UGP

Good morning. Thank you for holding. Welcome to the earnings release call of Ultrapar to discuss the results referring to the fourth quarter 2025. The presentation will be conducted by Mr. Rodrigo Pizzinatto, CEO of Ultrapar; and by Mr. Alexandre Palhares, CFO of Ultrapar. Our question-and-answer session will follow, and we will have with us Mr. Leonardo Linden, CEO of Ipiranga; Mr. Tabajara Bertelli, CEO of Ultragaz; and Mr. Fulvius Tomelin, CEO of Ultracargo. This call is being recorded and will be accessed later through the website, ri.ultra.com.br. After the initial presentation, we are going to start the Q&A session where further instructions will be provided. [Operator Instructions] Presentation will be provided in Portuguese, and you have the option in English to be downloaded later. Before moving on, we would like to clarify that forward-looking statements that may be made during this conference call with respect to business prospects, forecasts and operation and financial goals of the company are all based on beliefs and assumptions of the Executive Board of Ultra, as well as currently available information. These beliefs and assumptions involve risks and uncertainties since they relate to future events and therefore, depend on circumstances, which may or may not occur. Investors should understand that general economic conditions, market and other operational factors may affect the future performance of the company and lead to results, which may differ materially from those expressed in forward-looking statements. I would like now to hand it over to Mr. Rodrigo Pizzinatto, who will start the presentation. Mr. Pizzinatto, you have the floor.

Good morning, everyone. It is a pleasure to be here once again to share Ultrapar's results. 2025 was another year marked by significant growth at Ultrapar. Clear strategy and disciplined execution are the base for the continuation of good operating results. We ended the year with the highest recurring adjusted EBITDA ever recorded in the fourth quarter. This improvement was directly reflected in cash. Ultrapar had a record operational cash flow generation of BRL 5.500 billion. This allowed us to end the year with a leverage of 1.7x, even after the anticipated payment of BRL 1.1 billion in dividends in December. Without this effect, leverage would have been of 1.5x, a very comfortable level. Considering the anticipated payment and the regular dividends, we paid BRL 1.4 billion in dividends in 2025, equivalent to BRL 1.30 per share and a dividend yield of 7%. I also highlight important progress on the institutional agenda, such as the approval of the persistent debtor and the single-phase taxation for naphtha, which strengthened fair competition and regulatory certainty and the Gás do Povo Provisional Act, which reinforced safety and regulatory framework of the LPG sector. We continue to advance our growth, productivity and value creation agenda with the completion of expansion of the Rondonópolis base of Ultracargo and the acquisition of a 37.5% stake in Virtu GNL, both in January. In February, we completed the migration of Ultracargo's SAP system to the SAP 4HANA platform, a significant step towards increasing our operational efficiency. We also announced our investment plan for 2026, which can reach BRL 2.6 billion intended for the expansion, maintenance, safety and efficiency of our business. And we continue to strengthen our capital structure with raising about BRL 260 million in incentivized credit lines for expansion projects at a weighted average cost equivalent to 87% CDI. We entered 2026 with a global scenario marked by geopolitical tensions and economic volatility. We are prepared to face this context and seize opportunities with an engaged team, strengthened business and a constant focus on operational efficiency, financial discipline, innovation and sustainable growth. Thus, we continue our journey of value creation. Thank you for your attention. I will now hand over to Palhares, who will detail the results for the quarter and the year 2025.

Thank you. Good morning, everyone. I would like to remind you of the reporting criteria and standards used in this presentation, which can be seen on this Slide 3. Now let's move on to the results for the fourth quarter and the year 2025, starting with Ultrapar's consolidated results on Slide 4. Adjusted EBITDA amounted to BRL 1.6 billion in the quarter, a 34% decrease compared to the same period of last year due to the nonrecurring effects highlighted on Page 2 of the release that we disclosed yesterday. For the year, adjusted EBITDA reached BRL 6.8 billion, a 2% increase compared to 2024. Recurring EBITDA was BRL 1.7 billion in the quarter, a 36% increase compared to the fourth quarter of 2024, mainly reflecting the better performance of Ipiranga and Ultragaz in addition to the effect of the consolidation of Hidrovias. For the year, recurring EBITDA totaled BRL 6.2 billion, 15% above 2024, reflecting the results of Ipiranga, Ultragaz and Hidrovias, whose consolidation began in May. Net income for the fourth quarter was BRL 256 million, a 71% decrease compared to the same period of 2024, also impacted by the nonrecurring effects that I mentioned. Without these effects, net income would have been BRL 439 million, a 49% increase in the quarter. In 2025, net income was stable at BRL 2.5 billion, reflecting the record operating result, partially offset by the increase in depreciation and amortization and higher financial expenses resulting from the consolidation of Hidrovias. This result level allowed the distribution of BRL 1.4 billion in dividends in the year, considering the anticipated payment of BRL 1.1 billion made in December. Moving on to the next slide. Let's talk about the cash generation for the year. On the left, operating cash generation reached BRL 5.5 billion, Ultrapar's historical record. This result was mainly due to 3 factors: higher operating result; consolidation of Hidrovias, which contributed BRL 855 million; and lower working capital needs, especially at Ipiranga, partially offset by the effect of settlement of draft discount for suppliers in the amount of BRL 1 billion. Regarding CapEx, we reached BRL 2.5 billion, a 15% increase compared to 2024. This is explained by higher investments of Ipiranga in addition to the effects of the consolidation of Hidrovias of BRL 235 million, which was not included in the initial plan. And at the same time, we had lower investments at Ultracargo. Looking more closely at the capital allocation, we completed some transactions, mainly the capital increase and the increase of our stake in Hidrovias, which totaled BRL 693 million, acquisition of TRRs in the total amount of BRL 103 million, and Virtu's transaction in the amount of BRL 36 million in the year. Throughout the year, the sale of the coastal navigation operation by Hidrovias in the total amount of BRL 715 million was also completed. In addition, we completed Ultrapar's buyback share program and made a relevant distribution of dividends. Moving to the next slide, and talking about debt and leverage. We ended 2025 with net debt of BRL 12.1 billion, an increase compared to September, but still keeping leverage steady at 1.7x, exactly the same level as the previous quarter. This possible stability is explained by the record operating cash generation, which offset the anticipated payment of dividends in December. Excluding the effect of the anticipated payment of dividends, leverage would have ended the year at 1.5x. The increase in net debt when comparing year-end 2025 to year-end 2024 mainly reflects the consolidation of Hidrovias, with an impact of BRL 2.2 billion. It is also worth highlighting the additional effect resulting from the reduction of BRL 1 billion in draft discount over the period, as shown at the bottom of the table. Now let's move to the results of Ipiranga on Slide 7. In the quarter, Ipiranga's volume grew 7% compared to 2024 with an increase of 8% in the Otto cycle and of 6% in diesel with a higher share in the spot market. This is due to the beginning of the market recovery after intensification of measures to combat irregularities in the sector. For the year, sales volume grew 1% with an increase of 2% in the Otto cycle and of 1% in diesel. We ended 2025 with a network of 5,805 service stations, resulting from 271 stations opened and 326 closed. Ipiranga's adjusted EBITDA totaled BRL 1.2 billion in the fourth quarter, 37% lower when compared to last year due to the recognition of nearly BRL 1 billion in extraordinary credits in the fourth quarter of 2024. Recurring adjusted EBITDA reached BRL 1.1 billion in the quarter, a 26% increase compared to 2024. This performance mainly reflects higher sales volume and better margins, partially offset by higher expenses. For the year, adjusted EBITDA totaled BRL 4.3 billion and recurring EBITDA totaled BRL 3.5 billion, a 4% increase compared to 2024. Operating cash generation was once again a highlight and reached BRL 4.3 billion, an increase of 41% in the annual comparison. This result reflects efficient working capital management and operational discipline. The first quarter began with the import arbitrage window open, which led to greater product availability. That window closes at the end of February and with the Middle East conflict, import parity turned much less favorable. In this context, we expect continued growth in volumes and margins. Moving to Ultragaz' results on the next slide. The volume of LPG sold in the fourth quarter was 2% lower than the same period of 2024 with a 5% decrease in the bulk segment, mainly due to the lower demand in the industry segment and with stability in the bottled segment. In 2025, the volume sold was also 2% lower than in 2024, with a decrease of 4% in the bulk segment and of 1% in the bottled segment. This performance is explained by the competitive dynamics of the market, impacted by the pace of pass-through of increased costs of Petrobras auctions throughout the year, in addition to lower business demand mainly in the industry segment. Recurring EBITDA reached BRL 474 million in the quarter, a 7% increase compared to the previous year. The result reflects the pass-through of cost inflation and a favorable sales mix, and on the other hand, the lower volume of LPG sold. For the year, adjusted EBITDA totaled BRL 1.8 billion, 5% increase compared to 2024. This performance reflects the effects of the pass-through of cost inflation, a more favorable sales mix and the contribution from new energies, which offset a lower LPG volume and higher costs and expenses. For first quarter '26, we see continuity of good results and an EBITDA similar to that observed in first quarter '25. On the next slide, we move to Ultracargo's results. The average installed capacity reached 1,131,000 cubic meters in the quarter, a 6% increase compared to the fourth quarter of 2024, resulting from the additions of capacity in Palmeirante, Rondonópolis and Santos. For the year, the average installed capacity was 1,090,000 cubic meters. The cubic meters sold was 5% lower in the quarter and 9% lower in the year compared to 2024. This decrease is mainly due to the lower demand from our customers for tanking services related to fuel imports, an effect partially offset by the increase in handling in Opla. Net revenue totaled BRL 261 million in the quarter, an 8% decrease compared to the previous year, reflecting the cubic meters sold and less favorable sales mix. For the year, net revenue amounted to BRL 1.021 billion, a 5% decrease explained by the lower cubic meters sold, partially offset by higher tariffs in the period. Adjusted EBITDA was BRL 144 million in the quarter, a 15% decrease compared to the fourth quarter of 2024. This performance mainly reflected lower cubic meters sold and higher costs with operations still in the ramp-up phase, partially offset by lower expenses. In 2025, adjusted EBITDA was BRL 585 million, a 12% drop compared to 2024. This result reflects lower cubic meter volume and higher costs associated with new operations, which are still in their ramp-up phase, partly offset by higher tariffs and lower expenses. We continue to see a gradual recovery in demand from customers of terminals at the beginning of the year, challenged by the closed import arbitrage window since mid-February. I also remind you of the negative initial effects of the ramp-up of some expansions. In this context, we expect first quarter volume and recurring EBITDA to be higher than in the last quarter of 2025. Now let's move to Hidrovias results. The total volume handled increased by 65% in the quarter compared to 2024, reflecting better navigation conditions in the North and South in addition to operational improvements. For the year, the volume handled increased by 22%, reflecting the same, more favorable navigation conditions, operational improvements throughout the year and higher volume in Santos, with the beginning and consolidation of the salt operation. Recurring EBITDA amounted to BRL 160 million in the quarter, reverting the negative result recorded in the same period last year, highlighting the positive effects of better navigation conditions and operational improvements. For the year, recurring EBITDA totaled BRL 1.1 billion, a 95% increase compared to 2024. This advance mainly reflects better navigability in the regions served, operational improvements and better average tariffs. I remind you that in November, we completed the sale of the cabotage operation, which contributed to the results of 1Q '25. Looking now at the first quarter, we have seen greater challenges in receiving cargo from the North operation, navigability conditions closer to normal levels in the South, although with some restrictions on iron ore loading. As a result, we expect results to be lower than those of the first quarter of last year. Finally, to conclude the presentation, we will look at the composition of investments made in 2025. We invested BRL 2.5 billion in the year, about half allocated to business expansion and the other half to maintenance and other investments. The total was in line with the announced plan, even considering BRL 235 million in investments at Hidrovias, which were not included in the original plan. Excluding this effect, investments would be 9% below the plan. We announced in the 2026 investment plan of up to BRL 2.6 billion. Of this total, approximately 42% will be allocated to expansion and the remaining to maintenance and business efficiency and safety initiatives. The highlights are in this presentation and in the market announcement. Well, with that, I conclude my part. Thank you all for the participation. Let's move to the Q&A session. To ensure better dynamics of this moment, I would like to reinforce that questions related to Hidrovias will be answered from the perspective of Ultrapar as the controlling shareholder. For specific operational details, the appropriate channel is Hidrovias' IR team. Thank you.

