short term. However, in the medium and long term, the process of capacity rationalization tends to continue reinforcing a more cautious stance regarding operational levels and working capital. In Asia, lower availability of feedstock imported from the Middle East such as naphtha and propane could lead to shutdowns and production reductions, accelerating the rationalization processes. In this context, the priority tends to be meeting domestic demand to the detriment of exports. In the Middle East, in addition to logistics constraints, there would be additional pressures on ports, increased costs and operational risks related to security and safety, which could significantly impact the region's export capacity in the long term. In South America, a scenario of lower global supply could lead to an increase in operating rates to meet the shortage of resins. At the same time, the region would remain exposed to the volatility of the availability and price of feedstocks impacting costs. For Braskem, these effects, the effects mentioned on the previous slide tend to be potentially positive in the short term compared to the scenario expected at the beginning of the year. However, we emphasize that all the impacts presented on this slide are potential scenarios, which may or may not materialize depending on the evolution of the geopolitical conflict and the international logistics conditions. The company continues to monitor these developments and their potential effects, maintaining discipline in the company's commercial, operational and financial management in face of this more volatile environment. Next, I will comment on the company's strategic direction for the coming years. Moving on to the next slide, please. For the 2026 and 2028 cycle, we will reinforce the pillar of actions of the strategy as defined in the previous cycle, including the reorganization of the capital structure with the aim of balancing the company's capital structure, enabling business continuity. Our strategy maintains safety as a nonnegotiable value in addition to people and culture and governance as its foundation. On this basis, we will advance initiatives of resilience and financial soundness as well as transformation initiatives aimed at the perpetuity of the business. In the area of resilience and financial soundness, we will focus on tactical initiatives to mitigate the impact of the downturn cycle and preserve liquidity, highlighting operational optimizations, strategic and commercial initiatives and feedstock initiatives in addition to initiatives for the defense of the Brazilian chemical industry. In transformation, we will seek to ensure competitiveness and continuity of the business through the implementation of an asset strategy and the expansion of the gas and renewable base in the company's feedstock profile. This strategy aims to enable the recovery of the company's value through an integrated set of actions, which will strengthen its capacity for value creation, maintenance of competitiveness and therefore, business sustainability. Now let's move on to the next slide. Finally, I would like to highlight the main priorities for the company for the year 2026, aligned with the strategic direction, which take into consideration the challenging scenario of the global petrochemical industry and the preservation of the business sustainability. The first priority is the reorganization of the company's capital structure, creating the necessary conditions to ensure the continuity of operations throughout petrochemical cycles. In parallel, we will continue with the implementation of the resilience plan, focusing on the preservation of the company's financial liquidity through strict cost control, discipline in capital allocation and initiatives that reinforce operational cash generation to mitigate the impact of the adverse scenario. The third priority concerns the transformation plan initiatives, focusing on seeking financing alternatives to ensure the necessary resources and make the strategic projects feasible, thus strengthening the company's competitiveness. We will also look for ways to continue growing the green portfolio -- green product portfolio, reinforcing its positioning in sustainable solutions and commercial differentiation in the long term. Additionally, we maintain our commitment to full compliance with the agreements related to the geological events in Alagoas. And finally, safety remains as a perpetual and nonnegotiable value for the company with safe and reliable operations aligned with the best practices of the global industry. These priorities will guide the company's decision throughout 2026. Thus, we conclude the presentation of Braskem's fourth quarter and 2025 earnings results. Thank you very much for everyone's attention. We will now begin the Q&A session.

Ladies and gentlemen, I will now pass the floor to the company for their remarks.

Good morning. Before we begin the Q&A session, I'd like to highlight a few points. First, it's important to remember that the year 2025, and I know you all follow the scenario very closely, was a very challenging year, especially because of the external perspective considering the geopolitical conflicts and tariff wars. In this context, we see the continuous imbalance between global supply and demand, which had an even bigger impact on petrochemical spreads around the world, compressed industry margins and as a result, affected Braskem. To tackle these challenges, we adopted some initiatives over the year 2025, focusing on generating value for various different company stakeholders, focusing on maximizing EBITDA and improving and maximizing Braskem's cash generation. Among these initiatives, I will highlight 3. First, defending the competitiveness of Brazilian petrochemical industry, where we maintained the 20% import rate for PE, PP and PVC resins. We approved the antidumping law affecting the United States and Canada and the PVC antidumping from PVC coming from the U.S. And lastly, approving PRESIQ and increasing and maximizing REIQ for the coming year, which are essential programs for the Brazilian chemical and petrochemical industries. Secondly, the transformation program. We hibernated the chlor-soda plant in 2025 with the goal of making Alagoas PVC more competitive and above all, more sustainable. And we approved the Transforma Rio program, which will transform Braskem's products through ethane and polyethylene. And thirdly, but no less important, operational improvements. We established 79 action plans with over 700 internal initiatives, of which I will highlight the following: optimizing feedstocks and gases with CapEx, prioritizing resins with greater added value and the demand in the internal market and reducing downtime in transitions between grades, reducing logistics costs, improving the acquisition of feedstocks and raw materials and adopting tax grids. I should highlight that these initiatives adopted by Braskem gave us $500 million in EBITDA and $600 million in cash generation for 2025, which allowed Braskem to remain healthy financially to date. Now with regard to the Alagoas' geological event, we signed an agreement with the state valued at BRL 1.2 billion in payment, of which the vast majority has already been paid. And so considering the total provisioned amount of BRL 18 billion and the payments that company has already disbursed by the end of 2025, we have a remaining provisioned amount of BRL 3.5 billion to be paid over the coming years, which demonstrates the company's strong commitment and healthy advances in improving the situation after the Alagoas event. I should also highlight the advances of our negotiations with our other parties with Braskem and Braskem Idesa, along with legal advisers and financial advisers the company hired for this purpose. This was announced to the market in various different events over the previous months. These events are essential for the financial health of both companies. Now with regard to the change in the company's shareholder situation and controlling structure, the Brazilian CADE has approved. And now in the U.S., the -- their organization still needs to investigate and approve. Now with Novonor and the Shining (sic) [ Shine I ] credit funds, including with any related topics will all be announced to the market if and when they arise. Now with our perspectives for 2026, in spite of a lot of instability around the world, the war in the Middle East and the remaining closure in the Strait of Hormuz as well as the limited amount of feedstocks coming from the Middle East, we may see captures in certain regions, value captures, including the Americas as well as spreads for the international market. This means we must continue to assess risks and opportunities and preserve the company's liquidity. Once again, we'd like to thank you all for joining our earnings call, and we'll now begin the Q&A session.

Good morning, everyone. As we did in the previous call, we received the questions. Of course, there are many questions related to the conflict in the Middle East. So I'm making a summary so that we can provide the answers. So these are the questions. Considering the current context, could you provide a view of how the global industry has behaved? Have you seen reduction of relevant capacity or events of force majeure impacting the business? And then there was also a question about how the petrochemical spreads are responding as a result of the conflict. I know that the company does not provide formal guidance, but what would be the effect of the war on the EBITDA of the company? Could we expect an EBITDA about $1 billion? And there's also a question about sourcing of feedstock. In previous year, have you managed to -- you have been able to diversify the purchase of naphtha, reducing the exposure of naphtha for Petrobras. The lower availability of naphtha has been affecting your feedstock considering the global price at the global level. So I'll turn the floor to Roberto for him to answer the questions.

I'll begin on the topic of sourcing with some relevant information first. First, the Asian petrochemical powers in Japan, South Korea and China, they have lower naphtha inventories than we do, roughly 15 days because the rate of replenishment of naphtha there is made much easier because of the fact that they purchased from the Middle East. So it's a shorter distance than what we have here in the Americas. So we started the war with a larger supply of feedstock than our competitors did. Naturally, we purchase -- we import naphtha, especially from the U.S. We also imported condensate from Algeria. We also have some shipments of naphtha coming from the Middle East. We do not purchase naphtha from Russia because of sanctions. Actually, our main supplier of naphtha is the U.S. because the U.S. is long in naphtha and in gasoline. Shale oil has a density that is very similar to diesel oil. So when you refine that type of oil, we have what we call medium and light shale products, and that includes naphtha. So the U.S. has a surplus of naphtha supply. And so they are a net exporter of naphtha, and we are a significant purchaser of U.S. naphtha. As you know, Braskem is the biggest buyer of naphtha in the world. So with regard to our naphtha supply, since it comes from the U.S., it is not impacted by any of these conflicts. Of course, there is an impact in higher prices because U.S. naphtha now is also being fought over by the Asian petrochemical companies. But our price minus the price of transportation, purchase minus transport is still better than these prices for Japan, Korea and China. But the question is very relevant because it is at the linchpin of our strategy, which is we want to reduce our dependency on naphtha. Today, we are 80% naphtha-based. The rest is gas and ethanol. And our plan is, by 2030, to reach 60% naphtha and 40% ethanol and gas, roughly 20% each. So we already had a very well-defined strategy to reduce our dependency on naphtha and look for others, not just ethanol, but also propane. Our plant 2 in Rio Grande do Sul, we are processing propane coming from Argentina. Argentina is potentially an important supplier. It already is for propane, but in the future, it could be for ethane as well, which we aim to use in plant 2 in Rio Grande do Sul. We're also importing ethane from the U.S. to use this ethane in some of the machines we have in Bahia as a way of sidestepping the increasing cost of feedstocks because ethane prices went up practically almost nothing, whereas naphtha practically doubled in price. So looking into the future and naphtha sourcing for Braskem not being -- it's not at risk at the source, but it is impacted due to price. So what's happening in the Japanese and Korean petrochemical companies is they are reducing production and scale because essentially, they were supplied almost exclusively by naphtha coming from the Middle East. So our sourcing is not at risk. We have access to naphtha. Of course, we must pay the price. Our initial supply of naphtha was already bigger than our competitors. And in the future, we want to be less reliant or less dependent on naphtha. Now the question is, how much time will this price increase that impacted naphtha resulting from the higher cost of oil? How long would this last? Well, that will depend considerably on how long the Iran conflict will last. And today, this is much more than a war between the U.S., Israel and Iran. It also involves other countries around the globe. I should also mention that the Gulf of Persia (sic) [ Persian Gulf ] and the Middle East has 50% of the energy inventory, energy stocks in the world, more than 50% of gas and oil. So the energy that can be stored because wind and solar cannot really be stocked. But storable energy overall, more than 50% of it is stored in the Middle East. So this conflict is not a conflict that involves just 3 countries. It involves a whole region, Iran, beyond Dubai, Bahrain, Qatar. So this conflict has a much bigger impact than just the incursions that the U.S. and Israel made in Iran last year. So this year's conflict is going to take much longer to be resolved and the impact on petrochemical supply and production chains and logistics chains is going to take a number of years before it is fully resolved.

Allow me to add, I'm going to read a question about the EBITDA impact. For sure, the company does not provide the formal guidance. So I'm going to use the history track from external consultancy services between 2014 and 2025. If we consider the historical consolidated EBITDA between 2014 and 2025, this is about [ $2.54 billion ]. And in this period, 2014 and 2025, we have a PE and ethane, which were very similar, which are the spread expected by the external consultancy. So this is a spread of the main chemicals and even higher than the average considering the increase in oil prices and the PE naphtha is a bit lower, about 10% below. So considering this market reference, the expectation for the future in terms of average petrochemical spreads according to the external consultancy, we would reach the historical levels. And the external consultancy services have been using an average of timing. And this is what's going to define the impact and the upsides and downsides, an average of 1 month for the war with a later impact considering the structural impact that we have seen in the region. But it's too early to try to imagine a future scenario. So we are considering different scenarios. We are getting ready for the best, for the worst. As Roberto mentioned, we see the price of the feedstock going up in a significant manner following the oil price, especially naphtha. And we can see that the rising prices have a lag so that it can be reflected in the results. And as Felipe mentioned, we are preserving cash and the liquidity, but we also have to be cautious because it's a dynamic scenario that changes at all times in real time, and this is the reason why we are considering different scenarios. Well, moving on to the next question. I'm going to ask Felipe. This was related to Braskem Idesa as follows. With the default of the bond interest rates and the lower ratings to D and possible reorganization via Chapter 11, what's the real likelihood of this scenario to materialize? What are the next steps? And what would the consequences of Chapter 11 in the consolidated balance sheet and the control of its assets?

Thank you, Rosana. Thanks for the question. As you saw in the notes we published explaining our financial results recently, we are always very transparent and very objective. And we've been practicing this over the past years, explaining each and every step that occurred last year when we hired the Braskem Idesa legal and financial advisers to reorganize that company's capital structure. Now as the process progresses, we need to keep up our engagement in order to see what the final situation will be. It is not up to me to speculate about what any of the routes forward may be. But what I can tell everyone here in this room is that this is an absolute priority as we have announced here at the beginning of this call and focusing on liquidity. As soon as we have material information about what this reorganization restructuring will look like, we will certainly share it with you so that you all stay apprised in real time about the company's coming steps.

Thank you, Felipe. Moving on, there's a question related to the antidumping process of polyethylene in Brazil. So this is the question. What was the result of the meeting that was held yesterday? And will the new protections be implemented? And the current logistics restrictions, freight increases and production restrictions, can they reduce the possibility of using antidumping actions in Brazil?

Well, we had an information on the MDIC site that Gecex opted not to consider the in-depth detailed study that was prepared by the technicians at the Ministry of Industry and Commerce that recommended a $700 per ton antidumping norm for ethylene coming from the U.S. and it opted to maintain the protection that had been granted by the provisional antidumping law from 6 months ago. Apparently, the information that we received was that apparently, this decision was taken due to the public interest. We will appeal this decision because it is our opinion that the antidumping case is very strong and very well demonstrated. And there's actually access to information provided by the U.S.-based producers that effectively demonstrates that they were implementing a predatory pricing policy. So in effect, we have a concession of theirs about their infraction. And I think it's deplorable to consider that this information was not taken into account by the Brazilian Council and the technicians at the Ministry of Industry and Commerce were not informed by the Gecex. It's -- and there's more in particular, the sample of prices that were collected over the past year, including the provisional protection. This actually has been maintained as a result of the war because naphtha does follow the price fluctuation and our main feedstock is naphtha. So the unfair pricing that we suffer has been exacerbated by the war. So the situation not only failed to improve, but it also became worse. So the Gecex actually should have detected that we are in -- we are literally in a war. So it's really difficult for me to understand what sort of public interest could possibly have impacted this decision, but I can only base my opinions on the short clip that was published by the Ministry of Commerce and Trade. So I -- again, I reiterate, it is deplorable that a research -- a project with enormous technical information and quality was not taken into account.

Thank you, Roberto. And moving on, Roberto, we have a question. Why there are questions in the capacity to continue operating as we saw in the financial report of Braskem?

Thank you [indiscernible] for the question. This question is very important. I need to make it very clear to start that the balance that has actually been confirmed by our auditors. It's one of the baseline assumptions of our statements, touches on the continued health, good health of the company and its operations. However, there is a plan that has been defined and approved by the company's Board. We've actually mentioned some of these topics recently. They involve a restructuring of Braskem's capital structure. And just as every company and every entity, the auditors, the independent auditors must raise any issues about significant or less significant uncertainties about any plan they assess. Now given the company that we're talking about, Braskem, it was mentioned that there are uncertainties about this plan, but we've already been working since September of last year with full engagement from everyone, financial and legal advisers to implement this plan. So that is the reason. That's why there have been mentions about uncertainties and the assumptions were maintained about the company's operational continuity.

Thank you, Felipe. Talking about our transformation plan, this is a question. The company announced investment in the Transforma Rio project and continues with strategic investments. Considering the high leverage and cash burn, how is the company going to finance this CapEx without affecting its capital structure? Was there any reevaluation in the scope of those investments?

Thank you once again for this question. Yes, we already mentioned this in the last time we published the Q3 '25 results, and we maintain the same answer. Yes. This restructuring, this reorganization of the company's capital structure does include the necessary resources for this essential project to transform Braskem. So the resources for this purpose have been earmarked and are included for this purpose. It needs to be materialized and implemented, but there is no discussion about the need for this to occur whatsoever. This really helps us to corroborate our entire business plan that was approved by the company's Board and the project itself was also approved and announced to the market as soon as the Board approved it. This will allow Braskem to survive, to stay afloat and survive healthily and go back to the not so ancient past. I'd like to highlight something about our strategy. We have a process underway where we are changing our feedstock. The Rio plant that is roughly 300,000 tons a year, it's gas-based. This allows us to pull Bahia's plant 1, which will be converted from a naphtha unit, and it will start processing ethanol. So the 300,000 tons that we are going to start producing in addition in Rio, plus the green ethane -- ethylene, sorry, that we produce in Bahia will replace the 600,000 naphtha-based ethylene. And in so doing, we are adding more competitivity and increasing our sustainability because whether it's because the prices are more interesting for us or because these feedstocks are more sustainable. So don't look at the Rio expansion as an isolated event, oh, Braskem is ramping up production in Rio because it's cheaper. Well, that is true, but we're doing more than that. We are replacing naphtha with other feedstocks. We are switching from gas and we are switching to green, which is our fly up to green. These factors are all integrated. This is not a simple operation. And so financing this project takes all of that into consideration.

Thank you, Roberto. Moving on. The question is related to petrochemical spreads. Since the closure of the Strait of Hormuz, what we have seen has increase and what are the potential impacts? I'm going to answer these questions, and then Roberto and Felipe can add to what I said. As I said, we are considering different scenarios. This is a very dynamic topic. Every day, there is something new and update. We learn about escalation of the conflict. So I'm going to talk about what we have seen in terms of consensus. In a more technical view, when we look at the feedstocks, if oil prices go up, naturally, as a co-product of the refinery will also have its price higher. So all those higher prices of naphtha that you have been observing in March will be the national reference that you will use as consumption of feedstock for next month. So we see that there's a working capital being consumed from the payables. When we consider the resins or the main products, we see a quicker response in relation to the chemicals. So base naphtha producer also make other chemicals that also have an impact on the margin of the company that would account to 15% to 20% of the historic EBITDA of the company. We already see this consequence in the result of March. But in terms of spot price, we have seen some increases. But in our cash flow, we can expect a positive result a little bit in the future. In terms of expectations, what are of the spreads of the first or the second quarter, based on the consultancies, there's an expectation from the external consultancies of an increase of about 50% of the spreads as we have observed in the first quarter of 2026.

