an S.A.(US:CSAN)2019-02-19 02:44Financial Data and Key Metrics Changes - In 2018, Cosan's pro forma adjusted EBITDA grew by 23% in the fourth quarter but decreased by 2% for the full year, reaching R$5 billion, in line with guidance [30] - Adjusted net income totaled R$730 million in Q4, benefiting from a non-cash effect of tax variation, while for 2018, adjusted net income reached R$1.2 billion, a 35% increase from 2017 [30][31] - Operating cash generation advanced 9% to R$5.3 billion in 2018, with improved working capital dynamics at Raízen Combustíveis Brazil [32] Business Line Data and Key Metrics Changes - Raízen's quarterly EBITDA was $22 million, adversely affected by oil price drops and refinery downtime, with capital expenditures totaling $36 million [12][15] - Raízen Combustíveis in Brazil saw total sales volume grow by 4% in Q4 and 2% for the year, with diesel and jet fuel being the highlights [13] - Raízen Energia's adjusted EBITDA reached R$835 million, 6% lower than Q4 2017, mainly due to lower sugar prices and sales volume [22] Market Data and Key Metrics Changes - In Argentina, Raízen processed 75.5 barrels a day with a refinery utilization factor of 75%, impacted by scheduled maintenance [10] - Diesel and gasoline sales dropped 10% compared to Q4 2017 due to lower economic activity, while aviation fuel sales grew by 22% [11] - Comgás reported a 6% increase in natural gas volume excluding thermal power, with normalized adjusted EBITDA totaling R$546 million in Q4, 12% higher than the previous year [25] Company Strategy and Development Direction - The company is focusing on higher profitability products, with a production mix of 53% for ethanol, up from 45% in the previous crop year [17] - Moove is expanding its lubricant business with a capital contribution of up to R$562 million from CVC Fund, aiming to optimize its capital structure [27] - The company has suspended guidance disclosure due to ongoing capital market operations, indicating a cautious approach to future expectations [5][36] Management's Comments on Operating Environment and Future Outlook - Management noted that 2018 was a challenging year for Argentina due to severe economic distress, but the economic scenario improved in Q4 [9] - The truckers' strike in Brazil had a significant impact on fuel distribution, but demand is gradually recovering [13] - Management highlighted uncertainties in the global sugar market, with potential for better pricing due to expected deficits in sugar balance [24] Other Important Information - Capital expenditures for Raízen totaled R$857 million in 2018, with a net addition of 252 Shell service stations [16] - The company ended 2018 with a leverage ratio of 2.1 times net debt, normalized by the current account effect of Comgás [35] Q&A Session Summary - No questions were raised during the Q&A session, and the conference call concluded without further inquiries [37]