[Operator Instructions] The first question comes from Monique Greco with Itaú BBA.

Great results. I would like to explore further the margins for Ipiranga. You've had very strong margins in the fourth quarter, especially because of strong December. What were the main reasons for these stronger margins obtained in the month of December? I'd also like to understand whether there is some relevance, the fact that you have favorable arbitration for import or some other factors along these lines. And I would also like to ask about the share because in January, you've been subject to some more pressure in terms of market share because of an oversupply in the chain. What can you tell us about that? Do you think that January was just one-off effect? I know it's too early to talk about that, but especially with the perspective of a very short window for import. What can we expect in terms of market share from now on?

Linden speaking. Monique, thank you for the question. You are right. The fourth quarter showed this journey of progression. December was stronger, similar to November, October was somewhat weaker. I think this is very much aligned with improved landscape. We've all been seeing what's going on in Brazil in terms of regulatory affairs, fighting the legal market. So throughout the quarter, we've noticed a positive trend. When you talked about market share, January indeed showed an inverted position of the share. It's probably due to the fact that inventory levels went up in the last quarter when inventories go up with open arbitration, there is a lot of speculation, and it applies some additional pressure to the system. In my opinion, it was a one-off effect with a better commercial scenario, Ipiranga might recover the share that it had lost throughout the years. And finally, about what's going on in the Middle East, you are right. It's still too early to talk about that or draw conclusions. But we know that arbitration will be more limited. And if it's significantly closed, it means less speculative supplies, which favors companies which have a substantial supply in Brazil, such as Ipiranga. The whole infrastructure and our capacity would generate positive aspects to our own businesses.

Let me pick back on that and talk about this topic a bit more. Rodrigo speaking here. That window of import affects the whole market, up to February, there was an open window of imports. So levels of inventory of industry have reached very high levels. But as of mid-February, the windows closed. And now they are even more closed because of the Gulf tension. This is going to affect negatively the market and positively depending on being closer or open and favoring companies, which can really supply the market in Brazil.

The next question comes from Rodrigo Almeida with BTG Pactual.

My question is more focused on Ultragaz to start. You've talked about the perspective for the first quarter, but I would like to hear about the trend for the year. 2025, there was an increase in volume. But how do you anticipate that, especially for bulk, which had worse performance than we expected last year. Can you see any possibility of gains of volume, new clients or new initiatives? Can you also see an effect of the program of the Brazilian government [Foreign Language]? Is it also impacting the bottled market? And my second question concerns your strategy and the possibilities of growth. What are the main characteristics that you consider when you are trying to lever your businesses or drive further your business? Do you just intend to operate your own assets or maybe go into additional investments? It would be great if you could tell us and share with us the investment strategy you currently have.

Tabajara speaking, Rodrigo, thank you for the question. I'm going to start with the point concerning Ultragaz. You've asked about volume trends. We don't expect any major changes to our plan. We are still focusing on operational excellence, operation-based initiatives. We have performed quite well last year, and this is what we anticipate for 2026. There were some variations, especially in industrial segment because of characteristics of the segments themselves. And these are fluctuations that we've seen happening before. Our perspective is that everything will go into normal operations as months go by. We focused on segments that we believe are the best and strongest, and we have been delivering all results in them. [Foreign Language], this government program. It has been fully approved, and it's already in its initial implementation stages. It's a very smart program because it direct subsidies to the needy population. It's at the implementation stage. I've been -- we've been really involved in it. And it's something that will come in full operation within the next quarters. But now it's fully approved with a clear definition of pillars really -- which is good for the official players and something really important for all of us as a society.

Pizzinatto speaking. Asking about strategy, we have 3 main pillars that we considered when we are considering any transaction: first of all, industry where the company works, perspective of growth and consolidation; second pillar, is how close is it of what we already do and our management model, really getting synergy and generating value; and thirdly, someone who is willing to sell at interesting price range that would really prove to be good on return on investment. This is what we came across in Hidrovias. And this is the kind of analysis that we take into consideration whenever considering new investments.

The next question comes from Gabriel Barra with Citi.

I have two points to make. The first one about Ipiranga CapEx. It was below what you had planned. The actual number was lower than what had initially planned for 2025. I would like to hear from you the reason behind it. We've seen a very favorable market because of the discussion of fighting illegal practices. So official brands are getting favored. But a lower CapEx at Ipiranga is something that attracted our attention. And I would like to try to understand why did you want to have less investments upfront in your branding -- in branding new stations? Or are you operating in a more competitive market and decided to take a step back and just wait for more aggressive players to set their game. So what were the reasons? If you could shed some light into that, that would be really helpful. So why have you invested less than was initially planned? Secondly, it's about Ipiranga and capital allocation as well, building up on what was asked before. I know we cannot talk about market rumors. But last week, someone talked about -- started hearing the news about the divestment of Ipiranga, sales of Ipiranga. So I'd like to hear from you, not only in terms of acquisition, but also looking inside and considering adjustments. You've been talking about having a more active understanding of the company, revisiting its own thesis and also looking outside because you've been generating a lot of cash. And in our perspective, you are going to have even better cash levels this year and in a very comfortable leverage level. So what is the equation now? Should -- are you going to sell it now? Are you going to sell it later? So if you could please tell us more. So these inside, right? So these are my two points.

Rodrigo speaking. Let me answer those two questions. About CapEx and the other issues. Let me remind you, and we've said that a number of times before that Ipiranga has been through a cycle of CapEx before -- greater than expansion. And there are two points of fluctuation. So investments in infrastructure and technology. And for '26, '27, we are going to replace our technology platform at Ipiranga, very relevant investments. We've talked about that during the Ultra Day. Infrastructure is also closing some terminals and some expansions that we have put in place. These are why there are oscillations between the years. Some postponement of investments were made, especially because of the technology platform. As projects are completed, we are going to return Ipiranga's CapEx to the level of maintenance unless we see new opportunities of branding stations, but then we are going to revisit the plan. But this is what we anticipate for '26. Now concerning the news, the rumors in the market, we have nothing to talk about it. Whenever there is anything relevant, we have a formal communication of the market as the law expects. Cash generation has 2 main purposes, either we're going to find good projects to keep on expanding our company or share dividends. And this is an agnostic economic decision. We are going to keep on doing as is.

The next question comes from Bruno Montanari with Morgan Stanley.

