an S.A.(CSAN)2024-08-15 18:37Financial Data and Key Metrics Changes - EBITDA under management increased from BRL 6.2 billion last year to BRL 7.1 billion in 2024 [4] - The company reported a negative net result of approximately BRL 200 million for the quarter [4] - The debt service coverage ratio improved from 1.1x to 1.3x in the second quarter of 2024 [5][9] Business Line Data and Key Metrics Changes - Rumo experienced higher transported volumes and significant increases in average tariffs, leading to improved EBITDA [5] - Compass saw lower volumes in the residential segment due to higher temperatures, but industrial demand increased, resulting in lower margins overall [6] - Moove maintained stable volumes while achieving significant margin expansion and EBITDA growth [6] - Raízen accelerated sugarcane crushing to 31 million tons, but faced delays in the commercialization of sugar and ethanol, impacting EBITDA [7] - Vale contributed BRL 800 million in EBITDA through the equity pickup method, with a reduction in stake to 4.1% [8] Market Data and Key Metrics Changes - The company noted market share gains in Santos Port, indicating a positive trend in operational results [5] - The fuel distribution margins in Brazil are reported to be healthier in 2024 compared to previous years [7] Company Strategy and Development Direction - The company is focused on capital discipline, managing leverage, and executing projects within its portfolio [3] - There is an emphasis on disciplined capital allocation and monitoring of subsidiary performance to optimize investments [15][25] - The management is not looking to increase its stake in Vale but will continue to monitor the situation closely [16][20] Management Comments on Operating Environment and Future Outlook - The management acknowledged the challenging interest rate environment and its impact on capital allocation strategies [3][38] - There is a focus on organic deleveraging and maintaining a sustainable debt service coverage ratio of 1.5x [21][22] - The management expressed a cautious yet disciplined approach to investments in the current economic climate [38] Other Important Information - The company highlighted the importance of safety standards, reporting a safety record of 0.24 LTIF [4] - The cash balance increased from BRL 2.6 billion to BRL 4 billion, supported by dividends from Moove and Compass [10] Q&A Session Summary Question: Discussion on liability management and potential IPO for Moove - Management emphasized capital allocation and leverage as priorities, with no significant updates on Subida da Serra [12][14] Question: Concerns about holdco discount and potential actions - Management acknowledged the holdco discount and is focused on deleveraging and executing projects to create value [17] Question: Future of Vale investment and its significance - Management confirmed that Vale remains a core asset, with no immediate changes expected in the investment strategy [19][20] Question: Challenges in CapEx execution and portfolio management - Management highlighted the complexities of CapEx execution in Brazil and the need for disciplined capital allocation [24][25] Question: Potential restructuring of preferred shares related to Vale - Management clarified that changes to preferred shares can only occur after four years and are not currently on the agenda [40][41] Question: Options for addressing the holdco discount - Management is open to exploring various options but noted the challenges in the Brazilian capital market [43]