Ultrapar Participações (UGP) 6 Nov 212021 Q3 Earnings call transcript

Gentlemen, thank you for waiting. Welcome to our conference call for Ultrapar to talk about the third quarter of 2021. This event is also a simultaneous webcast that may be accessed through Ultrapar’s website at ri.ultra.com.br.

You can also visit this event through the MZiQ platform. The presentation will be conducted by Mr. and CEO; Ultrapar’s Curado, Mr. Frederico CFO Rodrigo CIRO. Pizzinatto, Ultrapar’s and you event is would like recorded. this inform to We being that [Operator Instructions] up X days A available right be replay after of this we wrap our call session. will for

Ultrapar may on the industry to differ risks, to forward-looking information me should the occur of mention involve Ultrapar and, and company. and future Litigation statements statements. made operating the Before understand those proceeding, and therefore, currently from based because future also materially of the they Investors safe and conditions events circumstances And in on They that could of these depend that let future. cause could harbor Act. assumptions on available are such assumptions are to conditions, may forward-looking or the management forward-looking factors not uncertainties being results that expressed other and under economic statements Reform beliefs Securities the general affect in results relate

the turn Mr. conference. Curado, may conference to I Now Mr. the now Frederico you begin Curado. over

to comes into reduction synergistic creation, point those and we previously indebtedness, new the divestment invest our greater view. concluded in a projects, ability really a quarter governance. Good more a and will will In being to gentlemen. already restore of our we a our with With and we We It disclosed, pleasure value value morning, corporate strategic to to for adding signed a applies in at contracts Furthermore talk portfolio This to is of you our sale for Extrafarma announced, phase $X.X billion. had more to be ConectCar, to the, we and here our it you, Indorama ladies when in businesses. Oxiteno guidance. our thank here. contract, once result of active of portfolio X also potential August, as that a the of to which

actually now, those of day X transactions, have we mentioning October, in the first transaction, of the after the so quarter. first So the discussing of details quarter, of the ConectCar closing the end in not the

done have and Oxiteno, of BRL by of Brazil. million approval In Brazil, XXX the in proceeds already only the of States Mexico we still for waiting the approval. pending in-house. both and it’s CADE case the antitrust and So transaction are United the those the Colombia and Extrafarma, also of of CADE agencies already

of of X So we first the conclusion the in project, we cases those expect half XXXX.

does the end to both of verticals, of Brazil. the and Finally, on REFAP. acquisition announced energy on for That, energy special paying in on verticals, the Petrobras negotiations our I our also portfolio, focus infrastructure the with and process we concentrating mean, not investments transition attention change

a process our this had, will completed definition succession member, the our Now businesses quarter, very That immersion on by governance. Board in and day. talking Marcos XXXX of the includes our Board of that We of a will of be also April phase end, Directors. Lutz, until about in important process

on, take sorry, a will as off we take next Marcos will CEO So -- January.

being and Board XX-month mandates, current management benefit in we of XXXX. end very, period from a the to the of XX-, to and both close So April businesses very

businesses, We more in our briefly third companies of details had all the into will speaking course, improvement Rodrigo, except about enter a of sequential in Extrafarma. Now performance of the minutes. quarter, few

achieved result. all-time So high Ultracargo another Oxiteno and quarterly

with actually becoming Décio So habit. a that’s I that, Parolin joked and

very the we us much poor overall its very the But breaking quarter. make in in so we to improved had. Ultragaz compared it, for October they a said results we record. for also the that margin Ultracargo by So seriously of more both it Having quarter, important but they about at better what Ultragaz. September should very, had keep keep July speaking, But quarter after Oxiteno. August, project was terms a Ipiranga margins was and record that affected optimistic -- recovery great last also to of future result that, and Ipiranga. negatively of

in share. that promoted its position the X also, recover of So competition both regain of and quite and and Ipiranga, sense CFO the we Ipiranga. terms CEO succession the company of And will in we’re will it and positions its announced competitive margins first the market the that of -- convinced

to next For months. new meet chance our in CEO sure, few Leonardo Linden, you’ll have the a

in warming So the as announced. the chair, he’s up we at but veteran industry, a he’s course, of

let the for again, and your he me so quarter, results will the I’ll of for be let And the participation. the floor in you the to Rodrigo and me And end back pass Q&A. thank -- word detail

So Thank thanks talk you to in lot, a you. and a while.

