Unipar Carbocloro (UNIP6) Q4 2024 earnings summary

Executive summary

• Achieved record sales in Brazil across all business segments, with chlorine up 2%, caustic soda up 6%, and PVC up 12% versus 2023, despite a persistent downturn in the petrochemical cycle and Argentina's economic contraction.

• Adjusted EBITDA reached R$472 million in 4Q24, up 103% sequentially, and R$1.1 billion in 2024; net income was R$293 million in 4Q24, up 146% from 3Q24, and R$557 million in 2024.

• Consolidated net revenue reached R$5,431 million in 2024, up 11% year-over-year, driven by higher sales volume in Brazil and currency devaluation, but offset by lower international prices and reduced sales in Argentina.

• Maintained 19 consecutive quarters of positive net income and strong operational performance, supported by high self-generated energy and strategic focus on chlorine products.

• Advanced key strategic projects, including the start-up of the Camaçari plant and ongoing modernization in Cubatão and Santo André.

Financial highlights

• Adjusted EBITDA for Q4 2024 was R$472 million; full-year adjusted EBITDA was R$1.1 billion, with recurring adjusted EBITDA margin at 19% for the year.

• Net income for 4Q24 was R$293 million; 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.

• Dividend distributions for 2024 totaled R$550 million, including R$250 million approved for April 2025.

• Net debt/EBITDA was 0.76x at year-end; average debt term extended to 64 months, with 53% maturing after 2029.

Outlook and guidance

• The company expects continued sector challenges in 2025, with global supply-demand imbalances and tight margins for soda and PVC.

• Strategic focus remains on operational efficiency, productivity gains, and sustainable growth, with major CAPEX in chlorine, modernization, and renewable energy.

• Camaçari plant ramping up; Cubatão modernization scheduled for completion by end-2025.

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

• IMF projects global GDP growth of 3.3% in 2025–2026; Brazil's GDP expected to grow 2.0% in 2025.