Q3 2024 Rumo SA Earnings Call (English, Portuguese) Transcript
Key Points
- Rumo SA (BSP:RAIL3) achieved a record quarterly adjusted EBITDA of BRL2.2 billion, marking a 22% increase year-over-year.
- The company reported an adjusted net income of BRL794 million, the best quarterly result to date.
- Rumo SA successfully reduced its financial leverage ratio to 1.4 times, indicating a strong deleveraging trend.
- The Mato Grosso Greenfield Railway project is progressing well, with accelerated disbursements due to physical construction advancements.
- Rumo SA increased its market share in key regions, including Mato Grosso and Goiás, and ports such as Santos, Paranaguá, and São Francisco do Sul.
- The southern operation experienced a volume decline due to extreme weather events in May, impacting overall performance.
- The Tronco Sul railway segment remains indefinitely suspended, affecting operational capacity.
- Despite improvements, the transit time for the northern operation still stands at 82 hours, indicating room for further efficiency gains.
- The company faces challenges in fully executing its CapEx plans for the Lucas do Rio Verde project, with current execution levels not meeting past expectations.
- Rumo SA's operations are subject to fluctuations due to climate effects, which can impact project timelines and operational efficiency.
This translation is available by clicking on the interpretation button. If you are listening to the video conference in English, you have the option to mute the original audio in Portuguese by clicking on Mute Original Audio.
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 uncertainties as they relate to future events and depend on circumstances that may or may not materialize. We recommend that you refer to the disclaimer on the second page of the presentation.
Now I will turn it over to Mr. Felipe Saraiva, Rumo's Head of Investor Relations. Mr. Saraiva, you may begin the presentation.
Good afternoon and thank you for joining Rumo's third-quarter 2024 earnings call. Let's start with the highlights on slide 3 of our presentation.
Our railway was the main logistics corridor in our key markets.
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