Ultrapar Holdings Inc Q4 FY2022 Earnings Call

Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to Ultrapar’s Fourth Quarter 2022 Results Conference Call. There is also a simultaneous webcast that may be accessed through Ultrapar's website at ri.ultra.com.br and MZiQ platform. Please feel free to flip through the slides during the conference call. The presentation will be conducted by Mr. Rodrigo de Almeida Pizzinatto, Ultrapar's Chief Financial and Investor Relations Officer and in the Q&A session, we will have the presence of Mr. Marcos Lutz, Ultrapar's CEO and the CEOs of the businesses, Mr. Tabajara Bertelli, Décio Amaral and Leonardo Linden as well. We would like to inform you that this event is being recorded. A replay of this call will be available for seven days. Before proceeding, let me mention that forward-looking statements are being made under the Safe Harbor of the Securities Litigation Reform Act 1996. Forward-looking statements are based on the beliefs and assumptions of Ultrapar’s management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events and, therefore, depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Ultrapar and could cause results to differ materially from those expressed in such forward-looking statements. Now I turn the conference over to Mr. Rodrigo de Almeida Pizzinatto. Mr. Rodrigo, you may now begin the conference.

Good morning, everyone. It is a pleasure to be here once more to talk about Ultrapar results. Starting off with a short retrospective of 2022, a year of important advances for the company despite the volatility and uncertainties. Ultragaz and Ultracargo achieved record results while Ipiranga advanced in its profitability recovery path mainly with pricing and resellers engagement. We completed a relevant process of rationalizing our portfolio with the closing of Oxiteno and Extrafarma divestments. We also announced the acquisition of Stella and NEOgás, which marks Ultragaz’s entry into renewable electricity, compressed natural gas, and biomass segments, expanding its offering of energy solutions. The acquisition of NEOgás approved by the antitrust authority was concluded on this past February 1. We continued our management succession and renewal process, including the succession process in the board of directors as detailed in the material notice that we disclosed yesterday. I will now go through our results presentation and, moving to slide 2, I would like to remind you that at this moment, both the earnings release and this presentation consider the company's pro forma consolidated information. That is Ultrapar’s data for 2022 considers the sum of continuing and discontinued operations to enable comparison with 2021. Now, let's move forward to slide 3, with an overview of some of the main indicators that affected our businesses in 2022. The Ukrainian war, as you know, had a huge impact on the prices of oil and derivatives. The commodity prices in general, as well as the effects of both the pandemic and the exchange rate, affected the inflation indexes and consequently our expenses. The rising interest rates to fight inflation also affected our financial result. With a post pandemic recovery, the Brazilian economy grew by approximately 3% in 2022, which sustained higher volumes of diesel and bulk LPG, besides boosting the sales or circulation of light vehicles that led to greater Otto cycle volumes as you can see in the charts on the slide. Moving now to slide four, Ultrapar’s consolidated results. As you can see in the chart in the upper left side, our recurring EBITDA from continuing operations totaled R$750 million in the first quarter of 2020, 4% lower than that of the fourth quarter of ’21 due to lower EBITDA at Ipiranga despite Ultragaz and Ultracargo’s higher EBITDA. Looking at the yearly result, our recurring EBITDA from continuing operations totaled R$3.6 billion, a 39% growth compared to 2021 with record results registered at Ultragaz and Ultracargo and results recovery at Ipiranga. Ultrapar’s net income in 2022 was R$1.8 billion, 108% higher than that of 2021 due to the growth of the businesses' recurring EBITDA, in addition to extraordinary tax credits, despite the higher financial expenses. Our Board of Directors has already approved the base payment of R$110 million rise in dividends equivalent to R$0.10 per share to be made as of March 3, in addition to the interest on equity payment made in August last year, totaling a distribution of R$560 million for 2022. Investments from continuing operations totaled R$1.8 billion in 2022, 12% higher than in 2021, mainly due to higher investments in Ipiranga as a result of greater opportunities for operating service stations. I want to highlight that we disclosed our R$2.2 billion investment plan for 2023, an amount that is higher than the investments made in each of the last five years due to expansion opportunities with great returns. We registered in 2022 cash generation from operations of R$2 billion, lower than in 2021 resulting from higher investments in working capital mainly due to fuel price increases throughout the year, despite the higher EBITDA from continuing operations. Moving on to slide 5 to talk about our liability management. We ended the year with a net debt of R$6.7 billion, a reduction of R$760 million on the net debt position of September 2022. The reduction is mainly driven by the operating cash generation, with emphasis on the working capital release due to fuel price reductions in the first quarter of 2022. Our leverage decreased from 1.9x in September to 1.7x in December 2022. On the basis of the net debt reduction and EBITDA growth from continuing operations. I would like to point out that the numbers of net debt of the first quarter of ‘22 do not include pending receivables of R$1.1 billion related to the sales of Oxiteno and Extrafarma; should they be considered our leverages would be worth 1.4x in the fourth quarter of ‘22. To give more visibility in relation to our numbers, we included at the bottom of this slide a table with the total amount of draft discounts and vendor lines, as well as pending receivables from the sales of Oxiteno and Extrafarma, all lines highlighted in our balance sheet. The total number for December ‘22, including draft discount and vendor, and receivables would be R$8.7 billion. The average cost of our gross debt went from DI plus 1.5% in 2020, to DI plus 0.6% in 2021. And now to DI plus 0.2% in 2022 due to the extensive review of the debt and financial investment profiles that we have carried out