I'd like to add with a reflection about the length of the rise in prices. How long do we expect that to last? Now if there even is a negotiating table between the U.S. and Iran, Iran has 2 demands that I personally think are very difficult to meet. First, Iran demands reparations for the losses that it is suffering as a result of the war. This reminds me of the war reparations that were imposed on Germany by the Treaty of Versailles. If you like history and economics, this was often cited as a cause for the German hyperinflation and the rise of Hitler. Now that's not exactly true, but I'm not here to talk about history. The fact of the matter is that the U.S. attacks destroyed Iran's fleet and Iran demands the U.S. and Israel to pay to rebuild that fleet. And Iran also demands that its sovereignty over the Strait of Hormuz be recognized internationally. This, if it occurred, would allow Iran to charge a toll on all goods that transit through the Strait. Now this will never be accepted by any party. So if these demands are real demands, if they are, in fact, stumbling blocks on the negotiation, then this negotiation will drag on for a very long time.

Thank you, Roberto. I'm going to move on to our last question. In relation to the potential change of control, could the company provide an update on the latest facts, please?

Thanks for the question. We do also -- we have mentioned this often. I'd just like to highlight that Braskem is not party to these discussions or to these negotiations. And when -- and if Braskem is notified, then we will, in turn, notify the market immediately. As we've mentioned at the beginning of the call, there was public information that was published by the CADE and was materialized by the U.S. in the beginning of March with regard to the antitrust and final negotiations with the shareholders. So this is a topic that for us, there is our due diligence, the analysis that's done by potential investors. This remains ongoing here at the company, and we continue to respond to these requests in a timely manner. So -- and to send them to the market so that the market remains apprised in a timely manner as well.

Thank you, Felipe. Our last question, Felipe. Could you provide more information on Petrobras? Could there be any type of support from Petrobras to Braskem considering that the transaction with IG4 has been approved and the new shareholders' agreement is likely to be signed briefly.

This question actually depends significantly on Petrobras, and it actually should be asked of Petrobras, not really Braskem. And with regard to the relevance between Petrobras and Braskem, we continue to work to develop future improvements and commercial conditions. Of course, respecting both parties so that both parties can reach an agreement that is fruitful for both companies. I believe that these discussions remain ongoing in parallel. They've always remained ongoing regardless of the -- any potential shareholder situation.

Just to add, Petrobras does hold a relevant stock in the company. They have 4 Board members in our Board. We have monthly meetings of the Board. So Petrobras is notified in a very timely manner of everything happening at Braskem. In addition, the Petrobras Board has direct access to the Braskem Board. And we talk every week, multiple times a week. So Petrobras is fully aware of the Braskem situation and the extremely negative petrochemical cycle. They are also enormously interested in the stake that they hold here at the company and the interest they have at the company. So what Felipe said is true, but I think the answer is a little obvious. Petrobras is enormously interested in Braskem and will remain interested.

Ladies and gentlemen, we now conclude the question-and-answer session and the Braskem video conference. Our conference is now complete. Thank you all for joining us, and have a great day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good afternoon, and thank you for waiting. Welcome to Braskem's Third Quarter of 2025 Results Conference Call. With us here today, we have Mr. Roberto Ramos, Braskem's CEO; Felipe Jens, Braskem's CFO; and Rosana Avolio, Investor Relations, Strategic Planning and Corporate Market Intelligence Director. Please note that this event is being recorded. The presentation will be held in Portuguese with simultaneous translation into English. [Operator Instructions] Now I will repeat the same instructions in Portuguese translated into English. The presentation is being held in Portuguese and simultaneous interpreting into English. [Operator Instructions] The audio for this event will be available on the Investor Relations website after it ends. We remind you that participants will be able to submit questions for Braskem, which will be answered after the end of the conference by the IR department. Before we proceed, please note that any statements that may be made during this conference call regarding Braskem's business prospects, projections, operational and financial goals constitute beliefs and assumptions of the company's management as well as information currently available to Braskem. Future considerations are not a guarantee of performance and involve risks, uncertainties and assumptions as they refer to future events and therefore, depend on circumstances that may or may not occur. Investors and analysts should understand that general conditions, industry conditions and other operational factors may affect Braskem's future results and may lead to results that differ materially from those expressed in such future conditions. Now I'll turn the conference over to Ms. Rosana Avolio, Investor Relations, Strategic Planning and Corporate Market Intelligence Director. Ms. Avolio, you may begin your presentation.

Good morning, everyone. Thank you for participating in Braskem's earnings conference call for the third quarter of 2025. As indicated in the agenda described on Slide 3, I will begin the presentation with the company's main highlights in the period, starting on Slide 4. In the third quarter of 2025, the industry's performance continued to be impacted by the prolonged downward cycle. Utilization rate at petrochemical plants in Brazil were lower than in the second quarter due to the scheduled maintenance stoppage at the Rio de Janeiro plant and the continued implementation of the strategy to optimize production at naphtha-based plants, which takes into account demand levels and spreads on the international market. In the United States and Europe, the increase is mainly due to the normalization of operations and the rebuilding of stocks in the United States, while production levels in Mexico remained lower given the first general maintenance stoppage since the start of production, which was completed at the end of July 2025. With regard to safety and nonnegotiable value, Braskem recorded an average accident frequency rate of 0.75 events per million hours worked, down on the previous quarter and well below the global industry average. In the quarter, the company recorded consolidated recurring EBITDA of $150 million, 104% higher than that in the first -- second quarter of '25, with Brazil, South America segment standing out. With regard to operating cash flow, despite the better EBITDA recorded in the quarter, the company had operating cash consumption of approximately $62 million. Braskem's cash position at the end of the quarter was approximately $1.3 billion, sufficient to cover debt maturities over the next 27 months without taking into account the international standby revolving credit line in the full amount of $1 billion and maturing in December 2026. The company's total liquidity, including this credit line was approximately $2.3 billion at the end of the quarter. Let's move on to the next slide. In the third quarter of 2025, the global macroeconomic scenario was marked by moderate growth, the accelerated inflation, high interest rates and strong geopolitical and trade tensions. And considering the still volatile scenario, we have seen a significant impact in the regions where we operate, resulting in lower industrial activity in resin processing and a typical downturn in demand for the period, reflecting the challenges faced by the industry on a global scale, especially in Brazil and Europe. In addition, most international petrochemical spreads fell in the period, remaining at historically low levels due to excess installed capacity, which together with weakened demand continue to put negative pressure on the sector's profitability at the global level. Moving on to the next slide. The performance of each of the company's segments will presented below, starting with Brazil on Slide #7. In Brazil, the utilization rate at the petrochemical plants was lower due to the scheduled shutdown of the Rio de Janeiro petrochemical plant and the strategy of optimizing production at naphtha-based plants in face of demand levels. Resin sales in the Brazilian market were lower, mainly due to the higher volume of polyethylene imports and lower demand for polypropylene. This reduction was offset by higher sales of key chemicals. In the quarter, recurring EBITDA was $205 million, higher than in the previous quarter. This increase is explained by the prioritization of sales with higher added value, the implementation of the commercial strategy to supply the Brazilian market and the initiatives of the resilience program. Let's move on to the next slide, please. In the third quarter of 2025, the utilization rate of green ethylene plant was 40%, 31 percentage points lower than the previous quarter, impacted by the continued implementation of measures to optimize stock levels, which is part of the resilience program. Sales were lower compared to the second quarter due to lower demand from Asian markets. In relation to the strategy of accelerating the production of new bioproducts and with the aim of seeking opportunities to create value, Braskem GreenCo was created at the end of 2023, a company that already owns the green ethylene assets in Rio Grande do Sul and which will concentrate the growth of Braskem's green portfolio. Next slide, please. The utilization rate in the United States and Europe segment was higher due to the normalization of operations and the rebuilding of inventories in the United States. The lower sales volume compared to the previous quarter is mainly explained by the lower industrial activity in Europe and the weakened demand in the United States. The segment's results continued at negative levels, impacted by weakened demand in the regions pressured spreads and higher ship expenses. These effects were partially offset by the lower inventory effect of feedstock acquired in previous periods in the United States. Moving on to the next slide, we will talk about the Mexico segment's performance in the quarter. The utilization rate for the quarter was 47%, still impacted by the first general maintenance stoppage since the plant start-up, which was concluded on July 31. With regard to ethane supply, the lower volume of ethane supplied by PEMEX compared to the previous quarter was offset by the increase in the volume imported through Fast Track and the start of supply from the ethane import terminal. In this scenario, the volume of polyethylene sales was lower than in the second quarter. Recurring EBITDA of the segment for the period was negative by $37 million, also impacted by the higher idle expenses in the quarter due to scheduled stoppages and lower provisions for fine receivable for delays in the construction of the terminal of ethane imports compared to the second quarter of 2025. Now let's move on to the next slide. The general maintenance stoppage at Braskem Idesa petrochemical plant was completed at the end of July with the participation of more than 30,000 people. This was the first scheduled maintenance stoppage at the petrochemical complex in Mexico since its inauguration in 2016. In addition, the start of ethane supplies from Terminal Química Puerto México in September 2025 marks the beginning of a new chapter in the history of Braskem Idesa with the reduction of the need to use Fast Track solution and guaranteeing the possibility of access to 100% of Braskem Idesa's feedstock at lower logistics costs. This ethane will be transported using two ethane transport vessels leased by Braskem Trading and Shipping, which are dedicated to this operation. TQPM is connected to the petrochemical complex in Mexico via pipelines, guaranteeing greater reliability to the operation when compared to the Fast Track solution. It's worth noting that in September, TQPM supply of ethane to Braskem Idesa amounted to approximately 11,000 barrels per day. Next slide, please. In the next chapter, we will discuss the company's consolidated results. Consolidated recurring EBITDA in the third quarter was $150 million. The increase in relation to the previous quarter is mainly explained by the prioritization of higher value-added sales, prioritization of supply to the Brazilian market, positively impacting the contribution margin, lower inventory effect in the United States and the implementation of the resilience plan initiatives with emphasis on reducing fixed costs in general. These effects were partially offset by higher idle expenses due to scheduled stoppages in Brazil and Mexico and by the appreciation of the real against the dollar. Moving on to the next slide. By the end of September 2025, all work fronts in Maceió were progressing according to plan. The relocation and compensation front continue to show progress in its indicator and ended the quarter with 99.9% execution of the residents relocation program. The same percentage applies to the number of proposals submitted for the financial compensation and relocation support program of which around 99.6% were accepted and 99.5% were paid out. At the same time, the closure and monitoring of the salt cavities is being implemented after all the actions have been taken, if necessary, to ensure that the 35 cavities reach a maintenance-free state in the long term. This quarter, we highlight the achievement of the technical filling limit of cavity 16. As a result, six cavities have now been naturally filled, six cavities have been completed, three have reached the technical filling limit and seven cavities are being filled. Additionally, as announced by the company through a material fact, Braskem and the state of Alagoas signed an agreement related to the Alagoas geological event, providing for a total payment of BRL 1.2 billion, of which around BRL 139 million had already been paid. The outstanding balance is to be paid in 10 variable and adjusted annual installments, mainly after 2030, taking into account the company's payment capacity. The state agreement establishes compensation, indemnification and/or reimbursement to the state of Alagoas for full operation of any and all state property and of patrimonial damages and granted the company full discharge for any damages arising from and/or related to the geological event in Alagoas, including the extinction of the Alagoas state suit in action. The signing of this agreement represents a significant and important step forward for the company in relation to the impact resulting from the geological event in Alagoas. Therefore, in relation to the final provision, the total provision related to Alagoas event was around BRL 18.1 billion, of which around BRL 13.6 billion have already been disbursed and approximately BRL 1.5 billion have been reclassified to other obligations payable, including those related to the agreement signed with the state of Alagoas as mentioned above. As a result, the total provisioned balance at the end of the third quarter of 2025 was BRL 3.8 billion. Now let's move on to the next slide. In the third quarter of 2025, the implementation of resilience measures, especially the optimization of inventory levels was important in partially mitigating the consumption of working capital. The company had an operating cash consumption of BRL 334 million, impacted mainly by the higher seasonal disbursement of operating investments, including the scheduled stoppage at the Rio de Janeiro petrochemical plant and in Mexico. Recurring cash consumption was mainly impacted by higher half yearly interest payments on debt securities issued on the international market by the company, which are concentrated in the first and third quarters of the year. The sales of fund quotas part of the resilience plan and the receipt of the last installment of the sale of Cetrel reduced this consumption by BRL 211 million. Finally, considering the disbursements in Alagoas, the company had a cash consumption of approximately BRL 2.2 billion. Now let's move on to the next slide. Braskem ended the third quarter of the year with an elongated debt profile with 69% of its debt concentrated after 2030. In order to strengthen its liquidity position in the face of the industry prolonged downturn, the company drew down its standby line in the amount of $1 billion at the beginning of October. The current line matures in December 2026. The available cash of $1.3 billion is enough to cover the debt principal repayments over the next 27 months. Finally, corporate leverage stood at approximately 14.7x at the end of the third quarter of 2025, mainly due to the lower EBITDA over the last 12 months. Moving on with our agenda on Slide 11. This concludes the overview of the results for the third quarter of 2025. And next, I will comment on the company's resilience and transformation program. Braskem continues to focus on implementing the initiatives set out in its global resilience and transformation program, considering the significant impact resulting from the prolonged downturn of the entire industry and the Brazilian chemical sector. To this end, the company has adopted measures aimed at generating sustainable value with an emphasis on maximizing EBITDA and mitigating cash consumption. Braskem's resilience program is aimed at implementing tactical initiatives in the company's operations and processes and is structured around two pillars. initiatives with an impact on EBITDA and short-term cash generation and actions to defend the competitiveness of the Brazilian chemical industry with a focus on building a more competitive Braskem, resilient and sustainable. The transformation program brings together initiatives that support the perpetuity of the business and is structured around three pillars: optimization of naphtha base, increasing and flexibility of the gas base, and finally, migrating to products with renewable sources. Now let's move on to the next slide. Following on from what was presented on the previous slide, the implementation of the global resilience program fronts have been intensified considering the prolonged downturn in the industry. So far, we have established 79 action plans globally, which have been broken down into more than 700 initiatives. These actions are distributed on fronts presented above, institutional agenda, commercial agenda, monetization of assets, negotiation with suppliers, optimization of capital employed and operational optimization. In 2025, the potential for capturing these actions is around $400 million in EBITDA and about $500 million in cash generation in relation to the business plan budget for the year 2025. Regarding the progress of the implementation of the actions, around 1/3 of the initiatives have already been implemented and other are in execution or partially implemented, demonstrating the progress of the program. This program is an essential pillar to get through the challenging scenario of the global industry. Moving on to the next slide. Continuing what we saw in the previous slide, resilience initiatives have made progress that is fundamental to mitigating the impact of the prolonged downturn in the industry. On the regulatory side, we have made significant progress in strengthening the Brazilian chemical industry, ensuring fair competitiveness. Among them, the approval of the provisional application of the antidumping duty for the imported from the U.S. and Canada, mitigating the existing damage in the Brazilian market and the maintenance of the 20% import rate in Brazil for PE, PP and PVC resins. In addition, the approval of Bill 892 of 2025 by the Chamber of Deputies represents a significant step forward for the Brazilian chemical industry, which has been operating at the highest rate in the last 30 years. This bill has the purpose of extending the break, the special regime for chemical industry in November and December 2025, in addition to instituting the PRESIQ, which is the special program for the sustainability of the chemical industry from 2027 to 2031. The text of the bill is currently being processed in the Senate for approval and subsequent presidential sanction. Braskem, together with ABIQUIM and other companies in the sector, reinforces the importance of proving the Bill 892. ABIQUIM's technical studies indicate that this bill could generate an estimated positive impact of BRL 112 billion on the Brazilian GDP by 2029, create up to 1.7 million direct and indirect jobs recover up to BRL 65 billion in tax revenues as well as increasing the use of the sector's installed capacity, which currently operates at the lowest level in the industry. In addition, a series of initiatives with an impact on EBITDA were implemented, such as commercial optimizations, reductions of logistics costs, energy, supplies, input, raw materials, optimization of inventory levels as we commented on throughout the performance of the segment, monetization of tax credits, among others. These combined initiatives generated positive impact of around $240 million in EBITDA and approximately $330 million in cash in the year-to-date compared to the budget of the company's business plan for 2025. These results reinforce the importance of the resilience program in the current industry scenario. Now let's move on to the next slide. With regard to the transformation program, the company also made progress on initiatives to increase the competitiveness of its operations in the medium and long term with the aim of ensuring the perpetuity of our business. Starting with Transforma Alagoas, we highlight the beginning of actions to increase the competitiveness of the company's PVC operations and make them more sustainable. The chlorine-soda plant in Alagoas will be transformed into a unit dedicated to handling volumes of EDC, the raw material for the production of PVC. In this context, the chlorine-soda plant was hibernated in September 2025. the company started a new PVC operating model and will now import all its EDC needs through a long-term contract signed with an international supplier. Braskem, which has been present in Alagoas for 48 years, reaffirms its commitment to the socioeconomic development of the state, boosting the strengthening of the chemical and plastic chain. With regard to Transforma Sul initiative, the study into importing LPG for use as feedstock has been completed. It's worth noting that the Rio Grande do Sul petrochemical plant is the most competitive naphtha-based plant in South America and the best positioned on the global ethylene cash cost curve. This study was carried out with the aim of taking advantage of the plant's existing gas processing flexibility, combined with greater logistical efficiency by importing LPG from Argentina, taking advantage of Vaca Muerta production. This initiative brings potential incremental profitability of about $110 per tonne compared to the using naphtha as a feedstock. These actions demonstrate how the company has sought to modify its operations to ensure efficiency, flexibility and long-term sustainability. Now let's move on to the next slide. Concluding this chapter, we come to the biggest transformation initiative underway, Transform Rio. The expansion of the Rio de Janeiro plant's capacity was approved by the Board of Directors in October 2025. This project will add 220,000 tonnes per year of ethylene capacity with an equivalent expansion of PE, increasing the share of gas in Braskem's feedstock profile. The estimated investment of BRL 4.2 billion with completion estimated for the end of 2028. The implementation of the project is conditional on obtaining funding in addition to the resources already approved under the REIQ investments benefit for 2025 and 2026 and a long-term supply contract with Petrobras. In addition to increasing the competitiveness of Brazil's most efficient petrochemical plant, this expansion will bring greater competitiveness to the Brazilian polyethylene market, which is in deficit and positive socioeconomic impacts such as revenue generation for the states and the creation of more than 7,500 jobs during the project execution. With this, we conclude the chapter by reinforcing that the resilience and transformation program is essential for getting through the industry's challenging cycle, guaranteeing competitiveness and sustainability. On to the next slide. I will now comment on the company's strategic direction for the next five-year cycle and the outlook for the petrochemical scenario. Now let's move on to the next slide. Every year, the company draws up its business plan with a five-year horizon through a regular process with a structured timetable and the involvement of various areas of the company. Discussions related to the strategic direction typically take place during the second half of the year, where we revisit our vision for the next five years. taking into account changes in the global scenario, trends and fundamentals in the energy and petrochemical industry. For this cycle between May and July, we kick off by drawing up future scenarios for the petrochemical industry. In August and September, after a detailed discussion, the macroeconomic and petrochemical scenarios were validated with the leadership. In October, we refined the market, operational, financial projections based on these validations. And in December, we will consolidate the strategic direction for approval by the Board of Directors. Now let's move on to the next slide. When we look at the global scenario in 2025, what stands out most is the high level of uncertainty and volatility. This movement has been driven by trade tensions between the United States and China, which have escalated throughout the year. These tensions are accompanied by a series of factors that are likely to continue over the next years, such as more fragmented global chains, increasingly protectionist industrial policies and changes in investment flows, which directly affect international competitiveness. Even with interest rate cuts, the risk of global economic slowdown is still present. When we look at the GDP projections, the consensus is for growth similar to the start of the decade, but limited by the uncertainties of the trade war. This means that we are facing a scenario in which globalization is weakening and protection is advancing. The main impacts of this scenario are uncertainty about the stability of the global economic growth and the profound transformations in the dynamics of international trade with additional risks of disruption in global supply chains. This is the macroeconomic backdrop that we are taking into consideration in our strategic discussions for the 2026 to 2030 cycle. Moving on to the next slide. The current scenario combines two factors that put pressure on the petrochemical industry, which are lower oil prices and subdued global demand. This configuration tends to reduce resin prices on the international market as the marginal producers' cost falls, and there is not enough demand to sustain the price of resin on the international market, even with relatively stable spreads for the marginal producer based naphtha. Lower oil prices and consequently, naphtha and resins on the international market could be unfavorable for base gas producers as in the case of Mexico, depending on the magnitude of the drop in the naphtha prices if gas prices remain stable. In 2025, the price of oil on the international market was intensified by the trade war between the United States and China, which brought uncertainties and reduced expectations of growth and global energy consumption. In addition, there was a significant increase in oil production, especially by OPEC, OPEC+, which gradually resumed its supply, contributing to adjustments in global supply and putting pressure on resin prices benchmarks. In this scenario, realized oil prices this year were lower than expected when compared to the assumption made in the company's 2025-2029 business plan as well as most of the market. This difference has resulted in a challenging environment for the petrochemical industry, with direct impact on competitiveness and profitability. Now let's move on to the next slide. In the company's internal discussions supported by external consultants, it was concluded that dynamics of the petrochemical industry will remain structurally challenging until at least 2030, with China leading investments to achieve self-sufficiency. These investments, combined with the growth in demand impacted by the macroeconomic uncertainties, as mentioned above, contributed to the continued imbalance between supply and demand, putting pressure on overall operating rates, which should remain at historically low levels, even with moderate growth in demand. Given the current expectations about the rationalization scenario, it's expected that the sector will begin to recover towards the end of the decade. Now let's move on to the next slide. Finally, when we look at the outlook for the petrochemical spreads until 2030, the scenario is structurally challenging, considering global trends and industry dynamics. The prolonged downward cycle is expected to last until the end of the decade with a modest recovery after 2029. This behavior reflects the structural excess of supply combined with moderate growth in demand, which has kept international spreads below the historical average for a prolonged period. This reality reinforces the importance of the initiatives we presented in previous chapters aimed at resilience and transformation as well as the need for increasingly assertive commercial and operational strategies. With this, we end this chapter by emphasizing that in the face of a challenging global environment and pressured margins, Braskem's strategic advances will be essential to ensure competitiveness, sustainability and value generation. I would now like to close the presentation by reinforcing the company's priorities for 2025 on the next slide. We will continue to make progress with the initiatives to transform our assets. This front of the resilience and transformation plan is strategic if we are to continuously increase the competitiveness, efficiency and sustainability of our business, making Braskem better prepared to face the adversities of the global petrochemical scenario and guaranteeing its perpetuity. In order to guarantee the continued progress of the transformation, it's essential that the company continues to identify and implement resilience measures. These actions are fundamental to mitigating the impact of the cycle on the company's results and cash flow. strengthening the competitiveness of our business throughout this prolonged downturn. Braskem reaffirms its commitment to the competitiveness of the Brazilian chemical industry together with associations, clients, suppliers and society. It will continue to promote initiatives that guarantee a level playing field and a fair competitiveness for the Brazilian industry, making a consistent contribution to the sector's development. In addition, the company maintains its commitment to the agreement signed in Maceió, conducting each stage with transparency, responsibility and respect for all parties involved. Finally, it's essential to emphasize that all our priorities will be carried out while maintaining our commitment to safety in our operations. safety is and will continue to be a perpetual and nonnegotiable value in Braskem's strategy, guiding every action and decision the company makes. This concludes the presentation of Braskem for the third quarter of 2025.

