Unipar Carbocloro (UNIP6) Q3 2024 earnings summary

Executive summary

• Q3 2024 demonstrated resilience amid a global and petrochemical industry downturn, with strong operational and sales performance and signs of industry cycle improvement.

• Local demand in Brazil remained strong, especially for chlorinated products, while Argentina showed gradual recovery in local sales volumes.

• Record 65% of energy consumed in Brazil was self-produced from wind and solar in September 2024.

• Strategic investments in new and modernized plants, including the Camaçari greenfield and Cubatão modernization, are on track for completion in late 2024 and 2025.

• MSCI ESG rating upgraded from BB to BBB, with recognition as best supplier in ESG management by Suzano.

Financial highlights

• Adjusted EBITDA reached R$233 million in 3Q24, up 60% from 2Q24; 9M24 EBITDA at R$610 million.

• Net income was R$119 million in 3Q24, a 34% increase over 2Q24.

• Adjusted net revenue rose 17% sequentially to R$1.4 billion, driven by higher sales and FX effects.

• Operating cash generation for 9M24 totaled R$378 million.

• Cost of goods sold increased by 15%, less than revenue growth.

Outlook and guidance

• Full ramp-up of the new Camaçari plant expected in Q1 2025, with startup by end of 2024.

• Targeting 80% self-produced energy in Brazil by end of Q3 2025.

• Liquidity position covers 54 months of debt, supporting a sustainable and balanced growth plan.

• Ongoing focus on operational efficiency, financial health, and selective growth opportunities.

• Recent regulatory changes increased import tariffs on suspension PVC from 12.6% to 20% for one year.