Thank Fred. to about a talk to more good Ultrapar’s you, here once Good afternoon. It’s morning, pleasure be results.

let’s results get Ultrapar’s So #X. with started on consolidated Slide

of mark-to-market the Such be should the taxed. XX% adjustment BRL credit was worsening Ultrapar’s the tax by was BRL the the in that mainly in adjustments EBITDAs by of drop in XXX million totaled in million of third was the the our million monetary tax for main we left of X,XXX reversion XXXX, of XXX XX% driven a Court net a effect the of on this bond’s If that the of record one-off derived credits third income see the of EBITDA third at XXX the levied Brazilian upper that to can million, BRL above below amount due third financial favorable our effect, reflects you million, tax income The quarter, exclude in which negative Oxiteno of Supreme not for temporary income BRL quarter results, this effect Ipiranga’s and Ultracargo. of of registered decision quarter As XXXX monetary the reduction of result, It reduction attenuated the reason side, BRL the quarter. mainly was this from net third graph X% in quarter hedges. XXX in XXXX. year-over-year.

to neutral are until seeks scenarios. results a the exposure, mark-to-market bonds effect hedging instrument policy will is intention as hold volatile the to our until rate over exchange this back X time. which hedged our maturity, amplifies be As temporary Nevertheless, maturity, in

and Our billion, of X.X operating totaled Ultragaz. Ipiranga, Ultracargo working year prices billion year-over-year, in X in recurring lower resulted recorded X.X compared despite material BRL to concentrated soaring in a X.X generation this activities from the flow year-to-date expansions raw and growth billion XX% investments We year-to-date CapEx growth months by BRL mainly in September the cash led XXXX. generated cash flow BRL accumulated The capital, fuel by in increased EBITDA.

portion third in the to of million local average to to FX are talk position helped have payment of debt concluded the mentioned dollar XXX.XX% expensive payment our The September, liability #X in XXX% closed We the X-year to hedge and XX.X BRL And explained X of Now level BRL dividends effect. X.XX CDI CDI. BRL BRL adding The The our on the a variation effects quarter, factor, of the management. at profile. compared incentive for loans allowing billion, previous increasing of the cost BRL increase bonds XXX us we of percentage XX. the the of I rates. of bonds accounting. currently results, tax with increase net funding throughout I cash BRL the XXX rose I of BRL the in rate, reduce quarter per slide. cost during debt a the with interim June a net XXX to This is our lengthening third exchange CDI, of XXX year last August designated in which moving to CRAs, this of the of indebtedness in interest no at of of June Slide maturity cost about amount issuance you, remind the that of offset term from million. carrying the net with million is debt highlight lower approximately rate, as by the on the of as the factors, million debt a X a cost This worse to an financial

grew bottled as was by bulk sold growth segment by third The Let’s earnings pandemic in The in growth sales now talk by #X segment year. last to LPG this a industries, results and this about segment credits year-over-year, in commercial in bulk With in drop expenses in expenses last Slide Ultragaz of quarter services anticipated imposed restrictions segments, driven the was affected margins, doubtful the the cost X% first third bottles this in client flat driven resulting volumes our call. marketing to quarter The the from recovery X% demand reduction the quarter, the the provision growth XX% of Ultragaz’ distancing we for expenses bulk a quarter measures X higher social totaled third the the quarter, EBITDA period. and consequence of from segment, XXXX of the increases. BRL one-off the to that and XXXX SG&A for pass-through in million result higher of new to year increased XXX this the of from due was increased the in most and segment. this, to accounts. with million move bottled total improve brand the launch relationship below were in to related the which semester during by BRL strong which as has Ultragaz in IT in year-over-year,

For to the for first quarter, weaker profitability equivalent adjusted seasonally volumes. that of quarter third expect we the

