Earnings Call Transcript - PBR Q1 2024

Operator, Operator

Good morning, and welcome to Petrobras’ Earnings Call for analysts and investors. We’re going to discuss our results for the First Quarter of 2024. It’s a pleasure to have you here. This event will be held in Portuguese, but it is being simultaneously translated into English. You may access the links to both language webcast on our Investor Relations website. All participants will be on listen-only mode during the company’s presentation, after that we will have a questions-and-answer session. You may send us your questions via e-mail at petroinvest@petrobras.com.br. We have with us Carlos Travassos, Executive Engineering, Technology and Innovation Director; Clarice Coppetti, Executive Director of Corporate Affairs; Claudio Schlosser, Executive Director for Logistics, Trade and Markets; Joelson Mendes, Executive Director for Production and Exploration; Mario Spinelli, Executive Director for Governance and Compliance; Mauricio Tolmasquim, Executive Director for Energy Transition and Sustainability; Sergio Caetano Leite, Executive Financial and Investor Relations Director; and William Franca, Executive Director for Processes and Products. We will begin with a video bearing a message from our CEO, Jean Paul Prates.

Jean Paul Prates, CEO

Good morning, ladies and gentlemen. Today, we’re going to go into the financial results for the first quarter of 2024. The main message I would like to leave you with before presenting the figures is our commitment to executing and financing our investment plan with capital discipline and generating value for shareholders and society. We maintained consistent cash generation this quarter, which gives us security in relation to future investments including those for production growth. This quarter, and also in comparison to the previous quarter, we had a drop in oil and gas production, which was already expected because we’ve scheduled maintenance downtimes on platforms. Therefore, it’s a planned movement, which does not impact our production curve set out in the strategic plan. I would like to point out that this is a short-term variation because when we compare it to the first quarter of 2023, Petrobras’ production grew by 3.7%. In other words, we have increased production in the last 12 months, and we are on a growing curve projected in our ‘24 to ‘28 strategic plan. In the E&P segment, we had an excellent performance from the FPSOs, Almirante Barroso and Búzios, and P-71 and Itapu, which reached peak production at the end of last year. And, we’re increasing production from the FPSOs Sepetiba in Mero and Anita Garibaldi in the Campos Basin. In the second half of the year, we’re going to start operating the Marechal Duque de Caxias FPSO, which will be the third definitive production system for the Mero field with the capacity to produce up to 180,000 barrels per day and 12 million cubic meters of natural gas. Talking about the downstream, the first quarter is always weaker in terms of sales volume due to seasonality. We took advantage of this period to make scheduled maintenance stoppages at the refineries. And, even with important scheduled stoppages at REPAR and REPLAN, the utilization factor of our refining park remains high, reaching 92% in this first quarter of 2024, seven percentage points above the utilization factor of a year ago. It’s important to say that this increase in the level of refinery processing is taking place with value generation and total safety. Diesel, gasoline, and jet fuel in total production was 67% of the first quarter. We’re also keeping an eye on low carbon markets. In this quarter, we expanded our offer of more sustainable products starting to sell R5 diesel. Diesel with renewable content at RPBC, which like REPAR is already able to sell R5 diesel. We established a partnership with the second largest asphalt retailer in the country to sell CAP Pro W, a more sustainable type of asphalt. This is a summary of our operating performance in the first quarter, which led us to a net profit of $4.8 billion adjusted EBITDA of 12.1 billion and an operating cash flow of $9.4 billion. An important highlight is our financial debt, which has been falling every quarter. We ended the first quarter with a financial debt of $27.7 billion, the lowest acceptable level since 2010. We should also point out that the return to our shareholders, taking into account share appreciation and dividend payments, continues to be the highest in the industry over the last 12 months. Considering only the first quarter of 2024, our public return in taxes and other government participations reached R$68 billion. These are consistent figures that demonstrate Petrobras’ financial health. This robustness underpins the ambition of a company that wants to keep growing, innovating, and transforming itself. Beyond our recent success, we also want to emphasize that our investment case is a long-term one. We’re building the Petrobras of the future, a more efficient company committed to generating value with total attention to people and connected to a just energy transition. Thank you all for your participation, and I wish you a great event.

Operator, Operator

We’ll now start the presentation of the earnings of the first quarter of 2024. To begin, I’d like to give the floor to Clarice Coppetti, Director of Corporate Affairs.