Ladies and gentlemen, we will now begin the question-and-answer session. Please, you may proceed.

Good afternoon, everyone. This is Roberto Ramos, President of Braskem. Before we begin the Q&A session, I'd like to highlight some aspects from the presentation in addition to some updates about the financial and economic alternatives for our capital structure, which are currently in effect in assistance from our external consultants as we announced in September '25. That work in developing our strategy for the 2026-2030 cycle began in August and have now been finished by the Administrative Board. We've made some significant conclusions about the company's mid- and long-term outlooks. We have ascertained that the perspectives for the local and international petrochemical industry have suffered a significant negative impact for a number of reasons because China will continue to make significant expansions in its ethylene, propylene, propylene and polypropylene chains using different feedstocks and solutions, also because in the Middle East, there are similar movements. This movement by the Chinese government will have a significant impact on the global scenario with over 40 new crackers increasing production by 70 million or 100 million tonnes, respectively. This will have a significant effect as well on the different petrochemical plants idle capacities. This, combined with the very timid rationalization in the petrochemical industry updates our idle projections. We project a significant gap between supply and demand up until at least the turning of the decade. As such, the companies and the petrochemical industry's mid- and long-term outlooks must be updated. And so this leads to our strategic planning project. So, in September, the company announced the contracting of external consultants to investigate a healthier capital structure. And this is given the projection that the downward cycle is going to be longer than we expected. Since then, we have been updating our mid- and long-term strategies and outlooks. This is made even more challenging by the 2025, '26 cycle. Any potential change about the path to -- path forward must consider these projections. As always, the company will keep its investors and the market as a whole duly informed about all material developments and conclusions about the topic. Lastly, please note that any -- in spite of any negative outlooks or projections, Braskem continues to move forward with its resiliency project, which was approved by its shareholders in '25 and focuses on increasing global competitivity around the world. As such, I'd like to highlight some initiatives linked to value generation for various stakeholders, emphasizing on maximizing EBITDA and cash generation, which were announced recently by Rosana. First, defense of competitivity for the Brazilian industry. by maintaining the 20% import rate for various feedstocks; two, approving various antidumping laws and rights with regard to the U.S. and Canada and also with regard to PVC in the U.S.; three, approval in the Chamber of Deputies of a bill here PL 892/2025, which sets forth rules about the REIQ and PRESIQ, which is now going to the Brazilian Senate for approval. Next, the hibernation of the chlorine-soda plant in September '25 with the goal of making PVC production in Alagoas more competitive and sustainable by importing EDC, this feedstock makes our PVC plant more competitive and also approving the transformer Rio project, which will make Braskem more competitive by using gas in its feedstock matrix to produce polyethylene. And next, operating improvements, which have been generated by over 700 initiatives in 79 different action plans, which include the use of inventories linked to CapEx, producing resin with lower -- or higher added value, reducing downtime in plants due to upgrades, which is something that used to hurt us, improving our use of feedstocks and inputs and also the use of fiscal incentives and credits. So, that being said, I will now begin to answer our listeners' questions.

Thank you, Robert. I'll start with the questions that we received on the chat. And there is some convergence in some points. So I'm going to answer some individual questions, and then I'm going to answer the questions that are grouped in terms of content, starting with Vicente with Bradesco. Vicente asked two questions. The first one, he made some comments as follows Lots have happened since the last fall and Braskem hire financial processors to help them in this restructuring. When are we going to have a decision on this? And does the company consider injecting equity now that Alagoas case seems to be completed? And Vicente also ask us resin volumes were very weak in this quarter. What was the main economic driver? What can we expect for the quarters to come?

Thank you, Rosana, and thank you, Vicente, for the question. I'll field the first one, and Rosana will handle your second question. With regard to hiring the advisers, as you can imagine, this is something that comes up rather often. It's an important decision of the company, which was actually a relevant fact that was announced to the market in September. And what we can state right now is what Roberto has just read when he opened the Q&A session vis-a-vis any decision pertaining to whatever route we will move forward is still subject to the completion of this diagnostic and especially with the necessary adaptations by the company's Board. At this moment, these discussions are already being elaborated on the results as well so that we can, as we mentioned previously, develop in conjunction with the company's main stakeholders, something that will effectively reorganize Braskem's capital structure. At the present moment, no options are discarded or confirmed. Everything is open. Rosana?

Yes, of course. Thank you for the question. You know the company quite well. On a quarterly basis, we see some dynamics of seasonability. And in the historic seasonability, the third quarter tends to be the best period because it anticipates the we -- end of year celebrations and the formation of inventory levels. It was different this year, however. If we consider 2025 compared to 2024, if we consider the demand growth of resins, we do not see a growth posted in this line. We see that demand of resins, the demand of plastic is strongly associated with the Brazilian GDP. When we talk about PE and PP, we can see that there is a drop of about 4% for the next months. For the year to come, we see a recovery of about 3%, but without any doubt, there was a drop when compared to last year. If you see because of the sanitation law, we have seen a very important demand from the sectors of [indiscernible] and civil construction that is a result from the sanitation law. So we expect a 3% growth for this year, just what -- just as we saw in the third quarter when we compare to the previous quarter, we saw a 3% growth. And for the next year, we expect a growth of 3% based on the sanitation law. And a general comment I would like to make. We have seen from the global viewpoint, a very weakened demand or I would even say an uncertain demand due to tariff war that we have seen along the year of 2025. Answer the next question by Gabriel with Citi. This is his question. It's about -- in relation to transform Rio project, could you provide us the time line of the investments and the impact expected on the EBITDA of the company? In addition, could you talk about the funding of the project? Could Petrobras take part in the funding of the project? And the second question is as follows. Could you provide an update on the PRESIQ? And what are the discussions like in Brazil? Is there a time line to provide? What would be the potential impact for the company?

All right. I'll begin with transformer Rio and Roberto can talk about PRESIQ afterwards. So, with regard to Transformer Rio, as we -- as Rosana presented now, we have a schedule. The project will begin its engineering phase right now. And this persists until the end of '28 or the beginning of 2029, at which point the project will be completed. If we do some math to calculate the added value that this could bring to the company's EBITDA and using a 220,000 tonnes installed capacity as announced and using an average from the spreads of the previous years, which is $860 per tonne, this brings us to just under $200 million per year of additional EBITDA that we will bring to the company. With regard to financing this project, which is extremely important, as was also announced in our relevant fact, there is a condition for this project to persist so that it can have the needed resources and funds so that it can proceed with the company's cash flow. So, at this first stage, we use the funds that are already available for the company from the REIQ and investments. This allows us to neutralize those impacts to our cash by the first part of 2026. And after that, the need to raise additional funds is already included in the context. So, actually, the first question that was asked with regard to restructuring the company, this has -- this already includes this project. Due to the nature of the project, very likely we were going to find funding sources, but this is not yet defined. It is still being discussed. It will be defined as soon as possible so that this project will not be delayed. Roberto, could you talk about PRESIQ and our forecasts for next steps?

Yes, of course. The project, as you know, was approved by the chamber here in Brazil and was sent to the Senate, EBDQUIM and ourselves as members of EBDQUIM, the Brazilian chemical industry is pushing for this to be voted on with urgency so that it can be duly studied by the industry and Trade Commission and then follow on to the plenary session to actually be voted on. We believe that if we manage to get it evaluated with urgency, it can still be signed this year, maybe in November, or if not November, then at least in December, so that it will have an impact on the 2026 results. It's very difficult to make projections about how quickly these bills go through, whether it's in the chamber or in the Senate because political scenarios change every day. New scenarios produce the need for other discussions and other topics to be pushed forward. So it's very difficult for us to give any kind of forecast as to when we think this will happen. But it's our wish and our firm belief that this will be approved in 2025.

Thank you, Roberto, Felipe. Now a question about Alagoas about recent announcement. We disclosed a material fact yesterday. Since there are many questions, I'm going to try to focus on the main points. So, there's a request for more details about the agreement in Alagoas, especially in relation to the schedule of payment expected. And there's a question if there is flexibility of the amount considering each payment individually.

Thanks for the question. The state of Alagoas, as we mentioned in the material fact, signed with Braskem this agreement. It now needs to once again go through the legal approval by the public sector. This is a BRL 1.2 billion, of which BRL 139 million have already been paid by Braskem. So the remaining balance, and this is a very important topic in the negotiations by both parties or all parties with regard to Braskem's present financial condition was established so that this agreement would be paid over a 10-year period. And so that's our material fact. And the initial installments up until 2030 do respect the company's projected financial condition, which is a result of the entire tightening of the whole global petrochemical cycle and Braskem is tied to it. And after that period, these factors become even more material and move to make Braskem's financial condition recover, as Rosana mentioned in the beginning of the call, and that includes the transformation, switch to gas, fly up to green and all of our green projects in a context with more rational balance between supply and demand for the global petrochemical sector.

Thank you, Felipe. Moving on along the same lines, there's a question by Gustavo with BTG, which is consistent with what you just mentioned. In a scenario of a possible change of control in the pillar of transformation, what do you believe to be nonnegotiable to sustain the long-term cases. So there is the green agenda. The second question, what is material in terms of hibernation of capacity in Europe and Asia? And how does it compare to the scenarios announced in the past? As the company sees it, the rationalization tends to be relevant within two years. And lastly, in relation to Braskem Idesa, with ethane terminal in operation, what is the EBITDA capacity that you would consider to be normalized for Braskem Idesa? And how long this asset is likely to start contributing again for reducing the consolidated leverage level?

Of course. Thank you, Rosana, and thank you Gustavo. The answer to the first question is contained right in the question. It's, in fact, what the company believes it has as far as ability to add value to all its stakeholders. That is continuing with the transformation plan, our migration to gas, our focus on competitive assets and the green agenda or what we call here in-house as fly up to green. A new, if a new potential shareholder has a different view, it's difficult to answer that because if we already had that view, we would certainly be implementing it right now. So it really will depend on what such a question would be, if and when such a new shareholder would be. With regard to our strategic plan, this is what we've been working on throughout 2025. With regard to the perspectives of closing or hibernating Europe, that depends on rationalization and our rationalization strategy. What we've been seeing is that rationalization has been lower than what we initially projected. We know this from our own experience. We announced recently the hibernation of chlorine-soda. This is a decision that was made in the beginning of the year and was only implemented in September. So these decisions all take significant time to implement with all the due care and precautions that are needed so that they can actually happen in the most sustainable and rational and also productive possible ways for the company. Roberto?

I have two points. First, our strategic plan was approved by our Board of Administrators which is composed of -- there's a significant stake by Petrobras there. So, Petrobras is certainly aligned with our vision, and I'm sure that Petrobras will continue to have that same vision regardless of whatever new shareholder comes in, if that happens. And again, this needs to be approved by all shareholders. We never do anything different from what is approved by the shareholders. So this new shareholder, if and when someone arrives, they will need to get involved in discussions with all shareholders as always. With regard to Europe, what we are seeing in Europe is announced shutting down of units and refineries, one of the biggest petrochemical companies in the world, which has units in England and the Netherlands has closed dozens of refineries in the previous years. The President of a large European petrochemical company announced the closure of 12 million tonnes of capacity of ethylene production in Europe if they do not obtain the necessary protection measures that includes either antidumping or tariffs to prevent the arrival of products, especially from China that come into Europe. That also includes U.S. products that arrive in Europe without any import tariffs. Now that being said, Europe is strategically long in propane. Now our polypropylene plants use propane as a feedstock. So it's really about finding the needed logistics. So if we need to replace any current suppliers, we'll do that. But the propane molecule, which is important for us, will continue to exist. So it will just be a matter of plugging the right numbers into the equation.

Thank you, Roberto. In relation to ethane terminal, to only to provide the context. Today, we have Braskem Idesa solution for the import of 80,000 barrels per day. Braskem Idesa to run the total capacity would require 660 barrels per day. And therefore, the total focus of Braskem team is to run full capacity. So an operation rate above 90% that in our industry, extremely high. That will be the focus. From the startup of the terminal, we have had operating results very positive, all in line with what we expected. And when you made a comment about the consistent way of reducing the consolidated leverage. It's good to remember that Braskem Idesa since when we developed this project, it was devised by means lim recourse at the time, all the bonds, all the debt have no collateral by Braskem. Braskem as a controller of the asset. So every time we are announcing our cash position, our debt coverage and the consolidated leverage. We do not consider the cash position or EBITDA or the debt of Braskem Idesa. The way it's going to contribute to the future is when there will be dividend payments impact since the startup of the plan in 2016, considering everything that we went through, the reduction of ethane supply, the renegotiation of ethane contract -- so there is a limitation of the availability of ethane in Mexico. And this is why we made this investment. So we received dividends only once in the past 10 years. So the total focus of the team is to increase the operating rate, increase the sales volume, focus on the Mexican market. This was the first purpose when the product was devised, which is to meet the demands of the Mexican market. And as there is a more balanced capital structure, we will consider the contribution for Braskem.

Rosana, Gustavo also asked about China and whether the movements in China tend to have an impact on the market. I believe Rosana already mentioned this in her presentation. We are looking at an increase in 20 million to 30 million tonnes of additional capacity in China over the next five years, essentially resulting from crackers, whether they are gas-based or naphtha based and also whether they are carbon based, believe it or not. And even gas for olefins and methanol for olefins plants. So these are four different types of feedstocks that China is coordinating in its search for self-sufficiency with regard to PE consumption. And it's always very difficult to understand the scale of this shift. But this means that China's trend is just as it is in polypropylene to be a net importer of polyethylene. Today, it is currently an importer of polypropylene, but it will become self-sufficient after some time, and it will become a net exporter of polyethylene as well. This is the baseline scenario for us. And it's a scenario that leads us to conclude that this downward cycle will extend for many years.