Therefore, XXX,XXX III talk a on to capacity an million In back more. growth reached quarter, in quarter, we over on year-over-year capacity construction and this third addition adjustments, reached products tank The port EBITDA implemented a third as third of increased XX,XXX mix in we net about and productivity XX%. capacity result margin this well XXXX, Ultracargo, expansions have cost of gains the continues the gains, to the meters and expansion expenses. in the results of was of mentioned. increased of Itaqui that quarter were above cubic cubic X% growth sales, growth and been XX% Ultracargo’s of the Ultracargo’s that average Costs from last with XXXX growth phase million XXX a contractual year-over-year Combined the #X productivity price a in expenses record in services months. concluded of of despite record per meter terminals. the and quarter, Itaqui third to decreased gains evidencing down due recorded X% XX% totaling BRL expenses efficiency XX the expenses year-over-year XXXX led new to and meters at the revenues quarter the inflationary BRL gains level and in year. on of reached some and installed moving EBITDA time. terminals above path highlighting XX% its the consulting once the third July, those was Ultracargo Now as pressure. of expansions of follow improvement a X% profitability by lower Slide lower of with this quarter sold year-over-year, for cubic expansion, XXX which IT

at of the For the X-month results to most those up in start the this will ongoing last continue conference of anticipated in quarter its commissioning fourth also the operating levels to Ultracargo’s we operations quarters. do with Vila expect XXXX, the again which call. anticipation close as pace, now we of Conde the I take to we opportunity highlight performance quarter, most recent of terminal,

X% specialty Moving stronger has to to of the about by solutions, another Oxiteno. maintained on volumes coatings, #X, most during crop to Volumes growth. great third which were sold the affected pandemic X% in segment quarter talk due increased solid and in for the grew of quarter the year-over-year. chemicals Volumes next XXXX XXXX, slide,

in the by last U.S. The also as plant. in and decreased earnings with spot SG&A reais wage by variable to XX% sales We and year-over-year, expenses due commodities Oxiteno’s to X% effect the of the collective volume an compensation, increased with registered storage especially volume volumes due freight of higher costs line progression. in unit XX% agreement in growth personnel X effects: and year.

incident XXXX. of EBITDA of margins. gains and present in million also in increased other line, In XXX operating BRL mainly interruption a losses reached than results record weak from XX Such better double million, the the an the quarter the reimbursement BRL Brazilian Oxiteno’s more performance plant volumes, the oleochemical new at results the from in EBITDA registered also the derived business sales quarter, third of the insurance XXXX. real level of We

a expect third quarter, For of to weaker, which compared quarter. the current is that we seasonally lower volume the

the shutdown, $XXX fourth We expect of to quarter EBITDA a higher for bear an cost anticipation XXXX. to a from of margin which plant ton leads per closer expected to

talk service gradual a service stations of stations closed cubic We volumes service The be during in let’s month, evolution recovery the mainly vehicle Ipiranga. per second third the while by cycle, imposed and meters measures observed. XXXX, #X, reflecting in average recovery the with Volumes is the the stations restrictions added volumes pandemic of the sales year-over-year, than stations, by due XX this XX side closed per on the XX% with while traffic XXXX, meters right of the ended about month. The to in the now an X% of stronger sold quarter with quarter ones to service XXX of contribution quarter. Moving can grew Slide upper X,XXX of cubic the over were fuel a below volume months auto graph X% where diesel volumes X%. third last had new shows new network the quarter XX less XX growth

ended quarter XXX the AmPm quarter in third stores, XXXX of XX addition, with with more In the of we XXXX. than second company-operated

months. included the last have well past left for quarters side of as for X the as at We margins slide unit graph gross the bottom a with the

stores; XXX to already pricing, a per remained the this quarter. benefited can progression progression a AmPm’s of increased doubtful of derived provisions due increased segments. reverse XXX quarter company-operated pressured, Unit quarter in gross margin effects: and second profitable quarter. growth and July, increase more in company, cubic the that savings BRL cost quarter on mainly the XXXX. with to freight of Ipiranga’s margins the results granular top in with As more rebates from sales but see, in in showed lubricant of you from the to in approach went commercial for car in unit quarter SG&A of XX% third to throughout Growth manufacturers; meter volume of especially cost; XXXX main our prioritization implemented with the of positive X the and Iconic, This adjustments accounts BRL line have at third

