Q3 2024 Ultrapar Participações SA Earnings Call
Both a simultaneous webcast that maybe accessed through ultra bars website at our I got ultra dot com dot BR and through M. C IQ platform.
The presentation will be conducted by Mr. Rodrigo per se, not Oh dress barns, chief financial and Investor Relations Officer.
The Q&A session, we will have the presence of Mr. Marcos Lutz Ultra Bos CEO and the Ceos of the businesses mid September Zara Bertelli, Mr. Das you Amero and Mr. Bernardo Lindon.
We would like to inform you that this event is being recorded and all participants will being listen only mode. During the company's presentation.
After which requires remarks, there will be a question and answer session at that time further instructions will be given.
We remind you that participants of web cast may be submitted their questions through the Q&A session, which may be posted in advancing the webcast.
A replay of this call will be available.
Immediately after it for seven days.
Before proceeding I would like to state that forward looking statements are being made under the safe Harbor of the Securities Litigation Reform Act of 1996.
Forward looking statements are based on the beliefs and assumptions of Ultra bond management and on information currently available to the company. They involve risks uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future investors should understand the general.
Collections will be given.
We remind you that participants of web cast may be submitted their questions through the Q&A session, which may be posted in the advancing the webcast.
Economic conditions as industry conditions and other operating factors could also affect the future results of ultra bar and could cause results to differ material materially.
A replay of this call will be available.
Immediately after it for seven days.
From those expressed in such forward looking statements.
Before proceeding I would like to state that forward looking statements are being made under the safe Harbor of the Securities Litigation Reform Act of 1996.
Speaker Change: Now I would like to turn the conference over to Mr. Rodrigo is enough to.
Speaker Change: Hope, we'll restart our conference Misrepresent Aldo you may begin.
Forward looking statements are based on the beliefs and assumptions of Ultra bond management and on information currently available to the company. They involve risks uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future investors should understand the general.
Speaker Change: Good morning, everyone. It is a pleasure to be here once more to talk about <unk> results and before I begin I want to remind you of the reporting criteria and standards presented in slide two and now moving on to slide number three as you can see in the chart in the top left side our recurring EBITDA.
Economic conditions as industry conditions and other operating factors could also affect the future results of ultra bar and could cause results to differ material materially from those expressed in such forward looking statements.
Speaker Change: Totaled 1.506 billion Reais in the third quarter of 24, 24% lower than that of the third quarter was 23, mainly due to lower EBITDA year over year. As you can also see that the accumulated EBITDA of 24 4.093 billion Reais, 4%.
Now I would like to turn the conference over to Mr. Rodrigo is enough to.
Speaker Change: Higher than that of the previous spirit will drop our net income was 698 million reais, 22% lower year over year due to the lower EBITDA I've, just mentioned, partially offset by the lower net financial expenses.
Aldo: Hope I always thought our conference misrepresent Aldo you may begin.
Speaker Change: Good morning, everyone. It is a pleasure to be here once more to talk about <unk> results and before I begin I want to remind you of the reporting criteria any standards presented in slide two and now moving on to slide number three as you can see in the chart in the top left side our recurring EBITDA.
Speaker Change: Net income year to date is $1 billion 645 million reais, 17% higher than the previous period I want to highlight that the share of profits of it reviews was recorded with a two month delay contributed positively with 9 million in the third quarter of 24.
Speaker Change: Totaled 1.506 billion Reais in the third quarter of 24, 24% lower than that of the third quarter of 2003, mainly due to lower EBITDA year over year. As you can also see that the accumulated EBITDA of 24 4.093 billion Reais, 4%.
Speaker Change: Investments in its turn totaled 519 million reais in the third quarter of 24 to.
Speaker Change: The 37% compared to that of the third quarter of 2003, mainly driven by higher investments in <unk>. We had an operating cash flow generation of 780 million Reais in the third quarter of 24, you would have been $1 billion and 20 million Reais. If we do not consider the reduction of <unk>.
Speaker Change: Higher than that of the previous period.
Speaker Change: <unk> net income was 698 million reais, 22% lower year over year due to the lower EBITDA I've, just mentioned, partially offset by the lower net financial expenses and net income year to date is $1 billion 645 million reais, 17% higher than the previous period I want to hide.
Speaker Change: 140 million Reais in the drip discount operations in the third quarter of 'twenty for.
Speaker Change: The cast roll generation was 59% lower than that of the third quarter up 23, mainly due to lower EBITDA and higher investments in working capital.
<unk> that the share of profits of it reviews was recorded with a two month delay contributed positively with 9 million in the third quarter of 24 <unk>.
Speaker Change: And moving now to slide number four to talk about our liability management. We ended the third quarter with a net debt of 7.968 billion Reais and increase of 268 million compared to June 24.
Speaker Change: Investments in its turn totaled 519 million reais in the third quarter of 24% to 37% compared to that of the third quarter of 2003, mainly driven by higher investments in <unk>. We had an operating cash flow generation of 780 million Reais in the third quarter of 24, you would have been.
Speaker Change: The increase in net debt quarter over quarter is mainly due to the reduction of $240 million on the drip discount balance in the quarter and the payment of $276 million in dividend in August.
Speaker Change: <unk> 1.020 billion Reais, if you do not consider the reduction of 240 million reais in the drip discount operations in the third quarter of 24.
These effects were partially offset by the receipt of $222 million of the last installment of extra pharma fail.
Speaker Change: Our leverage went from one two times in June 24, 213 times in September 24, due to the lower LTM EBITDA and the higher net debt that I just mentioned.
Speaker Change: The cash flow generation was 59% lower than that of the third quarter up 23, mainly due to lower EBITDA and higher investments in working capital.
Speaker Change: And moving now to slide number four to talk about our liability management.
And you can also see in the table at the bottom of this slide the net debt in September 24 added to the drab discounting handler is 9.430 billion Reais, one 8 billion higher than the balance in September of last year, mainly resulting from the acquisition of our shareholding stake any reviews.
Speaker Change: We ended the third quarter with a net debt of 7.968 billion Reais and increase of 268 million compared to June 24.
Speaker Change: The increase in net debt quarter over quarter is mainly due to the reduction of $240 million on the drip discount balance in the quarter and the payment of $276 million in dividend in August.
Speaker Change: Moving now to the next slide number five lets talk about <unk> results.
Speaker Change: <unk> sales volume in the third quarter grew 4% compared to the third quarter of 23 with a 5% growth in the Otto cycle boosted by a greater share of ethanol over gasoline and the product mix and a 2% growth in diesel.