in the last two years. Moving now to the next slide, slide 6, to talk about another excellent quarter for Ultragaz. The volume of LPG sold in this first quarter was 4% higher year-over-year due to a 4% increase in the bottled segment on the back of greater market demand and a 3% increase in the bulk segment with higher sales to the industrial segment. In 2022, the volumes should remain stable due to a 2% decrease in the bottled segment on the back of lower market demand. The bulk segment, on the other hand, grew by 3% with higher sales to the commercial services and industry segments. The Ultragaz SG&A in the first quarter ‘22 was 33% higher than that of the fourth quarter of ‘21 due to higher expenses with personnel, mainly collective bargaining agreements and variable compensation, aligned with the progression of results, along with higher expenses with sales commissions, expansion and productivity projects, and freight. Ultragaz recurring EBITDA reached a record level of R$365 million, 65% higher than that in the fourth quarter of ‘21. In 2022, Ultragaz recurring EBITDA also reached a record level of R$1.2 billion, an increase of 61% compared to 2021. This growth is mainly explained by better margins due to efficiency and productivity initiatives implemented in the last months to improve the sales mix and to the inflation passthrough effect, partially offset by higher expenses. For this current quarter, we expect the good results to continue with profitability at similar levels to those seen in the second semester of 2022. Moving on to slide 7 to talk about another great quarter of Ultracargo. The company's average installed capacity was 955,000 cubic meters in the fourth quarter of ’22, a 4% growth year-over-year on the back of the operational startup of the Vila do Conde terminal in December ’21. Ultracargo’s net revenues totaled R$228 million in the fourth quarter of ’22, 22% higher than that of the fourth quarter of ‘21, led by contractual readjustments and by high cubic meters sold, mostly at Vila do Conde. In 2022, Ultracargo’s net revenues totaled R$867 million, 22% higher year-over-year, also resulting from contractual readjustments and higher cubic meters sold, mainly due to the capacity expansions. Combined cost and expenses were 15% higher than those in the first quarter of ’21, mainly impacted by costs and expenses of the Vila do Conde terminal, which started operations in December ‘21, accounting for about 42% of this increase, in addition to higher costs with personnel, maintenance and consultancy services linked to expansion projects. These effects were partially offset by productivity and efficiency gains in the last 12 months. Ultracargo’s EBITDA totaled R$130 million in the quarter, our growth of 28% year-over-year due to capacity expansions with profitability gains, contractual readjustments as well as efficiency and productivity gains. EBITDA margin was 57% in the fourth quarter of ’22, three percentage points above that of the fourth quarter of ‘21. In 2022, Ultracargo’s EBITDA reached a record level of R$510 million, a 29% growth over 2021. EBITDA margin was 59%, also a yearly record. For this current quarter, we expect Ultracargo’s good operating performance to continue with results at similar levels to those seen in the second semester of 2022 and gradual growth in Vila do Conde’s contribution due to greater handling of products. To conclude this presentation, moving now to slide 8 to talk about Ipiranga’s results. Volumes showed an increase of 7% over the fourth quarter of ‘21, with a 7% growth in both diesel and Otto cycle. In 2022, Ipiranga sales volume increased 3% year-over-year, with a 3% growth in diesel and 2% growth in the Otto cycle. As anticipated in the last conference call, there was a high degree of volatility and uncertainty in fuel prices in Brazil. For parity of gasoline and diesel in the first quarter of ‘22, which added to the dynamic of greater supply of imports generated deeper losses and more pressure on commercial margins than those reported in the third quarter of ‘22. We ended the first quarter with a net worth of 6,771 service stations, 169 stations less than that of the third quarter of ‘22, which is aligned with our strategy of managing the legacy of low potential service stations. A total of 87 new service stations were opened with an average volume contribution of 207 cubic meters per month and 256 were closed with average volumes of 32 cubic meters per month. Despite the reduction of the number of service stations, the volume net effect was positive, reinforcing our strategy to have more density and higher standards in our service station network. In addition, we ended the fourth quarter with 1,598 AMPM stores, with same store sales growth of 12% year-over-year. Ipiranga’s SG&A decreased by 16% in the quarter, due to the positive net effect of credits and provisions of R$69 million realized in the first quarter of ‘22. Higher expenses with freight and personnel, mainly due to collective bargaining agreements and variable compensation, aligned to the progression of results. The other operating results line totaled negative R$110 million in the fourth quarter of ‘22, compared to a positive R$15 million in the fourth quarter of ‘21, mainly due to higher costs with carbon tax credits and lower constitutional extemporaneous tax credits. The disposal of assets line was R$41 million in the quarter, mainly due to the sale of 13 real estate assets. Ipiranga’s EBITDA totaled R$1.1 billion in the quarter, 53% higher than that of the fourth quarter of ‘21. Recurring EBITDA was R$316 million, a reduction of 41% year-over-year, due to more pressure on margins in the quarter as mentioned before, despite the higher sales volume. In 2022, Ipiranga’s recurring EBITDA totaled R$2.1 billion, a 24% growth year-over-year, due to better margins and higher sales volume throughout the year, partially offset by higher expenses. Despite the volatility observed throughout the year, we ended 2022 with a more robust Ipiranga and healthier service station network. Important improvements in the recovery plan underway should be largely concluded during 2023. For this first quarter, we expect a sequential improvement in profitability levels to those observed in 2022, despite the seasonally weaker volume. And with that, I now conclude my presentation. I appreciate your interest and attention. Let's now move on to the Q&A session and the CEOs of our three main businesses as well as Marcos and I are available to answer your questions. Thank you.