Thank you, Roberto. Another question by Joaquin with Moneda. He asks about the context of transformer contract that has been recently announced by the company. The question is, have we signed a long-term contract with Petrobras to supply ethane or would that depend on the construction of the project?

Thanks for the question. Yes, as we mentioned in the material fact, Braskem's Board approved the terms of the negotiation between Petrobras and Braskem for ethane supply. But this contract has not yet been signed. It is still subject to being concluded. This has not yet occurred. It is still currently in negotiations. And so within the schedule that we announced recently, that Rosana announced recently. But we do not foresee any kind of change. The commercial conditions have already been agreed to officially. The only conditions that are still being discussed are secondary conditions that are not material to the contract.

Thank you. Moving on. Conrado from J. Safra, asked the following to whom you attribute the sequential improvement of the margin in Brazil, the focus that had a better margin and better cost efficiency? Or is there any special reason or a combination of all? Is there -- is it likely for the margin to continue improving?

Thank you, Conrado. I'm going to answer your question. Let's consider the historical viewpoint. Brazilian business is very important for the company. Without, we saw some improvement with an EBITDA margin from 5% to 9%, but below what would be a historical margin for this business as a result of everything that we mentioned in this call, capacity, the demand is weakened when compared to the historical levels, especially 2010, 2019, putting pressure on the petrochemical spread at the international level. And this is where our resiliency program stands. So when you ask what were the factors? Without a doubt, this is a combination of different factors. Without a doubt, we are always going to prioritize the supply of the Brazilian market, the South American market, but we have been going for grades whose value added is higher for the company. In terms of cost reduction, we have made different renegotiations with our suppliers, and we've been seizing to reduce logistics costs. And in addition, when considering the EBITDA and the cash flow, we captured along the year nearly $100 million as the numbers presented in the presentation, and that was driven by the optimization of inventory levels. And when the spread, which is the main contributor to the result of any petrochemical industry, when it stands at a level which is historically low, the company has to operate in such a way to mitigate this impact partially of this downward turn. And this is something we are going to continue doing. We are going to continue communicating.

I just wanted to add one thing. With regard to when Braskem was created 20 years ago, the major difference with regard to supply and demand is that at the time, the European petrochemical industry was very important. It was actually the largest in the world, and it gradually lost competitivity and has been replaced by the petrochemical industry that is being created in China and that already existed in the Middle East and was expanded. The consequences are that the new petrochemical industries that were created and also with -- in Japan and Korea, but to a lesser extent. But China and Middle East react much more quickly to requests for higher demand than the European industry did. As a result, the high and low cycles are going to be less steep and longer. And as a result of that, the petrochemical industry must adjust its processes, reduce its costs so that it can coexist with the new reality for the future, where the EBITDA margins are not going to be exuberant as they were before, 20% or more. These margins are going to be more contained, closer to the refinery margins. And so we need to reinvent the way we operate petrochemical plants, for example, by reducing the impact of labor, increasing automation, using artificial intelligence tools to make the plant respond automatically to certain requests. All of this will reduce direct cost and fixed cost. This movement is an intrinsic part of our resiliency plan. We've had results in 2025. We're going to capture even more of them in '26. This is inexorable. It's a new reality in the petrochemical industry, and everyone is going to need to adapt to this new way of doing business.

Thank you, Roberto. I'm going to read a question that we received from different people participating in this call in relation to the possible sale of Novonor and change of control, bringing the name of IG4 as a result of what we've seen in the media. So there is a question asking if we have any type of time line to complete the discussion, especially in the case of IG4.

I would really love to be able to give you that answer. Unfortunately, I can't. As we've been saying repeatedly, we are not party to that negotiation. The information we received from Novonor, everything we received, we immediately convey to the market through material facts. And we are not aware of any topics or any progress that leads to an imminent decision with regard to the sale of Novonor shares. So we remain waiting just as the market as a whole is waiting, of course, it's a topic that is of interest to us. It's of interest to everyone. But we are not even side players. We are merely spectators. Sure, we may be in the first row, but we are spectators nonetheless.

Thank you, Roberto. There's a question of Anne with Bank of America in relation to our transformation in Alagoas. Can you provide more information about Braskem chlor-alkali for transformation plant? And we would like to understand a little bit more about Ode and if we saw the press release that was published by Ode, as you would like to understand how this relationship is going to play out. So at the end of the day is how to Transforma Alagoas will perform in general.

Well, what does this transformation bring us? Our chlor ethane process is based on electrolysis used with salt. This is something that's been in effect since we opened in 2021. It was a brine transformation. And this actually was -- it didn't generate value. It produced EDC at a cost that was harmful to the PVC plant. The PVC plant carried the cost of the lack of competitivity from the chlor soda plant. This is a plant that dated from the 1970s and whose technology had already lost its competitivity and especially guided by the fact that we needed to bring salt, gem rock salt halite, which is different from sea salt from Chile. So this halite came all the way down -- down south through the coast of Chile through the Magellan Strait and then north all the way up through the Brazilian coast. So the logistics cost was actually just as high as, if not even higher than the halite itself. So this was something that could only work if the product, the polyethylene prices were high -- sorry, not polyethylene, he corrects himself, PVC. But if the costs were sufficient, so replacing EDC manufactured in Alagoas with a noncompetitive plant, such as EDC imported from the U.S. made using ethane resulting from shale gas. therefore, an appreciable comparative advantage. And it was transported using efficient cabotage to our Alagoas plant. This makes the work of the PVC plant more competitive than it was before. And we were actually often forced to reduce the output of the PVC plant to stop losing money. Now with this change, we can run our PVC plant at its maximum capacity. We can even apply some improvements that will improve it by 25, maybe 30 per year -- tonnes per year. And it will also lead us to produce more material in a shorter amount of time. This is all based on the fact that it is going to be produced. The PVC is going to be produced from more efficient feedstocks. In addition, in a partnership that we have signed, we are burning [ Kwako ], which is a renewable feedstock. This makes our PVC increasingly more and more green. This is going to improve the results for our sales as well. With regard to the press release from Ode, I apologize, I haven't read it.

As we mentioned previously, when we were mentioning Transform Rio, any change, any project is necessary, requires raw material contract in order to maintain operational stability. With the change explained by Roberto, the answer is yes, we have an agreement for the supply of feedstock and it's a long-term contract. Moving on, we have some questions by [indiscernible] about PRESIQ. And the question is repeated sometimes. So it's in relation to PRESIQ seems to be an important and necessary program in order to control the cash burn of the company. What are the expected impacts of PRESIQ?

Thanks for the question. This is a relevant fact, a material fact for the company. It deals with our resiliency and transformation plan. So I'll answer in two sections. With regard to the year 2026, during which rate will still be in effect and two rigs, the investment and feedstock rigs. Now the investment rate has no change from what is currently in effect. This is a fiscal benefit, a 1.5% benefit we have based on PIS and COFINS that Braskem pays. As we mentioned previously, this is something we use as our funding for the Transformer Rio project and other projects of the company. And the second is the feedstocks rate, which today is 0.7. As of 2026, as Roberto mentioned, once this is approved by the President, this will move to 6.25% from the current 0.7. So this will mean something in the order of $280 million to $300 million of EBITDA in the year 2026, starting as of 2027, up until 2031, which is currently in PRESIQ. It has a yearly budget for the petrochemical industry. And of course, Braskem is part of that of BRL 3 billion per year, out of which BRL 2.5 billion will be the so-called PRESIQ feedstocks and another BRL 500 million for PRESIQ investments. So this is what we are currently working on with our projections, and we currently await that signature as quickly as possible. We hope that it will be approved by the Senate firstly and then by the President.

Just a reminder, the sum is for the whole industry, the BRL 3 billion that Felipe mentioned, BRL 3 billion per year. sum is the grant that is being given to the industry as a whole. We imagine that Braskem will receive something in the order of 50% of that sum.

Thank you, Roberto. And to wrap up, due to time limits, we have last questions. And the remaining questions will be answered lately, later. And the question is about our projections. So there's a comment about our spreads projections, chemicals and petrochemical spreads. Why would make us so confident to believe that the cycle would continue below the historical levels in the next five years. And they believe that external consulting services has a weak track record to estimate what would be the spreads for the future. And why -- what they usually do is to extrapolate what's happening at the moment. So I'm going to talk about our planning process at the conceptual level and how we carry out the mitigation. But before that, I would like to say that the downward cycle has been different from the other ones. So when we discuss the track record and the weakness and the weaknesses of the external consulting services, but this is the environment we have been experiencing since 2019. So we have seen a weakened demand when compared to the global GDP of 2010 to 2019, which was different to what we saw since 2019. As a reminder, the demand for plastic is very connected to the global GDP. The higher the global GDP, the higher the consumption of plastic. So whenever there is a drop in plastic, even though it's been growing, but we see a drop of the global average GDP when compared to the previous decade. In addition to that, there's a very important difference to consider. China with the driver with -- for new capacities, they are very based on sufficiency and to meet their own demand. And this is what we have seen, and this is aligned with the external consultancy. And this has created a very major oversupply. And this is something we showed in the results definition. And there is a backlog, there's a backlog before offering demand. And the backlog is really huge. And when I look into the future, we still see capacity coming in, especially in China in its search for self-sufficiency. When we defined our projections, this is what we considered. By the way, this is an approval process, which is still going on. And this is a process which will end at the end of the year with the approval by the Board. as we have mentioned in this results presentation. So for us to define the scenarios, we can consider different probabilities in different scenarios. We do not work with one case only. We incorporate different probabilities when we define the assumptions. And without any doubt, in our base case, we have been more conservative or even more realistic would be a better word when we do the rationalization because that could accelerate or could provide a better support to the better spread for the future. But as we mentioned in this call, it's very difficult to estimate other people's decision. So there are external consultancies that provide the cash cost of all producers in the world. But we do not have the disclosure of any agreement between suppliers and clients. So the decision of investment to close a plant is a decision based only on cash cost. It starts from cash cost, but there is a definition at play, agreements, what's the best moment to make the decision for the rationalization. So, again, in the past five or six years, there was a different downturn from the previous years. And there are players, there's this player that is going to include capacity up to 2030. So we consider the probability plus the definition of the assumption. And again, we were very realistic more than what we have been -- on what we have been observing.

Just to mention something else about the topic of rationalization. We have some perspectives for reductions. Some have been announced, others not yet, but there's a significant reduction in South Korea, which should reach maybe even 4 billion tonnes in China. The Chinese capitalist process encourages creation of various industries and allows those industries to fight for space. And then once some time has elapsed, the winners remain and the Chinese government rationalizes the winners and losers. So, of course, they have a lot of capacity spinning up. And of course, there's going to be rationalization. And the biggest losers are Europe. Europe has 12 million tons of ethylene production that is currently at risk. Structurally, Europe's problem is much more serious because not only do they not have the feedstocks, they don't have the ethane. They don't have the oil. So they import oil. Yes, they refine it, but they import oil and they import ethane -- and their energy cost is also very high as a result of the war between Russia and Ukraine, which has shut down the supply of cheap Russian gas to Europe and especially to Germany. So with the energy cost in Europe, which is currently almost 3x as high as it was before Ukraine was invaded and also considering that the petrochemical industry is highly energy intensive, combined with the fact that Europe doesn't produce any of these feedstocks, not even naphtha because they don't have oil or gas because they don't have oil reserves. And of course, I'm not considering Russia. This means that Europe's petrochemical industry is moving forward toward a state of the industrialization of total inexistence. And we have a significant amount of production capacity that is at risk during this sunset perspective.

Thank you, Roberto. Due to some limitations, the other questions we will answer later. So we would like to thank everyone for attending this call to discuss the results of the third quarter of 2025. And I'll see you next time when we -- for our next call. Thank you.

Thank you.

This concludes Braskem's conference call. Thank you all for joining us, and have a great afternoon.

[Foreign Language] The presentation will be held in Portuguese with simultaneously translation into English. All participants can choose which language to listen to and see the presentation using the show captions and view options buttons respectively. [Foreign Language] After Braskem's remarks, there'll be a question-and-answer session. At that time, further instructions will be given. After Braskem's presentation, we'll begin a Q&A session. At that time, further instructions will be given. The audio of this event will be available on the Investor Relations website after its conclusion. We remind you that participants will be able to submit questions for Braskem, which will be answered after the end of the conference by the IR department. Before proceeding, we'd like to clarify that any statements that may be made during this conference call, regarding Braskem's business prospects, projections, operational and financial goals constitute beliefs and assumptions of the company's management, as well as information currently available to Braskem. Future considerations are not a guarantee of performance and involve risks, uncertainties and assumptions, as they refer to future events, and therefore, depend on circumstances that may or may not occur. Investors and analysts should understand that general conditions, industry conditions and other operational factors may affect Braskem's future results and may lead to results that differ materially from those expressed in such future condition. Now, I'd like to turn the conference over to Ms. Rosana Avolio, Investor Relations, Strategic Planning, and Corporate Market Intelligence Director. Ms. Avolio, you may begin your presentation.