Clarice Coppetti, Director of Corporate Affairs

Thank you, Ana Paula, and good morning to everybody. It is a huge pleasure to be here with you today to go over our financial results for the first quarter and also to give you information about our actions in Rio Grande do Sul state. At this moment, when the state is going into its third week of a climate catastrophe. Since May 1st, we’ve been giving shelter to more than 600 people inside our center in Canoas, which is adjacent to the Alberto Pasqualini refinery, giving every possible condition to everybody that lost their homes and providing them with food, shelter, hygiene, and protection throughout the day and also the possibility of spending the night, providing them with as much comfort as we can. This is an amazing work done not only with the involvement of our local team but also it’s being fully supported by the donations that we’ve been providing. You can see that we donated over R$7,600,000 to the impacted communities. Our operations are extremely strong in Canoas and Duque de Caxias, where our main asset is located in Rio Grande do Sul, a refinery in Alberto Pasqualini. Also, fuel over 500,000 liters has been donated and we are always catering to the demands of the civil defense, the state government, and other public institutions. Also, fresh water has been provided during a freshwater supply crisis in the state. This has been a constant effort, providing also chemical toilets and logistics, lending our helicopters to transport food and vessels that work for our Environmental Defense Center that have been made available to the civil defense of the state to rescue the victims. Very briefly, our Alberto Pasqualini refinery has been operating, catering to the fuel demands. It’s extremely important to the state. We’ve been mandated by the National Operator of the Electric System, ONS, that we should start dispatching electricity from the thermal power plant of Canoas. The company is making every effort not only to be solidary but also to keep its assets intact and working. We know that they are required right now for the population and also for the recovery of the state. Here we see information and some corporate highlights, an important part of our businesses, supporting all departmental areas. This shows not only the recruitment and selection process that we’ve been working on this year; we’ve been hiring new employees. We’re also launching our biggest call for the Young Apprentice Program with over 1,000 positions open. We’re also working with many of these apprentices that have been formally hired with all the formal benefits. A few others are also being formally trained, and we’re also allocating some positions for people with disabilities. That is important for us to have a close relationship with the universities and the technology institutes, and also to develop the Petrobras brand as a major employer in Brazil. Obviously throughout this process, every new worker that is hired goes through a very solid onboarding process. In the first quarter, over 700 new employees were hired and onboarded at the company, and they’re now going through their formal training processes. I can’t fail to mention that the Petrobras Board has been investing in initiatives to encourage the increase of diversity among the company’s leaders. Our leaders comprise 17% women and most of them are working on shifts and go on hitches. We’ve been investing in females for these leadership positions. I also want to discuss a recently launched project that has a huge impact in Brazil in our areas of operation, which is our Autonomy and Income Program that offers 20,000 positions for professional training courses for people in a situation of social vulnerability without a formal employment relationship. Of course, this program is integrated with our 2024 to 2028 strategic planning projects, and it intends to train the workforce since our ‘24, ‘28 period will require many downtimes and that requires a qualified workforce. I should also mention that our investors and market analysts are aware of the global mental health challenges inside companies. We were just awarded the UN award, Mind and Focus in one year. We’ve engaged with almost 6,000 leaders of the company and we’ve given them formal training across all areas to identify mental health issues and how to address them inside the company. We also launched the human rights and corporate citizenship supplement that highlights all the progress we’ve made so far in this regard. It poses a significant challenge, as we have to be well-positioned regarding human rights by 2030, and that’s a challenge that stretches across every department. I’m sure you’re eager to listen further so I’ll give the floor to Sergio Leite, Chief Financial and Investor Relations Officer, who will speak about the financial highlights. Thank you for your attention.

