an S.A.(US:CSAN)2023-08-15 21:33Financial Data and Key Metrics Changes - Cosan's corporate net income growth was attributed to business performance, market-to-market effects of total return swaps, and positive FX variations, with BRL 4.7 billion raised for liquidity and debt amortization until 2025 [3][10][69] - The increase in gross debt was primarily due to new debentures issued, totaling BRL 2 billion, and a bond raising of $550 million [8][10] - The pro forma leverage stood at 2x, indicating appropriate levels for the company [95] Business Line Data and Key Metrics Changes - In renewables, adjusted EBITDA decreased due to lower ethanol sales volumes and prices, while the power business advanced significantly with ongoing partnerships and production records at the Costa Pinto plant [4][65] - Rumo achieved record high quarterly volume and EBITDA, driven by increased transported volumes and average tariffs, reflecting strong demand for agricultural commodities [5] - Moove reported strong EBITDA growth, with a new market share record of 19.7% in Brazil's lubricants market, and an EBITDA exceeding BRL 1 billion over the last 12 months [6][90] Market Data and Key Metrics Changes - The land segment saw an increase in EBITDA due to portfolio appreciation and growth in lease revenues, with a significant sale of land contributing to results [92][78] - The mobility segment in Brazil faced challenges, with stable sales volumes but impacted profitability due to inventory losses and diesel oversupply [66] Company Strategy and Development Direction - The company is focused on optimizing its capital structure and maintaining liquidity, with plans to address all needs by 2025 without further capital raises [19][39] - There is an emphasis on expanding operations in renewables and enhancing productivity while managing costs effectively [75][88] - The company is exploring partnerships and potential acquisitions funded with internal resources, indicating a strategic focus on organic growth [21][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the mobility sector but expressed confidence in the overall performance of Moove and other segments [35][75] - The company is optimistic about the future, particularly regarding the São Paulo regasification terminal and its potential impact on operations [105] - Management highlighted the importance of maintaining capital discipline while exploring growth opportunities in various sectors [121] Other Important Information - The company has made significant progress in its ESG agenda, receiving recognitions for its sustainability efforts [88] - The integration of Comet into Compass has contributed positively to distribution margins and network expansion [90] Q&A Session Summary Question: Expectations regarding dividends from Moove and Compass - Management noted that Moove's strong performance was expected, with no specific guidance on future payouts for either company [100] Question: Update on the São Paulo regasification terminal - Management confirmed that the terminal is on track to be operational by the end of the year, with final details being worked on [105] Question: Future IPO plans for Compass and Moove - Management indicated that while there is interest in IPOs, there is no urgency, and they aim to optimize valuation before proceeding [107] Question: Impact of interest rates on capital allocation - Management stated that they are focused on executing projects and optimizing operations despite changes in interest rates [115] Question: Stake in Vale and future plans - Management expressed satisfaction with their current stake in Vale and indicated no immediate plans to increase it [113]