Speaker Change: These effects were partially offset by the receipt of $222 million of the last installment of extra pharma sales.
Speaker Change: Our leverage went from one two times in June 24, 213 times in September 24, due to the lower LTM EBITDA and the higher net debt that I just mentioned.
Speaker Change: We ended this quarter with a network of 5871 services stations five less than in June 24.
Speaker Change: As you can also see in the table at the bottom of this slide the net debt as of September 24 added to the drab discounting vendor is 9.430 billion Reais, one 8 billion higher than the balance in September of last year, mainly resulting from the acquisition of our shareholding stake in it reviews.
Speaker Change: We added 61 serves as patients and closed 66 throughout the quarter.
Speaker Change: This level of closures reflects the stricter contract compliance I remind you that there are a number of stations is not the main driver of volume growth as observed in recent quarters. Furthermore, we ended the quarter with 1478, a M. P. M stores with same store sales growth of 7%.
Speaker Change: Moving now to the next slide number five lets talk about <unk> results.
Speaker Change: <unk> sales volume in the third quarter grew 4% compared to the third quarter of 23 with a 5% growth in the Otto cycle boosted by a greater share of ethanol over gasoline and the product mix and a 2% growth in diesel.
Speaker Change: It'd be the end as SG&A was down 4% compared to the third quarter of 2003 due to lower contingency expenses offset by higher provisions for doubtful accounts and higher personnel expenses, mostly collective bargaining agreements.
Speaker Change: We ended this quarter with a network of 5871 services stations five less than in June 24.
Speaker Change: The other operating results line totaled negative 124 million reais in the quarter, an improvement of 55 million reais year over year, a result of lower expenses with carbon tax credits.
Speaker Change: We added 61 services stations and closed 66 throughout the quarter.
Speaker Change: This level of closures reflects a stricter contract compliance I remind you that there are a number of stations is not the main driver of volume growth as observed in recent quarters. Furthermore, we ended the quarter with 1478, a M. P. M stores with same store sales growth of 7%.
The line of results from disposal of assets totaled 31 million Reais, resulting from the sale of seven real estate assets.
Speaker Change: It belonged as EBITDA was 967 million reais in the quarter. The recurring EBITDA totaled 936 million reais, 34% lower at euro year over year.
Speaker Change: Peter and his SG&A was down 4% compared to the third quarter of 2003 due to lower contingency expenses offset by higher provisions for doubtful accounts and higher personnel expenses, mostly collective bargaining agreements.
Speaker Change: We observed an improvement in the competitive environment in the third quarter compared to the second quarter of 24 with a reduction of sector irregularities.
Speaker Change: We also had inventory gains as a result of the gasoline price adjustment in July and despite these effects in the third quarter of 2003, we had record margins at the pit and benefiting from the combination of more relevant inventory gains are more favorable import parity in a normalized level of inventories and being.
Speaker Change: The other operating results line totaled negative 124 million reais in the quarter, an improvement of 55 million reais year over year, a result of lower expenses with carbon tax credits.
Speaker Change: The line of results from disposal of assets totaled 31 million Reais, resulting from the sale of seven real estate assets.
Yeah.
Speaker Change: We have been operating in recent quarters with profitability above one 130 reais per cubic meter. Despite the irregularities that have affected the entire sector in this fourth quarter with the market conditions. We have observed we expect to maintain this trend.
<unk> EBITDA was 967 million reais in the quarter. The recurring EBITDA totaled 936 million reais, 34% lower at euro year over year.
We observed an improvement in the competitive environment in the third quarter compared to the second quarter of 24 with a reduction of sector irregularities.
And moving now to slide six to discuss ultra gas results.
Speaker Change: Volume adopted you sold in the third quarter was 4% higher year over year due to a 7% increase in sales of bulk LPG, mainly reflecting higher sales to industries.
Speaker Change: We also had inventory gains as a result of the gasoline price adjustment in July and despite these effects in the third quarter of 'twenty three we had record margins in the pit and benefiting from the combination of more relevant inventory gains are more favorable import parity in a normalized level of inventories and being.
Speaker Change: Sales of bottled LPG increased by 2% driven by higher market demand.
Speaker Change: With regards to SG&A in the third quarter of 24, 1% higher than in the third quarter up 23, due to higher personnel expenses, mainly due to collective bargaining agreements provisions for doubtful accounts and freight costs in line with higher sales volume.
Speaker Change: History.
Speaker Change: We have been operating in recent quarters with profitability above one 130 reais per cubic meter. Despite the irregularities that have affected the entire sector in this fourth quarter with the market conditions. We have observed we expect to maintain this trend.
Speaker Change: These effects were compensated by initiatives to increase operational efficiency and lower expenses with sales commissions.
Speaker Change: And moving now to slide six to discuss ultra gas results.
Speaker Change: With regard to EBITDA was 448 million react in the third quarter of 24, 1% lower than that in the third quarter of 'twenty three.
Speaker Change: Volume of LPG sold in the third quarter was 4% higher year over year due to a 7% increase in sales of bulk LPG, mainly reflecting higher sales to industries.
Speaker Change: The higher sales volume and they are more normalized commercial environment of the bottled segment were offset by higher freight costs and expenses.
Speaker Change: Sales of bottled LPG increase by 2% driven by higher market demand.
Speaker Change: For the fourth quarter, despite seasonally lower volumes.
Speaker Change: With regards to SG&A in the third quarter of 24, 1% higher than in the third quarter up 23, due to higher personnel expenses, mainly due to collective by gaining agreement provisions for doubtful accounts and freight costs in line with higher sales volume.
Speaker Change: We expect a higher EBITDA with greater contribution from dry gas new energy segment and.
Speaker Change: And finally moving to slide seven let's discuss ultra cargoes. Good results. The company's average static capacity of $1 million at 67000 cubic meters was 1% higher than that of the third quarter of 23 due to the addition of the Honda Napoli space the cubic meters sold remained stable year over year.
Speaker Change: These effects were compensated by initiatives to increase operational efficiency and lower expenses with sales commissions.
Speaker Change: The startup of operations in Wuhan, the Novelis and the higher handling in Pla, we let the cornea and swap fees were offset by the lower spot sales at Santos in Turkey and add up to.
Speaker Change: With regard to EBITDA was 448 million react in the third quarter of 24, 1% lower than that in the third quarter of 'twenty three.
Speaker Change: The higher sales volume and the more normalized commercial environment of the bottled segment were offset by higher freight costs and expenses.
