Q3 2024 Companhia Brasileira de Aluminio Earnings Call Transcript
Key Points
- Companhia Brasileira de Aluminio SA (BSP:CBAV3) achieved an all-time high utilization rate of potlines, reaching 93,000 tons of liquid aluminum, indicating operational stability.
- The company reported an adjusted EBITDA of BRL409 million with a margin of 19%, the highest since Q2 2022, reflecting stability in costs and favorable pricing.
- Companhia Brasileira de Aluminio SA (BSP:CBAV3) is positioned in the first quartile of the global cost curve due to vertical integration with Alumina Energy, providing a competitive edge.
- The company successfully managed its debt by making an early payment of BRL469 million, improving its debt profile and reducing financial costs.
- Companhia Brasileira de Aluminio SA (BSP:CBAV3) continues to receive recognition for its ESG efforts, including participation in Climate Week and partnerships for low carbon aluminum.
- The company faced increased energy costs due to lower hydrogeneration, impacting the average cost of production.
- There is uncertainty in the real estate market recovery, particularly in China, which could affect future demand.
- Companhia Brasileira de Aluminio SA (BSP:CBAV3) is operating at maximum existing capacity, limiting immediate growth potential without further investment.
- The global aluminum market experienced a surplus, and demand in key regions like the US and Europe remains weak, affecting pricing dynamics.
- The company anticipates potential increases in production costs due to currency fluctuations and rising input prices, such as anodic paste and energy.
Hello, good morning, everyone. If you don't know me, I'm Abel Silva and I'm the Investor Relations Manager at CBA. Welcome to another earnings call. This time we're talking about the third quarter of '24 and we will have the support of Luciano Alves, our CEO, and Camila Abel, CFO and Investor Relations Director at the company.
We'd like to let you know that this event is being recorded and all participants will have their mics off during the presentation. Soon after we'll begin the Q&A session where participants that are present will be able to raise their hand on the platform to submit questions by audio or send the text questions through the Q&A button.
The presentation of this event is available on the investor relations website at CBA, where you'll also have the available recording after closing. And before we proceed, we'd like to clarify that some of the information present here may include statements that involve expectations on events and results in the future that rely substantially on general economic
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