Well, let me go back to the topic of import window, especially for diesel, a closed window benefits the well-established players. We know that. I know it's too early. But with the price of diesel in the international market, do you think you can have an average price and really execute it in the Brazilian market? We'd also like to hear from you what are the next steps in the regulatory agenda to fight further against the regular market? What is the time line that you expect it to progress further? And could you please tell us more about the strategy of funding debt versus working capital and also your draft discount, that would be very helpful.

Well, Bruno, concerning the import window, Brazil has a structure dependence on diesel imports. We have a commitment with our clients, and we are going to import and guarantee supply. And the cost in our profile of supply will be just build to customers. Concerning the next steps of the market regulation, we really have to make sure that everything that we've seen in the new legislation is really enforced. For example, persistent debtor and other initiatives have to be enforced, and we have to see the practical result of these changes that were really an important achievement for all of us. Yes, there are a number of things to be done. For example, single-phase taxation for ethanol. Part of the regular market lies in the hands of ethanol. Biodiesel, also a challenge. Not now, of course, because there was a change in the cost of byproducts, but biodiesel tends to cost more, and there are problems of non-mixture. Still a lot to be done in our agenda. It's not something fully resolved, and we really need to focus on improving competitiveness scenario as a whole. The government is very much willing to support these changes. The government of São Paulo increased the taxes because they've been fighting legal practice and now they have more legal players. So especially now when we deal with critical budgeting, all the governments are more than interested in having that in place. Now concerning the strategy of funding, we have access to a marginal cost of debt, which is highly competitive. Throughout last quarter, we've noticed there was an opportunity of anticipating the refunding of the company for the upcoming year. The marginal cost, even carrying over into the cash, it will have a positive carryover, and it's very much comfortable with our position of liquidity to really pay all our needs this year. As we've been emphasizing, funding is an alternative of investment, which is highly competitive in some specific situations, and we are very comfortable in using it more or less depending on the needs and mismatch with our cash levels. It's been so in recent quarters, and we do not expect to have any differences in upcoming quarters, but always considering the cost attractiveness in our analysis.

Next question comes from Tasso Vasconcellos with UBS.

I have two questions. First, Ipiranga. Linden, I recall at the end of last year in the Investors Day, you said that you were going to discuss the micro perspective and not the macro perspective. I would like to go back to Ipiranga's expansion plan and try to understand, based on the changes that you started implementing your business in 2022, what is still pending? What do you still see at the operational level, really putting aside all the improvement of the legal framework, but where can you still see value extraction this year and upcoming years in-house? Second question to Palhares or Pizzinatto. Going back to what Rodrigo has talked about in terms of capital allocation. You've had a very strong cash generation in the quarter. But looking at your balance sheet, despite this cash generation, there was still an increase in gross indebtedness, which was compensated by your financial assets, about BRL 2 million, BRL 2.5 million. I would like to hear a bit more about the reconciliation of resources and how all these initiatives are part of your capital allocation strategy at the level of the holding.

Well, Tasso, what I said Ultra Day is that I would rather discuss ways of improving Ipiranga and make us sell more rather than discussing irregular market, of course. The agenda of the regular market is always with us. But by having that, we can look closely into our sales, improving our own operations, focusing on things that we really have to fine-tune. We have an expansion plan for 2026. You've seen the CapEx for expansion. We are talking about 300 branding stations, working on our infrastructure plan, technology, which is extremely important. The plan has been maintained. In addition to qualitative issues that we've been working throughout the years, and I'm sure you're all familiarized with them. Considering what's still pending and all the different drivers that I'll be able to list, there are two of them. Logistics, something that we've talked about a lot, the logistic plan. We still need 2 years to complete the journey, and it will mean a lot in terms of value capture. And the migration of ERP, the benefit is not a new operating system, but something that really changes the way we've been operating all our processes and internal elements, which will generate more efficiency. In terms of the main effort lines for 2026, these are the two. Pizzinatto speaking, Tasso. Concerning financial investments, let me make 3 points here: first, we always follow the principle of discipline and prudence; our average cost of debt, excluding bonus, is below 100% CDI. We have no cost of carryover of debt; and thirdly, 1 day of operation in Ipiranga is BRL 300 million, BRL 400 million. We are dealing in a moment of great volatility, and we have BRL 4.5 billion of debt to be paid this year. So what did we do last year? We anticipated somewhat the funding of debt that would mature, so that we wouldn't have to go to the market considering the conditions that we have. And this is why we have an increase in our investment line.

The next question comes from Vicente Falanga with Bradesco BBI.

I also have two questions. First, in addition to that open window, Petrobras auctions for fuel, which impacts some of the competitive landscape and the share, do you still see an opportunity to improve profitability in the fourth quarter? And what is the feedback that you get from resellers in relation to your competitors? Secondly, Palhares said that it's going to be an increase in volume and margins as is. Is it year-over-year, quarter-over-quarter? What is your expectation there?

Vicente, having a better commercial landscape is not something just for Ipiranga, it's for our whole industry, of course. So we can see healthier margins in reseller, healthier margins in distribution and the government collecting more taxes. When the whole industry is benefiting, we can see opportunities of improving our own profitability, of course. It's not trying to be more profitable. It's being part of an industry which has been evolving positively. And the margin is still not paying back the invested capital. There is still room for improvement. In terms of volume and margin, we are comparing against the fourth quarter last year. This is our reference when we say we're going to increase it.

Well, our Q&A session is completed now. We would like to hand it over to Alexandre Palhares for his closing remarks.

Well, thank you all very much for your time, for your interest and participation. Our team is here at your disposal for any follow-up or additional questions. Thank you all very much.

The earnings release call of Ultrapar is closed now. Thank you all for your participation. Have a great day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning. Thank you for waiting. Welcome to the earnings release call of Ultrapar to present the results referring to the Third Quarter '25. Our presentation will be conducted by Mr. Rodrigo Pizzinatto, CEO of Ultrapar; and by Alexandre Palhares, CFO of Ultrapar. The Q&A session that will follow will also have Mr. Leonardo Linden, CEO of Ipiranga; Mr. Tabajara Bertelli, CEO of Ultragaz; and Mr. Fulvius Tomelin, CEO of Ultracargo. This call is being recorded and will be accessed later through the website, ri.ultra.com.br. After the initial presentation, we are going to start the Q&A session where further instructions will be provided. I would also like to tell you that the conference is being conducted in Portuguese and there is an option for simultaneous translation by clicking interpretation. For those listening to the earnings release call in English, there is the option of muting original volume. The presentation will be shown in Portuguese and there is a version in English to be downloaded through the company's website and through the chat. Before proceeding, we would like to mention that forward-looking statements made during this call refer to business perspective of Ultrapar. Forecast and operating and financial goals are based on beliefs and assumptions of the company management and on information currently available. Forward-looking statements are no guarantee of performance. They involve risks and uncertainties because they refer to future events and therefore, depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions and other operating factors can also cause results to differ materially from those expressed in such forward-looking statements. I would like now to hand the conference over to Mr. Rodrigo Pizzinatto, who will start with the presentation. Mr. Pizzinatto, you have the floor.

During this quarter, we recognized BRL 238 million in extraordinary tax credits at Ipiranga, resulting from the remaining portion of historical ICMS tax credits included in the PIS/COFINS calculation basis. Furthermore, we made significant progress in the fight against illegal practices in the fuel sector. We have been following with optimism that work carried out by the authorities in recent months, especially the Carbono Oculto Operation at the end of August. It represents a historic milestone in this fight, reinforcing the need for stricter legislation to fight crime and the legalities in the sector. We continue to support authorities and regulatory bodies in fighting crime, strengthening market integrity and ensuring fair competition. Another highlight of the quarter was the rapid reduction in leverage. After assuming control of Hidrovias and starting to consolidate its results in the second quarter, leverage stood at 1.9x. With the strong cash generation in this quarter and Ultrapar's EBITDA growth, we reduced leverage to 1.7x even after paying BRL 326 million in dividends in August. We also continue to advance our growth and strategic positioning agenda. In October, we completed the expansion of the Ultracargo terminal in Santos, adding 34,000 cubic meters of storage capacity. On November 1, we completed the sale of Hidrovias Cabotage operation for BRL 750 million (sic) [ BRL 715 million ] which will enable Hidrovias to focus on more synergistic and complementary businesses while strengthening its financial position. We announced the signing of an agreement to acquire a 37.5% stake in Virtu which operates in the LNG logistics for BRL 102 million. This transaction is aligned with our strategy to invest in sectors where Ultrapar can contribute to value creation with high growth and profitability potential. We also received CADE's approval for the LPG terminal in Pecém for Ultragaz in partnership with Supergasbrás. This project reinforces our commitment to safety and efficiency in LPG supply in the Northeast and North regions of Brazil. Finally, for those who were unable to attend Ultra Day 2025 held in September for the first time at Ultrapar's headquarters, please note that the presentation is available on our Investor Relations website. I will now turn the call over to our CFO, who will walk you through the quarterly results. Thank you.