Speaker Change: Altra Cargos net revenues were 266 million reais in the third quarter of 24, 1% higher than in the third quarter of 23, driven by better tariffs despite lower spot sales.
Speaker Change: For the fourth quarter, despite seasonally lower volumes.
Speaker Change: We expect a higher EBITDA with greater contribution from dry gas new energy segment and.
Speaker Change: Combined cost and expenses were temporary percent higher than that in the third quarter of 23 due to higher handling of newness of the new terminals.
Speaker Change: And finally moving to slide seven let's discuss ultra cargoes. Good results. The company's average static capacity of $1 million at six to 700000 cubic meters was 1% higher than that of the third quarter of 23 due to the addition of the Honda Napoli space the cubic meters sold remained stable year over year.
Speaker Change: With regard those EBITDA totaled 168 million reais in the third quarter.
Speaker Change: 3% lower than in the third quarter of 2003, mainly due to lower spot sales.
Speaker Change: Our margin was 63% in the third quarter of 24.
Speaker Change: The startup of operations in Wuhan, the Novelis and the higher handling in Pla, we let the cornea and swap fees were offset by the lower spot sales at Santos.
Speaker Change: Two percentage points lower than that of the third quarter up 23.
Speaker Change: And for the fourth quarter, we expect an EBITDA similar to those seen in the last quarters.
Speaker Change: And add up to.
Speaker Change: Ultra cargos net revenues were 266 million reais in the third quarter of 24, 1% higher than in the third quarter of 23, driven by better tariffs despite lower spot sales.
Speaker Change: Well. This concludes my presentation and let's now move to the Q&A session to answer any questions. You may have thank you very much for your attention.
Speaker Change: Combined cost and expenses were 10% higher than that in the third quarter of 23 due to higher handling of new of the new terminals.
We are going to start now the Q&A session for investors and analysts.
Speaker Change: For cargoes EBITDA totaled 168 million reais in the third quarter.
Speaker Change: The first question comes from Monica <unk> from <unk> BBA.
Speaker Change: 3% lower than in the third quarter of 2003, mainly due to lower spot sales.
Speaker Change: Monica Please mute your microphone.
EBITDA margin was 63% in the third quarter of 24.
Speaker Change: Hello. Good morning, Thank you for taking my questions.
Speaker Change: Two percentage points lower than that of the third quarter up 23.
Speaker Change: I'm going to ask one first question about <unk>.
Speaker Change: And for the fourth quarter, we expect an EBITDA similar to those seen in the last quarters.
Speaker Change: Going back to what is an auto has just said about expectations of margins.
Speaker Change: Well. This concludes my presentation and let's now move to the Q&A session to answer the questions. You may have thank you very much for your attention.
Speaker Change: We got into the second half of the year with an expectation of has a much better competitive dynamics healthier freezing demand demand normalization of inventory.
Do you think that improvement of this dynamic with volumes and so one has already been reflected in this adjustment of margins that you've made and this quarter and 1% Auto you said you want to have the levels over 130 do you think that.
We are going to start now the Q&A session for investors and analysts.
Speaker Change: The first question comes from Monica <unk> from <unk> BBA.
Speaker Change: For Nicky please mute your microphone.
Speaker Change: Hello. Good morning, Thank you for taking my questions.
Speaker Change: Do you still expect an improvement of this dynamic in upcoming quarters would we expect some improvement still being perceived in future margins. This is my first question. The second question combines at Bronco and in Chicago.
Speaker Change: I'm going to ask one question about <unk>.
Speaker Change: Going back to what percent of auto has just said about expectations of margins.
Speaker Change: We got into the second half of the year with an expectation of has a much better competitive dynamics healthier freezing demand demand normalization of inventory.
Speaker Change: What about important Brazil.
Speaker Change: At the forefront with CN.
Speaker Change: Is smaller represented gymnast of independent importers in the total imported amounting to countries I would like to hear from Linden.
Speaker Change: Do you think that improvement of this dynamic with volumes and so one has already been reflected in this adjustment of margins that you've made and this quarter and 1% Auto you said you want to have the levels of a 130 <unk> do you think that.
Speaker Change: How do you see the impact of that in the competitive dynamic of distribution and if I could also ask that you do you think that small a lower spot imports can impact ultra cargoes operation. Thank you.
Speaker Change: Do you still expect an improvement of this dynamic in upcoming quarters would we expect some improvement still being perceived in future margins. This is my first question. The second question combines at Bronco and in Chicago.
Speaker Change: Hi, Monika this is Linden speaking.
Linden: First concerning the dynamic of the third quarter.
Linden: Okay.
Speaker Change: What about imported diesel.
Linden: Aid this fight against illegal practices has improved oil and ethanol.
Speaker Change: At the forefront with CN.
Linden: Is smaller represented gymnast of independent importers in the total imported amounting to countries I would like to hear from Linden.
Linden: We had a 5% increase of volume over the second quarter this year.
Speaker Change: An improvement for a regular I guess in the ethanol, but we've observed a competitive market.
Speaker Change: How do you see the impact of that in the competitive dynamic of distribution.
Speaker Change: For this though on the highways any spot market. The cost of diesel has been increasing biodiesel and also imported diesel it has applied pressure to the price at the stations, especially the highway stations had difficulty to adjust.
Speaker Change: If I could also ask Vas here do you think that small a lower <unk>.
Speaker Change: Thought imports can impact ultra cargoes operation. Thank you.
Speaker Change: Hi, Monika this is Linden speaking.
Speaker Change: First concerning the dynamic of the third quarter.
Speaker Change: Prices.
Speaker Change: So one think offset the other.
Speaker Change: And this was somewhat.
Speaker Change: Okay.
Speaker Change: What we observed in the third quarter.
Speaker Change: This fight against illegal practices has improved oil and ethanol.
Speaker Change: Now looking ahead, we believe that better Lego breakfast says well always be positive to the industry at large and we hope that this is going to progress S. E S.
Speaker Change: We had a 5% increase of volume over the second quarter this year.
Speaker Change: An improvement for a regular I guess in the ethanol, but we've observed a competitive market.
Speaker Change: So that we can have better and better conditions.
Speaker Change: For this though on the highways any spot market. The cost of diesel has been increasing biodiesel and also imported diesel it has applied pressure to the price at the stations, especially the highway stations had difficulty to adjust.
Speaker Change: We still see competitiveness in diesel, especially in the highways any spot market.
Speaker Change: I think this is the kind of balance that with being observed in terms of supply.