Sergio Caetano Leite, CFO

Thank you, Clarice. Good morning, everybody. We stand in solidarity with our brothers and sisters from the south of Brazil during these difficult times. In terms of our results for the first quarter, I want to highlight a few operational aspects. In Búzios, we reached a production of 1 billion barrels of oil, and 15 years into operation of our largest fields with the production of 2.6 billion boe. Additionally, several of our units are now undergoing a ramp-up process, especially the FPSOs Almirante Barroso, P-71, Anna Nery, Anita Garibaldi, and Sepetiba. For the second half of 2024, Marechal Duque de Caxias will start production, which is a very important unit adding 180,000 barrels of oil per day and 12 million cubic meters of gas, located in the Mero field. Speaking about the impacts on our quarterly results, the E&P team adopted a strategy to induce important downtimes this first quarter, which has historically been slower. However, this first quarter was better than the fourth of the previous year, and it’s only natural that slower production comes during this quarter. The downtimes have produced a relevant impact on production, but, when comparing the first quarter of 2024 with that of 2023, our production actually grew by 3%. The refinery farms have been delivering high utilization rates at 92%. Even with the downtimes, we have delivered high production levels of aviation fuel, lubricants, jet fuel, and these rates have been significant in 2023 at both REPLAN and REPAR refineries. The production of oil products is concentrated in high-value products, and the participation the share of diesel, gasoline, and jet fuel in total production is 67%, which is critical for the entire company. We should also highlight the efficiency and energy transition improvements seeing high levels of oil processing reaching a new record above those from the fourth quarter. This provides us with flexibility and allows for gains of scale. R5 diesel is a co-processed Petrobras product that started distribution over highways. Another highlight is our energy transition area; Petrobras has posted a reduction of 55% in emissions. Since 2015, we’ve reduced our greenhouse gas emissions by 40%. We had to go through significant changes in RP area and downstream, making this transition, which will also present additional news in the future. It is a vital area at Petrobras, and we consistently push for innovation. We’ve invested $3.6 billion in RP, nearly $1 billion a year on average, focusing on energy transition over the last few years. This investment drive for innovation has led to outstanding results in pre-salt areas, which is very important. Looking at the financial highlights, as previously mentioned, our adjusted EBITDA was $12.1 billion, the eighth highest in the company’s history, with an operational cash flow of $9.4 billion. Our net income stands at $4.8 billion, and taxes paid totaled R$68.2 billion, demonstrating our growing operation. Outside of this impressive figure, it’s vital to consider our operations through indexes that translate the company’s efficiency in generating shareholder value. The company share values remain short of expectations. The enterprise value ratio compared to proved reserves shows Petrobras grew by 33.3%, which is significant compared to the majors' average. Regarding enterprise value to EBITDA, Petrobras achieved growth of 75%, signaling our substantial contribution to shareholder value. In terms of returns, over the past 12 months, we saw a TSR of 107.3% in USD for PN ADRs and 83.9% for ordinary shares. Despite an adverse external environment, we’ve successfully delivered results reflecting our strong operational performance. Our gross and financial debt continues to decrease; we now see the lowest financial debt since 2010. With a net profit impacted by currency devaluation at $4.8 billion, we should also highlight how 66% of our cash generation is returned to society as dividends to controlling shareholders and taxes at different government levels. We approved a payout of R$13.45 billion, showing our commitment to our shareholders. This reinforces our long-term investment theory being upheld. This first quarter was impacted by strategic decisions and high maintenance downtime in the refinery parks, an increase from previous years; however, we are maintaining our production curve as planned. I’ll now pass it to Carlos Travassos to cover our investments.

Carlos Travassos, Executive Engineering, Technology and Innovation Director

Thank you, Sergio. Good morning, everybody. I’ll give you a brief update of our investments scheduled to start in 2024 and 2025 in the upstream segment. The first unit is scheduled to start operations in 2024, Duque de Caxias in the Mero field, adding 180,000 barrels of oil per day, increasing the Mero capacity to 500,000 barrels. This unit will receive the HISEP scheduled to become operational in the second half of 2028. Talking about the next units in chronological order, the first one, Maria Quiteria, left the shipyard on the sixth and is on its way to Brazil with a production capacity of 100,000 barrels of oil per day and gas compression capacity of 5 million cubic meters per day. This unit will incorporate combined cycle technology, being the first offshore production unit of Petrobras to combine two cycles, increasing efficiency and reducing emissions. The next units include Búzios 7 and the Almirante Tamandare FPSO that completed the installation on the deck of the unit and is now in the integration phase, scheduled to depart from the shipyard in the second half of 2024 to start operating in 2025. Alexandre de Gusmão, the FPSO, is at the final stage, lifting the modules and is the fourth unit to enter the Mero field. The last one, P-78, that’s already in Singapore, is awaiting the lifting stage. We just received confirmation that the last modules were completed yesterday and are ready for lifting. In terms of our investments in the downstream, RNEST, the first one is SNOx, our emission reduction units that will increase the refinery capacity of 27,000 barrels of oil per day, scheduled to operate in the second quarter of 2024. Also, RNEST will see an increase of 15,000 barrels with Train 1's revamp. We are now manufacturing the equipment and conducting inspections. Meanwhile, we are currently negotiating proposals received in March for Train 2's extension. Route 3 is moving towards its final stage, scheduled to operate in the second half of 2024. This will facilitate reverse pressurization operations from the inland to offshore segments. Additionally, we are constructing a unit to manufacture lubricating oil with a production capacity of 12,000 barrels of lube oil per day. In the same process, we have the HCC and HDT units for producing S-10 diesel and jet fuel. Regarding RPBC, we are closing the blowdown system to relieve the lube valves and coke production units, which is scheduled for 2024. We are also increasing our tankage capacity for diesel S-10 in Goiás. Lastly, the hydro treatment project at REPLAN is adding a production capacity of 63,000 barrels per day. This summarizes our infrastructure investments. Now, I’ll give the floor back to Sergio.