Thank you, Rodrigo. Good morning, everyone. Before starting, I would like to remind you of the reporting criteria and standards used in this presentation. Now let's move on to the results. Ultrapar's adjusted EBITDA was BRL 1.9 billion, including the recognition of BRL 185 million in extraordinary tax credits at Ipiranga representing a 27% increase year-over-year. Recurring adjusted EBITDA totaled BRL 1.8 billion, an 18% increase compared to the third quarter of last year driven by Hidrovia's record performance. Ultragaz also reported higher EBITDA, which together with Hidrovias, partially offset the lower results from Ipiranga and Ultracargo. Net income for the quarter reached BRL 772 million, an 11% increase year-over-year, mainly driven by the higher operating results and the recognition of tax credits already mentioned which were offset by higher financial expenses and higher depreciation and amortization, mainly due to the consolidation of Hidrovias. CapEx totaled BRL 756 million, 46% higher compared to the same period last year, highlighting the consolidation of investments in Hidrovias and increased investments in Ipiranga, especially for the expansion and maintenance of the service station and franchise network, in addition to investments in the evolution of the technological platform with the replacement of the ERP system. Operating cash generation was BRL 2.1 billion, almost 3x the cash generated in the same period last year, even with BRL 258 million for the settlement of the draft discount. This reflects a better operating result, the consolidation of Hidrovias and lower working capital investment at Ipiranga and Ultragaz. And now moving to the next slide. We ended the quarter with BRL 12 billion in net debt and a leverage of 1.7x compared to 1.9x last quarter. This improvement reflects the strong cash generation during the period, which more than offset the payment of BRL 326 million in dividends in August in addition to the impact of BRL 258 million from the settlement of the draft discount, as I mentioned earlier. Now moving to Ipiranga's results. The volumes sold in the third quarter was 1% higher compared to last year due to the increase in the Otto cycle, mainly in gasoline. It is worth noting that we observed the market recovery following the Carbono Oculto Operation, which has been tackling regular companies in this sector with an acceleration in sales volume in September. We ended the period with 5,812 substations. We added 70 new substations and closed 84 to our network throughout the quarter. Ipiranga's EBITDA totaled BRL 1.85 billion, 12% higher than the same period last year, reflecting the recognition of extraordinary tax credits of BRL 185 million. Recurring EBITDA totaled BRL 892 million in the quarter, a 5% lower compared to the third quarter of 2024. This result reflects a more challenging scenario given the irregularities in the sector, mainly due to the high level of naphtha imports for irregular sale as gasoline and inventory gains in the third quarter of 2024. These effects were partially offset by higher sales volume and lower expenses during the period with lower allowance for expected credit losses, marketing and personnel expenses due to a smaller head count. As a highlight, we also had cash generation zreaching BRL 1.453 billion, more than twice the BRL 723 million in the third quarter of 2024. This performance reflects working capital management, strengthening value creation for Ipiranga. For the fourth quarter, we expect a continued market recovery with volume growth and profitability similar to that observed in the third quarter. Now moving to Ultragaz. The volume of LPG sold in the third quarter was 6% lower than the same period in 2024, with a 3% decrease in the bottled segment and an 11% decrease in the bulk segment, reflecting the competitive dynamics of the market, which continued to be impacted by the pass-through of increased cost of Petrobras auctions. Furthermore, we are seeing signs of an economic slowdown with lower demand in the volumes sold to industries. Recurring adjusted EBITDA totaled BRL 463 million, a 3% increase compared to the same period in 2024, mainly due to pass-through of inflation and the positive contribution from new energies despite lower LPG sales volumes. The fourth quarter is seasonally weaker. We see a gradual recovery in volume and bulk segment is below last year's levels. We also expect EBITDA to be higher than that observed in the third quarter. Now moving to Ultracargo. The average installed capacity reached 1,097,000 cubic meters in the quarter, a 3% year-over-year increase, resulting from the addition of 23,000 cubic meters of capacity in Palmeirante and 7,000 cubic meters in Rondonópolis. The cubic meters sold was 12% lower year-over-year, totaling 3,845,000 cubic meters. This decrease reflects the lower demand from our customers for tanking services related to fuel imports, which resulted in lower handling in Santos, Itaqui and Suape. This impact is partially offset by the higher volume of handling in Opla. As a result, net revenue totaled BRL 243 million in the quarter, a 9% decrease compared to the same period last year, reflecting the lower volume even with better tariffs. Ultracargo's adjusted EBITDA totaled BRL 134 million, 20% below the third quarter of 2024, impacted by lower volumes and higher preoperational and initial costs at Palmeirante, which is still in its ramp-up phase, partially offset by better tariffs. For the fourth quarter, we see a recovery in demand from our customers and the effects of the expansion. As a result, we expect a recovery in EBITDA compared to the third quarter. Finally, going Hidrovias. The volume handled in the quarter grew by 30% when compared to the same period last year, driven by the normalization of navigation in the South corridor, which allowed higher handling of iron ore. Adjusted EBITDA reached BRL 332 million compared to BRL 169 million in the same period last year. Recurring EBITDA reached BRL 361 million, more than twice the BRL 169 million recorded in the third quarter of 2024. This record performance mainly reflects better navigation conditions in the South corridor, as I mentioned earlier, and a better sales mix. On November 4, the Cabotage sale was completed, which will affect the results of the fourth quarter and reduce the company's debt. It is important to note that there is also the seasonality of the fourth quarter, which significantly affects navigability in the corridors. We expect an EBITDA similar to the fourth quarter of 2022. With that, I conclude my presentation. Thank you all for the participation. Let's move to the Q&A session. To contribute to the dynamics of this moment, I reinforce that questions related to Hidrovias will be answered from the perspective of the controlling shareholders. Other operational details should be directed to the Hidrovia's IR team.

[Operator Instructions] The first question comes from Gabriel Barra with Citi.

I have 2 questions. First, let me focus on Ipiranga and all the changes you've mentioned during the data presentation. We've seen a sequence improvement and when we talk with the industry at large, there is an expectation of sequential improvement for the upcoming quarters in terms of volume margin and fighting illegality. I'd like to hear about the end of the quarter and the trend for the fourth quarter, the new events that were observed probably they can be translated into better volumes, better margins. And I'd like to hear about the company's strategy. Would it be to recover the lost market share to the informal market? Or would you thinking about optimizing your margins? What is your strategy? Maybe Linden can help us out. Now looking from a broader perspective at Ultra, you've been making some investments in terms of capital allocation, which is a very important point considering Ultra as a vehicle of investments. So what are the next steps? You still have got a lot to deliver in Hidrovias, of course. But the company has already made all the incorporation of investments and all that. So what is the strategy for the future? Where would you consider future investments, exactly when, what would be the timing? Would you think about greenfield, brownfield, something that would bring results in the short term? So these are my 2 questions.

Good morning, Gabriel, Linden speaking. The first question is -- would be probably asked by others, so I'm going to answer it broadly. First, hidden carbon operation, Carbono Oculto has been a very positive movement to our industry. It has contributed to Brazil, to consumers, for those that make investments in the area. But we have to be aware of the fact that it's not over. Investigations have to move on. And we have 2 important projects, one of them of bad debt provision and the other one of the one single phase investment. And these are projects that really have to move on and become law. Similarly to hidden carbon there are 2 points, volume and margin. The volume is coming stronger, and you can see that there is an increasing trend. The end of the quarter was better. The first initiative of hidden occult operational was on the second half of August. And since then, we've been recovering volume. Not only volume really, but we can see selling our gasoline with additives being sold more with an increased share of it in the mix, meaning that consumers are aware of quality, positive news from volume. It's important to regain scale because of lost scale throughout months and months due to the irregularities of the industry. Margin is important, but it's not the only indicator. And the margin in terms of volume has been showing slower recovery, especially in B2B and highways, which is expected because these are markets exposed to problems that still persist, such as non mixing biodiesel. And they tend to be more resistant to changes in prices, at gas station levels, large consumer contracts have parameters. So it takes longer to have adjustments. That's all predictable, and we are okay with that. We have to keep on fighting illegality. We cannot simply assume that everything is solved. No, we have to keep on hitting the regular market because there is still a lot to be done, even though we have already observed significant improvement. For Ipiranga, it's important to recover scale. It's been a number of years with loss of volume due to irregular market, and we want the volume to be back, of course. Thirdly, margin is a consequence of the reaction of the market and how we work internally. We should stick to what we've always done, focusing on internal efficiencies, better processes and those who have been following our results know how much we emphasize that, especially in logistics and smaller operational expenses. Something that we've been working on, reducing and also emphasized by Palhares presentation. So very positive landscape, I have to say. We had been waiting for this action for a long time. But of course, it's not over, the problem is not over. Volumes are picking up, especially in Rio and Sao Paulo, where there was most of the irregular activities and margins are going to naturally be recovered, but of course, depending on market reactions as well. But of course, we are also endeavoring all our internal efforts.

Barra, Rodrigo speaking. Thank you very much for the questions. Capital allocation, our next steps, right? In general lines, we are going to try to look up for companies and projects that have similar characteristics to what we found in Hidrovias. In other words, a good potential to create value that depends on us. So what we can do with a company with an asset, unlocking growth, optimizing operations and assets. But if we don't come across good projects, that's okay, we just increased dividend sharing. We have these 2 options, either we come across good projects or we increase dividend sharing. That's it.

Our next question comes from Gustavo Sadka with Bradesco BBI.

My first question concerns cash generation, which was strong in the quarter, and we've seen deleveraging. Now considering the new taxation of dividends, and the profit reserve you have in your balance sheet, should we expect more dividends to be distributed this year? Second question about capital allocation. As the company has been showing interest and have had exposure to the Agro business, do you think about by a stake at Rumo because the partial investments of that can be offered in the market.