Our first question is from Luiz Carvalho from UBS.

Good morning, and thank you for taking the questions. I have two questions. First regarding the information on the call. You have had a change in process with the arrival of a new CFO, and there has been a significant change in the board of management. I would like to remark on this process and what you're thinking in terms of alignment of strategy if you could give us more color regarding this because it will be interesting when it comes to capital allocation. The second question refers to the operational part and refers to Ultragaz. I think it's the first time that the EBITDA of Ultragaz is the highest for the quarter. This, of course, is something that draws attention. You have an accrued margin. And we would like to know if this is recurrent, how you're looking at the market. And if you could also refer to Ipiranga as a whole, the results are quite stable in a highly challenging market. But the results are perhaps slower than we had expected. We know that the market is very restricted; there is a great deal of volatility. Now, if you could explain to us what is happening in that trajectory of the closing? And what will happen with your margin vis-à-vis the main competitors. Thank you.

Allow me to answer your first question. In fact, we are renewing our Board of Management in a very significant way. Eleven counselors, as everyone's ready, are leaving; they were the CEO of the company in the past. This is another step and a very significant evolution towards having a company designed for the coming 30 years. Well, I can state that the change is quite complete at present. This is a journey. Certain companies find themselves in very different stages. Some are very mature in terms of the value proposition they're growing, they're stable, we have some niches, structural niches that have opted for energy; we're carrying out minor acquisitions to enhance our organic growth. This is very different from Ipiranga, which has had an outstanding evolution; there is a great deal going on and a great deal of learning. Without a doubt, the year 2022 ended much better than it had begun; we still have time. We will end up becoming a benchmark in the segment. You spoke about the changes in our governance. What I can say is that this has been thoroughly discussed and planned in-house. The novelty perhaps was the maintenance of the CEO for an additional two years; this was something innovative, it was discussed at length, and it seemed to make sense to remain for two additional years and the day-to-day of the company because of the structure, the acceleration of some projects. Of course, we have made adjustments in the Board of Management for this. Our board now has a more financial side, it goes beyond that of a company that is fully financial and that works with capital. To summarize, I would like to pass the floor so that we can conclude answering your questions. Still speaking about a more financial profile. Of course, at different stages at which the companies find themselves within Ultrapar, at the right time, we're going to have an operational turnaround, but this is something that we're still looking at. We have never deemed this to be a concrete plan, but it does constitute a possibility.

