Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cosan SA (CSAN, Financial) successfully extended the maturity of its debt portfolio, improving the duration and capital structure.
- The company reported a strong EBITDA under management of approximately BRL30 billion, showcasing the resilience of its portfolio.
- Rumo achieved record-level transports and results, demonstrating the quality of the asset and execution capabilities.
- Compass experienced growth in distributed natural gas volumes and ramped up Edge operations, indicating positive future prospects.
- Moove managed to increase revenues despite lower volumes sold, highlighting effective supply management and operational efficiency.
Negative Points
- Cosan SA (CSAN) reported a negative BRL900 million result for 2024, primarily due to the depreciation of the Brazilian Real and mark-to-market impacts.
- The company faced challenges with sugarcane crushing at Raizen due to dry weather and fires, leading to lower EBITDA in the renewable and trading segments.
- The appreciation of the Brazilian Real negatively impacted perpetual bonds, affecting financial results.
- Radar experienced a lower EBITDA compared to 2023 due to a smaller change in portfolio value appreciation.
- The company still recorded fatalities in 2024, indicating ongoing challenges in improving safety culture despite efforts.
Q & A Highlights
Q: Can you provide more details on your debt profile and the impact of the Vale share disposal on financial expenses?
A: Rodrigo Araujo, Chief Financial, Investor Relations, explained that the funds from the Vale share disposal are being used to manage liabilities, including the takeout of the 2027 bonds and tenders for 2029, 2030, and 2031 bonds. The focus is on reducing debt without incurring significant additional costs. Preferred shares are not directly tied to the Vale acquisition, and their dynamics involve a service plus dividends from Compass and Raizen.
Q: What is your strategy regarding potential divestments and capital allocation following the Vale sale?
A: Rodrigo Araujo stated that the Vale sale was timely but did not reduce the urgency to address capital allocation. The company is considering various options, including divestments, to improve its capital structure. Marcelo Martins, CEO, emphasized the importance of maintaining portfolio quality and not selling strategic assets that could impact future growth.
Q: Could you elaborate on the impact of the fire at Moove and the expected recovery timeline?
A: Rodrigo Araujo confirmed that there were no fatalities or injuries from the fire. The company has effective contingency plans and insurance coverage for environmental damage, civil liabilities, and operational risks. The storage infrastructure was unaffected, and the company is working on alternative volume capture plans. The international operations remain unaffected.
Q: What is the company's approach to deleveraging, and are there plans for capital increases at the Holdco or subsidiary levels?
A: Rodrigo Araujo mentioned that the company is not currently considering capital increases but is open to partial monetization of assets with the right partner. The focus is on reducing debt at the Holdco level and promoting growth through invested companies. Marcelo Martins reiterated the priority of reducing Cosan's leverage while maintaining portfolio quality.
Q: How does the company view its land business in the current macroeconomic scenario?
A: Rodrigo Araujo indicated that the company is exploring various divestment options within its land business. There has been an increase in divestments at the invested company level to capitalize on the appreciation of the land portfolio. Structural changes are also being considered as part of the overall strategy.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