Good morning Gustavo. About cash generation, you're right, it was a very strong quarter. The second half of the year tends to be stronger and probably that's going to be repeated in the fourth quarter. It is following the constant discussion of legislation changes and the taxes on dividends. And yes, this is a possibility, anticipating dividends in the fourth quarter. Concerning capital allocation, I'll just repeat what I've just said. We are always looking for good projects where we can create value, unlocking growth and optimizing operations. If we find these assets, we are going to do that. If not, we increase dividend distribution. That's it.

The next question comes from Bruno Montanari with Morgan Stanley.

Quick follow-up with Ipiranga. Could you please quantify in a ballpark figure of inventory variation so that we get an ideal about normalized margins. And could you please tell us more about CapEx, especially in the third quarter, CapEx tends to be high in the fourth quarter. You've anticipated somewhat in the third quarter. So I'd like to know what we can expect for the fourth quarter at Ipiranga? Second question about cash flow. It's been a year of a number of adjustments in working capital because of the draft discount. But in working capital, the level we've seen in the third quarter. Is it sustainable? Or is there still more to be done to unlock somewhat more capital to the company.

Good morning Bruno. Thank you for the question. About inventory levels, we don't talk about the levels of losses or gains because it's a result of our supplies policies. But I also remind you that there was a price oscillation in the third quarter of '24 and not '25. So the variation is more due to the fact that there was a change in '24. Concerning CapEx, in the year, the CapEx would be below what we had announced, probably 10% less than what was announced in our plan for 2025.

Palhares speaking. Concerning working capital, this is a very relevant topic to all our businesses. There are some efficiencies which are captured and they are onetime possibilities included in the ordinary working capital of the company and some of them which result from market dynamics. These are the ones that we can repeat and maintain throughout upcoming periods.

The next question comes from Rodrigo Almeida with Santander.

Good morning, Ultra's team. I'd like to talk about Ultragaz. Recently, there were new reference prices published. I would like to understand the net effect of this discussion, a lower reference price, some potential of gaining additional volume. Maybe you can tell us more and help us understand what is the net changes you expect in terms of volume and price? Can you also please tell us more about the compliance of -- with resellers because in the end of the day, prices change at the level of the resellers, right?

Hello, Rodrigo, Tabajara speaking on behalf of Ultragaz. Thank you for the question. The focus of Gás do Povo, Gas to People, it's a program of the government. I think it's the right program to direct the benefit to the population that really needs it, really fighting against the so-called energy poverty, things which are going into effect in a few weeks, starting in some cities and then being scaled up, but something very positive. We've been supporting the program. The model is direct payment to resellers. We are exactly at the level you talked about communicating the project and trying to get more and more compliance. If the resellers have some questions, we answer them. The government has been presenting data. The last one, there were over 3,000 resellers already on board, showing more and more companies join and it will be maintained until the first to second quarter next year. It takes time. It takes some learnings, but it's following the initial design that was imagined. And we see it very positively as a social benefit of addressing a very important issue to our country. And we believe prices and volumes are going to gradually increase. If the reseller is compliant with the program, they are committed with all the elements of the program and it's a product that is going to be picked up. It's pick and collect, not delivery not delivered at homes. Each reseller is considering how to operate, how the program works and how well it fits their operations. It's been doing and believe it's going to be maintained. In a nutshell, we still see the program with the same perspective. This is just step one of implementation. There are more things to come, certainly.

The next question comes from Gustavo Cunha with BTG Pactual.

My question is about Ultragaz as well. Trying to understand about the change in LPG. Ministry of Mining and Energy called an extraordinary meeting to talk about this issue. And I'd like to see your perspective on this topic and what do you expect in terms of time line?

Thank you for the question, Gustavo. There is still an ongoing process. You are calling it the reform or the regulatory review of LPG. In the beginning of the year, there were some initial inputs shared with the government. The national agency will probably launch a new review in upcoming months. And in the current schedule, it is expected to be completed in the first half of 2026. So there is still a lot to happen. Different players are getting on board, they're discussing. I think it's following the expected path. We are highly convinced of what is the best for society. It's a model of a high level of safety, well balanced, and that's what has been in place. But that's still an open-ended process inputs are being made, and there are still a number of steps until the final decision regardless of what it is to really change the regulations.

Next question comes from Regis Cardoso with XP.

Good morning. Thanks all of you for your availability. In Ipiranga, I understood that you expect a similar level of profitability in the fourth quarter. Can you tell us about one-off effects, especially inventory levels, also the draft discounts of the margin, competitive improvement that we've observed in October. So reconciling really the development of the fourth and the -- third and fourth quarter. And finally, in Ipiranga, could you please tell us about the offenders that you still see to margins. Maybe you can make comments about direct sales to refining entities? And what about CBOIS? How do you see it? And how has it contributed to the operation?

Concerning the fourth quarter, the guidance is clear. And once again, it's market dynamics. This is what we've been observing happening in the market. As I pointed out, there is volume impacting the fourth quarter and margin picking up slowly. I don't think I have much to add. In terms of offenders, part of the offenders are still irregular activities that we observed throughout the market and have been covered by the hidden occult operation, Biodiesel, CBOIS, certainly still a problem. But once again, the perspective is better now. We know there's still a lot to be done. And I emphasize once again about bad debt provision and single-phase taxation, which are both essential to address the root of the problem. But we are doing our work as best as we can, fighting irregularities together with the market. But that's it. No big news there.

Let me see if I got that straight. There hasn't been any relevant losses of inventory levels, right?

Yes. Right. None.

Our Q&A session is completed. Now I would like now to hand it over to Alexandre Palhares for his closing remarks.

I would like to thank you once again for your interest and participation. Our Investor Relations team is here to answer any questions that we might not have answered. Thank you very much. See you next time.

Well, the earnings release call of Ultra is finished now. Thank you very much for your participation. Have a great day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning. Thank you for waiting. Welcome to the earnings release call of Ultrapar to discuss the results referring to the second quarter of 2025. The presentation will be conducted by Mr. Rodrigo Pizzinatto, CEO of Ultrapar; and by Mr. Alexandre Palhares, CFO of Ultrapar. Our question-and-answer session will also have Mr. Leonardo Linden, CEO of Ipiranga; Tabajara Bertelli CEO of Ultragaz; and Fulvius Tomelin CEO of Ultracargo. This call is being recorded, and it may be accessed in the website, ri.ultra.com.br. After the presentation, we are going to start the question-and-answer session when further instructions will be provided. I'd also like to let you know that our conference is being conducted in Portuguese and there is simultaneous translation available through interpretation. For those listening to the conference in English, you may mute the original volume just listening to the English translation. The presentation will be shown in Portuguese and the version in English is available for download from the website of the company or through the chat. Before moving on, we would like to clarify that forward-looking statements that may be made during this conference call with respect to business prospects of Ultrapar, their forecast, operational and financial goals of the company are all based on beliefs and assumptions of the Executive Board as well as on currently available information. There are no guarantee of performance. They involve risks and uncertainties since they relate to future events, and therefore, depend on circumstances, which may or may not occur. Investors should understand that general economic conditions, the market and other operational factors may affect the future performance of the company and lead to results which may differ materially from those expressed in these forward-looking statements. I would like now to hand it over to Mr. Rodrigo Pizzinatto, who will start the presentation. Mr. Pizzinatto, you have the floor.