Sergio Caetano Leite, CFO

Thank you, Travassos. That concludes our presentation. We’ll now start the Q&A session. Before that, I’d like to highlight a few aspects of our performance for the first quarter. Firstly, we’ve delivered consistent results, which were impacted by external aspects such as the Brent price and FX variations, the biggest external factors in the refined products market. The results aligned with our strategic management decisions to deliver consistent results, contributing to the narrative that Petrobras is among the two biggest producers of results for its investors globally. We’re on a growth trajectory with positive results expected in the near future. The investment proposition at Petrobras is designed for both medium-term and long-term growth, showing resilience and significantly achieving positive results for investors. Our ADRs reflect our commitment, with 84% over the past twelve months and 107% in USD TSR. With that, let's begin the Q&A.

Operator, Operator

Thank you, Sergio. We’ll now start the Q&A session. Please keep questions to a maximum of two per participant. The first question comes from Bruno Montanari from Morgan Stanley.

Bruno Montanari, Analyst

Good afternoon, and thank you for the presentation. My first question goes to Sergio, concerning payments to shareholders. If we think about potential additional distributions of the profits retained in 2023, can we think about a timeline for the distribution of these assets, assuming that cash generation remains strong? Does it make sense that additional distributions could occur alongside the results of the second or third quarter of 2024, or would that only happen at the end of the year? The second question is about fuel prices. If I’m not mistaken, it’s been almost seven months since there was an adjustment to fuel prices, both gasoline and diesel. The market is quite volatile, but it’s been maintaining the price in the range of $80 per barrel. How do you see this market behavior given its operational methodologies, CAC and VM? Thank you.

Sergio Caetano Leite, CFO

Thanks for the question, Bruno. I hope you’re doing well. In terms of extraordinary dividends from fiscal year 2023, what the general assembly decided is that 50% should be paid, and by the end of fiscal year 2024, we would reassess the outstanding balance in the account. We haven’t set a specific date, but we consistently deliver monthly outlooks to the Board, where profit distributions are reviewed. I would say this could happen sometime during this year or next, with no pre-set date. We have been amidst an international crisis that has resulted in a volatile environment with surprises. Picking up on that topic regarding pricing, our commercial strategy is completing its first year, with Director Schlosser overseeing this strategy. It’s important to highlight that it’s a business strategy and not merely a pricing policy, although it addresses price considerations. We define a minimum margin price for negotiations. Below this level, the company will not engage in negotiations, as profits must be preserved for investments and dividends. There is also a customer alternative price, above which customers lose interest in buying. The significant share of diesel costs impacts the market, especially in specific regions. We have currently managed to avoid significant volatility for our clients under this strategy. I hope I addressed your questions satisfactorily.

Claudio Romeo Schlosser, Executive Director for Logistics, Trade and Markets

Let me just add something here. First, I’d like to express my condolences for my fellow citizens of Rio Grande do Sul during this crisis. We’re all working to ensure the supply of byproducts essential to recovery. It has been seven months since we adjusted fuel prices, the last adjustments being reductions to gasoline in October and diesel in December. Recent geopolitical tensions have caused production and logistical costs to rise. For example, Brent prices fluctuated significantly recently, reaching $93 and now hovering at $83. We see that there is some support around the $80 mark, likely due to geopolitical factors or production cuts. Our commercial strategy is designed to prevent passing on this market volatility to our customers, allowing us to remain competitive even as we navigate these conditions. Thank you for your question.

Luiz Carvalho, Analyst

Hi, everyone. Good afternoon, Sergio. Thank you for taking my question. Your ‘24 to ‘28 strategic plan brought changes in company strategies, especially regarding investment levels. How do you expect these will impact the energy transition, and could you provide insight on acquisitions and partnerships in renewable assets? My next question is about internationalization, specifically regarding recent asset finds in the Atlantic basin. What’s your analysis process for these opportunities? Are you focusing on exploration or development, and do you wish to be an operator in these endeavors?