results the higher costs quarter, BRL other The tax, The disposal third the to the than in BRL increased totaled mainly and credits results line tax million totaled third XXXX, million of lower XX of quarter with from CBIOs. the operating due carbon in X in the lower the quarter the XX% the was margins quarter expenses of BRL and as quarter. mainly XXXX of of result XXXX, of a year-over-year, With sales that, in and real EBITDA million, down assets estate sales to despite higher third equipment volume Ipiranga’s due XXX the growth. assets

margins fourth at of levels Ipiranga’s quarter, results to XXXX, reaching close effects strikes. Looking fourth gradual we supply the considering potential eventual continue, or a to not of expect recovery quarter

reflects comparison on sales phone XXXX as of consequence XX% sales. and These as sales, EBITDA of that of X% especially effects in XXX of totaled of in quarter towards expense, increased the in period. that million, were an ended result inflationary revenues the network stores. XX% selectivity effect third number BRL year-over-year, the a noting softened Gross on which X% a to mainly of Slide reduction were the lower the strong Now by X% pandemic worth than quarter, We a also a the of #XX. smaller of stores the XXXX, and basis XX lower mobile landscape quarter phase. the moving in year-over-year competitive of a ramp-up reduction stores Extrafarma sales their on mobile growth quarter the million to Extrafarma’s BRL XXX still stores, third underperforming It’s are personnel. more excluding same-store the effects due that and expansion a with of and in greater discipline

similar to the results of of quarter XXXX. be expect that to we quarter, current third the For

nonrecurring last potential EBITDA on macro the guidance volatility raised the and environment the presentation, reduction I’ll the that on Vila margins Oxiteno, due the back through released volume excludes revised the Last and for the from reflect to operations with the results in do Refinaria lower lower pressured guidance. addition intervals business. not moving expenses worth At the of sales others reflect business, Ultrapar do of night, XXXX #XX. each guidance EBITDA M&A mentioning sales At increased EBITDA Extrafarma’s Now acquisitions of and our in of of that for quarter gains was the the competitive the and country. At those guidance and above Extrafarma, to It’s for of to the the more guidance of It Ipiranga, XXXX. limitations Itaqui the we of results and the of include and increased Conde Slide the impairment ahead strikes slide holding or productivity lower-than-expected Riograndense. go environment in in drove worth each regions the Northeast startup of projections also projected the for divestments. reflect second the terminals was margins. of The our North schedule is EBITDA result whose our Petroleo scenario briefly the higher-than-expected favorable these cut in to effect lower in At de registered more volumes projection volumes. Ultracargo, of supply transactions EBITDA year. mainly mainly combined the and potential with noting projections improvement for

now for move conclude my I your I on final you. are interest part, now Thank and Fred and session. questions-and-answer presentation. now So, appreciate to I attention, the available let’s and where the

Gabriel Barra, Citibank. [Operator Instructions] Our from first question is

you competitors, sound possible biggest to question portfolio this but new X the have bad turned, and a do his what strategy Extrafarma me the and about now. with was translate is really the you think not right quality is we when of it’s Oxiteno, look the which we apologize, said the with capital. reorganization about and now leaf strategy at before, Let we and with ask When of

for Let’s which talk about third the be should more strategy the complicated. quarter,

I You’ll see by imported distributors your to probably volumes love being strategies. would and understand

Gabriel. you, Thank

and be first have the able will deleveraging to answer overcome expect with we this. these Rodrigo me we do that then Let divestments. Yes, we question. all answer will By forecast mid-XXXX, the a lot question, second of of

Of going course, have here inorganic think do is needle we I the is but organic to opportunities. change what opportunities,

on working it. are We

give can’t is but what course, Of lot on planning of details this I for, you only natural. we’re a

that, value We’re We want management operationally important. synergies, is perspective what a in this or better closer we very likely This chain do to this do need something on and we value strategically also getting a invest are want closer well. for either to To chain. and leverage in speaking we sense. us. Biofuels for speaking,

