Unipar Carbocloro (UNIP6) Q3 2024 earnings summary

Executive summary

• Q3 2024 demonstrated resilience amid a global and petrochemical industry down cycle, with strong operational and sales performance, and signs of stabilization in the industry cycle.

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

• Record 65% of energy consumed in Brazil was self-produced from renewable sources in September 2024.

• Strategic investments in new and modernized plants, including the Camaçari greenfield and Cubatão modernization, are on track to boost future competitiveness and sustainability.

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

• Net revenue for 3Q24 was R$1.4 billion, 17% higher than 2Q24; 9M24 revenue totaled R$3.8 billion, down 11% year-over-year.

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

• Adjusted EBITDA margin was 17% in 3Q24, up from 13% in 2Q24.

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.

• Global economic growth projected at 3.2% for 2024 and 2025; Brazil GDP expected to grow 3.1% in 2024, Argentina to contract by -3.5% with 209% inflation.