Sergio Caetano Leite, CFO

Thank you for your questions, Luiz. I will address them briefly and then let Mauricio talk about the transition. Regarding internationalization, I will let Joelson provide more insight. We value our energy transition area, which underwent substantial analysis and portfolio reduction over the past six months. We focused on selecting key projects that align with our transition goals. Our board has analyzed numerous proposals, and while I cannot disclose specific details due to confidentiality, we are optimistic about future investments. Our energy transition strategy has been well-defined with clear metrics for success. For international exploration, I’ll let Joelson provide specifics since he oversees opportunity evaluation. Thank you.

Joelson Falcao Mendes, Executive Director for Production and Exploration

Good afternoon, Luiz. I’ll answer your question about our analysis process. In recent years, we have focused on rebuilding our seismic and well data and enhancing our operational expertise. Our main goal is to successfully analyze geological and operational risks. Opportunities often arise in collaboration with our principal partners, leading to shared contributions towards prospective exploration. We are currently evaluating proposals from places such as Saint Thomas and Prince. Our expertise in deep and ultra-deep water positions us well for this exploration with other industry leaders. I hope this clarifies our prospects.

Pedro Soares, Analyst

Good morning. My question is for Joelson. In the first quarter, production was marginally above expectations despite the downtimes. Can you share if you are positively surprised with these production levels? With the expectation of normalizing production in the next two quarters, can we safely assume production levels will stay above those set in your guidelines? The second question goes to Sergio regarding CapEx, as the investment level in the first quarter seems lower than the usual average. Are there any risks you foresee that could impede reaching the goals outlined in the business plan for 2024?

Joelson Falcao Mendes, Executive Director for Production and Exploration

Thanks for your question, Pedro. We are optimistic with the current production trends, but cannot guarantee that we will exceed planned production. The figures for the first quarter align with our expectations. Our production guidance for 2024 and 2025 is analogous to that of 2023, considering the complexities and maintenance needs of our various production systems. We do a thorough risk analysis of our production curve. While we are optimistic about maintaining similar production levels, external factors such as licensing from Ibama may influence our production. These challenges are manageable within our risk framework.

Sergio Caetano Leite, CFO

Thanks for your question, Pedro. To address potential CapEx underperformance, we had previously emphasized a substantial $102 billion investment plan, the largest in our history. With such expansive expenditures, variances can arise. We noted last year our actual CapEx was lower than planned. This is often misconstrued as inefficiency; however, we strive for disciplined capital management. Various global supply chain challenges have pressured some of our projects, which may lead to liquidity challenges. Nevertheless, as Joelson mentioned, we are taking vital steps to invest diligently and avoid affecting our production growth curve. Now, let’s hear from Travassos about recent investment levels.

Carlos Travassos, Executive Engineering, Technology and Innovation Director

Thank you, Sergio, and thank you for your question, Pedro. Comparing to Q1 2023, our investments increased 23% to $3 billion for the first quarter, continuing to grow in the subsequent quarters. While we anticipate an uptick in investment through 2024, we remain careful of challenges in CapEx, particularly concerning environmental licensing processes and construction milestones for FPSOs. Overall, we do not see an adverse impact on our strategic investment thesis.

Lilyanna Yang, Analyst

We seem to have an audio issue, so we will pass it over to Bruno Amorim from Goldman Sachs

Bruno Amorim, Analyst

We’re going to pass it over to Gabriel Barra from Citibank. Are you online, sir?

Gabriel Barra, Analyst

Hi, can you hear me?

Sergio Caetano Leite, CFO

Yes. We can hear you.

Gabriel Barra, Analyst

Thank you. Thank you, Sergio and the entire Petrobras team for taking my question. I’ll stick to the two question limit. The first is about Braskem. I’d like to understand your view on acquiring a stake in Braskem and its implications on Petrobras’ balance sheet and dividend strategy given Braskem's debt level. How would this impact your current investment plan? The second point continues on the buyback plan. Petrobras has been meeting its targets, and at the current pace, it seems to be closing ahead of schedule. Could you share your thoughts on whether the buyback program will be extended or increased? What are your views on buybacks in relation to the company's overall investment strategy?

