an S.A.(US:CSAN)2025-02-27 21:30Financial Data and Key Metrics Changes - The company reported an EBITDA under management of approximately R$30 billion for 2024, indicating a resilient portfolio despite challenges [12] - The net loss for 2024, excluding non-recurring events, was R$900 million, primarily due to the depreciation of the Brazilian Real and mark-to-market impacts [12][13] - The corporate net debt at the end of 2024 was R$23.4 billion, with a debt service coverage ratio of 1.1 times, highlighting the need for improved capital structure [15][17] Business Line Data and Key Metrics Changes - Rumo experienced higher transported volumes and increased tariffs, achieving record transport levels in several months of 2024 [17] - Compass saw growth in distributed natural gas volumes and the ramp-up of Edge operations, contributing positively to the business [18] - Moove managed to increase revenues despite lower volumes sold, demonstrating effective supply management [20] - Raizen faced challenges in sugarcane crushing due to adverse weather conditions, resulting in lower EBITDA [21] Market Data and Key Metrics Changes - The macro environment for 2024 began with positive expectations but deteriorated throughout the year, leading to a new interest rate hike cycle in Brazil [9][10] - The company noted a significant impact from the depreciation of the Brazilian Real on its financial results, particularly affecting perpetual bonds [13] Company Strategy and Development Direction - The management emphasized a focus on improving capital structure and maintaining capital discipline, particularly following the divestment of the Vale stake [10][26] - The company plans to be active in capital allocation and portfolio recycling to navigate the challenging macro environment while pursuing growth [11] - There is a clear strategy to reduce leverage at the Holdco level while maintaining a high-quality asset portfolio [72][75] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for urgent action to improve the debt service coverage ratio and overall financial health [44] - The company is committed to maintaining quality in its portfolio while exploring divestment options to enhance capital structure [45][48] - The management expressed optimism about the potential for future growth despite current macroeconomic challenges [122] Other Important Information - The company plans to use proceeds from the Vale disposal to reduce debt and improve its capital structure [24] - There were no fatalities reported in the Moove fire incident, and the company has implemented effective contingency plans [53] Q&A Session Summary Question: Debt profile and preferred shares treatment after Vale disposal - Management indicated that the focus is on liability management and optimizing the debt profile, with preferred shares not directly tied to the Vale acquisition [29][34] Question: Capital allocation and potential divestments - Management confirmed that divestments are being considered, but the priority remains on maintaining portfolio quality [40][45] Question: Impact of Moove fire on operations - Management reassured that there were no injuries and that contingency plans were effectively implemented to mitigate operational impacts [54] Question: Direction for deleveraging and capital structure - Management emphasized a disciplined approach to reducing leverage while exploring asset sales that do not compromise portfolio quality [72][75] Question: Land business and monetization options - Management acknowledged ongoing divestments in the land business and indicated that structural changes are being considered [87] Question: Capital injection and asset separation - Management clarified that while capital injection is not currently planned, they are open to exploring options for asset separation if beneficial [100][101]