Speaker Change: The market seems to be well balanced it was a stable quarter. If you look.
Speaker Change: Prices.
Speaker Change: So one think offset the other.
Speaker Change: This was somewhat.
Speaker Change: What we observed in the third quarter.
Speaker Change: During the three months of the quarter, you will see somewhat stable margins there were no major oscillations our volatility.
Speaker Change: Now looking ahead, we believe that better legal breakfast says well always be positive to the industry at large and we hope that this is going to progress S. E S.
I think that this is something that's going to be repeated in the fourth quarter concerning imports.
Speaker Change: So that we can have better and better conditions.
Speaker Change: Yes, there has been some decrease in imports not significant really just a minor drop.
Speaker Change: We still see competitiveness in does though especially in the highways any spot market.
Changing there's large AG products coming from the Gulf from the.
Speaker Change: I think this is a kind of a balance that we've been observing in terms of supply.
Speaker Change: His era P N countries.
Speaker Change: But the Brazilian market is structurally dependent on in for it and this is going to keep happening and maybe things will change somewhat in terms of where the gas comes strong. That's just speaking now thank you Monique.
Speaker Change: The market seems to be well balanced it was a stable quarter. If you look.
Speaker Change: During the three months of the quarter, you will see somewhat stable margins there were no major oscillations our volatility.
Speaker Change: If you compare this quarter with the same quarter last year, you were going to see a smaller spot volume.
Speaker Change: I think that this is something that's going to be repeated in the fourth quarter.
Speaker Change: Sending imports.
In this quarter.
Speaker Change: Yes, there has been some decrease in imports not significant really just a minor drop.
Speaker Change: Inventory levels increased somewhat our tanks are full there.
Speaker Change: At Ultra cargo the product comes we odds of being cabotage or imported we're very well positioned in Vila do county Ducky swap the problem. The product has G are coming to the tanks, because we need to sell in these regions.
Speaker Change: Changing this large AG products coming from the Gulf from the.
Speaker Change: Is L P N countries.
Speaker Change: But the Brazilian market is structurally dependent on in for it and this is going to keep happening and maybe things will change somewhat in terms of where the gas comes from that's just speaking now thank you Monique.
Speaker Change: If any if there is a.
Reduction of imports still we are going to go into cabotage and the market will just compensate with are still investing in improvement of structural deficit and this is why we've been investing in its path heavily they are going to be a major opportunities of import and product cabotage.
Speaker Change: If you compare this quarter with the same quarter last year, you were going to see a smaller spot volume in this quarter.
Inventory levels increased somewhat our tanks are full there.
Speaker Change: Thank you both.
Speaker Change: The next question comes from Pedro Gamma seating.
Speaker Change: At Ultra cargo the product comes we odds of being cabotage or imported we are very well positioned in vila do Cody Turkey swap the problem. The product has G are coming to the tanks, because we need to selling days regions if any.
Speaker Change: Mr Gamma Cleveland mutual microphone.
Pedro Gamma: Hello. Good morning, Thank you for taking my questions.
Pedro Gamma: The first question is about ultra gas.
Pedro Gamma: We've been hearing in the market discussing about natural gas and LPG.
Speaker Change: If there is.
Speaker Change: The reduction of imports still we are going to go into cabotage and.
On the one side, we see that the social programs are encouraging the use of LPG, but constantly discussing the margin of distribution of LPG in recent years, what is your opinion about the social programs and the effects. They have on market and how do you see L. P. G.
Speaker Change: The market will just compensate with our steel investing and improvement of our structural deficit and this is why we've been investing in spot heavily they are going to be a major opportunities of import and product cabotage.
Speaker Change: Thank you both.
Pedro Gamma: And.
Speaker Change: The next question comes from Pedro Gamma seating.
Pedro Gamma: Competition with other programs, such as natural gas ethanol and other energy sources in the country.
Speaker Change: Mr. Gamma please UN mute your microphone.
Pedro Gamma: Second question about Linden and increased volumes at <unk> last month.
Pedro Gamma: Hello. Good morning, Thank you for taking my questions.
Pedro Gamma: The first question is about.
Pedro Gamma: The first station of Pixar to Chicago was open what's the strategy for the brand in Brazil, and how does it adjust with the whole strategy of APE Ranga in the country.
Speaker Change: This is <unk> speaking I'm going to start with a question about ultra gas.
The program gas to wall.
Speaker Change: Liquefied gas to wall as a social program of the current Federal administration, we've talked about the fact any back to.
Speaker Change: Energy poverty.
Speaker Change: H.
The government is really focusing on Ed. This is something positive we are going to support.
Speaker Change: As much as possible, but there's still a lot to happen.
Before we know how the program is going to evolve.
Speaker Change: It will probably analyze the possibility of resellers you show that the benefits brought by LPG. Each of this society can reach 100% of households in the country.
Pedro Gamma: Yes.
Speaker Change: Even though I have to say there is still a lot to be done.
Speaker Change: You've talked about competition in terms of energy sources.
Speaker Change: We can see more room now for applications of LPG.
Speaker Change: There are some limitations of our LPG used in some specific applications.
We expect the regulatory.
Speaker Change: Yes to really release and approve that.
Speaker Change: Especially in bulk we've been seeing other uses and applications for LPG and we are also getting ready for the use of other energy sources that the company has in its portfolio. So that we can really have a complete let's.
Hey.
Speaker Change: Reach of options for LPG, we still see a very relevant.
Speaker Change: Hopper Trinity of growth.
Speaker Change: So I think those are two potential positive elements for the industry.
Speaker Change: No Pedro concerning volumes and at Bronco.
The growth of volume in the second to third quarter or was it Ranga has nothing to do with exactly we just opened one gas station one service station inch on the fourth quarter its much more market thing.
Speaker Change: And our actions in our own network.
Speaker Change: Now concerning the printing cycle.
Speaker Change: What we've been doing here with the brand.
Speaker Change: Its aim to produce a different model.
Speaker Change: Of business in the country.
We are going to have a strategy of a regional exclusivity.
Speaker Change: And they will have a yankees exclusivity of the brand in a region that is going to be defined among the parties and it's going to be a lighter motto in terms of investments.
Speaker Change: We don't have any specific guidelines in terms of product from them exactly because we are in the process of reproducing understanding the model.
Speaker Change: We have a very good route to follow with that cycle.
Speaker Change: What do you see volume is Ronnie Braga.
Ronnie Braga: And it's going to be more focused on a bronco, which is our main sales outlet downtick cycle.