It is a pleasure to half of 2025 and talk about our achievements and what we are building always focused on the long-term value creation and the development and growth of our businesses. Among the highlights, I want to call your attention to the strong operational cash flow generation, even with BRL 900 million reduction in draft discount due to the IOF tax burden as a result of our disciplined focus on working capital management. Furthermore, we achieved record results at Hidrovias, which has been consolidated into Ultrapar's financials since May when we became the controlling shareholder after its capital increase. Still regarding Hidrovias, I also reinforced our belief in its potential for growth in value creation. The stronger results, the reduction in net debt and in the cost of debt, along with all the liability management actions executed after the capital increase already demonstrated part of this plan. And regarding Ipiranga, we recognized BRL 677 million in extraordinary tax credits resulting from the remaining portion of historical ICMS tax credits in the PIS/COFINS calculation basis. We continue to experience illegalities in the fuel sector, including the increase in the regular import of naphtha for selling as gasoline with reduced tax burden and noncompliance with the required biodiesel blend in diesel. On the other hand, there were advances with the implementation of the single-phase taxation of hydrated ethanol for PIS and COFINS in May and the publishing of the list of companies not complying with the RenovaBio program despite the limited effect after injections that prevented the disclosure of certain companies' names. I also highlight the evolutions in Sao Paulo state with the start of the tax solidarity principle for resellers and distributors for state tax not collected, a milestone in Brazil's fight against tax evasion. And at Ultracargo, we completed the construction of Opla's railway branch and started a gradual ramp-up of operations in Palmeirante in July as part of the company's expansion, connecting the countryside to the ports with increased exposure to the agribusiness sector. We remain firmly committed to our value proposition, supported by a robust capital structure and a constant pursuit of excellence, maintaining focus and discipline in capital and value creation. We raised BRL 1 billion at Ipiranga at an average cost equivalent to 106% of the CDI, below our current average cost of debt. In the quarter, we also concluded the buyback program of 25 million Ultrapar shares at an average cost of BRL 16.64. As previously disclosed, we will pay BRL 326 million in interim dividends, equivalent to BRL 0.30 per share in August. And now moving to the next slide. Given the recent proposal under analysis disclosed by ANP, the National Oil Agency regarding changes in LPG regulation, we have also brought some information and data to better support the discussion. Brazil is a global reference in LPG market regulation. We currently have a modern regulatory framework that ensures safety for the consumer by placing accountability on distributors. At the same time, it maintains a highly competitive market where investments in efficiency and growth are essential to profitability and differentiation. The proposal under analysis by ANP to end brand respect and allow partial LPG refilling endangers both the populational safety and investments in the bottle segment, creating room for illegal activities and organized crime like in Mexico. Over the past 10 years, about BRL 13 billion were invested in the construction, maintenance and requalification of 133 million bottles currently in circulation in Brazil and their respective filling systems. Ultragaz alone invested around BRL 3 billion during this period. And in brand respect discourages investments by distributors. The gradual aging and deterioration of LPG bottles puts population at risk. On this slide, we present some pictures from Latin American countries where brand respect doesn't exist, such as Mexico and Paraguay, illustrating the severe deterioration of LPG bottles. Countries that respect the brand, such as Chile and Colombia, maintain LPG bottle products with quality similar to that in Brazil. We also highlight some news about explosions and accidents in countries without brand respect. Furthermore, as I will demonstrate on the next slide, this change will not bring any price benefit either. The current cost of bottle exchange between distributors due to logistical efficiency, scale and proximity between bottling facilities is BRL 0.50 per bottle. Another critical point in this proposal concerns LPG partial filling, which increases logistical costs and the unit price of the product while also creating challenges for inspection, operational risks and volume fraud. And moving now to the next slide, the top chart presents the breakdown of costs and profit per Ultragaz bottle from January to June 2025. As you can see, Petrobras price of BRL 38 per bottle does not include taxes nor other supply sources like auctions, whose prices are above BRL 38 per bottle nor the primary logistics to deliver the gas to our bottling facilities. As a result, the LPG cost of Ultragaz bottling facility is BRL 60 per bottle, adding the costs of filling, replacing, requalification and maintenance of bottles as well as logistics and commercial expenses and bottle exchange costs. We reached BRL 73 per bottle. I highlight once more the exchange cost of BRL 0.50 per bottle, including all of our administrative and financial expenses and income tax, we add another BRL 4 per bottle. Our total net income to operate in the bottle segment is about BRL 2 per bottle, a small unit margin of 2%, but feasible in Brazil to the scale of our market. And now in the chart below, we use public data from AMP to show the evolution of prices and margins across the supply chain with figures adjusted by inflation, IPCA. In the first column, we break down the price into producer price, which is mainly Petrobras, taxes and distribution margin. The adjacent column in dark blue shows the final consumer price, which includes freight, costs and margin for 58,000 independent resellers across Brazil. And as you can also observe in the historical series, the distribution margin has remained basically stable, even partially absorbing Petrobras cost increase in 2022. To summarize, we present the conclusions in the box in the right. Society in Brazil does not benefit from these proposals, which, in fact, leads to unintended consequences such as higher logistical costs and reduced safety for the population. On the other hand, these proposals create space for unlawful players, tax evaders and opportunistic companies that could enter the bottle segment without investing in bottles and filling plants. Therefore, with clarifications and discussions. This proposal should not be implemented. Thank you for your attention. I will now hand over to Alexandre, who will detail the results for the second quarter.

Thank you, Rodrigo, and good morning, everyone. Well, first, I'd like to remind you of the reporting criteria and standards used for the analysis that will be made in this presentation, which can be seen in this slide. This specific result has some particularities related to the first consolidation of Hidrovias and includes 3 months from the share of profit on its results in order to eliminate the lag, and we have been carrying as well as 2 months of EBITDA from May and June. Now let's move to the next slide, where we will see Ultrapar's results. Total EBITDA reached BRL 2.07 billion that represents a significant growth compared to last year, partially driven by the recognition of extraordinary tax credits. The recurring EBITDA for the quarter totaled BRL 1.468 billion, representing an increase of 15% compared to the second quarter last year. This performance mainly reflects the consolidation of Hidrovias results and Ultragaz' better results, which were partially offset by Ipiranga's lower EBITDA. Considering the sum of the reported EBITDA from our business, we reached BRL 1.541 billion, slightly above last year's level. The strong performance from Hidrovias and Ultragaz offset Ipiranga's results. The net income was BRL 1.151 billion in the quarter, an increase of 134% compared to the same period of the previous year, reflecting the higher operating results and the recognition of extraordinary tax credit in the amount of BRL 677 million. The CapEx for the quarter was BRL 544 million. This represents an increase of 14% compared to last year, mainly reflecting the effect of consolidation of Hidrovias in the amount of BRL 64 million. We had an operating cash generation of BRL 1.848 billion, excluding the BRL 909 million from the reduction of the draft discount, a growth of 73% compared to the same period of last year. This cash generation is explained by the reduction in working capital due to lower diesel and gasoline price and the addition of BRL 138 million related to the consolidation of Hidrovias cash generation. Moving to the next slide to discuss debt and leverage. We ended the second quarter with a net debt of BRL 12.635 billion, which is equivalent to 1.9x net debt to EBITDA for the last 12 months compared to 1.7x in the last quarter. This increase was due to the reduction in draft discount of BRL 909 million because of the IOS tax burden. Excluding this effect, we would maintain the same leverage level, mainly due to the strong cash generation in the quarter, even with the consolidation of Hidrovias, which added BRL 3.056 billion in the net debt and approximately 0.2 in the total leverage. in addition to the acquisition of additional stake in the company and the buyback share program of Ultrapar, which together totaled BRL 494 million. Well, moving to Ipiranga's results. The volume sold in the second quarter was 2% lower compared to the second quarter last year. In diesel, there was a 3% reduction, reflecting the irregularities in the biodiesel blend and the import parity opened during most of the quarter, which resulted in an oversupply of products in the market. The auto cycle decreased 1%, impacted by the growth in irregular imports of naphtha for sale as gasoline. We ended the period with 5,826 stations. We added 54 sub stations and closed 75 to our network throughout the quarter. Regarding AmPm, we ended the quarter with 1,460 stores and revenue growth of 10% in the quarter in the same-store sales concept. Ipiranga's EBITDA reached BRL 1.199 billion. Recurring EBITDA for the quarter was BRL 678 million, which is 13% down from the previous year. As I mentioned earlier, regular in naphtha and biodiesel blending, the import parity opened and the inventory levels in the market impacted volume and EBITDA, which also had additional impact due to Petrobras price adjustment during the quarter. These effects were partially offset by lower personnel expenses due to a smaller headcount and one-off expenses related to the office relocation that occurred in 2024. For the third quarter, we expect seasonally stronger volumes. We started the period with a closing import parity scenario and a trend towards normalization of inventories in the industry, which contributes to profitability above that observed in the first half of 2025. Moving to Ultragaz. The volume of LPG sold in the quarter was 1% lower than the second quarter of 2024, with a 2% decrease in bottle segment, reflecting the competitive dynamics of the market affected by the pass-through of increased costs of Petrobras auctions. Bulk volume remained stable. Ultragaz recurring adjusted EBITDA was BRL 442 million in the quarter, 11% higher than the registered in the same period of 2024. These results reflect the better sales mix, greater efficiency in the Bulk segment and greater results from new energies, partially offset by lower results in the bottle segment and higher expenses. For the third quarter, we expect seasonally stronger volumes and recurring EBITDA slightly above the third quarter of last year, enhanced by the performance of new energy. Going to [indiscernible], the installed capacity remained at 1,067,000 cubic meters in the period. We note that the cubic meters sold decreased 14% year-over-year, reflecting the lower demand for storage and fuels imports affected by industry inventory handling reduction with lower handling in Santos and Itaqui. Net revenue totaled BRL 247 million in the quarter, a reduction of 6% compared to the same quarter 2024, reflecting volumes effect partially offset by a better handling mix. Ultracargo's EBITDA totaled BRL 141 million in the quarter, which is 15% lower than the same period last year and mainly explained by lower [indiscernible] meters sold and initial costs and expenses with the expansion of Opla and the new terminal in Palmeirante. For this third quarter, we expect EBITDA in line with that observed in the second quarter. Well, finally moving to Hidrovias and to explain and compare the results, we are considering the entire quarter of Hidrovias that is the same number already released by the company. The total volume in the quarter was 10% higher compared to the same quarter last year. The South corridor stands out, driven by better navigation conditions aligned with the improved rainfall patterns and increased [indiscernible] as well as volume growth in the North corridor. Recurring adjusted EBITDA totaled BRL 348 million in the period, which is 39% increase compared to the second quarter last year. These results reflect improved availability conditions, higher volumes and tariff adjustments in the North corridor. These effects were partially offset by lower results from Cabotage and Santos operations. Recurring EBITDA from Hidrovias consolidated in Ultrapar's quarterly results totaled BRL 276 million. Of this amount, BRL 234 million refers to Hidrovias EBITDA for May and June. Following the consolidation of control and the remaining BRL 42 million refers to the same -- the share of profit for the pre- consolidation period. For the third quarter, as disclosed by Hidrovias, we expect a continued strong results, a significant increase in recurring EBITDA compared to the third quarter of last year. Well, with that, I conclude the presentation and I'd like to thank you all for the participation. Let's move to the Q&A session. But before we start, just to contribute to the dynamics of this moment, I would like to reinforce that questions related to Hidrovias will be answered from the perspective of the controlling shareholders. Any other operational details should be directed to the Hidrovias IR team. Thank you.

[Operator Instructions] The first question comes by Gabriel Barra with Citi.