Sergio Caetano Leite, CFO

Hi, Gabriel. Thank you for that question. I’ll first address the buyback changes then turn to William for insights on Braskem. As you know, our buyback aim was to repurchase R$170 million in preferred shares. This pilot project serves to test various facets for future plans. We observed a strong execution of this initiative, achieving 86% of the planned buyback and purchasing over 70 million preferred shares. This pilot has proved beneficial, aligning our buyback analysis with major peers. A formal proposal for a follow-up buyback will be presented to the Board, incorporating the outcomes and experiences from this initiative. Regarding Braskem, it’s important to note that its debt is around $6 billion, and Petrobras currently holds about 47% of its shares. The model we prefer is one of co-management, whereby increasing to 50% ownership would marginally impact Petrobras’ debt, thus not altering our dividends. Braskem's operations are embedded within our current CapEx discussions, ensuring it aligns with our goals. We've been working on this due diligence across multiple geographies. Now I’ll let William provide further insights on Braskem’s potential role going forward.

William Franca da Silva, Executive Director for Processes and Products

Good afternoon. Our due diligence on Braskem was extensive, involving over 50 specialists to evaluate their global operations. This engagement included visits to Braskem's plants worldwide. Our operational integrity is promising, and we believe there are possible synergies between Braskem and Petrobras, particularly in logistics and refining sectors. For example, our adjacent refinery in Gaskin could enable optimized operational structures, enhancing our downstream synergies. In closing, we are well-positioned to navigate this engagement thoughtfully, leveraging Braskem’s existing market strengths.

Regis Cardoso, Analyst

Can you provide details regarding RLAM and the Mataripe refinery transaction? What objectives does Petrobras aim for, and do you prefer operational control or focus primarily on trading aspects? Additionally, regarding renewables projects, can you elaborate on which industries and potential instruments Petrobras intends to prioritize?

Jean Paul Prates, CEO

Thank you for your questions, Regis. This requires input from various stakeholders, specifically on RLAM. I’d like to ask William to share his insights regarding this project. Regarding renewables and the associated strategies, I’ll ask Mauricio to expand on that. For the Ibama-related inquiry, Joelson and Travassos will provide responses.

Joelson Falcao Mendes, Executive Director for Production and Exploration

Starting with the RLAM acquisition process, we received an invitation for reviewing two interconnected projects at the end of 2023. One is RLAM, which holds historical significance to Petrobras. However, diversifying back into it requires sound analysis beyond emotional ties. We are conducting due diligence to define the operational benefits and clarify our business model moving forward. Petrobras has a substantial interest in this refinery because of its integrated assets; however, we are still evaluating the structure before committing to any decisions.

William Franca da Silva, Executive Director for Processes and Products

I’d like to define the maturity of our biorefinery projects further. We're developing initiatives such as biodiesel and biofuels in collaboration with local partners. For example, our Rio Grande project aims to commence operations by 2027, at which point we expect it to process only renewable raw materials. Additionally, we are collaborating with companies on green hydrogen initiatives that could significantly reduce emissions. We are also looking into various technologies relevant to our strategic goals, allowing us to diversify while maintaining operational excellence.

Mauricio Tolmasquim, Executive Director for Energy Transition and Sustainability

To build on William's remarks, our strategy includes both organic and inorganic investments in innovative technologies across renewables. We’ll be functioning in CCUS projects where our competencies can showcase environmental benefits while improving our operational capacity. We have existing momentum with established partnerships in wind projects, aiming for extensive collaboration moving forward. Our goal is to enhance benefits for stakeholders through viable energy transition strategies.

Sergio Caetano Leite, CFO

Regarding Ibama, while some projects may face a short-term impact from ongoing licensing, we find opportunities to prioritize certain activities, such as Maria Quitéria. Active collaboration with Ibama will allow us to mitigate these impacts effectively and align our operational plans to stay on track for future projects.

Operator, Operator

Thank you, everyone. This concludes our Q&A session. If there are any additional questions, please reach out to our investor relations team. Now I’ll hand it back to Sergio for final comments.

Sergio Caetano Leite, CFO

Thank you for your participation. Our closing message is that we’ve produced consistent performance and achieved significant figures that reflect our well-considered management decisions. We’re actively closing the gap between planned and actual numbers with firm steps and monitoring our results closely. The company maintains solid posture and strategies to achieve long-term objectives, thus continuing to cater to shareholder interests and contributing positively to society. Thank you, and enjoy the rest of your day.

Operator, Operator

This presentation is already available on the Investor Relations website, and we will soon provide the audio portion of this webcast. Thank you, and have a great day.