Monique Greco

Monique Greco inquired about the drivers behind Ipiranga's strong fourth-quarter margins, particularly in December, and the relevance of favorable import arbitrage. She also asked about the market share pressure observed in January due to oversupply and whether this was a one-off effect, considering the short import window.

Answer

Leonardo Linden (CEO, Ipiranga) explained that the strong Q4 performance, especially December, aligned with an improved regulatory landscape and efforts against the illegal market. He viewed January's market share dip as a one-off effect due to increased inventories and speculation with an open arbitrage window. Rodrigo de Almeida Pizzinatto (CEO, Ultrapar) added that a closed import window, influenced by Middle East tensions, would limit speculative supplies and favor established companies like Ipiranga with substantial domestic supply infrastructure.

Monique Greco asked about the drivers behind Ipiranga's strong Q4 margins, particularly in December, and the impact of import arbitrage. She also inquired about Ipiranga's January market share pressure, whether it was a one-off effect, and future market share expectations given the limited import window.

Answer

Leonardo Linden, CEO of Ipiranga, attributed strong Q4 margins to an improved market landscape and efforts against illegal practices, noting December's strength. He explained that January's market share pressure was likely a one-off due to high inventories and open arbitration, anticipating recovery. Rodrigo de Almeida Pizzinatto, CEO of Ultrapar, added that a closed import window, influenced by geopolitical tensions, benefits companies with robust domestic supply capabilities like Ipiranga.

Monique Greco of Itau BBA inquired about the impact of open import arbitration on Ipiranga's inventory prices and margins, and asked for expectations regarding the new ethanol single-phase taxation, specifically on competitive gains and volumes.

Answer

Leonardo Linden, an executive at Ultrapar, explained that open price arbitration has been a market factor since February, altering supply dynamics but not fundamentally changing the game. He expressed strong optimism for the ethanol single-phase taxation, stating it will reduce irregularities and benefit efficient, well-prepared distributors like Ipiranga, with market share gains expected as a consequence of improved market health.

Monique Greco asked for Ultrapar's perspective on the government's 'Gas for Everyone' program discussion, which considers replacing a cash benefit with a free bottle of LPG for low-income families. She inquired about the potential impact of this proposed model on the LPG industry.

Answer

Executive Tabajara Costa responded that Ultragaz views the program as a very positive initiative to combat energy poverty and is actively participating in discussions to support the government. He expressed confidence that the industry can implement the change, viewing it as a significant societal improvement that would leverage the country's well-developed LPG infrastructure.

Monique Greco asked for Ipiranga's market share expectations for the second half of the year and requested an update on the Ultragaz-SHV integration timeline and synergy capture.

Answer

Executive Leonardo Linden explained that Ipiranga's market share is now more volatile due to the spot market but expects stability in the branded network. Executive Tabajara Costa reported that Phase 1 of the SHV operational consortium integration is complete, with marginal synergy capture expected in H2 2024 and full implementation in 2025.

Monique Greco asked for details on the streamlining measures at the Holdco level, including implementation status, timeframe, and the goal of cutting annual expenses by half. She also inquired about the divestment agenda, specifically the order and pipeline of assets.

Answer

Rodrigo Araujo Alves, CFO of Cosan, confirmed mapped streamlining processes, including decentralization, aiming for BRL 30 million in savings next year and a goal to cut costs by half. Marcelo Martins, VP of Finance, Cosan, stated that divestments would follow capital allocation priority, starting with Radar, with other businesses considered for diluted stakes depending on strategy and market opportunities.

Monique Grego from Itau BBA focused on Raizen, asking about the ideal conditions for bringing in a strategic partner. She also followed up on the Move insurance claim, requesting more color on the expected timing of cash receipts and the potential results generation capacity of Move's new production arrangement.

Answer

Executive Marcelo Martins confirmed that bringing in a strategic partner for Raizen is a preferred option being actively pursued with Shell, highlighting a sense of urgency. CFO Rodrigo Araujo praised Raizen's operational performance. Regarding Move, Rodrigo reiterated that the company would not provide guidance but is focused on optimizing the new production ecosystem and that volume recovery is on track.

Monique Greco asked about the primary challenges for CapEx execution at the subsidiary level in the current high-interest-rate environment and where there is room to adjust investment plans. She also inquired about the Radar business, specifically the reason for no Q2 land appraisal, current land market conditions, and the status of the joint venture with Nuveen.

Answer

Executive Rodrigo Alves addressed the CapEx question, stating that the need for higher returns and execution challenges apply across all businesses, and that portfolio optimization has been ongoing at Rumo, Compass, and Raízen. On the second question, Executive Ana Luísa Perina explained that Radar's most significant land appraisal occurs annually in the third quarter. She added that the joint venture with Nuveen expands opportunities for portfolio recycling and value creation.

Monique Greco of Itaú BBA inquired about the potential for CapEx to exceed the $18.5 billion guidance, considering upcoming opportunities like pre-salt auctions and investments in areas such as ethanol.

Answer

CEO Magda Chambriard stated that while Petrobras will always evaluate opportunities in its home territory, including pre-salt auctions and renewable fuels, any investment will only proceed if it makes clear economic sense and aligns with the company's business plan. She emphasized that all projects, whether in E&P or energy transition, must meet strict profitability and attractiveness criteria before being approved.

Monique Greco of Itaú BBA requested more detail on the connection between the additional $2 billion in Q4 CapEx and accelerated production in the Buzios field, asking if it was tied to completed projects or the anticipation of future ones like Buzios 8-11.

Answer

Executive Director of Engineering, Technology and Innovation, Renata Baruzzi, explained the spending was part of a 'herculean effort' to recover timelines on delayed projects, specifically mentioning P78 and P79 in the Buzios area. An executive added that the strategy involved both mitigating further delays on some projects (P-68, P-69) and actively pulling forward the start of others, such as the Almirante Tamandare and Maria Quiteria FPSOs, which began operations earlier than originally scheduled.