Ultrapar (UGPA3) Q3 2024 earnings summary

Executive summary

• Recurring EBITDA reached R$1.506 billion in 3Q24, down 24% year-over-year, mainly due to lower Ipiranga EBITDA.

• Net income for 3Q24 was R$698 million, 22% lower year-over-year, partially offset by lower net financial expenses.

• Accumulated net income for 2024 is R$1.65 billion, up from R$1.40 billion in the prior year period.

• Net revenues reached R$35.4 billion in 3Q24, up 9% year-over-year, driven by Ipiranga and Ultragaz.

• Operating cash flow was R$780 million in 3Q24, down 59% year-over-year, impacted by lower EBITDA and higher working capital needs.

Financial highlights

• Accumulated 2024 EBITDA is R$4.093 billion, 4% higher year-over-year.

• CAPEX in 3Q24 totaled R$519 million, up 37% year-over-year, mainly due to higher investments in Ipiranga.

• Net income for 3Q24 was R$698 million, down from R$1,140 million in 3Q23.

• Net debt at the end of 3Q24 was R$8.0 billion, up from R$7.7 billion in June 2024.

• Gross margin for the period was approximately 6.5%.

Outlook and guidance

• Expectation to maintain profitability above R$130 per cubic meter at Ipiranga in 4Q24, with stable margins and improved market conditions.

• Ultragaz anticipates higher EBITDA in 4Q24, driven by new energy initiatives despite seasonally lower volumes.

• Ultracargo expects EBITDA in 4Q24 to be similar to recent quarters.

• Focus on expanding logistics and energy infrastructure, with continued investments in technology and sustainability.

• Management continues to focus on expanding its presence in strategic sectors, particularly agribusiness logistics and energy solutions.