Q2 2024 Rumo SA Earnings Call (English, Portuguese) Transcript
Key Points
- Rumo SA (BSP:RAIL3) achieved a 48% increase in adjusted EBITDA, reaching BRL2.1 billion.
- Adjusted net income surged to BRL721 million, more than four times the previous year's figure.
- The company successfully reduced its financial leverage to 1.5 times by the end of the quarter.
- Rumo SA (BSP:RAIL3) saw a 32% increase in yields, contributing significantly to its strong performance.
- The company expanded its market share in key operations, particularly in Mato Grosso and the Port of Santos.
- Extreme weather events in Rio Grande do Sul led to a provision for impairment totaling BRL2.6 billion.
- The South Operation experienced a drop in volumes due to the shutdown of the Tronco Sul railway stretch.
- Fixed costs increased by 20%, reflecting the company's growth in new businesses.
- The company faces challenges in the South Network, including complex structural damages and ongoing negotiations for renewal.
- There was a slight reduction in volume levels, particularly in the North Operation, which grew below expectations.
Good morning, and thank you for waiting. Welcome to Rumo's second-quarter 2024 earnings presentation. (Operator Instructions)
This presentation is being recorded, and simultaneous translation is available by clicking on the Interpretation button at the bottom of the screen (Operator Instructions)
Before proceeding, we would like to reiterate that forward-looking statements are based on Rumo's Executive Board's beliefs and assumptions and information currently available to the company. These statements may involve risks and uncertainty as they relate to future events and therefore depend on circumstances that may or may not materialize. We recommend that you refer to the disclaimer on the second page of the presentation.
I will now turn the conference over to Mr. Felipe Saraiva, Rumo's Head of Investor Relations. Mr. Saraiva, you may begin your presentation.
Good morning, everyone, and thank you for joining Rumo's second-quarter 2024 earnings call. I will start my presentation
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