Unipar Carbocloro (UNIP6) Q4 2024 earnings summary

Executive summary

• Achieved record sales in Brazil across all business segments, including chlorine (+2%), liquid caustic soda (+6%), and PVC (+12%) compared to 2023, despite a persistent downturn in the petrochemical cycle and contraction in Argentina's economy.

• Demonstrated business model resilience with robust quarterly and annual results, supported by strong operational performance, high self-generated energy, and strategic focus on chlorine products.

• Maintained 19 consecutive quarters of positive net income.

• Advanced key strategic projects, including the start of operations at the new Camaçari plant and ongoing modernization in Cubatão.

• Net revenue totaled R$1.6 billion in 4Q24, 19% higher than 3Q24; 2024 revenue was R$5.4 billion, up 11% year-over-year.

Financial highlights

• Adjusted EBITDA for 4Q24 was R$472 million, up 103% sequentially; full-year adjusted EBITDA was R$1.1 billion.

• Net income for 4Q24 was R$293 million (+103% vs 3Q24); full-year net income was R$557 million.

• Operating cash generation reached R$831 million in 2024; cash position at year-end was R$1.6 billion, covering 40 months of debt amortizations.

• Debt leverage improved to 0.76x; average debt term extended to 64 months, with 53% maturing after 2029.

• Recurring adjusted EBITDA margin was 19% for 2024; 4Q24 margin was 24%.

Outlook and guidance

• Expecting a challenging 2025 with continued tight margins in the petrochemical cycle, including PVC and soda.

• Focus remains on increasing competitiveness through strategic CAPEX in the chlorine segment, technological modernization, and expanding self-generated renewable energy.

• Strategic focus on operational efficiency, productivity gains, and sustainable growth.

• IMF projects global GDP growth of 3.3% in 2025–2026; Brazil's GDP expected to grow 2.0% in 2025; Argentina projected to recover with 5.0% GDP growth in 2025 after a 1.8% contraction in 2024.

• Operational excellence and safety continue as core priorities.