Good morning, ladies and gentlemen. We would like to thank you all for participating in Braskem's Earnings Conference Call for the First Quarter of 2025. According to the agenda on Slide number 3, we will begin with the company's main highlights for the period, which can be found on Slide number 4. In the first quarter of 2025, the operations of Braskem's petrochemical plants presented a better performance than in the last quarter of 2024. All segments showed a higher utilization rate in the period, while the high level of operational safety was maintained, resulting in an average global accident frequency rate of 0.92 events per million hours worked, in line with the best market references. In parallel, the company presented a consolidated recurring EBITDA of $224 million, a 121% higher than compared with the fourth quarter of 2024. In addition, the net profit attributable to shareholders was $113 million contributing to this result were the greater spreads of PE and chemicals in the international market and the greater sales of chemicals in the foreign market and of PP in the United States and Europe segment. Regarding that, the company's profile remained quite elongated with an average term of around nine years with more than 68% of the corporate debt maturing from 2030. In addition, Braskem's cash position ended the first quarter of 2025 at $2 billion sufficient to cover debt maturities over the next thirty three months without considering the available international revolving credit line of $1 billion maturing in December 2026. Moving on to the next slide. In the next slides, I will present the performance of each of the company segments, starting with Brazil. The petrochemical plants in the Brazil segment showed an increased average utilization rate compared to the fourth quarter of 2024 by 4 percentage points with emphasis on the inventory management carried out at the gas-based plant in Rio De Janeiro. In anticipation of the scheduled shutdown of this plant, due to take place in the third quarter of 2025. In terms of sales, the volume sold on the domestic market remained in line with the previous quarter, impacted by the increased PE and PP sales, offset by the decreased PVC sales. Regarding the quarter's results, the segment recurring EBITDA was $199 million, an increase of 101% in the previous quarter. The result was mainly positively impacted by the segment's increased contribution margin, mainly due to the higher spreads of PE and main chemicals on the international market, and by reducing fixed costs and other expenses in the period. Moving on to the next slide. In the first quarter of 2025, green ethylene operations increased when compared to the last quarter of 2024, resulting in an increase of 10 percentage points in the plant's utilization rate. The normalization of operations after the unscheduled shutdown of the Rio Grande do Sul plant in the previous quarter contributed to this result. On the other hand, green polyethylene sales were impacted by the decreased demand due to the Chinese New Year. In addition to the operational performance, two important milestones were celebrated in the company's Renewables segment. First, the green ethylene capacity in Triunfo was revised to 270,000 tons a year since industrial tests proved the production of 15,000 tonnes a year more than the forecast in the expansion project completed in 2023. In addition, we celebrated 15 of Agriem Bio Base portfolio, which includes a variety of solutions produced from a new pool source sugarcane, which has the property of capturing CO2 from the atmosphere. These solutions play a significant role in facilitating our customers' sustainability journey without the need to invest in new technologies. These achievements reinforce our leadership position in biopolymers in line with our sustainability strategy and goals. Moving on to the next slide. The performance of the United States and Europe segment was better than in the first quarter of 2024. With regard to the utilization rate, an increase of 13 percentage points was a result of the normalization of the plants in Europe after maintenance shutdowns in the previous quarter and the adjustment of production in the United States to meet higher demand. In this sense, the volume of PP sold was 11% higher than in the previous quarter. In this scenario, the segment's recurring EBITDA was $20 million, mainly as a result of increased sales volume and the revenue obtained from the sales of logistics wagon in the United States. Let's move on to the next slide to discuss the Mexico segment. Regarding its operation, the increased supply of ethane, mainly through the fast-track solution resulted in an increase in the utilization rate of two percentage points in the quarter. On the other hand, the inventory management in anticipation of the general maintenance shutdown of the petrochemical complex that will occur in the second quarter of 2025 contributed to the volume of polyethylene sold being 5% lower. Despite the decreased sales volume, the higher spreads of ethane-based polyethylene and lower fixed cost and expenses positively impacted the segment, ending the quarter with a recurring EBITDA of $37 million, 6% higher than the result of the fourth quarter of '24. Moving on to the next slide. With great celebration, Braskem Idesa inaugurated the ethane import terminal in Mexico last week through the subsidiary Terminal Chemical Puerto Mexico, a joint venture between Braskem Idesa and Advario. The terminal has the capacity to receive and store 54,000 tons and transport 80,000 barrels of ethane per day, guaranteeing the necessary feedstock and Braskem's full operational capacity in the region. In line with this goal, Braskem through its subsidiary, Braskem Trading and Shipping, BTNS, has two ethane transportation vessels dedicated to operation in Mexico, contributing to a reduction in logistics costs, lower CO2 emissions, around 40% than the industry average, and the full supply of feedstock. The terminal also supports Braskem Idesa in its long-term growth strategy, ensuring a diversified supply of feedstock to enable future expansions of up to 25% of the current capacity. Now, let's move on to the next slide, please. Moving on to the next chapter, I will discuss the company's consolidated results. Regarding the company's consolidated EBITDA, the quarter's result was 121% higher than that of the fourth quarter of '24 with an improvement in the margin of 4 percentage points. As mentioned previously, the higher polyethylene and chemical spreads on the international market as a result of the lower supply of resins in the American market and the volatility in feedstock costs, a reflection of the geopolitical uncertainties had a positive impact on EBITDA. The increased volume of sales in Brazil and exports of the main chemicals in the United States and Europe in BP contributed to the result. In addition, the actions implemented with a focus on the company's financial preservation had a positive impact on the quarter and will be detailed in the last chapter of the presentation. Moving on to the next slide. At the end of the first quarter of 2025, the company had an operating cash consumption of approximately BRL 936 million explained mainly by the negative variation in working capital due mainly to the management of feedstock and finished products inventories as a result of scheduled shutdowns in the period. Recurring cash consumption of BRL 2.4 billion was mainly impacted by the half-yearly interest payments on the company's debt securities, which are concentrated in the first and third quarters of the year. Considering Alagoa's disbursements, which were 65% lower than the previous quarter, the company had a cash consumption of around BRL 2.7 billion. Now let's move on to the next slide. Braskem ended the first quarter of the year maintaining an elongated profile of its Esk Braskem It is a corporate debt with an average term of around nine years, and 68% of the debt is concentrated as of 2030. The company continually analyzes the market in search of the most competitive opportunities for maintaining its debt profile. Considering the company's level of liquidity, the available cash of $2 billion is sufficient to cover its obligations for the next 33 months without taking into account the international credit line available in the amount of $1 billion. In conclusion, the corporate leverage stood at 7.92 times at the end of the first quarter of 2025. Moving on to slide 15, I will comment on the main updates from Alagoas during the period. By the March 2025, all work fronts in Masayo had progressed according to the plan. On the relocation and compensation front, the percentage of execution of the residential relocation program reached 99.9%, considering that the entire risk area defined by the civil defense in 2022 was cleared. Regarding the proposals related to the financial compensation and relocation support program, more than 99.9% of the estimated proposals have already been submitted, of which around 99.5% have already been accepted and around 99.2% have already been paid. On the salt cavity closure and monitoring front, as announced in 2024, provision has been made for actions if necessary to ensure that the 35 CAFBTs reach a maintenance free state in the long-term suitable for the definite closure of the field. These actions for the definite closure should they be necessary are scheduled to begin in 2027 with execution over several years or even decades. Of the 35 cavities, 18 will be filled primarily with solid material, six of which have already been completed. In addition, 11 cavities that remain the salt layer and are suitable for pressurization are in the group of recommended recommendations are for the long-term filling with solid material considered by the company, following a technical note, issued by a specialist consultancy. The other six cavities were filled naturally with five already confirmed and one in the process of being confirmed. In relation to the financial provision, the total provision for the Alagoas event was around BRL 17.6 billion of which about BRL 12.8 billion have already been disbursed, and approximately, BRL 431 million have been recorded in other obligations payable. In addition, around BRL 637 million was recorded as a realization of the adjustment to present value. As a result, the total provision balance at the end of the first quarter of 2022 was BRL 5.1 billion, 9% lower than the balance at the end of the fourth quarter of 2024. Following our agenda, let's move on to Slide 16. This concludes an overview of the results for the first quarter of 2025 we will now present the outlook for the next quarter. The company's operating scenario will be mixed in the second quarter with the expectation of greater use of Brazil's petrochemical plants in anticipation of the planned maintenance shutdown in Rio De Janeiro, scheduled to begin in the third quarter of the year. On the other hand, the segments in the United States and Europe is expected to remain stable due to a balance between increased production in the United States and lower production in Europe, impacted by decreased feedstock supplies. Mexico for its part will begin a general maintenance shutdown for its complex, scheduled to last 45 days. Lower production in Mexico should affect the sales in the region, while the expectation for the other segments is for increased volumes sold in the period. As for international spreads, the second quarter of the year will continue to be challenging due to prolonged shutdown in international markets and possible impacts of the new tariff scenario. The expectation of lower naphtha prices could positively influence the resin spreads in Brazil, leading to an increase in the next quarter. On the other hand, with the current increase in ethane prices, gas-based polyethylene spread could be negatively impacted, while polypropylene market remains challenging, maintaining the levels as seen in the first quarter. Moving on to the next slide. Given the growing scenario of geopolitical and tariff uncertainties, important competitive advantages will position Braskem to face possible impacts. Firstly, the company is prioritized serving the domestic market, where there is still a large portion of demand to be reached. Additionally, the geographic diversification and the scale of its production, given -- give Braskem leadership in the regions where it operates. Finally, the company is a pioneer and a leader in the production of biopolymers solutions that are not affected by the traditional petrochemical scenario, which provides greater resilience during the periods of down cycle. The combination of these competitive advantages will be fundamental for Braskem to navigate the uncertainties of the current scenario. Let's move on to the next slide. Next, we'll explore the strategic direction of the company and its main initiatives. Regarding the company's strategic direction, Braskem is focused on two main pillars of action: resilience and financial health, and transformation. On the resilience and financial health front, the focus will be on the tactical initiatives that mitigate the impact of the petrochemical downturn with a focus of maximizing cash generation. On the transformation front, we will implement actions to sustain the current business while continuing to focus on building the best skin of the future. To this end, we are reevaluating and prioritizing our assets and investments in order to optimize capital allocation and generate additional cash flow. These actions are essential for creating value to our shareholders for the perpetuity of the business and they are fundamental to the recovery of the Brazilian chemical and petrochemical industry. Now let's move on to the next slide. Faced with a prolonged downturn in the petrochemical industry, Braskem has implemented initiatives on the three main fronts seeking to increase the company's value capture and resilience. In this sense, the continuous reduction of CapEx for operational and strategic investments was carried out, reaching the lowest CapEx in history with expectation of 2025. As additional levers, the prioritization of projects and devaluation of assets continue to be part of the company's goals, which will use the funds approved through the REIQ Investimentos to carry out projects to expand the installed capacity. In parallel, measures to reduce fixed and variable costs are continually being implemented, such as initiatives in the areas of logistics and supplies, including the renegotiation of feedstock contracts. In conclusion, Braskem considers it essential to continue supporting institutional initiatives and defending the Brazilian chemical industry. To this end, the company will support initiatives such as maintaining the import tax, expanding the special regime for the chemical industry, among others, which will support Brazil's quest for competitive equality in relation to other economies. Combining these three main fronts, the expected value capture per year will be between $5,000 million and $7,000 million. Now let's move on to the final slide. In this context and considering the current assets, three priorities were defined for Braskem's transformation. Firstly, the company is focused on the continuous optimization of its naphtha-based assets, maximizing the utilization rates of the most competitive production lines, while evaluating the hibernation of the least competitive production lines at the global level. At the same time, we are seeking to make the expansion of our gas-based assets viable. This includes the break investments to increase the capacity of the Rio de Janeiro petrochemical complex and unlocking the supply of ethane to the complex in Mexico in order to guarantee full coverage of its feedstocks needs and enable an increase in the plant's capacity in the future. These two achievements exemplify what the company intends to achieve in its other assets, increasing the flexibility of feedstock and ensuring the operational stability of its plants with the goal of increasing the competitiveness of its assets. Lastly, in line with our goal of expanding bio-product production to 1 million tons by 2030, we are implementing initiatives to selectively migrate to green production, considering the current initiatives. In the last quarter, we had a review of the ethylene capacity and in the short-term, we will have important advances, such as the expectation of a final investment decision for our Braskem Siam, our future green ethylene plant in Thailand for the second half of 2025, and Sustainea, our JV with Sojitz during 2026. These partnerships are examples of alternative investment models that we will actively seek to implement in our priority projects. Combining the efforts of the three priorities, the company is seeking to generate the value of $600 million by 2030 in EBITDA growth. Finally, we conclude the presentation of Braskem's results for the first quarter of 2025. Thank you very much for your attention, and we'll soon start the Q&A session.

Ladies and gentlemen, we are now going to begin the Q&A session. To ask a question, please click on the Raise Hand button or send your question using the Q&A window. To remove your question, click on the Lower Hand button. Our first question comes from Gabriel Barra with Citi. You may proceed, sir.

Good morning, everyone. Thanks for taking my questions. I've got two of them. Rosana actually talked about this extensively, but I'd like to get more of your opinion about what's going on with regard to the tariff war and the new chapter now. Over the weekend and this morning, we have a new agreement between China and the U.S. So, looking at the whole puzzle in a macro view, since the company has so many different geographies where it operates in, we could say, four continents. I'd like to -- or three continents, I'd like to hear your opinion on these new advances, these new developments. And now, what changes with this weekend's news, in terms of spreads, productivity, and everything else we can think about, in terms of Brazil and the impact of the context of import tariffs? And my other question, on the topic of the last slide where you mentioned $600 million and capturing value through different initiatives, especially with the change to now focusing on gas, I'd like more details about that. What is the total CapEx for that plan? Could you give us a timeline as well? How much do you forecast that we will be capturing, especially, in terms of keep KPIs as well? That would be very interesting. Thanks. Those are my questions.

Hey, Rosana. Do you want to take this one?

Great. Thank you, Barra. Good morning, everyone. Thank you very much for the question, Gabriel. In relation to the tariff war, yes, you're right. When you say that, we've some updates on the weekend, but so far, we imagine that we could see the polypropylene spreads reporting important increases, considering the main feed stock for the production. 25% of propylene production in China comes from feedstock that comes from the United States, and so, we would imagine that cash cost would increase, and the prices, therefore, of propylene would also increase. There's also the ethane part that part of it the feedstock comes from the United States, and that could also have some leftover, so as to say that we refer to the if any, the United States that would favor the company somehow. This is one of the beauties of the diversification that we have at our company, not at the geographical level, but also in relation to product portfolio. This was also a concern of sectors, which are connected to the GDP at the global level, that would be an impact on the global activities. The GDP of the United States and China combined is nearly 40% of the global GDP. So, since we have this retreat, we were talking about tariffs of 145% being reduced to 30% and 10%. So, we have these uncertainties in terms of impact and economic growth, and considering all the discussions that we have been observing, considering the market and the likelihood of a recession. So, this all becomes less uncertain considering the plastic demand, of course, has is very linked to the increase in the global GDP. So, combined with the earnings results and this update, so when we saw all this new, we see all this favorable impact. And in relation to our main differentiator, this is not only a matter of geographic diversification, but especially the leadership that we have. If you consider the world nowadays tends to be less globalized and more divided into economic blocks, for sure, if you are a leader where you operate, the main focus of the company in Brazil has always been meeting the domestic market, and this is a strength for the company without any doubt. So we're not only talking about this, but it's a diversification combined with the leadership that we have, especially in the United States, in Mexico, and in Brazil, and also in the Americas. In relation to your second question about the $600 million as a potential value creation, as I presented my talk. So there is a flexibility of gas-based activities. We cannot forget that in 2017, we had a project. We have a center of operations in Bahia in the Northeast of Brazil, and we have an option. I can introduce return or naphtha? So we have this resilience. So, we are going after this resilience in order to improve the flexibility in Bahia. In the South of Brazil, we also have opportunities with Argentina, propane, and even the expansion of Rio De Janeiro, which is a project that has been in our pipeline for a while with hotter trace of petro brass, which will make it become a reality. But when you ask about CapEx, when we're talking about especially about Brazil, we are going to maximize the use of resources by using the hake investment. Hake investment is a fiscal credit of 1.5% in the company's revenue, and this is conditioned to a project of a caps increase. So at the end of the day, in terms of cash flow, this wouldn't have an impact because there we have on the other hand an increase in revenue. In relation to the growth of the green portfolio, Gabriel, I'm going to mention what was the expansion that we had recently. We used to have a capacity so far of 200,000 tons. We increased to 260,000 tons, and considering all the expertise and the operational efficiency of the operating teams, we'll be able to run that plant at a higher capacity, namely 270,000 tons, and if we're saying that, if I consider all the projects that we have, Thailand or maybe a project that we want to build in the future, because we want to have this biochemical industry for the future, and Brazil will have a special way of looking at the company's transformation. So, let's think about 1,000,000,000 tons is our goal. We have about 300,000 and green ethane about 500,000 tons. So, that would amount to 800,000 tons using the expansion that was related to the project that we had in the South of Brazil. Thank you, Gabriel.

Just to add, Gabriel, because what Rosana said is very on point. But just to add, we have mentioned this last time, we were here talking about strategic guidance and results for the end of 2024. And with our directives, specifically fly up to green and looking at what we have in Rio Grande do Sul and the expansion of other sites, as well for feedstock from sugarcane, both in Brazil and Thailand, as well as in the United States. All of these points together can create a company, let's call it, GreenCo, where we will perform all this expansion of the petrochemical initiatives from Braskem that we will be called Braskem Green in the future. This is being aligned with a number of different investors that are interested in this capacity. And the funding for that, to answer your question, in addition to what Rosana just said, would also come from capital inputs, inflows from investors that go not just to the company, but also to the project in Thailand, in the U.S., and in Brazil as well. And also, lastly, other funding sources that would, that we would use under the same structure as we did when we created the project in Mexico using a nonrecourse funding, so that we could use it without having too much of an impact on the company's leverage.

All right. Thank you, Felipe and Rosana.

Our next question comes from Tasso Vasconcellos with UBS. Tasso, you may proceed, sir.

Hi, good afternoon. Thanks for taking my questions. I have two -- actually, I have one follow-up and another question about CapEx. Roberto, I'd like to touch on the comments about the down and low cycles and initiatives to mitigate those effects and reduce cash burn. We know that some units operate at lower margins and some even potentially in the negative, and we know that Rosana already mentioned this, but I'd like to go back and better understand how you view the potential to close certain capacities and what the order of preference would be in what regions, and maybe what products. And at the same time, how have your discussions been going with the government to try to claim back some benefits from the past such as Rake and also the PreSeq benefit and maybe delaying or even reducing the export tariffs that was something you achieved a few months ago? And, also my next question to follow-up on the CapEx. You mentioned the graph showing the drop in CapEx over the past few years. I'd like to understand if that level of CapEx that you are looking at for '25 is sustainable for '26 and also for 2027 in the event that this down scenario persists over these two years? And, what about, catch up catching up, during these years?

Thank you. Alright. So I'll begin with that one then. The fact that we are running our centers and, sites for, PE, PP, and PVC at reduced capacities allows us to expand and expand and prolong these sites. Usually, they, would run for five years at 90% capacity. Today, they're running at 70% capacity. This means that we have less wear and tear on the machines, and so we can extend up to eight years is what we've seen in Brazil. The Mexico plant is coming up to nine years now running nonstop without any maintenance downtime. So, spacing out the downtime allows us to naturally have a lower CapEx. It's, consequence thereof. So, we're being very objective as to how we, titrate production. When we look at our capital budget, our projects over the year, we rank these projects by a number of different methods. Firstly, by tier, by VPL. Here at Braskem, we have an indicator that we created. No one has ever written about that. It's VPL over VPI. So a present value over the investment value. These investments take a number of years to come to fruition, maybe two or three years, but there's an aspect that's important, which is materiality. So, in a situation where we sacrifice cash, such as we are now, it's only natural for you to direct your investments to those that produce not necessarily the highest tier, but rather the greatest contribution in cash generation, instant generation. So, it's a concept that I'll refer to as materiality that links projects to the company's EBITDA capacity or to the company's assets. In other words, we really are ceasing to perform to engage in some projects that may have good results, but that don't necessarily increase our cash generation, and consequently don't necessarily improve the company's situation overall. This we need to look at whether this is structural or specific, and at the time, it is currently specific. This will occur until we recover a healthier cash situation. So I would not perpetuate $400 million of CapEx over the next few coming years because we're certainly going to see different things. I'm not talking about new structural projects, but normal projects. We will continue to invest in the future, and it's going to be at higher levels, at higher volumes, but $400 million is a healthy amount for us to invest and direct to projects that have the greatest capacity of having the biggest impact on our results. With regard to the tariffs, our view has always been that these tariff fights, these imbroglios may lead to, at some point, the different parties being involved therein. We always knew that some kind of an agreement would be reached. And what we saw this past weekend certainly meets that. The several days that we've seen, the month that we've seen of tariff fights has, we could say that it's, it can be described as a sort of give and take, and our knowledge, we know we are confident that neither the U.S. nor China wants to see, both of -- both economies plummeting. And in Trump one, what we saw is that the U.S. and China did reach an agreement. So, what we're mostly concerned about is China imposing tariffs on ethane coming from the U.S. and vice versa. China imports 18,000,000 tons of ethane from the U.S. per year. It is not yet self-sufficient in PE. It also imports PE from the U.S., and if, what, perchance, let's say, it needed to retaliate and impose 125% tariffs on that imported ethane, then PE production in China would be severely harmed. Now, the Chinese government did not impose that 125% tariff. So, after a small initial hiccup and a pause to and see what happens, we see that now that industry is resuming exuberantly. Now, with regard to polypropylene, the Chinese government did not announce that it would not impose the 125% tariffs. Now, I imagine that given this weekend's discussions, things are going to progress, such that these tariffs will not occur because we know that China imports roughly a hundred million tons of PP per year, and certainly, it has an, a surplus of PP, and it exports that to many countries, including here in Brazil, and, so, therefore, after these, after this sensing fight between the countries, we believe that the effect on the competitivity of the different actors is going to exist in the different margins. So, someone who's competitive may become less competitive, and someone who is not currently competitive may come to be a little bit more competitive. I think the major of players who feel the impact are going to be the European installations, the European sites, because they will need to coexist with a structural change and, specifically, a marked increase in the cost of energy in Europe, and this is structural. It is not specific. I think the biggest losers in all of this after the end of the day, after things have settled down is going to be Europe and not Brazil, not China, and not the U.S. I think I was able to answer broadly.

Just to follow-up, what about the closing of capacity in Europe? Would that be a priority for you over the closure in Brazil or the U.S?

Well, we don't have any plans to increase capacity in Europe, but rather we will keep our business. They're always striving for the best feedstocks and best material. I'll answer your other question too on that note. Before we think about closing capacity, we will always first try to alter the mix of feedstock. That's structural. This holds for the case of the replacements, the substitutions that we're doing in Brazil that Rosana mentioned, replacing naphtha with ethane. So, we're working at 10% levels in Bahia. We're experimenting with up to 30%. In the South, one of our plants can process propane, so we will seek out propane, whether that's from Brazil or imported from Argentina through Lagoa Dos Patos from the former Coppisol organization, but it's also possible. We're not ruling out the seeking of feedstock from Bahia so we may reduce the use of naphtha in Bahia and start consuming ethanol. We can build a dehydration plant in Bahia so that we can work with that feedstock. So, closing a plant is always the last case scenario. We're always going to start thinking about different alternative feedstock. That's always what we want. We don't want to change our installed capacity. Instead, we will first try to make investments that will allow us to either replace feedstock or have two sources of feedstock. For instance, today, given the comparative advantage, it's beneficial to use ethane, but in the future, let's say that given the electrification process of the different modes of transportation, we reduce the use of gasoline. This may cause a surplus of gasoline, which is the cousin of naphtha. So that could lead to a drop in naphtha prices, and so that could mean that naphtha will be more competitive in the future than it is today. And if our sites can have a different breadth of options to choose from, then that will allow us to capitalize on these possibilities. So, above all, creating flexibility and to switching our feedstocks are certainly our priorities in order to bring more flexibility to our asset. And the last case scenario is always going to be closing down a site that cannot become more competitive through options one and two.