This is Mr. Tabajara speaking. Now to speak about your question referring to Ultragaz and the evolution of profitability. This is something that we have been discussing in the last quarter; it is about the evolution of our operational excellence. We do have that commercial counterpart. This is our vocation in terms of operation; we are evolving, getting ever closer to what the customer wants. Especially in the entrepreneurial segment, we have had a significant reduction post-pandemic, of course, in terms of our operations. There has been a significant evolution in the company, and I hope that this response to your question refers to the evolution.

Good morning, this is Linden. I want to address the questions regarding Ipiranga. We are pleased with the overall year at Ipiranga, but not with the impact we've seen this quarter. In the context of the fourth quarter, it was characterized by an inverse parity that lasted for about 70 days, which greatly affected the market. The third quarter was much more favorable, but those losses ultimately affected our margins. In February, we made two price reductions; however, one occurred while we were building our inventory, anticipating a return of Cofins that we expected to see by the end of December. Other disruptions in December, like blockades, further contributed to the situation. Consequently, we faced a lower margin and inventory losses due to price cuts at Ultragaz. Looking back, it’s clear we could have managed things differently, particularly with our reliance on imports in our product mix. We didn’t adapt quickly enough when the parity inversion occurred, which affected our margins more through supply issues than through pricing ability. This situation affected the entire market’s margins. Our key takeaway is related to supply. We made a decision to increase our inventory at the month’s end, operating under the assumption that the Cofins scenario would prevail, which ultimately did not happen, leading to a misalignment in our pricing. We concluded the year with a full inventory, which is not typical for us. On a positive note, we did manage to close significant financial gaps and have made progress in our four strategic pillars, particularly in pricing and resale growth. However, there remain areas that require attention, as we have discussed in our work plans. The need for improvement in logistics remains, and we have opportunities to enhance our supply strategy further. We are committed to addressing these challenges and continue to make consistent progress.

Our next question is from Pedro Soares from BTG Pactual.

Good morning. I have two questions and a sort of a follow-up to the previous question. Regarding Ipiranga, as Mr. Pizzinatto mentioned in the last call, you mentioned that the Ipiranga margins were very similar to those of the third quarter. At that time, as the margins have had a deterioration, we can imagine that December was very difficult because of prices and the opening. I would like clarification on how much was due to a loss of inventory, how much was caused by greater competition in December? Or if you could speak about the relative importance of each of these items in the company's profitability. Another question about Ipiranga: you didn't execute the full CapEx that you had announced in the last quarter? Was this something that happened by chance? Are you going to do this going forward? Or were there factors that contributed to that? Thank you very much.

Pedro, regarding our margins, I believe I have addressed this. What happened differently since that period onwards was a reduction of prices, a reduction in inventory, and the dynamic of the market that extended more than we had expected throughout the quarter. When it comes to our CapEx, well, there could be a bit of everything, a problem of timing; what we set forth to do, we did do, and there were some factors that offset that CapEx, but in truth, there is no lagging behind in terms of our planning.

Our next question is from Bruno Montanari from Morgan Stanley.

Good morning, and thank you for taking my questions. A follow-up regarding Ultragaz and products. So that Ipiranga, the margin that is extremely healthy, is it fully structural, or is there a component referring to the context and transfer of inflation, for example, that could imply higher gains? Or if this is not a relevant factor for the level of profitability of the business? I simply wanted to check some points regarding Ipiranga: has the problem of oversupply been resolved? Your inventories continue to look somewhat high. When do you expect to mitigate the level of inventories in the chain? And finally, that cleansing process that has been very intensive and necessary, how much of the network still needs to be cleaned out so that the level of return can continue to grow as you believe would be adequate? Thank you.