Speaker Change: My question was really to understand your strategy. So that's very clear. Thank you very much.
Speaker Change: The next question comes from Mottos and sold Ub.
Speaker Change: UBS.
Speaker Change: So listen mutual microphone.
Speaker Change: Good morning, Rodrigo good morning, everyone.
Speaker Change: Kudos to the result.
Speaker Change: Opex is being Ronnie below what we had expected and what had been announced in the beginning of the year in all your business units.
Speaker Change: I would like to understand why understand in further details to what extent. This is going to impact 2025 is there a gain of efficiency.
Speaker Change: Ah projects that you haven't done because of higher interest rate change in a assumptions.
Speaker Change: Just to understand a bit more because.
Speaker Change: Capex has underperformed has been underperforming.
Speaker Change: Knowing that it tends to be sped up in the fourth quarter.
About <unk>.
Speaker Change: Building up on the previous question about ultra gas.
Capex, it's been running below what we had expected and what had been announced at the beginning of the year you know your business units.
Speaker Change: What about the other proposals of regulatory adjustment.
Speaker Change: Use of other branch at the end of the support new uses.
Speaker Change: I would like to understand why understand in further details to what extent. This is going to impact 2025 is there a gain of efficiency.
Speaker Change: Could you maybe tell us more about the regulatory adjustment as provided by the Brazilian agency of oil and gas A&P.
Speaker Change: Ah projects that you haven't done because of higher interest rate change in a assumptions.
Speaker Change: Thank you much else for your question.
Speaker Change: The plan that we shared for 'twenty 'twenty four Oh of Capex is not linear.
Just to understand a bit more because.
Speaker Change: Capex has underperformed hasn't been underperforming.
Speaker Change: We tend to accumulated in the end of the year.
Speaker Change: Knowing that it tends to be set up in the fourth quarter now are building up on the previous question about ultra gas.
Speaker Change: Yeah.
Speaker Change: And.
Speaker Change: We expect to close it below what was initially planned.
What about the other proposals of regulatory adjustment.
Speaker Change: Because of some savings in our projects and because of some carryover to 2025, let me now hand, it over to turbocharge them.
Speaker Change: Use of other brands the end of the support new uses.
Quickly maybe tell us more about the regulatory adjustment as provided by the Brazilian agency of oil and gas a and b.
Speaker Change: The Bachelor speaking.
Speaker Change: You see mottos building up.
Speaker Change: About your questions about regulatory affairs it so part.
Speaker Change: Thank you much else for your question.
Of one same package.
The plan that we shared for 'twenty 'twenty four Oh of Capex. It was it was not linear.
Speaker Change: And the natural progression of regulation, we've already discuss about that in the past.
Aldo: We tend to accumulated in the end of the year.
Speaker Change: And we've always taken a very active role we know a lot about the topic.
Speaker Change: Yeah.
Speaker Change: And.
Speaker Change: We see the international reference and we tend to be.
Speaker Change: We expect to close it below what was initially planned.
Speaker Change: Highly regulated.
Speaker Change: Because of some savings in our projects and because of some carryover to 2025, let me now hand, it over to turbocharge them.
Speaker Change: It provides.
Speaker Change: A more safety more competition.
Bush artist: Now Bush artist speaking.
Speaker Change: In such a large country there is no fraud or illegal practice in products, which is a result of the operational security that agents have in clients have so it's a very positive thing high security and a highly competitive market.
Speaker Change: You see them ourselves building up.
Speaker Change: About your questions about regulatory affairs it so part.
Speaker Change: Of one same package.
Speaker Change: And the natural progression of regulation, we've already to discuss about that in the past.
Speaker Change: Other models that have economic rationale can always be in our lives.
And we've always taken a very active role we know a lot about the topic.
Speaker Change: But it should always seek to economic improvement off the system, making sure that we still maintain the same level of security of inspection without opening room for illegal practices because of course it always in pads.
Speaker Change: We see the international reference and we tend to be.
Speaker Change: Highly regulated.
It provides.
Speaker Change: A more safety more competition.
Speaker Change: Safety and security and nobody wants that.
So I think that this security practice practices that we have are always very positive.
In such a large country there is no fraud or illegal practice in products, which is a result of the operational security that agents have in clients have so it's a very positive thing high security and a highly competitive market.
Speaker Change: This is what should prevail.
I think this is the most Ah let's say.
Speaker Change: Appropriate solutions for the society at large thank.
Speaker Change: Thank you for your answers.
Speaker Change: Other mothers that have economic rationale can always be in our lives.
Speaker Change: Now the last question comes from Pedro Suarez with BTG.
Speaker Change: Sandra please on mute or Mike.
Speaker Change: But it should always seek to economic improvement off the system, making sure that we still maintain the same level of security of inspection without opening room for illegal practices because of course it always in bags.
Speaker Change: Good morning, everyone.
I have two questions.
Speaker Change: First about working capital there was any of it.
Speaker Change: But the use of working capital.
Speaker Change: Safety and security and nobody wants that.
Speaker Change: I would like to hear more about your expectations for the fourth quarter and also inventory levels.
Speaker Change: So I think that there's security practice practices that we have are always very positive.
Speaker Change: Can you tell us more.
Speaker Change: This is what should prevail.
Speaker Change: Bout the dynamic of the quarter.
Speaker Change: I think this is the most let's say.
Speaker Change: Maybe there were some strategic actions but.
Speaker Change: Brokerage solution for the society at large thank.
Speaker Change: Was there anything else that resulted from the ethanol competitiveness in Otto cycle, just give any more pressure to oil yeah is it something a temporary.
Speaker Change: Thank you for your answers.
Speaker Change: Now the next question comes from Pedro Suarez with BTG.
Speaker Change: Sandra please on mute or Mike.
Pedro Suarez: Good morning, everyone.
Speaker Change: Should we expect a more.
Speaker Change: I have two questions.
Speaker Change: First about working capital there was any of it.
Speaker Change: Over demand for next quarters.
Speaker Change: But the use of working capital.
Speaker Change: And then one other question about margins at it Ranga the level of 130, <unk> should be conservative not only because of the results you Richard but also because it's below what we observed in the first half of the year.
Speaker Change: I would like to hear more about your expectations for the fourth quarter and also inventory levels.
Speaker Change: Can you tell us more.
Speaker Change: Bout the dynamic of the quarter.
Speaker Change: Maybe there were some strategic actions but.
Speaker Change: Do you think that this is a level.