Thank you. That was very clear.

[Foreign Language] Hi, Roberto. Hi, Felipe. Hi, Rosana. Good to talk to all of you. Thanks for taking my questions. I have two questions as well. The first, I know we've discussed spreads extensively and competitivity as well. But I'd like to get your take over the past few years about the fact that Braskem, when we look at the cost curve in the industry, Braskem has lost competitivity due to several reasons, including Alagoas, also combined with the downward cycle. This partially complicated the company's efforts, maybe also with the introduction of other players in Asia that are gas-based. So, could you please add a little bit more context to what you've already said? And with regard to the company's position in the global cost curves, so how do you believe that Braskem today finds itself overall? And the second question was, with regard to leverage. I believe the company has done great work over the past two years to extend the debt profile. Braskem does have a leverage problem, but it does not have a liquidity problem, but we start to see this delay in the cycle's reversion as a potential liquidity problem. So, there is a short-term, cash situation, but there's also a standby issue that could be very relevant for 2027. So, I wonder if this standby has some kind of cover. Let's say, if it goes past a certain level, the, that funding will not be available. How do you see that liquidity status for the company?

Hi, Luis. Good afternoon. This is Felipe. I'll take your second question first with regard to leverage, and I'll leave the competitivity matter to Roberto. He can highlight all of the work that has been done in that regard, in positioning the company and really touches on everything we've been saying about the transformation plan that really aims to transform Braskem and make it increasingly more competitive. So, with regard to leverage, your assessment is correct, when you say that the company currently has a high level of leverage, largely as a result of things that occurred in the past and debt that we took on, in order to meet our different obligations, and that's also why when you think about competitivity and the transformation plan, we effectively create value for the company, so that Braskem can meet every one of its obligations. I would say that we have shorter term measures, given that all of this CapEx and transformations, they all take some more time to really materialize, and for that economic value to be converted into financial value. So we have been working on competitive, as Roberto explained in a lot of detail, in the Brazilian industry. Every improvement that we perceive and that we receive, so import tariffs, antidumping, rake, investments, and in the future, the -- I mean, this is an agenda that has started with. But in all, terms, this brings a lot of freedom to our company's cash flow. Now this line of credit is available to the company. It can be withdrawn, so to speak. We did make a withdrawal during the pandemic. We know that often there's some kind of, condition tied to these incentives. But at different critical moments, we did use these possibilities and fix the problems, and life goes on. So, with regard to competitive and how we intend to leverage the company, well, initially, by expanding our EBITDA so that we can effectively reduce leverage and meet our obligations. We persist in our strategy over the past two years, and I'm referring to liability management. When we see opportunities and when we see that the market offers price and liquidity, then we work on liability management to keep postponing the coming to terms of these different instruments to the longer term, to the medium and long-term. And at that point, we also do some kind of non-material, collection, fundraising with so that we can capitalize on these opportunities. So using cash to capture value and not necessarily to pay previous debts, and thereby expand the company. Roberto, do you want to talk about competitiveness?

Thank you, Felipe. Thank you, Luis, for the question. Talking about competitiveness today, and going back to what happened in the past few years. First, I'm going to talk about the ethane global cost curve. We have production in of a thing in Brazil and Mexico. Our position used to be very competitive, and we had this elongated low cycle, and what changed it was the oversupply that came, especially from the United States and the America Petrochemical base is, as Roberto mentioned, is more competitive when compared to Brazil. Brazil has a potential of increasing the competitiveness considering the availability of ethane in Brazil, but so far the base of feedstock in the United States is more competitive. And this wave was combined with an oversupply, a wave that came from China, which is related to the -- from in terms of direction. It's more focused on meeting the internal demand or even related to the creation of jobs and the increased GDP. It was important to mention that because when I talk about how the capacity curve in the United States, I say that, yes, these were pressured, but when I talk about the China capacity because this is what's likely to continue up to 2030, this has not put any pressure on the company's curve. And let's look at our asset base. We have four assets. One of them is potentially focused on naphtha in the South. The real polymers in Rio De Janeiro, especially propane, and in Sao Paulo, ABC Region, we have a combination between naphtha and URL that brings some competitiveness, and Bahia, that I mentioned previously. It has a flexibilization. We have options to use either ethane or naphtha as part of our production of ethane. So, what am I saying those details individually? Because at the end of the day, our decision in sales and production is the combined aspects of the Brazilian reality. When I look at the cash cost of Brazil in a combined way, of course, we received some pressure because of the United States, but we are in the third or fourth quartile in the consolidated result. We are not very happy with all the result, as Roberto said. This is why it is so important to have an initiative, such as the flexibilization because we are going to have an option. So, I'm going to use naphtha when it's more competitive, as we had in one-off situations, when a petrochemical has -- chemical has some more advantages. So, we have this positive credit, and we're going to be looking at that, but we believe that it's going, naphtha is going to continue to be more competitive in the long run. But regardless of whether we are right or the consultancy company made the right decision, we have this balance in terms of naphtha. Can you hear me? Oh, I'm sorry. Yes. Yes. Just go ahead. Okay. So, let's go back. As I was saying is the following. Regardless of what future we will bring, in terms of stability or unstability and future demand, we have to find a better balance with flexibility and that is translated into resilience in our results, and this will bring more resilience when we generate EBITDA for the company. And from the viewpoint of the necessary resources for this transformation to materialize, especially in Brazil, we are going to have more leverage with the programs that we have to incentivize the chemical and petrochemical industries in Brazil, whose purpose is to reduce this competitive gap compared to other economies. Considering that our sector dynamics is global. It's not limited to Brazil. So, it's very important to preserve this competitiveness in the Brazilian industry.

Excellent. Thank you. Let me just add my two cents to what Rosana and Felipe said. It's true that our crackers are distributed among the cash cost curve. The Mexico cracker is in the first quartile. It's one of our most modern installations with 100% ethane. And now that the terminal was inaugurated last week, we are now going to receive enough ethane to fill our plants at lower cost than we had been paying in our fast track project to compensate for the fact that Pemex had never sent us the volume of gas that we had contracted from them. The Rio project is in the second quartile, but the expansion of the Rio project is going to reduce the cost per produced ton. In other words, by adding two new furnaces, we are going to increase to 700,000 tons a year. We're also going to gain competitive in the current 560,000 tons a year in the existing furnaces. Of course, the more your production, the lower your production cost per ton. Now the crackers that are naphtha-based in Rio Grande do Sul and Bahia, for those, we will seek to replace the feedstock as we were discussing. For example, in Rio Grande do Sul, we are negotiating with Petrobras to start running the Rio Cracker with 100% ethane, because today, as you know, it's 50%, ethane, 50% propane. When we do that, we not only improve our cost per ton in Rio De Janeiro, but we also make more feedstock available for Rio Grande do Sul so that we can replace the feedstock there, and so we gain we it's a win-win. We win in Rio De Janeiro, and we win in Port Alegre because we will now be able to process propane and not naphtha there. And in Bahia, we are I'm closer to the fourth quartile, far from the curve. We will increase the ethane participation in addition to naphtha so that we can bring those crackers back to the third quartile. And if need be, we'll replace our feedstocks. So we will stop cracking naphtha, and we'll start dehydrating ethanol to produce ethane, and from there, green polyethylene. In other words, all of the plates are spinning, and we're trying to attack the ones that have started slowing down. Now with regard to liability management, as Felipe mentioned, we must remember that Braskem, had a fact, an extraordinary geological event that caught us right at a downward cycle, and I'm referring to the costs pertaining to stabilizing the salt, cavities in Maceo. And when we compare Braskem and our competitors, they didn't have a $3 billion bill to pay, which we're paying. And in terms of our bottom line, this is a liability that does not yet have a corresponding asset, and that's also something we're studying. So, Braskem's situation was heavily impacted because of the fact that we had a rise in obligations, liabilities to pay, but the bill was only really shown us very recently.

Thank you. Thank you, all of you.

Our next question comes from Rodrigo Omeda with Santander. You may proceed, sir.

Hi. Good afternoon, everyone. I have a few questions. I'd like to, explore the Brazilian situation a little bit and try to understand, with regard to the import tariffs, how you have seen the impact of those tariffs here in Brazil. We know that imports are still high, but I think that in your release, you were able to claim a little bit of market share. So, could you talk a little bit about that, please? And also, touch on Mexico as well. How have the recent spread pricing changes impacted the cost of products, especially Brazilian and Mexican PE? And another question about the import terminal in Mexico. Could you please help us understand the pricing structure for feedstocks? Do you bring them from the U.S.?

Rodrigo? Rodrigo? Hello?

I don't know if he can hear you.

Let me send a message to him to check if he can hear what we're saying. I would like to ask you to wait. Bear with me, while I check this out. So, let's wait for Rodrigo to reconnect. Meanwhile, let's move on to the next question, please. [Foreign Language]

Our next question comes from Regis Cardoso with XP Investimentos. You may proceed, sir.

Hi, everyone. Good afternoon, Roberto, Felipe and Rosana. Thanks for this update. I have a quick question and then another one. With regard to the petrochemical cycle and spreads, I'd like to flip the question around and ask the other way around. I imagine that you have put lots of thought into this. What would be the level, the required level of spreads for different grades, let's say, different financial comfort levels? Let's say, are there any targets for net debt, EBITDA, what would that spread need to be, or what level of spreads would we need to have, in order to pay all of our debt and have neutral cash after paying Alagoas? And I'll leave the open question for you to answer in the most convenient way after your analysis. But above all, I mean, instead of trying to predict what the petrochemical cycle is going to be, I'd like to know what it needs to be. And the other question, I'd like to understand the dynamics between Prezik and Rick. I was reading the official terms. Rake is part of Preziq, but Preziq adds some additional benefits, but there's a limitation, a yearly limitation, but I don't fully understand how that is distributed between the different players in the industry. So, could you just explain a little bit about the importance of RAKE, and also your forecast for a timeline, and do we have an expectation a forecast for financial impact? And a third question, there was a significant burn of inventory. Was that due to a reversal in Q4? Can we expect some of that to come back in the next quarter?

Rosana, do you want to take that one?

Sure. I'm going to change the order a little bit. First, I'm going to talk about the inventories, and then we move on to a more conceptual level and talking about the agendas for the protection of the chemical industry in Brazil. In relation to inventory levels, there was a consumption of BRL 1 million of finished products, which are the inventory in transit for this quarter. As an example, 50% of the fixed stock comes imported in through Braskem Trading Ship. But let me focus on the finished product. We increased this inventory level a little bit since we are going to have an important planned stoppage in the petrochemical Rio De Janeiro. And I'm also going to link to what Roberto answered in previous question, mentioning the importance of this asset to Brazil because it's the most competitive asset for the company. And by the way, this effect can also be observed in the cash flow in Mexico, which is also a very competitive asset because we are going to have the first planned stoppage for the polymers and also in Mexico, and these were the main effect in relation to the inventory consumption that you asked. In relation to Preziki and Hague, at the end of the day, we are a participant of this agenda. It's an agenda that has been led by ABECI, which is the Brazilian Association of Brazilian Chemical Industry and it's important to understand the context that the chemical industry in Brazil is going through. If we look at the operational tag rate of the industry, it's probably one of the lowest level in history due to competitors or Brazil cost or maybe competition come from different regions. I may mention the situation of the industry as a whole. So, Hague and Brazil are there to bring this competitiveness of the Brazilian chemical industry. Our chemical sector to answer more broadly, is totally globalized. There is no dynamics for the Brazilian market. There is rather a global dynamics that is seen from the point of view of cost, and we see what is the price that is being applicable. So these are fronts that have been led by Abiquin for a while, and Brasco and the Brazilian chemical industry would account for I don't know the exact number, but it accounts for 11% of the industrial share of Brazil, and it's very structuring, and HEIC and PRISIQ would meet the needs of this gap in competitiveness in Brazil. HEIC is a special regime of the Brazilian industry, chemical industry, it's related to the purchase of feedstock, both in Brazil or from abroad. So, when we are purchasing, when products are being purchased, we have a more broader way to look at that, and we have this affected in the Brazil costs when we compare to the other elements. HEIC was created in 2013. The rate at that time, when it was created was 1.20 at the time, and this was related to cost of Brazil and there was a threat from the American producer, such as shale gas. It would have to look at regions which are closer, such as Brazil and HEC in 2013 estimated the reduction in time because we would have conditions to make investments in Brazil and we have fixed stock in a competitive manner available in Brazil. So, those arguments are even valid today and a bit more depreciated, when I say that shale gas is no longer a threat, but it's a reality as Roberto mentioned before, considering the exports from the United States. So, PAIC is addressed and the PIS/COFINS taxes no longer exist after the tax reform. So, what we have is an expansion of this rate tax to BRL 8.25, when it was first created and as of 2027, there is the concept of the credit, financial credit, since we no longer have PIS/COFINS taxes. It's a way to ensure the competitiveness of the chemical and petrochemical in Brazil that in the past few years for different reasons, maybe the competition from China or other factors to ensure the competitiveness of the Brazilian chemical industry, which is a sector, which is very important to the structure of Brazil. When you talk about the spreads, the cycles, what I can say is the following. Braskem is part of a sector that involves cycles that has the foundation of global dynamics at play. So, dynamics is global, it's not only Brazilian, it's totally global. And we define our leverage ratio levels, our indebtedness levels, considering what would be the average for the cycle. So, this is what I'm going to consider, in relation to your question. Let's say, net debt of the company ex-Braskem Idesa, so when I talk about credit, I'm referring to ex-Braskem ex-Idesa, it was BRL 6.6 billion. If we consider the cycle, the historical cycles, the normal would be BRL 2.5 billion. And assuming that today, as a reference, we have a net debt EBITDA of 2.5x, if we consider BRL 2 billion and a half of EBITDA, which would be the low range in historical levels, it would be BRL 6.2 billion. So, our net debt is nowadays it's completely aligned with what would be a normalized cycle. So, answering your question, when do you believe that these normal levels will be reached? So, this is the major question. So, today, when we consider that no rationalization important of the industry because this is something we cannot control. Of course, we haven't observed major companies at the global level announcing hibernation and closures of plants, but considering the increased level of demand, which less intensive when we consider the historical levels, we see that the cycle resumption will take about three and four years. Again, considering not considering any important rationalization way of looking at that. When I look at the regular normal result considering the low levels, I will take as a reference 2019, which was the first year when we had a low cycle, and the business of grain businesses, the business proposal of the grain aspect was not very clear, so the result was much lower. Today the contribution is much more important nowadays. And after 2019, we started a new plant at the United States. So this amount that will be considered to be normal would be close to $2 billion, and that would reach cash breakeven level, which would be something normal for the lower cycle and a lower leverage ratio between three and three point five times.

Perfect, Rosana. Thank you.

Our next question comes from Rodrigo Omeida with Santander. You may proceed, sir.

[Foreign Language] Good afternoon, everyone. Once again, I'll restart because I don't know if I was able to to get my question across. My first question is, with vis-a-vis the import tariffs in Brazil over the past few months, have you seen any impact on market share? I'd like to hear your take on that. And, also, I'd like to understand how shipping prices have impacted the status of Mexican products here in Brazil and in Mexico. And my second question is about the import terminal or export terminal in Mexico. Could you tell us a little bit about how that has impacted your feedstocks? Is there any mid to long-term, forecast contracts and, volumes? It would be very good to understand how that project is coming along.

Sure. I'll begin, Rodrigo, and then, Rosana, you can come in talking about the import tariffs because overall, yes, we have we already do see an impact, but we can give more detail. With regard to Mexico and our transformation plan. We've been performing, as we've also been discussing, an internal project to purchase these vessels through a leasing contract to carry out ethane and, in the future, naphtha contracts. In Mexico, the first vessel arrived in February of '25, and the second vessel is scheduled to arrive in Q2 of '25. So that answers precisely your question. That's the backdrop to this program. It's called Seas of the Future. This has been approved by the administration board a little bit more than a year ago, forecasting that these spreads would be increasingly higher as a result of the lower availability of vessels of that category around the world. So we are well-positioned there. We have started reaping these rewards by reducing the amount that we pay. Of course, we still pay a little bit because we don't have all of the necessary shipping capacity, but we have improved that. It is improving, and it's going to have a significant impact. With regard to your second question and the strategy to purchase ethane from the U.S. As you know, one of the companies in our group is Braskem Trading and Shipping, BTNS, located in the Netherlands, and they have a trade desk focused specifically on these operations. So, that includes spot and short-term contracts and also mid and long-term contracts. All of that is held within that cell that houses our knowledge that we call BTS. They are contracted by Braskem Idesa to manage the purchase of feedstock in the best possible way, in the most optimized way, and combining a short, medium, and long-term portfolio. Ro, could you tell us a little bit about import tariffs?

Yes, of course. A reminder in relation to Mexico, the operations have started. It was a very important investment that will ensure operational availability and imports more than we need. So, at the end of the transformation, we are going to evaluate a possible expansion at the right moment. Only a reminder we have a planned maintenance shutdown. As I mentioned before, the first one since we started the project, so about 40 or 45 minutes is going to stop for a while. We have been building the inventory, but when we talk about running at 100%, this would happen after 2026 only. Your question in relation to freight price, for different reasons, we saw along the time, the past few years, we saw logistics disruption. The most of them come from the Red Sea conflict, that was supporting the freights Brazil, Asia at more than normal levels. What we have been observing in the past few months and we also heard some news of a possible truce in the region, on the part of the United States, so we had been observing the normal situation in relation to those spreads. So, Rodrigo that imports parity that we mentioned that had this positive effect because without a doubt, if our client is importing the freight would be paid and we have been observing these normal levels being materialized that had brought some positive results last year. In terms of market share, of course, we have been observing this and my answer is considering that we were expecting what would be the market share of the company, considering our commercial strategy that we have adopted. And as a reminder that our focus is to meet the Brazilian market, domestic market, when we talk about the Brazilian production, this is the major focus of the company at all times. This is the natural choice for the company. But when I compare the goals that we had, we observed that the market share was a bit higher than we had for the year. It's difficult, if the effect was the market share because there's uncertainties, there are different demands, many variables, effects, variations, but we can say that we have been very successful, especially because in fact we want to be the client's natural choice and the commercial team has been working very hard on this to meet our Brazilian clients the best possible way.