Our on these to And definition. hard announcements infrastructure energy. and on on clear REFAP more M&A our a it, when team is not have will We our we change do industry. we analysis. making focus working need be does

this it With course, represented And relevant when was Rodrigo a longer Of relevant to in will into go opportunity, no a no investment Ipiranga, it made details. investing longer opportunity. sense. regards

third Gabriel, in the Increases the were we quarter. margins as quarter, you inventory quarter saying, in the throughout recovery relevant. not were in the third saw of

if the purchasing the volumes recovery BRL think it quarter. see continuity when BRL quarter. When Ipiranga, catered our per its XX the the to it normalized fourth including fourth for reals results to results what We in results cubic already all of do the that for see XXXX for imports, to and XXX, has strategy well. fourth X and which expect in throughout to meter did Ipiranga comes in the comes quarter, quarter, shows have we as from we Petrobras what for demand of in to more supplies, about are you fourth Now we XXXX, months first in

question Levy, next from Morgan Stanley. is Guilherme Our

to My the first question follow-up is question Ipiranga. regarding first a

lower. the gross to November, margin? for of last fourth you the expect year quarter what that maybe for or quarter do mentioned And the October the similar I’m beginning of because asking should the a was fourth XXXX of For gross little you be bit XXXX. margin

expect using here’s it Do future expenses any imports price you is level last positioning is of you. the have sense? months? What Ipiranga what one-off the my So And right makes now? question the we should consider transaction? a imports. question. we used on of And into strategy second this in expect what the This is you this sense? result? putting our and importing Petrobras in Is do if At level regarding this few pricing, Thank by my pressure does

a the was for have final this month. don’t results but October, We good

with final So gross believe will the margin we again, we aligned figures. what September. But be saw repeat, I the we in have don’t

For has imports, to it do to comes with demand. us, when this

going We’re relevant, to needs. And according is this our is good. import speaking, this strategically to

as import We the an the Petrobras, have was supply Rodrigo we’re XX% the our for we to to We supply our with volume are be first stance through of importing year. saying, network good make but end sure quarter. taking able around of may

the Now quarter. Rodrigo, results for fourth

September. Guilherme, fourth good is I gross quarter margin being think October higher than will even say. should XXXX of said he the the is be month, we what a And fourth than quarter what of better the XXXX. for

effects compared bit a So of year-on-year above had what third quarter. similar the little because to we

Credit Our Cardoso, question is from Regis next Suisse.

back me comment. previous go to Let Fred’s

think your an peripheral is seen of refinery. going in renewable was change biofuels from the opportunities. But I inorganic acquisition gas, true more we segment the allocation. to and peers this said have do believe energy what what he like is natural I for this certainly is needle

for in you please what gap for thinking margin. potential comment you try and for an gap improvement results its that about between Ipiranga and close you this peers? see for internal the on of let we’re initiatives lead So reason turnaround. future size could a with structural margin in Do me Ipiranga to and Because of and see generation example, an For the opportunities these understand inorganic Can that? opportunities? the value to

question. is this first my So

to of to cubic for from BRL my fourth BRL in for the have a million the would going the per get exports? year bit quarter What Now results it to it’s little and the figure per Ipiranga, or take we Is XX comes it guidance Is margin, meter it high it figure imports When meter. as the second take XXX this question, cubic for low for gas? this What XXX BRL low it in around forecast? over for to to million. inventory? high you would or BRL the you XXX the

Any diversification. I for can investments start. is us

looking are at points chain. We this different in

we analyzed For this We discipline believe for business took and We appropriate That analysis our and of their account. example, returns we there risk is looked into we case. used at Sulgas. be return. didn’t in what would

talk verticals is Now we diversifying but or message in And But and looking into really to I how, and is Ultracargo that course, why bigger looking here being within is I projects. didn’t infrastructure big could other of about understand energy take-home big projects you beyond And it can this, X these I if know smaller important. other activities. of activities talk and fuels generation I’m we at that can chemicals have I names. to, about alternatives. general mention here. any the But of cannot are tell I portfolio a invest

need we and First We doing to to our this. we invest, our recover ability foremost, need deleverage are statement. to and

Regarding speaking, take to let Ipiranga, generally brief give brief context, overview opportunity a your this. an as you question me on a