And I have 2 questions. The first one, I think you pointed out quite well in the release and Pizzinatto talked about the informal practice and the margins in the industry. Even though there has been an impact in terms of margin for you, we've seen some improvement. There is the single phase taxation, RenovaBio. We can see some significant improvement, solidarity, a number of things happening, good things for the industry. So I would like to hear more about the dynamic of margins. Is it within what you had expected, considering your inventory levels. I'd like to hear more about that and how you can see the margins considering all the different movements involving in formal practice and what we can expect from now on in terms of this change in the industry? Now Ultragaz, you've talked about regulation, which is something very important. The one side, we have the Brazilian petroleum agency discussing ANP. There is also a discussion about the law of gas to all but a lot has been said about LPG especially addressed by Petrobras. Considering competition in the industry, a lot has been said about having Petrobras back into the LPG industry. Maybe it's too early, but I would like to hear your opinion about that competition. You are doing quite well in terms of exchange of the bottles and so on. But if Petrobras came back into the market, what would you expect? And how are you getting prepared to a newcomer and a newcomer as big as Petrobras. And finally, in working capital and the draft discount you've mentioned, this is very much related with the discussion of IOF, the tax on financial operations. The idea was to exclude the draft discount or once there is a definition about IOF, do you think that there would be draft discount back again into your working capital. So what can we anticipate for the next quarter?

Good morning, Gabriel. This is Linden speaking. You have a number of questions, so different people will answer them. In terms of regulation, you've got it right. Yes, there are very important movements going on. I think we should highlight the 3 main ones. First, the single-phase taxation pointed out by Rodrigo. The single-phase taxation has a practical effect, which is negative at first because we deteriorate the margins. But then it gets picked up with time. And we see it as positive, positive effect. Then the CBIO's of the 3 elements that I'm going to mention, the one that makes me more frustrated is exactly that. It's been a very good movement, trying to get visibility to all of those who are not complying with the program, but there are injunctions, opening junctions that still have to be analyzed. It's no sense having an operator in activity for 3 or 4 years, never complying with the rules of the program. So it makes no sense, right? This is something that we still need more visibility to understand how it's going to be concluded. And finally, solidarity, and I agree. I think that this is a very important thing. We are talking about BRL 210 million of tax debt included to those solidary responsible parties. I hope it can go into other states because only by doing that, we can start inhibiting the tax evasion I can see the effects overall has been positive. In terms of margin, I think it's too early. It's too early to anticipate or to imagine what the impact would be. Initiatives are positive. So we expect that to bring positive effects as well in the future.

Gabriel, Tabajara speaking. Thank you for the question. The information that we've heard in the market. We still do not have many details we can just make hypothesis, right? Petrobras coming into the market. Petrobras is a top quality player. It has already operated in this industry in the past, responsible for consolidating the regulation market, focused on safety. So it would be instrumental to support the consolidation of regulation that we have. It's a company that would really come into the market and really play by the rules. It's a player that could come in the market and support everything that is ongoing. We wouldn't see any changes in terms of the near future. The information that we have is very similar to what you mentioned. We don't have any further details.

This is Palhares speaking. Concerning the draft discount, you got it straight the discussion of the tax on financial operations IOF was the trigger. We have access to long-term funding lines at very competitive rates. We decide to use it to avoid the direct discount, and it's still a good tool to manage short-term working capital but at lower volumes, right? That's exactly it.

Thank you, Gabriel. I would like to emphasize something that Linden pointed out. The solidarity of resellers in paying taxes in Sao Paulo. It's really a landmark the industry in Brazil. It hasn't gained as much attention as it deserves. But it's a transforming factor. It should serve as a role model to other states because it increases a tax collection and it favors taxpayers, such as us, right? I would like to emphasize this point because this is really a turning point in the regulation and inspection in Brazil.

Next question comes by Vicente Falanga with Bradesco BBI.

Good morning, Linden, the team. I'd like to go back to IR of LPG. Tell us about the exchange of information you have had with the ANP. We've read the document. We don't think it's very clarifying or quantitative. In your presentation in two of the charts, you showed that may be things would not make that much sense. So what kind of exchange of information have you had? And when will you have opportunity to learn more maybe when there is an initial draft. What can we expect in terms of upcoming steps. And a follow-up on Linden's comment, it seems there is a legal effort to put an end to all the injunctions of the credits, the bio credits. Do you have any visibility, any anticipation of that?

Good morning Vicente. Concerning the regulations in LPG, I'm going to bring a point to the discussion, and then Tabajara can build up on it. In the prehearing level because there is also going to be a public hearing. But in the prehearing stage, 247 inputs were made out of which 244 were against the proposal of changes of fractioning and end of the branded product. And there's opposite position came from the national Commander of the firefighters the International Federation of workers in transportation and other organizations, all of them against fractioning and or the end of the branded bottles. Only 3 out of the 447 only 3 were in favor of that change, but by other organizations, which are not so representative.

Tabajara speaking. Rodrigo has given us an overview of what has happened. There has been a preconsultation a prehearing stage. We were very deep into our contribution and inputs, providing arguments, of course, we have just presented a summary to you today. There is a regulatory agenda in place and some of the points, which may be even positive such as release of use rather than restricted use. I mean, there are some positive things should it become into effect. But this is a discussion that is going to be on and on with further participation. And this is why we wanted to share that with you. If you want to get involved -- this is the time to do it. We are concerned. Of course, we want the regulation to move ahead, not to take back steps. And there are many steps still on schedule, and we are going to be part of this discussion. Vicente, concerning the legal effort, yes, there are a number of initiatives providing support and clarification. One of them is a request of the General Attorney's office of the government but still waiting for the analysis of the Supreme Court analysis. But we are here to support the process and to correct distortion as quickly as possible. We do whatever it takes.

The next question comes from Matheus Enfeldt with UBS.

Robust results once again at Ultragaz. Capital allocation. One is your leverage target that would allow Ultra to start considering opportunities of investments at the holding level. The message is clear. Investments are being made at the level of subsidiaries. You've made some very good acquisitions in previous quarters. But thinking about something bigger, maybe as big as Hidrovias, maybe next year where your leverage would go back probably to 1.5. How are you anticipating that. When do you intend to revisit intensively these kind of investments. In terms of LPG margins, we've talked a lot about the continuity and robust results. But I would like to understand a -- to what extent can you think about other energies within that area or the levels that we've been talking about 3% to 5% of share of EBITDA from new energies. Should we still remain and work with this level? Or can we expect anything else?

Good morning, Matheus. Concerning leverage and considering the higher interest rates, we see leverage at a comfortable level between 1.5 and 2x over EBITDA. In the second half of the year, will be very positive in terms of cash flow. Probably by the end of the year, you're going to get to the level of leverage that we had in the end of 2024. Even with the investments made to complete our controlling position at Hidrovias, the buyback program and the consolidation of Hidrovias debt of BRL 3.1 billion in the quarter.

Tabajara speaking. In terms of share from new energies, we are very much aligned with our plan. Everything that we've been referring to in previous quarters. We are still obtaining a lot in combining businesses of our clients, with biomethane, distributed generation, sales, a lot of things going on and very much aligned with the plan that we have developed. In this quarter, we captured efficiency and excellence in our operations of all the strategic initiatives that we have in the long term many of which combined and bringing results that helped us deliver the results for this quarter. Part of our Integration of the consortium was important, impacted our results. This is a continuous process. There has been no discontinuity in the short term projected, and we expect to see that evolution throughout time.

Next question comes by Eduardo Muniz with Santander.

Great results. The first question is a follow-up on what we've heard. The strategy of reducing the direct discount exposure. Does it involve the gross profit of the company, especially Ipiranga? And what was the share for EBITDA margin by cubic meter in the second quarter? Second question concerns consolidation of Hidrovias. From now on, what can we expect in terms of initiative in terms of cost reduction, G&A and how that can impact the EBITDA of Ultrapar. These are my questions.

Thank Eduardo for the question, Palhares speaking. The fact is not relevant. And we use it one-off throughout the quarter, nothing that would really change our perception. What was the second question again? Consolidation of Hidrovias. Should we expect cost reduction, G&A reduction and how that can impact Ultrapar's EBITDA.

Good morning. Rodrigo speaking. Concerning consolidation of Hidrovias, we've been doing that to allow a better correlation with the market and really focused on our ongoing plan and results of Hidrovias. And that's going to be addressed by the Hidrovias call. In terms of our controlling holder, Hidrovias has come from a process with better navigability and thanks to all the improvements in management, operations, cost reduction, and improvement of indebtedness level. So we expect the second half of the year, which is going to be much better than last year's. In further details, I would like to ask you to approach our Investor Relations team of Hidrovias.

The next question comes from Bruno Amorim with Goldman Sachs.

I have a strategic question concerning Ipiranga and that agenda against informal practice is moving ahead. You always show us clearly the movement. And as the agenda moves ahead, the company's priority, what will it be? Increased return on investments, ROIC in more market share? What is the current ROIC of Ipiranga in your accounts. Do you think that you are at the right level or not? And I'm asking at the level because a major player has just said that it has been expecting margins at the current level. Just to understand, if you have the same perception right margin, great returns on investment, so competitive gains would be increased volumes from now on.

Bruno, yes, we expect better market because of improvement in the regulations. It doesn't change how we consider investments. Investments have to be selective, no matter what. As I've mentioned before, we always focus on investments that have a return of about 20%. It's not at this level yet. So we are not at the level we would like to be, of course, but our plans is, yes. If there is room to have a disciplined investment practice, we are going to look for opportunities as the market improves. And margins are part of that as well if the whole situation improves, margins and volumes equally improve. But we have to be absolutely sure that the regulatory issues are really progressing.