Great. Thank you, Rosana. Thanks, everyone.

Our next question comes from Leonardo.

Please let me just, butt in for a moment because I want to add something to, to Rosana, Rodrigo. I'd like to suggest that all of you, when you think about our switch to gas and fly up to green strategy we, it's a feedstock replacement strategy. We'll replace naphtha with gas initially, and then we'll replace gas naphtha with ethanol. And then in the future, we'll also replace gas with ethanol. In other words, Braskem is not interested in expanding its NAFTA processing capacity. In theory, if someone were to offer us more naphtha to build another battery of crackers, naphtha based crackers, we would say thank you, but no thank you. Our first primary focus is on increasing our gas processing, whether that's replacing naphtha with gas or creating additional gas capacity. As Rosana mentioned, our Mexico terminal is going to allow us to store 88,000 barrels per day of liquid ethane, and our processing capacity for a full plant is 66,000 barrels a day. So that means we have a surplus of 14,000 barrels a day to store liquid ethane. This would allow us to bring the Mexico plant to over a million tons a year, a 160,000 if we were to cap everything out a percent. Certainly, this would lead us to, we would need to build another polyethylene plant in that hypothesis. And in Rio, we also have a lot of production and storage. So our first focus is on increasing gas, proportionately reducing naphtha, and in the future, which for me is the future of Braskem, is to progressively convert away from ethanol because it's a chemical, no longer a petrochemical, but just a chemical feedstock that will give way to the industry of the future.

Our next question comes from Leonardo Marcondes with Bank of America. You may proceed, sir.

[Foreign Language] Hi. Thanks for taking my question. Many of them have been answered already. So I just I have a few. Mostly focusing on the U.S. and Europe. We saw a negative margin, and one of the explanations for that was the drop in polypropylene prices. And in this quarter, the price of propylene rose, and we also saw a relatively low margin compared to other quarters. So, I'm wondering, could you give us a little bit of context about the effect during the quarter, because it would be very interesting for us to better understand the effects of the dynamics of polypropylene on the results in this segment? Thank you.

Do you want to start, and I'll add on. Rosana?

Thank you, Leo, for the question. You're right when you say that we came from $10,000 million, and this semester was $20,000 million. We have some non-recurring effect, but your question relation to propane will be answered looking at the United States, considering the materiality because the production capacity is higher in the United States and the propane dynamics has a positive and negative effect. This is what I'm going to explain. In the United States, we are the largest producer of polypropylene, and therefore, we are the major purchasers of propane. And as a result, we have long-term agreements and many agreements and we have many agreements, whose source of feedstock is different from the refinery or from a petrochemical complex or from a propane dehydrogenator. And the flexibility, which is one of the major differentiators that we have. We have virtual integration. Since we have different sources, we have a level of integration. So, this is what I refer to as virtual integration. When the propane price increases, which is the main feedstock of polypropylene, I have more flexibility when I purchase feedstock, considering all these assets and the cost for polymerization and everything else. Why do not -- we do not see this effect so much since the propane increased? Because along with the quarter, we had some planned shutdowns and some unplanned shutdowns from our, some of our suppliers. So, this flexibilization was limited, if we consider those planned and unplanned shutdowns that we had along the quarter. So, at the end of the day, when, whenever propane increases, we expect to have even more positive results, considering the difference that we have in the United States, associated with the flexibilization of supply and sources of feedstock as well.

I'd just like to add, the sources of propylene are essentially from refineries, from naphtha cracking, or from dehydrogenating propane. The major growth of the supply of propylene in the U.S. came from new propane dehydrogenation plants. Actually, the plant that we built in Lacoste was to consume feedstock coming in from dehydrogenation units. These plants are difficult to run. There are people who can run them very well and other people who really have a hard time. So, you've got an offer of propylene that is very variable due to the effectiveness of the dehydrogenation plants. When it comes to using the propylene, we use it to create polypropylene, we also use it for the acrylate -- for the whole acrylate chain, and you can also use it to anculate, different products. So if you reduce the use of gasoline in the U.S., you're going to have less, less feedstock, less propylene because you will use that feedstock to produce the gas that is used. As a result, you'll have a drop in the price of propylene in the U.S. and more competitive in propylene production there, and we have our assets there, and we will always value and prioritize our assets. And so we have a very large propylene plant in the U.S., and I'm confident that there, we can increase the production of polypropylene. Recently, we took upon ourselves a challenge of increasing our production capacity, which may even surpass the installed capacity because there's always a little bit of headroom for any of these plants. So our challenge is going to be on demand to have sufficient demand for us to increase production, which is always the case in an industry like ours. The more you increase production capacity and production itself, the lower costs we will have because indirect costs are better absorbed, and so you become more competitive and more profitable.

Thank you. That's very clear. Thank you.

We end now the Q&A session. Braskem's video conference has come to an end. We would like to thank everyone, and have a good afternoon, everyone.

Good morning everyone and thank you for waiting. Welcome to Braskem's Fourth Quarter of 2024 and the Full Year of 2024 Results Conference Call. With us here today we have Mr. Roberto Ramos, Braskem's CEO, Mr. Felipe Jens, Braskem's CFO and Ms. Rosana Avolio, Investor Relations, Strategic Planning and Corporate Market Intelligence Director. We inform you that this event is being recorded. The presentation will be held in Portuguese with simultaneous translation into English. All participants can choose which language to listen to and see the presentation using the show captions and view options buttons respectively. I will provide this information now in Portuguese. With simultaneously translation into English. All participants can choose which language to listen to and see the presentation using the show captions and view options buttons respectively. After Braskem remarks there will be a question and answer session. At the time further instructions will be given. After Braskem's presentation we will start the Q&A session when further instructions will be given. The audio of this event will be available on the investor relations website after it ends. We'd like to remind you that participants will be able to register questions for Braskem which will be answered after the end of the conference by the IR department. Before proceeding we would like to clarify that any statements that may be made during this conference call regarding Braskem's business prospects, projections, operational and financial goals constitute beliefs and assumptions of the company's management as well as information currently available to Braskem. Future considerations are no guarantee of performance and they involve risks, uncertainties and assumptions as they refer to future events and therefore depend on circumstances that may or may not occur. Investors, analysts should understand that general conditions, industry conditions and other operational factors may affect Braskem's future results and may lead to results that differ materially from those expressed in such future conditions. I'll now turn the call to Ms. Rosana Avolio, Investor Relations, Strategic Planning and Corporate Market Intelligence Director. Ms. Avolio, you may begin your presentation.

Ladies and gentlemen, thank you for participating in Braskem's conference call where we will discuss the results for the fourth quarter and the full year of 2024. According to the agenda on Slide number 3, we will begin with the company's main financial highlights for the period which can be found on slide four. In the fourth quarter of 2024, the main spreads on the international market fell in relation to the previous quarter, especially the reduction in the spreads for the PE and main chemicals, impacting on the company's results which, at the end of the period, had a consolidated recurring EBITDA of US$102 million, with operating cash generation of US$204 million and recurring cash generation of US$45 million. During the year, the global geopolitical scenario, mainly associated with the conflicts in the Red Sea, had an impact on the level of rising sea freight, resulting in higher spreads, especially for polyethylene. In addition, the higher volume of polyethylene sales in Mexico and the main chemicals in Brazil contributed to the consolidated EBITDA of the year of US$1.1 billion, 46% higher than in 2023. As a result, operating cash generation was approximately US$788 million in the period, while in the year we had a cash consumption of US$91 million. With regard to indebtedness, the company's profile remained very long, with an average term of around 9 years and with more than 68% of corporate debt maturing after 2030. In addition, Braskem's cash position ended 2024 at US$2.4 billion, sufficient to cover debt maturities over the next 47 months, without considering the available international revolving credit line of US$1 billion maturing in December 2026. Due to the better recurring EBITDA, the company's leverage was approximately 7.42 times, a reduction of 0.7 times when compared to the previous quarter. Moving on to the next slide, I'll make some comments about the company's main operating results for the quarter. In 2024, the average global accident frequency rate was 0.91 events per million hours worked, a reduction of 16% compared to 2023, demonstrating the company's non-negotiable commitment to the safety of its members and its operations. In line with the strategy of optimizing and transforming the company's assets, CapEx disbursed during the year was 40% lower than the average of the last five years. With regard to the operating performance, the company's utilization rates were higher in 2024 in Brazil, due mainly to the normalization of operations after the scheduled maintenance shutdown at the feedstock petrochemical plant in Bahia in the fourth quarter of 2023, and in Mexico, given the higher supply of feedstock in the year. It's worth noting that Mexico ended 2024 with the highest production volume in the segment since 2017. In the United States and Europe segment, the lower production in the year is explained by the scheduled and unscheduled maintenance shutdowns at the polypropylene plants in both regions. Lastly, the higher utilization rates in the Brazil and Mexico segments contributed to the higher sales volume achieved in the year, with an increase in the sales volume of main chemicals in the Brazilian market and of total green polyethylene, registering an all-time annual sales record for the biobased resin. In Mexico, the best operating performance contributed to a 5% increase in sales volume in 2024. Moving on to the next slide, please. In the next slides, I will present the performance of the company's segment, starting with the Brazil segment. With regard to operating performance in the fourth quarter, the average utilization rate of the petrochemical plants was lower compared to the third quarter in three percentage points, mainly due to the following factors, adapting production to the seasonality of the period, operational stability in Rio Grande do Sul, and maintenance shutdown at the company's PVC plant in Bahia, in addition to the shutdown of a Brazilian supplier, which impacted the availability of feedstock for the Rio de Janeiro operation. When comparing 2024 with 2023, the utilization rate remained at the same level. Sales volume in the Brazilian market was lower in the quarter by 7%, impacted by the lower demand in the period, while in the on-year sales comparison it remained in line. Regarding the result for the year, the recurring EBITDA for this segment was $889 million, an increase of 1% over the previous year. The result was positively impacted by the higher sales volume of main chemicals in the Brazilian market, the higher spreads in the international resins and main chemicals market, and the depreciation of the average Rio in the period against the dollar, since the segments are linked to the international revenues in dollars, while part of its cost structure is in reals. Let's move on to the next slide, please. As for the green ethylene operations, operational instability at the Rio Grande do Sul petrochemical plant had an impact on the utilization rate, which ended the quarter at 77%, 18 percentage points lower than the third quarter. In the year, the average utilization rate was higher by 7 percentage points, mainly due to the normalization of ethanol supply, which had been impacted in the end of 2023 due to the weather conditions in the region. In contrast to the volume produced, sales of green polyethylene increased by 24% in the quarter, mainly due to the higher demand in Europe and Asia. In this regard, annual sales of resins from renewable sources increased by 23%, reaching an all-time high in terms of volume sold, with 191,000 tons sold in the year. Let's move on to the next slide. In the United States and Europe segment, the utilization rate in the quarter was 9 percentage points lower than in the third quarter of 2024, mainly due to the scheduled shutdowns in European plants and the adjustments of production in the United States in the face of the seasonality. Due to the lower demand in the quarter, the volume of PE sold was 10% lower than in the previous year. Following the same rationale, accumulated sales for the year were also lower compared to 2023 by 7%. In this scenario, the recurring EBITDA of the segment in 2024 was US$177 million, 34% lower than in 2023. Moving on to the next slide, where we'll talk about the Mexico segment. Operations in the segment were better both in the quarter and in the year 2024, compared to their respective previous periods. Greater supply of feedstock was the main factor behind the higher utilization rate, which ended the year at 78%, recording the highest annual volume produced since 2017. In line with the higher utilization, polyethylene sales recorded an increase of 5% in the year, but in the quarter, the 6% reduction is mainly explained by the seasonality of the period and the process of restocking in the chain. As a result, mainly of the increase of volume of PE sales due to export opportunities, the increase of 17% in the polyethylene spreads on the international market, given the lower price of ethane, recurring EBITDA for the year was US$280 million, 166% higher than the result of 2023. Moving on to the next slide, we will begin the discussion on the company's consolidated financial performance. With regard to the company consolidated of the company, the result for the year was 46% higher than that of 2026, as a result of higher spreads in the international market, especially in the polyethylene in Brazil and Mexico and the main chemicals in Brazil. In addition, the higher volumes of sales in Brazil, in main chemicals in Mexico, in polyethylene, contributed to the positive result. In addition, the actions implemented with a focus on the company's financial preservation had a positive impact on the result, including the commercial strategy of prioritizing and optimizing sales and the reduction of about US$82 million in general and administrative expenses in the company's reportable segments. Now, let's move on to the next slide. In 2024, the company had an operating cash generation of approximately R$4.1 billion, mainly due to the 54% increase in consolidated recurring EBITDA in reals, the 31% reduction in the operating capex, with no impact on the reliability and safety of operations, and the lower disbursements on strategic investments through the strong prioritization of investments made in the year. Recurring cash consumption of R$499 million was mainly impacted by the increase in the interest payments related to the issuance of debt securities on the international market and by the variation of working capital. Considering Alagoas' disbursements, which were 4% lower in the year, the company had a cash consumption of around R$3 billion. Now, let's move on to the next slide. At the end of 2024, Braskem's Idesa net debt stood at US$6.3 billion, maintaining an elongated profile with an average term of around nine years and 68% of the debts concentrated as of 2030. The company liquidity levels is sufficient to cover its obligations for the next 47 months. Corporate leverage ended the year at 7.42 times, a 0.7 times reduction compared to the previous year. It's worth noting that, in line with its strategy of maintaining financial health, Braskem issued debt securities in the amount of US$850 million in October 2024, maturing in 2034. In addition, the company partially repurchased its hybrid bond, maturing in 2081, using US$369 million of the funds obtained from the mentioned issue. Lastly, the company maintained its BB Plus rating in the credit risk assessments in the Fitch and S&P rating agencies. Now, let's move on to Slide 14, where I will comment on the main updates from Alagoas during the period. On the salt cavity closure front, a new recommendation from the technical consultancy hired by the company considers that, once the current filling plan has been completed, it's recommended to fill the cavities that are currently pressurized. To this end, the company increased its provision by US$1.3 billion, of which US$1.2 billion was earmarked for the measures to fill the 11 salt cavities that are currently part of the tampooning and the pressurization group. In this way, provisions are made for actions to ensure that the 35 cavities reach a maintenance-free state in the long term. These actions for definitive closure, in case they be necessary, are scheduled to begin in 2027, with execution over several years or even decades. Therefore, for this front, R$5.6 billion have been provisioned so far, with RS$3.1 billion already disbursed and R$2.6 billion in balance at the end of 2024. Now, let's move on to the next slide. At the end of 2024, the total provisions for Alagoas event was around R$17.7 billion, of which around R$12 billion had already been disbursed and approximately R$750 million had been recorded in other obligations payable. In addition, around R$600 million was recorded as a realization of the adjustment to present value. As a result, the total provision balance at the end of the fourth quarter of 2024 was R$5.6 billion. Now, let's move on to the next slide, where I will comment on the progress made in 2024 and the company's strategy within the priorities agreed for the year 2024. During 2024, important progress was made on the agreed priorities. In Maceio, updating the provision in order to include the actions, if necessary that ensure that 35 cavities reach a maintenance-free state in the long term represented an important stage in the cavity closure plan. Additionally, the financial compensation and reallocation support program around 99.9% of the proposals were submitted. In this way, the case of Maceio is moving forward on all fronts and the company remains focused on completing the commitments it has made. As for the optimization of its assets, Braskem constantly evaluates the value levers for its assets, as was the case of the process of selling control offset trail. Additionally, in 2024, actions were taken to optimize costs and the reliability of its feedstock, such as an increasing presence in the maritime sector. With regard to financial resilience actions, a positive impact of around US$196 million in EBITDA and around US$470 million in cash generation was achieved during the year. The initiatives were divided into five fronts of action that relied on the constant engagement of various teams, such as commercial, tax, treasury, among all the members who individually collaborated to optimize the company's costs. With regard to the competitiveness agenda for the Brazilian industry, the approval of increasing the import tax rate in Brazil and the announcement of the REIQ investments, which provides incentives for projects to increase capacity in industry, represented a considerable step forward in terms of Brazilian competitiveness. In terms of investment strategy, the company has considerably prioritized its investments, focusing on value agendas for bio-based growth avenues, such as the integration of the new renewables laboratory in the United States and the hiring of the Toyo Engineering to continue advancing the project for Braskem's new green ethylene capacity in Thailand. Finally, in Mexico, the construction of the ethane terminal is nearing completion, and at the end of December 2024, fiscal progress had reached 94%. This concludes the overview of the results of 2024, and starting with the next slide, we will present the outlook for the coming year, beginning with expectations regarding the company's operating scenario and the petrochemical scenario. In terms of operations, all the company's segments are expected to show higher utilization rates in the first quarter of 2025, either due to the absence of planned operational events and the adjustment to the higher expected sales, or by the supply, which is stable, of feedstock. In Brazil, the growth of resin sales will be supported by increased demand from the consumer goods and retail sectors, which are resuming stock building after the end of the year. The other segments are preparing for an increase in demand due to the nature of the period. As for the scenario international spreads, the first quarter and the year of 2025 will continue to be challenged by the prolonged downwards cycle due to the entry of new capacities that oversupplies the market. In the quarter, the expectation of higher PE prices due to the higher demand at the start of the year, coupled with the still low level of ethane, favored the strength of base gas operations in Mexico and in Brazil. On the other hand, the PP market continues to be challenged by the current level of propylene prices due to the maintenance ceases at PDHS units that produce propylene on purpose in the United States and Europe. Finally, the year of 2005, according to external consulting, tends to show spreads in line with 2024. The expectation of an improvement in global demand, influenced by possible resolution of geopolitical conflicts, could partially reverse the scenario, in addition to an increase in the rationalization of less competitive capacities, which could lead to an improvement in global utilization rates and, consequently, to spreads. Moving on to the next slide, please. Lastly, I will comment on the company's strategic direction for the coming years. With regard to the company's strategic direction for the coming years, Braskem will focus on three main pillars of action, namely foundation, resilience and financial health and defense of the Brazilian chemical industry and or transformation. Regarding the foundation, safety, people, culture and governance actions will continue to be a structural part of the company's strategy and excellence in performance and the process simplification will be continuously demanded and recognized. On the resilience and financial health front, the focus will be on tactical initiatives that will mitigate the impact of the petrochemical downturn. In this sense, the balance between prioritizing expenses and strategic initiatives, optimizing sales and raw materials, promoting institutional initiatives and defending the Brazilian chemical industry will be essential for the company to contribute to face the challenges of prolonged downturn. In addition, we are reassessing and prioritizing our assets and investments, both operational and strategic, in order to optimize capital allocation and cash generation. We will implement actions to sustain the current business and focus on building Braskem's of the future. We will maximize the use of gas as a feedstock in our operations, allowing for greater efficiency and competitiveness. Finally, we will seek to accelerate the growth of the green business, leveraging Braskem's competitive advantages of market knowledge, access to feedstock, technology and leadership by moving forward with the execution of the potential investments in Thailand and the development of the product portfolio. These actions are essential for the perpetuity of the business and fundamental for the recovery of the Brazilian chemical and petrochemical industry. Now, moving on to the next slide, in line with the strategy of transforming the business by increasing the use of ethane, its feedstock matrix, in order to make the Brazilian chemical industry more competitive, we announced that the Board of Directors has approved the start of the project to increase the capacity of its petrochemical plant in Rio de Janeiro by 220,000 tons of ethane per year and equivalent volumes of polyethylene, authorizing the contracting of conceptual and basic engineering studies in an amount of about R$233 million. To make the project viable, the company will sign a long-term ethane supply contract with Petrobras and will seek to use the resources provided for under the special [indiscernible] which provides for a presumed credit of 1.5% of fees taxes for investments in expanding the installed capacity of the Brazilian chemical industry. Now, let's move on to the next slide. Closing the presentation, the company's priorities for 2025 will have four main focuses, moving forward with the implementation of asset transformation initiatives, implementing contingency initiatives for the petrochemical cycle with the focus on financial preservation and cash generation, fostering the competitiveness agenda of the Brazilian chemical industry, seeking measures that can guarantee competitive equality and continuing to fulfill the commitments established in the agreement signed in Maceio. Our priority is always to act safely to preserve the health of our members and communities, which is a non-negotiable value for the company. Finally, we conclude the presentation of Braskem's results for the fourth quarter and for the full year of 2024. Thank you very much for your attention and we will now begin the Q&A session.

