an S.A.(CSAN)2024-05-29 17:29Financial Data and Key Metrics Changes - The company's EBITDA under management for Q1 2024 was BRL 7.1 billion, a decrease compared to the first quarter of 2023, primarily due to the absence of tax credits recognized in Raizen in Q1 2023 [17] - Net income for Q1 2024 was negative BRL 192 million, an improvement from negative BRL 904 million in Q1 2023, mainly due to recognized tax liabilities and negative equity pickup from Raizen [17][18] - Net debt stood at BRL 22.7 billion, consistent with the previous quarter, while interest coverage improved from 1.0 times to 1.1 times over the last 12 months [18][20] Business Line Data and Key Metrics Changes - In Rumo, there was an increase in transported volumes and average tariffs, contributing positively to the overall performance [38] - Raizen achieved record sugarcane crushing levels of 84 million tons, indicating a significant recovery in productivity [38] - Moove reported stable lubricant sales volumes but with substantially higher EBITDA and healthier margins, reflecting successful integration efforts [38][59] Market Data and Key Metrics Changes - The Brazilian market remains challenging, impacting the company's strategic decisions regarding potential listings and capital allocation [4][51] - The company is closely monitoring regulatory discussions that could affect its operations and capital structure, particularly concerning Vale and Comgas [25][51] Company Strategy and Development Direction - The company is focused on capital discipline and liability management, especially in a high-interest-rate environment, to ensure sustainable growth and value creation [37][52] - There is an emphasis on portfolio recycling and seeking strategic partners for core projects to enhance operational efficiency and financial performance [28][49] - The company aims to maintain a healthy leverage ratio of 1.5 to 2 times interest coverage, allowing for organic deleveraging over time [41][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate current challenges, highlighting improved fundamentals and cash generation capabilities [6][19] - The focus remains on executing key projects and maintaining high safety standards, with a commitment to zero fatalities and accidents [18][37] - Future capital allocation decisions will be influenced by the performance of operating companies and the overall macroeconomic environment [63] Other Important Information - The company has unwound part of its collar financing structure to improve access to dividends and reduce complexity in its capital structure [19][54] - The fair market value of the land portfolio was assessed at BRL 16.3 billion, with Cosan's stake valued at around BRL 5 billion [38] Q&A Session All Questions and Answers Question: Can you provide more detail on leveraging and capital allocation? - The company does not have a set target for leveraging but aims for a healthy coverage ratio of 1.5 to 2 times interest coverage, allowing for organic deleveraging over time [41][52] Question: What is the current status of Vale's position and potential adjustments? - The company has made considerable adjustments to its position in Vale and will continue to monitor it closely, considering market conditions and capital structure [3][51] Question: How does the company view regulatory discussions affecting its operations? - The company is actively monitoring regulatory discussions and has strengthened its institutional relations to navigate these challenges effectively [25][51] Question: What is the strategy for capital allocation in the current market environment? - The company emphasizes capital discipline and is focused on executing its growth agenda while being mindful of the high-interest-rate environment [37][52]