Speaker Change: Was there anything else that resulted from the ethanol competitiveness in Otto cycle does.
Speaker Change: That maintains.
The expected return on investment as being healthy levels and also allowing some market share gains or no are you just being conservative as a management team.
Speaker Change: Giving more pressure to oil yeah is it something a temporary.
Speaker Change: Should we expect a more.
Thank you.
Hi, Pedro I'm going to answering about at Bronco Linden speaking and then Rodrigo can build up on it.
Speaker Change: Over demand for next quarters.
Speaker Change: And then one other question about margins at the Durango, the level of 130 tends to be conservative and not only because of the results you Richard but also because it's below what we observed in the first half of the year.
Speaker Change: Concerning our turnover I think there are four.
Speaker Change: Components involving our pronghorn there working capital first increasing volume, 5% increase in volume Secondly, highest prize of a gas.
Speaker Change: Do you think that this is a level.
Speaker Change: Gasoline.
Speaker Change: That maintain.
Speaker Change: And the strategy of anticipation of the buying of biofuel, we've seen an opportunity and fourth option is a reduction of cone Fermi.
The expected return on investments being healthy levels, then also allowing some market share gains or no are you just being conservative as a management team.
Speaker Change: That we have throughout the year.
Speaker Change: Thank you.
Speaker Change: <unk>.
Having a positioning biofuels as.
Linden: Hi, Pedro I'm going to answering about a bronco Linden speaking and then Rodrigo can build up on it.
As well as the program called Fear me are just circumstantial situations that that will be offset in the fourth quarter concerning margins yes.
Speaker Change: Concerning our turnover I think there are four.
We tend to be more conservative.
Speaker Change: Components involving a bronco and the working capital first increasing volume, 5%, increasing volume secondly, highest prize of a gas Uh huh.
Speaker Change: We always say that we see margins over 150.
For cubic meter, but we are being more conservative or this quarter and trying to understand the market demand.
Speaker Change: Gasoline.
Speaker Change: And the strategy of anticipation of the buying of biofuel, we've seen an opportunity and four for option is a reduction of cone fear me.
Speaker Change: And it's not a share strategy, let laws may cause it very clear not a shared strategy.
Lindon: Great. Thank you lindon.
Speaker Change: That we have throughout the year.
Speaker Change: The next question comes by Eduardo <unk> with Santander.
Speaker Change: <unk>.
Speaker Change: Having a positioning biofuel.
Speaker Change: As well as the program called Fear me are just circumstantial situations that that will be offset in the fourth quarter cause any margins.
Speaker Change: Eduardo please.
Speaker Change: The Microsoft.
Speaker Change: Hello. Good morning, Thank you for taking my questions.
The first question is about the initiatives against illegal practices in the area of distribution.
Speaker Change: Yes.
Speaker Change: We tend to be more conservative.
Speaker Change: We always say that we see margins over 150.
Speaker Change: We've seen the focus of many of the players in the ecosystem, it's something getting stronger and we are seeing that some of the special regimens a word just pushed to earn and what do you also expect to reach this year and the first quarter next year what.
Speaker Change: Berg cubic meter, but are we are being more conservative for this quarter and trying to understand the market demand.
Speaker Change: And it's not a share strategy, let laws may cause it very clear not a shared strategy.
Speaker Change: Great. Thank you and then.
Speaker Change: Do you expect to be approved to improve competitive market and secondly concerning he'd Ravi is do Brazil.
Speaker Change: The next question comes by Eduardo monies with something there.
Speaker Change: I'd want to please.
Speaker Change: What are the main points that ultra pod wants to contribute with Ravi is the Brazil to really double the initiative of our article Nortel with ER. The private use Germany now it is it something that you are that you can lend to them as neutral cargo what all the other options that you.
Speaker Change: The microphone.
Speaker Change: Hello. Good morning, Thank you for taking my questions.
Speaker Change: The first question is about the initiatives against illegal practices in the area of distribution.
Speaker Change: We've seen the focus of many of the players in the ecosystem, it's something getting stronger and we see in that some of the special regimens a word just put it to an end what do you also expect to reach this year and the first quarter next year what.
Speaker Change: Could you given some more information to us.
Speaker Change: Well they do Aldo.
Speaker Change: Yes, there is an improvement.
Speaker Change: I think there's still a lot to be done in terms of fighting against illegal practices.
Speaker Change: Do you expect to be approved.
Speaker Change: To improve competitive market and.
Speaker Change: We've seen that things can really get better if we have appropriate fight against illegal practices.
And secondly concerning he'd Ravi is do Brazil.
Speaker Change: What are the main points that ultra pod wants to contribute with had reviews, the Brazil to really double the initiative of our article Nortel with ER. The private use Germany now it is it something that you are that you can lend to them as neutral cargo what all the other options that you.
Speaker Change: Can you talk about tax evasion.
We have to work with ethanol and Manav Asia.
Speaker Change: Ethanol is still a relevant problem.
Speaker Change: With the rattler.
Speaker Change: Trading.
Speaker Change: <unk> given some more information to us.
Speaker Change: There is also a law.
Speaker Change: That would impose sanctions to those long time.
Well the door, though.
Speaker Change: Yes, there is an improvement.
Speaker Change: That does there is also the Renova beall with another legislation there is a very important share of distributors that do not meet the air goes off.
Speaker Change: I think there's still a lot to be done in terms of fighting against illegal practices.
Speaker Change: We've seen that things can really get better if we have appropriate fight against illegal practices I wanted to talk about tax evasion.
Speaker Change: C ibs, hitting really impacts producers and manufactures because they could be investing in the production of biofuels and they are not.
Speaker Change: We have to work with ethanol and mono fascia.
Speaker Change: Ethanol is still a relevant problem.
Speaker Change: And finally, we expect to have a better control over not mixing biodiesel for example, right now where biodiesel costs more than seven per leader a great difference two D 100.
Speaker Change: With the regular.
Speaker Change: Trading.
Speaker Change: There is also a law that would impose sanctions to those long time there.
Speaker Change: And these are situations in which some mix may happen. So these are all open phones of initiatives.
Speaker Change: There is also the Renova view, it's another legislation there is a very important share of distributors that do not meet the air goes of C. Ibs, hitting really impacts producers and manufactures because they could be investing.
Speaker Change: I cannot tell you whether this is going to happen this quarter or next quarter or when exactly.
Speaker Change: But we've been having very interesting discussions.
Speaker Change: Led by a number of companies and always supported by the regulatory authorities as well we have to evolve and visit gender, it's still a problem in our industry.