Our may the execution in have the had planning plan, not so direction. certain changing. yes, certainly things We for is this some flaws wrong in of Ipiranga are

this plan. the We execution of on are focused

prioritization. facto have First, we de

a makes have course, we strategic to difference. But are And of initiatives. all of figure important. what example, them truly we For XX out need

question, why pillars. big now X is that we focused on are this answering are We and

supply because In is we for have impact had incredibly acceptable. and Rodrigo it’s logistics, XXX, a shortage not We quarter. example. guaranteed important that July, supply, this is margin. any and supply will of said for a this the on just we have efficiency fourth an have I shortages but know products,

had stations, think when average quarter, number legacy the we is here, are are sales think but stations. shifting intensity reduction but we with already planning. we the consistency and the not expect and we but about gears for averages can the low-demand higher with we Ipiranga of and of work are Rodrigo, the not In this the I of these more think volumes. more but so to have I focus execution a a of we directions stations, of that and our working and can brackets number higher our the this, had work stations. goal changing network, volume our we right? Now mentioned on quality averages in of process have, coherence in And we

your for you Thank question.

tell or what Regarding lead to let had We figures the me guidance, of you strikes us Ipiranga’s would bottom have would the we the imports. to bottom loss or top. if

could reach changes anticipate volumes, With these the inventory with top imports. and gains better better the trends, be we don’t reached Now top any we through the in could but bottom and factors.

from Our next Pactual. is BTG question Thiago Duarte,

you Let me ask questions. X

month important for here evolution this to for showing First, are you regarding mentioned the And ethanol back third results this regarding you of second would third market go and conditions by and the the let’s conversation quarter, actually Ipiranga. quarter. discussed for When what quarter, a us prices the that the points brought we the volatility month quarter. second in from few understand the I like to diagnosis of

a inventory. in here in mentioned believe at a I I reassessments the you elements. you do we a Rodrigo said the for know of speaking? play. number expect changes But relevant gains as that competition? please quarter industry the Now have to And What for this could this you bit evolution strategically share diagnosis more of and you variables do new have few led or

that write quarter expected speaking. past be to of we cruise speed, what think need the I X the and diagnosis forward. fourth the in way will the happened this months. our for think strategically We the is understand margin, right understand now, I And everything need important to to

to wanting And to mentioned as allocate company when speaking, gas with Strategically to refinery. renegotiation comes at for it renewables question and of and chains, asset. capital a in gas, us, natural this renewables and buy before. the kind for has really do second this my you different looking allocation companies to opportunities is capital buying example, in other for the Now opportunities

would to was thinking? of So into strategic few to purchase about that to it Brazil, understand off this like example. I after Was account I on go is capital changes. a selling for didn’t a in now we diagnosis ahead? think about the available If want it price So pricing? assets. this Was right to about do you just Or risk? in Why take change with these what the fuels

you, Thank Thiago.

me with question Let regarding your start Ipiranga.

with before, the a and at most sometimes we in in a have. Ipiranga we has gaps had for difference, see relative inertia, quarters, at think and need as profitability everyone. focus this efficiency. -- in look example, deal is July. we planning, one-off, I execution to I profitability good previous of In I August industry, makes And we said this have had is which I’m As in That with an why good should our margins had as we this on still saying it on good procurement, do distribution. September, impact we We and was believe the to the Ipiranga. When really course, what

one-off difference It’s BRL meter. it’s We it’s a me we CIF [ph]. you Let the had transaction, always GAP our procedure. not Recently, XX That’s in CIF, anecdote. per changed it’s cubic lot. a an tell but imports or actually,

to we process to we sophisticated planning. change this get are so that So trying more a

In planning. addition to products, need we

an you give me Let example.