Let's begin with Ultragaz and the evolution of profitability. In the previous question, I remarked on this; this is a structural evolution based on the plan that we highlighted with an operational highlight last year. We operated in the Northeast; we had a very relevant logistic network set up, and we have a network that is closer to the customers. We have expanded resales for our entrepreneurial or industrial customers. All of this will enable us to position ourselves differently in the market. We can also underscore that this provided a higher upside than we had expected. The new uses of LPG have also contributed a great deal in the last quarters. This is something structural; it has an impact on our performance. In the fourth quarter, in terms of our sales mix, I believe we have positioned ourselves much better in the industrial market, and the results are positive. This is not something temporary; it's due to the market context, and we have been following the evolution of these strategic measures set forth by the company. While this has had a positive impact on our market share, it is a positive combination as a whole; we have been able to have an evolution and market share. Once again, working in that segment, which is our true vocation. Regarding Ipiranga, the market has been somewhat impacted, but not with the same levels as the fourth quarter. Yes, we do have a very high inventory level; we have observed some adjustments, and of course, the level will return to normal stock levels. In terms of this cleansing, we have completed 70% of what we wanted to accomplish; the rest will be carried out during 2023. The impact of this will be practically now on our business. We're speaking about volumes without any negative financial contribution, quite the contrary.

Our next question is from Regis Cardoso from Credit Suisse.

Hey, good morning, everybody. Thank you for taking my question. Some very quick topics. Is there a definition of who will be the Chairman for the Board? I did not see this in any relevant way. In terms of the margins of the first half of the year, you're speaking about margins aligned with the rest of 2022. There were good margins; what are the right drivers for this very good evolution of margin? Should we keep in mind that we have had a price reduction during the quarter? Are you counting upon these Cofins or markets with higher margins for the first quarter, something that will offset the inventory you have? If you allow me a last question on Ultragaz. I don't know about product and help me understand where your margin evolution comes from, if that refers to all segments; it was a highly relevant margin evolution, almost doubling. I would like to understand if this is due to new segments coming in or whether it is proportionately higher margin much higher than the margins you have so far vis-à-vis your consolidated margin. If its margin increases across origin, the segments that already exist in the retail segment in the bottled segment. Thank you.

This is Marcelo. In our bylaws, the Chairman of the Board is elected by the advisory board itself. The entire board, if elected, will hold its first meeting to define who will be the Chairman of the Board. Now referring to track to simply speed up your questions, you refer to all of the topics; basically, the margins, Cofins, the different segments. We also do have that segmentation and that type of service, services with margins in Ultragaz. We measure this based on tons. We may lose something out here; we have a great deal of service, and we could add value with a different approach towards the segment perhaps. Hedges, regarding the assumptions for the first quarter; it's what you said. I would add that our assumptions for margins are to have the return of these Cofins.

Our next question is from Gabriel Barra from Citibank.

Good day, everybody. We have two questions at our end. Two questions referring to Ipiranga. Two points that are not very clear, in my opinion, when you look at Ipiranga during the quarter. A great part of the release of reals comes from your vendors, your suppliers. This is a factor that seems to appear consistently at the end of every year. If you could explain this more in-depth, if this is recurrent, when will this return to a normalized level in this first quarter? This is my first question. The second point is that you have already harped on significantly higher inventory. Of course, market players are taking advantage of the tax system in the chain as a whole, and there is a higher inventory. What is your vision on this dynamic? Will there be an exacerbation vis-à-vis what we saw in the fourth quarter because of what we observed in the market? Or are things not as bad as they seem to be? Lastly, that interesting factor is the switch of volume or cost. It's interesting here. When you look at the price of gallon for Ipiranga, on the one hand, we see increasing volume; we see very well-structured and operated service stations. Of course, this is your great competency. The convenience stores, the AMPM. Is it simply a one-off factor, something we have not understood, or is this also part of that cleaning process? Are there some stores that have not carried out their work? Thank you very much. These are my three points.

