Ultrapar Participações S.A.
Earnings conference call
Comments on the company's 3Q18 performance and outlook 11.08.2018
Considerations
Forward-looking statements
This document may include "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "expect," "estimate," "plan," "outlook," "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Investors are cautioned that such forward-looking statements with respect to revenues, earnings, performance, strategies, prospects and other aspects of the business of Ultrapar Participações S.A. ("Ultrapar") are based on current expectations that are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. Ultrapar is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. For this reason, readers should not place undue emphasis on these forward-looking statements.
Standards and criteria adopted in preparing the information
The financial information presented in this document has been prepared according to International Financial Reporting Standards (IFRS). The financial information of Ultrapar corresponds to the company's consolidated information. The financial information of Ipiranga, Oxiteno, Ultragaz, Ultracargo and Extrafarma is reported without elimination of intercompany transactions. Therefore, the sum of such information may not correspond to the consolidated financial information of Ultrapar. In addition, the financial and operational information presented in this document is subject to rounding off and, consequently, the total amounts presented in the tables and charts may differ from the direct sum of the amounts that precede them.
EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization, Adjusted EBITDA - adjusted for the amortization of contractual assets with customers - exclusive rights, and EBIT- Earnings Before Interest and Taxes, are presented in accordance with CVM Instruction No. 527, issued by CVM on October 4, 2012.
As from 2018, the IFRS 9 and 15 standards were adopted, amendments to the IFRS rules and interpretations issued by the IASB. In order to provide a comparative basis for the financial statements, the information for the first and fourth quarter of 2017 shown in this document incorporates these accounting changes, consequently differing from the values previously reported in the respective publications of results. Additional information can be found in note 2.y of the quarterly financial statements of September 30, 2018 and in the financial spreadsheets, available from the Ultrapar website (ri.ultra.com.br).
Ultrapar - 3Q18 performance
Tight economic environment due to political and economic uncertaintiesFinancial overview
R$ million
1,221
Adjusted EBITDA | Net income | Leverage¹ and net debt | Investments² |
-30% | -41% | +1% | |
2.9x |
1.7x
545
850
9,191
1,511
1,533
323
6,767
3Q17
3Q18
3Q17
3Q18
3Q17
3Q18
¹ Net debt/EBITDA LTM
9M17
9M18
² Net of divestments and repayments
Gradual recovery of volumes
000 m³
in the service
6,059
6,200
3,156
3,301
2,814
2,780
Otto cycle: sharp growth of ethanol led by favorable parity in relation to gasoline
Gains in Plural's market share both in Otto cycle and Diesel in relation to 3Q17
3Q17
3Q18
3Q17
3Q18
3Q17
3Q18
DieselOtto cycleOthers
GasolineEthanolNGV
Total | Diesel | Otto cycle | |
+2% | +5% | -1% | Diesel: higher sales |
stations segment |
Network expansion
Adjusted EBITDA
Volume
000 ton
Total
Specialties
Commodities
-2%
-7%
+18%
211
205
Commodities: greater demand for products mainly in Brazil
Specialties:
173
162
44
37
Brazil: lower volumes in the agrochemical and distribution segments
International Markets: lower exports to Argentina, partially offset by higher volumes in the USA
3Q17
3Q18
3Q17
3Q18
3Q17
3Q18
Specialties
CommoditiesBrazilInternational Markets
18% | 21% |
82% | |
79% |
Exchange rate
54 | 52 |
119 | 110 |
EBITDA
R$ million
213
Real devaluated against US Dollar - R$ 0,79/US$
173
Higher unit margins in US Dollars
Lower sales volume
Impairment at Oxiteno Andina (R$ 7 million)
3Q17
3Q18
EBITDANon-recurring¹
EBITDA US$/ton
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Disclaimer
Ultrapar Participações SA published this content on 08 November 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 08 November 2018 12:38:24 UTC