Speaker Change: In the production of Biofuels and they are not.
Speaker Change: And finally, we expect to have a better control over not mixing biodiesel for example, right now where biodiesel across more than seven per leader a great difference to be 100.
Speaker Change: In terms of he'd reviews do Brasil, we are part of the board.
Speaker Change: And these are situations in which some mix may happen. So these are all open phones of initiatives.
Speaker Change: And we believe the company is capable of running projects with quality.
Speaker Change: Ultra cargo is developing for terminals simultaneously.
Speaker Change: I cannot tell you whether this is going to happen in this quarter or next water or when exactly.
Speaker Change: It has a very good active track record and of course, it's a company that will provide support if considered to be necessary by Heathrow V. S. But right now we are thinking about long term.
Speaker Change: But we've been having very interesting discussions.
Speaker Change: Led by a number of companies and always supported by the regulatory authorities as well we have to evolve and visit gender, it's still a problem in our industry.
Speaker Change: Giving a support to the company and existing projects, which were still.
Speaker Change: Waiting.
Speaker Change: For approval by shareholders to execute so we're very optimistic about the possibilities of expanding.
Speaker Change: In terms of he'd reviews do Brasil, we are part of the board.
Speaker Change: And we believe the companies capable of running projects with quality.
Speaker Change: Oh, they're installed capacity of the north arc area.
Speaker Change: Arco nordson.
Speaker Change: Oh for cargo is developing for terminals simultaneously.
Speaker Change: In addition to what Microsoft has just said.
Speaker Change: It has a very good active track record and of course, it's a company that will provide support.
Speaker Change: He'd ROE V S.
Speaker Change: Have a very good team dedicated to this topic, but we are also contributing with some people that were transferred to he drove he is to be part of our Ah <unk>.
Speaker Change: If considered to be necessary by hid reverse but right now we are thinking about long term.
Speaker Change: Giving a support to the company in existing projects, which we're still.
Speaker Change: The initiative our.
Project manager is someone highly experienced in conducting project a complex projects and certainly if someone who's going to help and these initiative now combining all questions about illegal practices and just to give you some dimension about that if it does not.
Speaker Change: Waiting for approval by shareholders to execute so we're very optimistic about the possibilities of expanding our their installed capacity of the north arc.
Speaker Change: Area.
Speaker Change: Arco nordson.
Speaker Change: Mixed biodiesel in November in November alone.
Speaker Change: In addition to what Microsoft has just said he'd.
At Brown, <unk> brown or there would be additional EBITDA of 1 billion barrels because of the difference of prices of biodiesel and diesel.
Speaker Change: He'd Ravi is.
Speaker Change: Have a very good team dedicated to this topic, but we are also contributing with some people that were transferred to heed Ravi is to be part.
Speaker Change: This is.
Speaker Change: How much illegal practice affect the industry and this is why we have to fight against that so that we can have fair competition.
Linden: Of.
Linden: The initiative our.
Linden: <unk> manager is someone highly experienced in conducting project a complex projects and certainly if someone who's going to help and these initiative.
Speaker Change: Okay. Thank you very much if I can have a follow up for his reviews.
Speaker Change: And the expectations of our of our approving some excess capital with huge obvious.
Speaker Change: Now combining all questions about illegal practices and just to give you some dimension about that if it ranga theres not mix biodiesel in November and December alone.
Speaker Change: No news so far.
Speaker Change: The management answers okay. Thank you very much.
Brown at Bronco, there would be additional EBITDA of 1 billion.
Speaker Change: The next question comes by Leonardo Mark on to Mark on this bank of America.
Speaker Change: B R L's because of the difference of prices of biodiesel and do something.
Speaker Change: Mr. <unk>, please on mute or Mike.
Speaker Change: This is.
Speaker Change: How much illegal practice affect the industry and this is why we have to fight against that so that we can have fair competition.
Speaker Change: Good morning, Thank you very much for taking my question.
Speaker Change: Most of them have been answered.
Speaker Change: I'm going to ask one about the ultra gas is in auto has just mentioned.
Speaker Change: Okay. Thank you very much if I can have a follow up for his reviews.
Speaker Change: So do you expect a an increased share of coming from new energy sources.
Speaker Change: And your expectations of Oh of approving some excess capital with huge obvious.
Speaker Change: Could you please give us some more of it.
Speaker Change: No news so far.
Speaker Change: Information about that the dynamics of business segment and could you. Please tell us how.
Speaker Change: The management answers okay. Thank you very much.
Speaker Change: How much that contribution or that share would be.
Speaker Change: The next question comes by Leonardo Mark on to Mark on does Bank of America.
Speaker Change: Well the Orlando.
Speaker Change: Mr. Marchionne, just please on mute or Mike.
Speaker Change: Based on what Rodrigo has said when we started.
Speaker Change: Good morning, Thank you very much for taking my question.
Speaker Change: Most of them have been answered.
Speaker Change: This is a combination of our strategy.
Speaker Change: I'm going to ask one about the ultra gas is in auto has just mentioned.
Speaker Change: We've had a very good evolution of our strategy and the long term.
Speaker Change: Where do you expect a an increased share of coming from new energy sources.
Speaker Change: Closer to our customers.
Speaker Change: Could you please give us some more of.
Speaker Change: In all the different segments that we operate such as bulk.
Speaker Change: Information about that the dynamics of business segment and could you. Please tell us how much that contribution or that share would be.
Speaker Change: They have evolved a lot.
Speaker Change: And they are probably going to evolve into a more in the fourth quarter. That's why do we expect.
Speaker Change: Well Ronaldo.
Based on what Rodrigo has said when we started.
Speaker Change: Yeah.
Speaker Change: We can see the maturity of the investments we've made in other energy sources Biomethane and electricity.
Speaker Change: This is a combination of our strategy.
We've had a very good evolution of our strategy is in the long term.
We've already talked about our expectations of 32, 5% of EBITDA.
Speaker Change: Being resulting from that but they are not segregated operation, we've been really combining businesses to add more value to our clients.
Speaker Change: Closer to our customers.
Speaker Change: In all the different segments that we operate such as bulk.
Speaker Change: This is something that is becoming a reality and really impacting our result.
Speaker Change: They have evolved a lot.
Speaker Change: And they are probably going to evolve into a more in the fourth quarter. That's why do we expect.
Speaker Change: This is probably going to be intensified in upcoming quarters, we have been offering a broader perspective and a broader range of products. So we expect that improvement in the fourth quarter and in upcoming quarters next year.