Okay, Gabriel, let's answer your questions. I think I got everything. First of all, cash. There was an increase in inventory, greater cash burn and the calendar of the end of the year was somewhat atypical; of course, the price per gallon. When it comes to the high inventory, I think I have already remarked on this. Yes, we do have a high inventory that we're going to mitigate during the first quarter with an outlook about the return of PIS and Cofins. Of course, we can reduce the inventory at any point. Now, when we speak about our service station, when you clean out the network, of course, you'll gain productivity at service stations, and the stores accompany this. This is the rationale and it has a financial justification.

Our next question is from Christian Audi from Santander Bank.

Good morning, everybody. Thank you for taking my questions. I have three. Lutz, you have always spoken that since you joined the company, this processes the journey. What is happening with the speed of this journey in your opinion, given everything you were able to do last year, and the enhancements? Are you going to continue with these enhancements? Are you at a very good point? Simply to understand how much is left vis-à-vis what you have already done? A second question about Ipiranga: your work with the vendors, I would like to understand your logistic and supply pillars, how much is missing to enhance those pillars? Are you at the first stage or the second stage at the end game? Therefore, how much is remaining to be able to conclude this process? And the last question refers more to your capital. You have announced a new CapEx, which will probably not change as that was set forth recently; you have been able to reduce leverage to 1.7x. Now are there any remarks regarding is there any room for further reduction for your expected enhancement and at Ipiranga, if you're going to improve the payout of dividends? Thank you.

Let me see if we can respond to all of your questions. Regarding this journey, we don't know how much longer it will take. Jugging aside, this is a journey that will never end. We are opting for things that are easier and faster. In logistics, we have a very significant number still pending for the coming three years, relevant areas where we still will continue to seek out efficiencies. When we get there, we will be ever more efficient. When it comes to processes in general for the company, we have had considerable evolution. There's still a great deal missing in terms of the integration with industries; it is difficult to respond to when trying to speed up the process. But in my view, the speed of the process is quite adequate. We have to work in the day-to-day management. We have to follow up and enhance processes without impacting them. Yes, we had a quarter with creative learning, a combination of areas; we have ended the quarter with a learning experience, meaning we will never face the same problem in a similar quarter, but the journey continues to be a lengthy one. Regarding capital allocation, we believe that our total amount is adequate; a reminder that we still have a R$ billion to receive in terms of receivables, and we will then reach the ideal indebtedness level; we will have strong cash that should come, and the future evolution of Ipiranga will bring in greater cash drives. So the future outlook is for dividend payouts to improve; we all have that desire and hope. Of course, it's extremely important for the company to have growth plans, plans that are healthy. As a company, we do have to create investment opportunities that are above and beyond what shareholders would have. In general, we have already consumed our ROIC so that we could accelerate this capital allocation. We're doing our homework. As you can see, the company has gained in terms of mass generation; we have an idea leverage. Brazil has enhanced its investment grade. The rest, of course, will come as a result of all of this, and what is left over of capital will be paid out as dividends.

Good morning, everybody. Thank you for taking my questions. Three questions on our end. First, about Ipiranga. You had a net loss of service stations this quarter. I would like to know if you can provide more insight into your brand and service stations for 2022. How many are you planning to close down this year? The second question refers to Ultragaz. How many M&A opportunities do you have, and what will be the impact on the company this year already? My third question is about the main goals for the next two years of the mandate for the CEO. If you could list the three main goals so we can better understand which will be the focus for Ipiranga. Thank you very much.

Well, first of all, regarding the branding of service stations, you used the word 'loss.' It's not really a loss; it's a business decision. When it comes to 2023, the plan is to have a similar plan to that of 2022, investing selectively in businesses that will add productivity at higher levels than those we normally have in our station network, bringing the good businesses in-house, and eliminating those opportunities that do not increase our productivity. Regarding Ultragaz, we are following the plan disclosed very recently, the business on our platform, our network of vendors and our work with industries; we began this operation this month. It won’t be relevant, but it is a strategic decision. We spoke about the goals, which are to organize the company and prepare it to invest more. The governance is in a process of becoming fully stabilized. I would say that we have attended to all regarding that. Ultrapar as a whole is a company that generates cash; it has a strong balance. We want to make investments with returns that are above what we expect for our dividends.

Thank you all for your questions and your attendance. The IR team will respond to the questions of the webcast. We do expect to see you in the conference call and the event we will hold on March 6. Thank you very much. Have a good day.

Thank you. The earnings results call for Ultrapar ends here. You can disconnect. Thank you once again.