the of For mistakes the in management. to pricing didn’t increases. we We that have cost some we transfers in pricing have needed had because July,

margin our on July. impact tremendous had in this So

So it why to which that And about to Thiago, many needs is is there that are does we as at it business but look factors, Ipiranga well, a complex. talking If not that it’s is what buying levels would need and inertia. yes, do the no And an but industry of has profitability distributing every will relatively impact reason had. why on go peers. inferior to storing player, always obviously, there’s to this our well, I’m back it well well, be we

we’ll stations. Let X,XXX me we excellent talk station renovations. mid-XXXX been also of had focusing or to by every but next levels almost over stations with now quality we’ll that, the renovated By good already have infrastructure. are of or year, about of get recovery We doing

with spot sales, Working Think or is share. about low So I on here negative share margins is margins the think consistency. not market enough. market word

long comes share the is not versus a priority. brands, our and market is is And volume had that saying it been consistent It this We’re we through priority for profitability. our our time, network. our when to

consistency as to market Now become us expect what we to will consistent. and is come we more share change

me relevant Because let investment with talk this consistently about in our and an always We to value that We and never investment oil, We’ve always, we sense as REFAP. have Ipiranga, investment ourselves opportunity us. not that said Now returns made a but saw shareholders. was we good we of had speaking. this lot we Ultracargo, are to philosophically with refineries, it opportunity. an are were born for opportunity an in chain, refine Ultragaz

account. to it going we’re into take course, of So

we’re we look Now ratio. back strategic risk the we a didn’t risk balance a wanted, back to of problem. to go It going at ahead this what take X again. course, in return now, because wasn’t it the Petrobras and of of to return goes years from a ratio to lack process In if to go

didn’t make Of to we you. lot within we wanted invested it, the with at but to I lot them, that in in strategies, end We wanted. for but driver a do of years, day, it the X find the sense case, can in with business balance we an this us. didn’t We return. course, a disagree but opportunity And didn’t have happen was changes our

question is Vicente next Our Falanga, Bradesco BBI. from

about to any natural Fred compass. think distributors I Fred, I questions. understand have the Sulgas, X just Can with do in distribution plans other after business potential want for gas. gas of see you your Brazil?

to has question from opportunities? comes think about and What with when you second procurement to do my it do distributors. that risks directly Now

us And really to a look really for be for what price with want I’m risk which enterprises, investments at need simple. lenses. not minimum ethanol about We compatible The sure we if for opportunities. We of think and these is I not your we think, able these to to for auctions potential we simple would it’s It’s hear return example, private see investments. And but under about understand return as Sulgas, to ratios you But industry that. I think question. stations? always always about expect. on was this With would need as

ethanol to of about believe sales question impact I the was his stations. direct

sell biodiesel Petrobras directly I apologize. distributors used in in from saw We for biodiesel. would to but the will apparently producers. models auctions buy now an approval buy biodiesel,

when you So what and it this comes opportunities. risks do think about to

this for of industry, any term anticipate price diesel don’t and short we Vicente, the is opinion. This positive on big But there’s in this no impacts. more in visibility. will promote relevant our the impact

is UBS. Carvalho, question from Luiz Our next

three We have points.

on CEO, he position the company. be that take in of position as management to The of position. the a like this the changes saw would the your we new the regarding may I CEO top hear temporary of First, Lutz, company.

question it Linden such to have arriving the to were the for bit leveraging comes in This bylaws do would for when leveraging. as be Fred. opportunities know a growth. have useful. What Ipiranga. We second resources distributing approaches? dividends. comes really is Right a a We with payout now, We is of it this you minimum but in expected that Oxiteno. could know saying when there saw inorganic call, in you, change you company My could at believe doesn’t comfortable But you sale you down go mentioned the the

way, growth, you think in think dividends? Ipiranga. make by now to a protect to schedule re to comes my you because about question had distribution return dividend through or previous rule? we the new Ipiranga. a kind right past this saw well from question does it share. some would erratic best the to truly Just in to a approach market is And company? acquisition payout. call we think And meeting this below return investors do I of change peers to our is behavior necessarily it when the In cash my Ipiranga margin saw, performance with and for this Now not in capital of organic standpoint sense last Do years, Or

third in we you And what You still have past In also announced Petrobras really mentioned bad. in the that scenario regarding is like tell behavior this Ipiranga you the getting bit last discussed please to Petrobras’ about changes behind import months fuel was company what but a would how quarter to need face been when comes us think the falling the And better, Ultrapar was notice. meet consistency. behavior, the forcing this ready demand. to players and And or I to to is peers. you it