Speaker Change: Yeah.
Speaker Change: We can see the maturity of the investments we've made in other energy sources Biomethane and electricity.
Speaker Change: Great. Thank you very much.
Speaker Change: We've already talked about our expectations of 32, 5% of EBITDA.
Speaker Change: The next question comes from Bruno Montanari Morgan Stanley.
Speaker Change: Being resulting from that but they are not segregated operation, we've been really combining businesses to add more value to our clients.
Speaker Change: Mr. Montanari, please on mute yourself.
Thank you for taking my questions just a quick follow up and one question.
This is something that is becoming a reality and really impacting our result.
Speaker Change: Turning back to working capital.
Speaker Change: Should we wait should we expect more working capital released in the fourth quarter is it going to be expressive.
Speaker Change: This is probably going to be intensified in upcoming quarters, we have been offering a broader perspective and a broader range of products. So we expect that improvement in the fourth quarter and in upcoming quarters next year.
Speaker Change: Because of the investments you've made in previous quarters, and let me ask a question to your alerts.
Speaker Change: How do you anticipate that environment in Brazil, thinking about our economy politics U S election, when making decisions about investments in existing businesses.
Speaker Change: Great. Thank you very much.
Speaker Change: The next question comes from Bruno Montanari Morgan Stanley.
And also in new initiatives that you might have.
Speaker Change: Mr. Montanari, please on mute yourself.
Speaker Change: Thank you for taking my questions just a quick follow up and one question going back to working capital.
Let me quickly answer about the working capital and then lose scan answered the question.
Speaker Change: Should we wait should we expect more working capital released in the fourth quarter is it going to be expressive.
Speaker Change: Yes.
Speaker Change: It would probably be in a recovery of working capital working capital movements are always significant upward down we expect to regain a lot of what we've invested in the other quarters.
Speaker Change: Because of the investments you've made in previous quarters and letting me ask a question to you alerts.
Speaker Change: Now Lutz has speaking I don't expect any radical changes in the country.
Pedro Gamma: How do you anticipate that environment in Brazil, thinking about our economy politics U S election, when making decisions about investments in existing businesses.
And you're saying that it would be relevant to drop off businesses.
Speaker Change: In terms of investments.
Speaker Change: We've made investments in E. He'd Ravi, yes, which is still going to go through a maturation there on a number of upsides a company with a great future.
Pedro Gamma: And also in new initiatives that you might have.
Pedro Gamma: Let me quickly answer about the working capital and then lose scan answer the question.
Pedro Gamma: Yes.
Speaker Change: Oh, the other three traditional business that we have have expansion projects, we've been allocating capital to them.
Speaker Change: It would probably mean a recovery of working capital working capital women's are always significant upward down we expect to regain a lot of what we've invested in the other quarters.
We are still.
Speaker Change: Maintaining our position which is deleveraging.
Speaker Change: Now Lutz has speaking I don't expect any radical changes in the country.
Speaker Change: And always.
Observing closely the economy.
Speaker Change: Anything that would be relevant to drop bars businesses.
Speaker Change: The U S election, well I don't anticipate any in fact on our strategy at least for now.
Speaker Change: In terms of investments we've made investments in a he drove yes.
Speaker Change: Which is still going to go through a maturation there on a number of upsides a company with a great future.
Speaker Change: Great. Thank you very much.
Speaker Change: The next question comes from Helena Kelman with XP.
Speaker Change: MS Kelemen, please and mutual mine.
Pedro Gamma: Oh, the other three traditional business that we have have expansion projects, we've been allocating capital to them.
Speaker Change: Hello, I have a quick question here.
Speaker Change: About your strategy of service stations, we've seen a movement, but I would like to get your App data on what do you expect to develop further the strategy of the network of service stations and the number of stations.
Pedro Gamma: We are still.
Pedro Gamma: Maintaining our position which is deleveraging.
Pedro Gamma: And always.
Pedro Gamma: Observing closely the economy.
Pedro Gamma: The U S election, well I don't anticipate any impact on our strategy at least for now.
Speaker Change: Nothing is changing really compare what we've been doing with the branded network, we make our investments selectively.
Great. Thank you very much.
The next question comes from Helena Kelman with XP.
Speaker Change: And we have a natural what traction of this kind of business.
Speaker Change: MS Kelemen, please and mutual mine.
Speaker Change: The main initiative of closing down some of the units is over if you get the official numbers of a N. D of self stated number of stations you will see that they are very close.
Speaker Change: Hello, I have a quick question here.
Speaker Change: About your strategy of service stations, we've seen a movement, but I would like to get your update on what do you expect to develop further the strategy of the network of service stations and the number of stations.
Speaker Change: This is a sign of the accuracy of number of stations that we report and from now on business as usual.
Speaker Change: Nothing is changing really compare what we've been doing with the branded network, we make our investments selectively.
Speaker Change: Make select investments and exclude or close stations that wouldn't make sense to be maintained.
Speaker Change: Great. Thank you.
Speaker Change: And we have a natural what friction of this kind of business.
Speaker Change: The main initiative of closing down some of the units is over if you get the official numbers of a N. D of self stated number of stations you rucci that they are very close.
Speaker Change: Thank you if there are no further questions I would like to hand, it over to Mr. Rodrigo. Please in auto for his closing remarks.
Mr. Pizzi and also you have the floor.
Mr. Rodrigo: Thank you all very much for the questions.
Speaker Change: This is a sign of the accuracy of number of patients. They read the report and from now on business as usual.
Mr. Rodrigo: Any unanswered questions can be answered by the Investor Relations team and I hope to see you in our next earnings release Conference call. Thank you all very much.
Speaker Change: Make select investments and I exclude or close stations that it wouldn't make sense to be maintained.
Thank you.
Speaker Change: The earnings release conference call of Ultra is closed now. Please disconnect now. Thank you very much have a great day.
Speaker Change: Great. Thank you.
Speaker Change: Thank you if there are no further questions I would like to hand, it over to Mr. Rodrigo. Please in auto for his closing remarks.
Speaker Change: Mr. Pitts and also you have the floor.
Mr. Rodrigo: Thank you all very much for the questions.
Mr. Rodrigo: Any unanswered questions can be answered by the Investor Relations team and I hope to see you in our next earnings release Conference call. Thank you all very much.
Mr. Rodrigo: Yeah.
Thank you.
Speaker Change: The earnings release conference call of Ultra is closed now. Please disconnect now. Thank you very much have a great day.
Speaker Change: Okay.