Matheus Enfeldt

Matheus Enfeldt questioned the timing of portfolio decisions and Raizen's capital structure solutions, seeking clarification on the urgency. He also asked for details on Moove's Q3 2025 results, distinguishing operational contributions from insurance proceeds or tax credits.

Answer

Rodrigo Araujo Alves, CFO of Cosan, detailed Moove's volume recovery, ongoing plant reconstruction, and significant insurance proceeds received. Marcelo Martins, VP of Finance, Cosan, clarified that Raizen's capital structure solution has a sense of urgency (within six months), and portfolio divestments will be executed strategically without 'fire sales' but in a coordinated and organized fashion.

Matheus Enfeldt questioned the outlook for the interest coverage ratio, noting it could fall below 1.0x in Q2 2025 and asking if this would trigger any debt covenants. He also asked about cash needs at the holding company level, given dividend obligations to preferred shareholders at Compass and Cosan Nove amid uncertain dividend flows from Raizen.

Answer

An executive clarified that a drop in the interest coverage ratio is not a covenant trigger but underscores the strategic urgency to reduce net debt. Regarding cash flows, he explained that dividend payments to preferred shareholders are not obligatory and that the efficiency of these structures is continuously monitored against other capital alternatives, especially concerning their fiscal impact and cost.

Matheus Enfeldt questioned the sustainability of the dividend policy in a low oil price scenario and asked about Petrobras's competitive strategy in the LNG market.

Answer

Fernando Melgarejo, Executive Director of Finance and IR, affirmed the commitment to the dividend policy, explaining the debt ceiling was raised to $75 billion to provide flexibility and accommodate new revenue-generating assets. Claudio Schlosser, Executive Director of Logistics, highlighted that the Boaventura (Route 3) project is a key part of their strategy to significantly increase domestic LNG supply and competitiveness.

Matheus Enfeldt of UBS inquired about the potential future size of Adecoagro, given the significant financial backing of Tether. He asked whether the company might pursue large-scale M&A to dramatically increase its capacity or if growth would be more complementary. He followed up by asking what leverage ratio the company would be comfortable with during a major expansion cycle.

Answer

Executive Chairman Juan Jose-Pineyro Sartori indicated that the company 'could grow quite a lot,' with growth being determined by management's proven ability to integrate assets and Tether's substantial financial capacity to support good deals. In response to the follow-up, Executive Mariano Bosch noted that growth would be pursued through various avenues, considering the 80% ownership cap and debt levels. Mr. Sartori added that alternative financing like tokenization and joint ventures could also be explored, providing capital beyond traditional debt or equity.

Matheus Enfeldt from UBS inquired about the timeline for clarity on the Tether acquisition offer and its impact on management's focus. He also questioned the constraints on increasing sugarcane crushing volumes for 2025, asking if it was purely weather-related or if more third-party cane could be sourced.

Answer

Executive Emilio Gnecco stated that due to legal restrictions, the company could not comment further on the Tether proposal but assured that operations continue normally. Executive Renato Pereira explained that crushing is constrained by prior dry weather which forced an advanced harvest, leading to a slower start to the year. He noted that while some third-party cane is contracted, they do not anticipate needing additional supply unless weather conditions worsen.

Matheus Enfeldt questioned the company's higher CapEx rate, particularly for expansion in sugar and ethanol, asking for the outlook on spending levels through 2026. He also inquired about the development of production costs.

Answer

Executive Mariano Bosch stated that the company is focused on being a low-cost producer and expects production costs to decrease in the next campaign. Regarding CapEx, he emphasized that shareholder distributions remain the priority, but the company is pursuing high-return growth projects. These include biomethane production with high levered returns and sugarcane plantation expansion. Investments are also being made in the profitable Rice and Dairy segments, all targeting unlevered IRRs of 18-25%.

Matheus Enfeldt of UBS Group AG asked about Ultrapar's ideal leverage target following the consolidation of Hidrovias and inquired about further investment plans, specifically in the TRR segment and for the AmPm convenience store chain.

Answer

An Ultrapar executive explained that consolidating Hidrovias will increase net debt by approximately 0.3x to 0.4x, but they anticipate rapid deleveraging due to strong cash generation. The executive characterized the TRR investment as a small, regional move and highlighted significant growth potential for AmPm stores, with a strategy to incorporate high-value brands like Krispy Kreme to enhance their retail offering.

Matheus Enfeldt questioned Ultrapar's criteria for future large-scale diversification, asking what conditions, such as lower leverage or the maturation of the Hidrovias investment, would be necessary for another major capital allocation. He also asked for clarification on Ultracargo's investment pipeline, noting a perceived slowdown in expansion for 2026-27 and inquiring about the potential for new growth opportunities.

Answer

Ultrapar CFO Rodrigo de Almeida Pizzinatto stated that while the balance sheet permits new investments, the immediate focus is on executing the Hidrovias integration, and any new large-scale allocation is not a short-term priority. Executive Décio de Sampaio Amaral clarified that Ultracargo is not slowing down, citing a record investment year in 2024 and a robust pipeline of projects for 2025, including expansions at Suape and Itaqui, with plans reflecting demand-based reallocation rather than a reduction in ambition.