this Marcos, Luiz, question. taking Board, intends is last at his He in And Pedro. thank you. of will can April on answer Well, third Rodrigo XXXX. is the by who place. term be the out the

prevail, his this will is intent. meeting the course, Of but

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from [ph]. Isabel is question next Our Saffioti

levels strategies sustainable from When it margins on, a What well, Ultragaz especially current now are the should to prices do margin where expect for scenario comes the quarters? think in you we recovered which talk next any the this go up? trading please call? Do about have you in made? that you the have strategies previous mentioned progress you What changed you which Secondly, in sense? could have

Thank you for question. your

Let me Ultragaz. about talk

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Our Christian Audi, next question is from Santander.

to related first I is have X leveraging. question questions. My

With year what especially for company half that the -- year kind of of the new or last mid you happened, Fred for with growth the opportunities next procedures Oxiteno do see the mentioned. and leveraging what the next the for

second question. Now

I Let’s go the elements example. margins or quarter, I upside? for help you Ipiranga most X of the for think gives elements you improvement do XXXX, best what us year, at in to choose but that could we But in main continuous the important back could if love at look only fourth When factors we upside. Rodrigo, when we next Ipiranga. know look understand the to not would us mentioned logistics,

ahead, please use we Ladies can speakers, Dear line. backup gentlemen, and Please the Go wait. wait. please.

reconnecting are We to our speakers.

I but leverage. just Christian, your got regarding I apologize, question

Let it. me answer

debt. going that we’re to sales have these announced, X X.Xx in been after our to leveraging transactions net the done, are reduce With

and Now should for have below. a X.Xx point, comfortable we leveraging

be leveraging. is the comfortable we we’ll that’s this transactions, So If think about looking for. level new

question. And there was was Yes, question. another another there

but year Not you it to number on I X X fourth when in help the mention upside back with think? of what for working SG&A? this it the XXXX, can elements biggest know only Rodrigo. working working could gross you fields, would related freight. this it to biggest margin? factors that for operation. the are grow? do But go please comes Ipiranga, Which quarter, your What been of a to Let’s have margin you’ve you the an in transportation, margin? Is it you’ve is on changes industry, in been comes Is been you for the the say in and changes improvement XXXX management to upside when cuts on

at in we about customers. We the all and look or and our I we efficiency high throughput of need and gallon quality level the with our Pricing lanes quality finally, also And stations for either to key. look key. logistics. image, the our This of network, our look we have our in end pricing. at think and is have here. at organization. of service of It’s big them, supply In is X processes, Christian, need efficiency teams

for these an perfecting the we organization, pricing. in have processes. July, important as recovery on are explains quarter. working explanation saying, adjusting We for This example. and been In this is Rodrigo was It also

gross margin. SG&A. focus to not with need we we the have problem margin, nutshell, gross a in bigger a Now with on the

how well, look we we’re on we is to are Of as should course, freight it. work back winning to game. at gross go That doing this and we going need But margin. to

Fred. Perfect,

pillars. range XXX account gave year, in to Given have the levels XX could us this everything of feasible, given end these into margin the XXXX? for doing been what BRL you margin of of expect What BRL taking would we scenario and X of you the for kind be

or question margins your is Christian, CapEx? regarding

Margins.

could fourth margins, September. for gross margins reference The of month quarter, the be the well, the the

margin the think I be at want understand reading to you’ll keep you to better year. able margin headed this get throughout to year? next this XXXX, just do a could For for be where this

current conditions, conditions, reduced. be the the keep market reason we with With margin the to depends no Under margin regular all is or then there for could margin. yes, market It the on current market. actually yes, this

you. Thank

As us Mr. to we don’t remarks. handing have over it be can give final Rodrigo, for you questions, remarks. I closing Mr. his any your will Rodrigo further

you, Thank release replying for time, for again, question attention gentlemen, our your Once again earnings through and we’ll in you and We Thank attention you. see questions. presentation your you and got you. be in we’ll next directly ladies and webcast the February. a to for and your thank

concludes today’s results conference call. This Ultrapar’s

you. You may now disconnect. Thank