[Operator Instructions] Our first question comes from Nicolas Barros with Bank of America. Nicolas, you may proceed, sir.

Good morning, everyone. Can you hear me? Good morning. I have two questions. It's been roughly four months since we started implementing the higher import taxes. So, how do you see the competitive scenario with respect to imports? You really emphasized that the strategy would be to retake market share and margins. So, I'd like to confirm whether, from your point of view in terms of market share and participation, have you been able to recover that? And secondly, what about capacity across the sector as a whole? I think that's the main difference when we talk to you about the expectations for SMEA. I'd like to understand what you expect the prices to be in the midterm vis-à-vis the SMEA. Could you talk about margins, utilization rates, especially compared to Europe? And what do you consider to be -- what do you forecast to be the results for the numbers for the coming years? Thank you.

Rosana, do you want to take this one?

Good morning, Nicholas. Good morning, everyone. I'm going to touch upon your point -- your question, very briefly. So, this balance between market share and price policy that can ensure the quality of the Brazilian chemical industry, which is something very important for the company. After we saw this increase from 2.6% to 20% for the resins produced by the company, there was an exchange rate that depreciated. I would like to remind you that the revenues are linked to the dollar, and the structure in Brazil is associated with real. So, this exchange rate helps us. We always look at the profitability and the cash flow. Yes, Nicolas, we saw an effect that can be a cause of the effects. And we'd like to remind you that demand in the fourth quarter, not only in Brazil, but across the world, is a demand that has an importance, is an ability. So, when we see this increase in the tariff, this increase, we have to protect and ensure this balance because we are talking about suppliers that come from different parts of the world with competitive prices. And this is something that is going to materialize in 2025. When you talk about the rationalization of the sector, to put into a context, this is something that can improve the spread. In fact, in our presentation for the call of results, we are experiencing a more elegant cycle. So, the global market, when you compare to previous periods, we see that the global demand grows less than in the past. And this is something that we saw in the spreads that were under pressure in more elongated periods. And the producers who have more competitive raw materials have a higher competitiveness than other ones such as naphtha in China. In terms of rationalization, I would say that we are considering the global offer and I would make a balance of the global offer because both for PP and PE, in the past four years, we saw that there is a backlog due to the need for the balance that amounts to nearly 4 billion tons. And this would help balance this in the world. So, external consulting firms consider in the right curves only the capacity that had been confirmed by the producers. I'm going to give you an example. A consultancy which is very renowned and uses, they said that polyethylene for 2025 is considering a closure of less than 200 million tons. And what we do when we define our premises, when we consider the global market, considering all the markets that bring in a very important intelligence to the company. In fact, we evaluate what are the costs of global producers and we are aware that the Chinese producer may have a different indicator that's not only economic and this is what we believe. And we believe that there is a difference of nearly 30% because we consider to have a hypothetical rationalization. And if we look further into the future, as for polyethylene, the external consultant brings a rationalization of 3 million tons. So, we believe that it tends to be 8. So, that rectified the way of thinking. If you consider what's happening at the global petrochemicals and there is a natural region that we look at that would pose more risks in terms of portability, which is Europe, considering the energy costs in Europe and also Asia. China is being treated in a different way based on what I mentioned. Anyhow, we are going to see a cycle, a low level cycle with the spreads improving its margin. And since we do not control this rationalization across the world, we are going to continue the resiliency strategy and do more with what we have. And with this cash generation, we want to make it stronger, make it more robust in the short term to accelerate our transformation and this can ensure the perpetuity of our business.

Okay, Rosana, thank you very much.

All right. Thank you, Rosana and best of luck, Felipe.

Our next question comes from Henrique Perez with BTG Pactual. Henrique, you may proceed.

Hi, everyone. Good morning. Can you hear me?

Yes.

I have two questions. First is about logistics optimizations and the company fleet. You recently acquired your first vessel. What gains do you see from this new ship that you added to your fleet? And to what extent do you intend to expand? How many vessels do you intend to add to the fleet? And how much would that cost over the coming years? And the second question is, is there any update in regard to the due diligence processes that the company had been involved in last year? Anything linked to M&As or shareholder exchanges that you could comment on?

Hi, Henrique. Good morning. Thanks for your questions. I'll start with the second one and I'll pass the first one to Rosana later to discuss the ships and the project that Braskem has with regard to these ships, not just for Ethane but also for naphtha and others as well. This will improve our competitiveness overall. With regard to the shareholder process, specifically Novonor, this is a topic that we do not get involved in. We've mentioned this on a number of occasions. This really is an agenda that is handled exclusively, solely by the shareholders. Our role at Braskem is when we are called on, we answer the due diligence for everyone who is an interested party. There are a number of different questions and processes with regard to the due diligence that were done, especially over the year of 2023 and part of 2024. At the time, this was much less intense than the first half of the year. So, that's what we know. We have not received any other requests for answers, relevant requests. And so, we are currently focusing on Braskem and its challenges, as was very aptly put by Rosana and the transformations that the company has become engaged in to change its financial status for the next quarter. Rosana?

Yes, thank you, Felipe. Only to provide you a context in relation to Braskem partnership that is based in Europe and Asia, it's located in one of the main port areas in the world, which is in Amsterdam and Antwerp, and it has easy access to several suppliers. And this unit has been gaining importance in the value creation of Braskem. We have been reporting at recurring dimensions, because this is responsible for the exports of our materials, and I'm going soon to answer your question. This is favoring not only Braskem, but also Braskem Ideza. The first vessel that we announced is going to bring a lot of value to the company. We are talking about a dedicated ethane transport, and there's another vessel that is going to be ready in the middle of this year that will ensure an operational balance of Ideza. And it's very competitive, it's based in an area of polyethylene. So, the restriction has always been the provision of raw materials. We were very successful when we negotiated our contract with Pemex, and now with the construction of the terminal that is likely to start its operation in the second half of this year. So, we have the terminal of Braskem Ideza that will provide what we need in terms of ethane, and it also understands that this is aligned with the purpose of the company, and the gas base is going to be expanded. The ships are dedicated to Braskem Ideza, and in fact, they are going to be used between Mexico, and this is operated by Brazil trading ship in a special system that will bring cost-related benefits to Braskem Ideza. And this is also applicable to Braskem, because we're talking about naphtha ships today, considering the full load. So, this is what I'm going to consider in the information I'm going to provide. It's been considering 70% of what we need. So, this will bring an operating balance and stability. So, naphtha ships are being built in this format, and next year it's going to start operation. That will bring an important benefit for us. Of course, considering the current freight, we understand that there are natural volatility of the freight, as we have seen in the past few years, but I would say that since we are considering different ships, we are going to reach $50 million to $80 million along the time, considering the references that we have of the current market and the public expectations that we have in relation to the market.

I'd just like to add, Henrique, that the fact that we own the ships, they were leased, technically. So, we do own them. I mean, we have control over them. Transportation of liquid ethane can only be done on 12 ships around the world. There only exist 12 ethane-loading ships around the world. So, we may have the liquid ethane, maybe the U.S. or Argentina. You have demand for liquid ethane. We clearly have that demand here in Brazil. But transporting that ethane by sea will depend, necessarily, on the existence of ships. So, having a ship of our own reduces that dependency that we have and gives us efficiency to transport that material to our units.

Perfect. Thank you.

Our next question comes from Pedro Gama with Citi. You may proceed, sir.

Hi, everyone. First, I'd like to wish Roberto and Felipe a successful journey. I have a pair of questions. First, it's about CapEx and then it's about operations. Your 2025 CapEx is very similar to 2024's. So, I'd like to understand what is included in that, because historically, the company's maintenance CAPEX is around $500 million to $600 million a year. I'd like to understand whether you expect that to be maintained for 2025 or that will be delayed or postponed. And next, about your strategic positioning, you mentioned the switch to gas and fire to bring you. The switch to gas, how do you see that moving forward? And also, on the topic of Rosana's answer just now, the terminal should enter operation soon. Considering the current petrochemical market, what -- how much improvement do you expect to see in the Mexican numbers in 2025 and for 2026, with the terminal operating 100% of the time? Thank you.

I'm going to answer your question about CapEx and operations, and then I'll turn the floor over to you, so that you can talk about the strategic direction. Thank you, Pedro, for the question. So, let's separate some information. We announced CapEx for 2025, considering the capital budget of $484X, and $404 maintenance, which is in line with what we had in 2025, $4 million that we consider to be strategic in a practical definition in company, which is related to a land in the central of Rio de Janeiro. And the $80 million are those which have been approved, considering the HIC investments, those contacts that we have recently announced, an event that we had in the south of the country, in an event. So, $80 million in projects for value creation. In other words, we are going to generate positive cash flow at the end of 2026, beginning of 2027. It's in the CapEx, but as a reminder, since we are going to use the fiscal credit as a funding for rate investment, it does not have an impact on the cash generation. So, we come to that amount that had been announced for 2025. In relation to planned shutdowns, you're right when you say that we consider a more elongated history of the company. Our maintenance CapEx stands at 550, rounded numbers, of course. In fact, the planned shutdown is in the central of Rio de Janeiro, and we have been doing some bid-stop exercises, and we needed to have this optimization. And this optimization of the CapEx is one of the drivers that we are going to use for the optimization of the cash that we have been announcing to the market. Of course, this is very important information without putting the safety, which is a non-negotiable value for the company. This is non-negotiable, and we're going to prioritize this, and we're going to provide some light, and we're going to enhance the values that generate more cash to the company. So, this is the exercise that we have been doing, and we are going to continue doing this. In relation to Braskem, and your question, yes, as I said before, we have the expectation that the terminal will start up in the beginning of 2025, second half of 2025, and this is going to be a very significant year for Ideza, because we are going to have the first major shutdown for maintenance. Of course, a planned shutdown for a petrochemical complex, where it's going to be stopped for about 40 or 45 days, has an impact on the operation, of course. So, 2024 was a year of big highlights in terms of production, and in the release of results, we mentioned this. Our expectation is that, as you can also see in the presentation, that even with this planned shutdown, we are going to have an increase in the operation rate. In terms of 2026, the focus is to run at full speed. It's a new asset, new technology, and it's the best operating asset of Braskem, because it is ethane-based, 100%. As I mentioned about the dedicated logistics, considering this liquidity that we see in the world, so the total focus of the company is to run at full speed, and at the proper moment, as I said before, as the terminal would allow for that, we are going to look for expanding the plant to 10% to 15% with low CapEx. The Braskem Ideza, it is a plant that dates back 15 years ago, was made to accept some level of expansion. So, we have already mentioned the fixed cost, we already have decided what the logistics is going to be. So, 2026, we're going to run at full speed, and 2027, we're going expand to that. I'm going to pass the floor to Roberto.

I just want to add, actually, before I pass the mic to Roberto, and to mention something you brought up, and the company's transformation, what we call switch to gas and the fly-up. These are two of the components of the company's transformation that begin today with our new cycle with Roberto, that is being approved by our Board, and our fight to be competitive, as well as our work with Abiquim. So, this is essentially the tripod of our transformation journey that begins here at Braskem. With regard to the switch to gas program, and also fly-up to green, and the new projects that these $82 million have been earmarked this year, as Rosana mentioned, we are working to build resources, not just with the REIQ investments, but also with regard to making our assets generate cash for the company, and our financing, so that we can obtain important financing sources, such as development lines to expand our Brazilian capacity, such as the BNDES here in Brazil, as well as international sources that understand the importance, especially of green projects, and lines in the long term with lower spreads that can be structured through project financing and other mechanisms, vis-à-vis how our assets and future cash flow will be allocated. This is an extremely important asset that we are working on now at the start of the year, with this journey and these projects, and the potential to increase the company's cash generation potential, and our transformation will make us less susceptible and less volatile to supply and demand, and as a result, prices and spreads of fossil components. Remember that green has proven and continues to prove to be strongly disconnected from these fluctuations, so this is part of the strategy of the journey that begins now. Roberto, please.

Absolutely. I think you both have already said enough, but just to add, our primary priority in our switch to gas is recognizing that naphtha, which was the petrochemical input, par excellence, has been involved in the creation of the two Brazilian petrochemical sources, [indiscernible] , by cracking naphtha and generating not just ethylene and polypropylene for polymerization, a number of other processes, the aromatics, benzene, toluene, natural gas, and others, that in turn were processed or industrialized by other downstream industries. So what happened was that naphtha, which was responsible for 75% of all polymers and plastics produced in the world, lost space, especially for ethane, after the increase in the scale of exploration of the shale gas resources in the U.S., as well as the gas reserves in the Middle East, especially in Qatar. This provided an alternative input, ethane, which, after being cracked, cannot produce all the products that naphtha can, but which is much more competitive. One ton of ethane costs $200 per ton, and naphtha costs $650 a ton. So if you process ethane, you have a competitive advantage, which is something like 78% of production costs, and naphtha producers cannot make up for that with the revenue of what they call the co-products, the aromatics, benzene, ethane, and others. So today, if your industry is based on naphtha, unless you're in China, China has a logic all its own, not necessarily the same as ours. Their valuation manuals are different from ours. But if you have a naphtha based center, you need to try to reduce your naphtha content and try to start processing gas as well, in as much as your equipment allows us. We are doing that in our plant in Bahia. We're doing that in some of the ovens using hybrids, such as 90-10%. And our goal is to increase that to have 20% ethane and 80% naphtha, thereby consequently gaining lots of competitiveness derived therefrom. In addition, some of our ovens in the south can also crack propane, which is the case of the Rio de Janeiro one. They can crack a mixture of ethane and propane. But in the south, some others can process propane as well. And we are searching for alternatives to buy propane in the south and to use in our furnaces there in the south. So there's a lot of competitive advantage there. It's less obvious and less evident when you process ethane, but it allows you to expand the percentage of gas that you use in your naphtha mix. We, in the future, could increase that maybe up to 40% or even more. So our switch to gas is one step forward in our cruise flight, which is to make Braskem a green company. We are a global leader. We have a comparative advantage because of Brazilian ethanol compared, for instance, to US-based ethanol. And therefore, the future of Braskem, and here I'm talking about the future maybe 10 years from now, we are increasingly going to be a company where fossil inputs and materials are not as representative, not because they decreased, but because they were gradually replaced in terms of percentage by non-fossil ones. And what Roberto said also, these are different products. They follow a different market logic. If you buy green polyethylene, you do not also buy fossil polyethylene. They are not the same buyers. And if you do buy it and use it for, let's say, quote unquote, non-noble purposes, they don't want to buy green polyethylene because they're not willing to pay for that price. So there are two different dynamics. While the first that is the fossil resins, are subjected to supply and demand, traditional supply and demand. And in this case, specifically, a very lengthy low cycle. We do not forecast its reversal at least until the end of the decade. On the other hand, green resin follows a different logic. There is growing demand and there's only one supply, which is ours. So that is our future. However, to get there, we need to deleverage the company. And we're going to deleverage the company by generating cash in the fossil field with adaptations to the market. And we're going to process gas everywhere we can. And in that progress, in that journey, we have some low hanging fruits, which are obvious improvements. The expansion in Rio de Janeiro, which we announced today, and the expansion in Mexico. These two can add almost 400,000 tons of green ethane and consequently, green polyethylene, with a comparative advantage compared to the alternative, which would be to do the same using naphtha.

All right, that was very clear. Thank you.

This concludes today's question and answer session. I would like to turn call over to Mr. Roberto Ramos for his final remarks. You may proceed, sir.

Thank you very much. I'd like to thank you all for being here. And I'd like to say that we want to make this channel of communications all that much closer. And to provide information to the market, we are going to organize a roadshow in April, where we will offer more details as soon as we have the approvals that we need. We want to make it very clear that Braskem has a strategy, that in our opinion, this strategy has been very well defined. It's important to say that this strategy was not conceived of by a consultant. It was conceived of in-house. Countless studies that Braskem has carried out over the years with regard to the transformations that needed to be done. And if there's anything that was missing, it was a little bit of priorities and resolve to put all of these plans into operation. And I think that we have successfully done that. And also a sense of urgency so that we can make the most of the REIQ benefit until that REIQ incentive is replaced by something else. So we can finance many of our investments. And all of them are transformational through funding created by REIQ. And so we cannot waste time. We're going to implement all of these projects in a fast-track regime, where we strive to implement tasks in an overlapping manner, such as basic engineering, detailed engineering, supply engineering, construction. And all of these are going to overlap by approximately one third, thereby reducing the implementation time from these investments, which would normally be three to four years. We'll reduce it down to two to three years and thereby improve our results and create a much clearer and more solid future for the company. So thank you all once again. We are always available. We always love to listen to you. We'll be with you in our next earnings call in April. Thanks a lot. Take care.

That concludes Braskem's video conference for today. Thank you for your participation and have a good day, everyone.