Q2 2024 Orizon Valorizacao de Residuos SA Earnings Call Transcript
Key Points
- Orizon Valorizacao De Residuos SA (BSP:ORVR3) reported solid results with double-digit gains in net revenue and EBITDA compared to the same quarter last year.
- The company has shown continuous improvements in operational indicators, particularly in the disposal segment, which is driving growth.
- Investments in major biomethane plants are on track and on budget, with expected monetization starting in 2025.
- The company has an adequate capital structure, supported by a recent re-bond issuance with a maturity term of 19 years.
- Orizon is set to monetize carbon credits, with projects expected to generate about 240,000 carbon credits per quarter starting in the third quarter of 2024.
- Energy generation showed a slight negative variation, being 4% lower compared to the previous year.
- Net debt over EBITDA is reported at 7.8 times, which may indicate a high level of leverage.
- The company is still working towards reaching its target average price for landfill projects, indicating room for improvement.
- The ramp-up of newly acquired assets, such as the Rodolfo Fernandes landfill, is still in progress and may take time to reach full capacity.
- The monetization of carbon credits and biomethane projects is dependent on successful registration and market conditions, which could pose risks.
Good afternoon, ladies and gentlemen. Welcome to Orizon Valorizacao de Residuos SA video conference to discuss the results for the second quarter of 2024. This video conference is being recorded and the replay can be accessed on the company's IR website, ir.orizonvr.com.br. The presentation is also available for download at the results center on the company's IR website.
(Operator Instructions)
Before proceeding, we would like to clarify that any forward-looking statements are based on the beliefs and assumptions of Orizon VR's management and current information available to the company. These statements may involve risks and uncertainties as they relate to future events and therefore depend on circumstances that may or may not occur. Investors, analysts, and journalists must understand that events related to the macroeconomic environment, industry, and other factors could cause results to differ materially from those expressed in the respective forward-looking statements.
Present at this conference are Mr. Milton Pilão, CEO of Orizon; and Mr. Leonardo Santos, CFO and Investor
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