The next question comes from Bruno Montanari with Morgan Stanley.

I have 2. First, about Ultracargo, could you please tell us more about mid- and long-term perspective concerning the increase of sold cubic meters and some update on your expansion projects. And secondly, capital allocation. Once you reach your target leverage, how would you consider getting into a new business or increasing the distribution of dividends? And what would be the minimum return rate that you would consider to go into a new business line. Well, maybe expand some of our business in some of your business in a more robust fashion.

So thank you, Bruno. This is Fulvius speaking. Brazil is an important country. So we have continuous demand we justify our constant investments. In this year, we started the operations in Palmeirante, and we have in our pipeline, the expansion of Santos and Rondonopolis both of them come into their conclusion. The expansions are going through a maturation process with expectations of reaching EBITDA per cubic meter similar to other terminals as of 2026. We just need some maturation for the expansions of Ultracargo.

Good morning, Bruno, Rodrigo, speaking. Concerning target leverage once we get close to our expected level we are going to consider both options, whether it's worth investing again to expand existing business or to go into a new business and the return rate will be adjusted by risk. Also what we do. Sometimes we have a return rate which is lower, and that's what we want to work with. If there are no projects then we increased the dividend payout. There is no previous decision already made. Things are decided as the reality changes.

Our question-and-answer session is concluded. Now I would like to hand it over to Alexandre Palhares for his closing remarks.

Well, let me thank you very much for your time and your participation. Let me remind you that on September 19, we are going to have the Ultra Day. We are highly excited to welcome you all there. We're going to talk about our strategy and give you more details about our businesses. We are here at your availability. Our Investor Relations team is here to support you. Thank you all very much for your participation.

Thank you for your time and interest. Let me remind you that the next meeting will be on September 19 at Ultra Day. During the event, we are going to share our strategic view and more details about our businesses. We count on your participation. The Investor Relations team is at your disposal for any follow-up and for questions which may come up. Thank you all very much. [Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning, thank you for waiting. Please be welcome to our conference call Earnings Release Result of Ultrapar for the First Quarter of 2025. Our presentation will be conducted by Rodrigo Pizzinatto, CEO of Ultrapar; and by Alexandre Palhares, CFO of Ultrapar. The Q&A session will also have Mr. Decio Amaral, current CEO of Ultracargo and recently announced as new CEO of Hidrovias. We also have Mr. Leonardo Linden, CEO of Ipiranga; and [indiscernible] CFO of Ultragaz. This conference is being recorded and will be accessed through the website, ri.ultra.com.br. After the presentation, we are going to start our Q&A session and further instructions will be sent to you later. We'd also like to let you know that this earnings release call will be conducted in Portuguese, and there is an option for simultaneous translation. Click interpretation. For those listening to the conference in English, there is the option of mute original volume. Our presentation will be shared in Portuguese, and there's going to be an English version to be downloaded from the website of the company and chat. Before moving on, we would like to clarify that forward-looking statements that may be made during this conference call with respect to business prospects, forecast, operational and financial goals of Ultrapar are all based on beliefs and assumptions of the Executive Board of the company as well as currently available information. Forward-looking statements are no guarantees of performance. They involve risks, uncertainties and assumptions as they relate to future events, and therefore, depend on circumstances which may or may not occur. Investors should understand that general economic conditions, the market and other operational factors may affect the future performance of Ultrapar and lead to results which may differ materially from those expressed in these forward-looking statements. I would like now to hand it over to Mr. Rodrigo Pizzinatto, who will start the presentation. Please, Mr. Pizzinatto, you may start.

Good morning, everyone. It is a pleasure to be here once more to talk about Ultrapar's results. And let's start with the main highlights of the quarter. We maintained Ultrapar's robustness and the continuity of good results despite the volatile scenario in the quarter. The fuel sector continued to be impacted by irregularities for tax evasion, such as not meeting the required biodiesel mix in diesel or B14 and the increasing import on naphtha to be sold as gasoline. On the other hand, there are two important high milestones in the fight against illegal activities. Starting in April, a new law for compliance with carbon tax collections abuse came into effect with severe penalties for noncompliance. And it has just started in May, the single-phase taxation of hydrated ethanol for PIS/COFINS, which contributes to fair competitive conditions as well as increased government tax collection. Regarding Hidrovias, I want to highlight the strong performance in the first quarter of 2025 due to improved navigability conditions and the advancements in the management and operation of the company's assets. We also made progress in Hidrovias' strategic agenda. In February, we signed an agreement for the sale of the cabotage operation in the amount of BRL750 million, increasing its strategic focus and contributing to the reduction of financial leverage. We concluded the BRL1.2 billion capital increase process, which will allow the continuity of its growth agenda, reduction in leverage and generate value for our shareholders. As a result of the capital increase, Ultrapar is now the controlling shareholder with more than 50% stake in the company. It signals the confidence in its value-creation potential as well as consolidates our role as a long-term strategic shareholder. At Ultrapar, we raised a total of BRL1.4 billion in debt with a low average cost equivalent to 101% of the CDI with the continuity of financing capacity extensions with development banks. Finally, we concluded Ultrapar's planned leadership succession with Marcos Lutz as the new Chairman of the Board. And in this process, I assumed the position of CEO of Ultrapar and Alexandre Palhares assumed the CFO and Investor Relations position. Well, thank you very much for your attention. I will now take it over to Alexandre, who will detail the quarterly results.

Thank you, Rodrigo. Good morning, everyone. It's a pleasure for me to be here for the first time presenting Ultrapar's results. Before starting, I would like to remind you of the reporting criteria and standards used in this presentation. Well, starting with Ultrapar. As you can see, recurring EBITDA totaled BRL1.322 billion in the first quarter of 2025, excluding the negative impact from the share of loss of Hidrovias in the amount of BRL139 million, a result that reflects one of the worst drops in the history in the North and South corridors. Considering this effect, the recurring EBITDA was 9% lower compared to the first quarter 2024, totaling BRL1.183 billion. The net income for the quarter totaled BRL502 million, excluding the negative impact from the share of loss of Hidrovias that I just mentioned. Considering this effect, we had 20% drop year-over-year, which was partially offset by lower financial expenses. CapEx for the period totaled BRL460 million in the first quarter this year, a 5% decrease compared to the first quarter last year, mainly due to the lower investments in branding of service stations at Ipiranga, partially offset by higher investments in Ultracargo. We had an operational cash generation of BRL3 million in the first quarter this year, BRL 576 million higher than the first quarter 2024, mainly reflecting lower working capital investment and income tax paid. Moving to debt and leverage. As occurred seasonally, our leverage increased in the last quarter from 1.4 to 1.7x due to the increase in net debt and lower EBITDA in the last 12 months mainly due to the negative impact of the share of loss of Hidrovias that I already mentioned. The increase in net debt in the quarter is due to the payment of dividends and share buybacks, totaling BRL584 million and the investments in working capital resulting from the higher level of working capital needs at Ipiranga driven by the increase in fuel costs and the seasonal effect of suppliers at the beginning of the year. You can also see at the bottom of this slide a breakdown of the total amount of the draft discount and vendor. The net debt as of March 2025 including these 2 items would be BRL10.362 billion, which is BRL1.921 billion higher than the balance in March 2024 mainly due to the receivables from these investments in the March 2024. Now moving to Ipiranga. The volumes sold in the quarter remained stable compared to the first quarter of 2024 with a 2% reduction in the auto cycle and 1% increase in diesel affected by the increase in the biodiesel irregularities, growth in naphtha imports for gasoline and the international prices and the Petrobras price that started in February. We ended this first quarter with a network of 5,847 service stations. It's 13 fewer than on December 2024. We inaugurated 45 service stations and closed 58 throughout the quarter. Furthermore, we ended up the quarter with 1,447 AmPm stores with the same-store sales growth of 12% in the first quarter 2025. Ipiranga's SG&A increased by 80% compared to the first quarter last year due to higher personnel expenses, especially the collective bargaining agreement as well as one-time expenses with the mobilization of the company's fleet. The line of other operating results totaled BRL105 million negative in the quarter, an improvement of BRL60 million compared to the first quarter last year as a result of lower expenses with decarbonization credits given the lower price level. The line of results from disposal of assets totaled BRL5 million, a reduction of BRL31 million mainly due to the lower sales of real estate assets. Ipiranga's recurring EBITDA totaled BRL826 million in the quarter, 6% higher year-over-year. The higher EBITDA mainly reflects higher margins resulting from higher inventory gains in the first quarter 2025 due to the fuel price adjustments and the solution of irregularities in Amapa state after the tax benefit was revoked in April 2024. These effects were partially offset by the increase in irregularities as previously mentioned. International prices under Petrobras price starting February resulted in oversupply of products in the market and higher expenses. We ended the second quarter with international prices under Petrobras prices, even after reductions of more than 12% in diesel costs, resulting in inventory losses. We expect a similar profitability of the first quarter, excluding the effects of inventory gains and losses for both quarters. Now moving to Ultragaz results. The volume of LPG sold in the first quarter was 1% higher year-over-year due to the 2% increase in sales of the bottled segments, mainly reflecting the higher market demand, while sales of bulk segment remained stable, impacted by lower one-off consumptions in the special gas segment. Ultragaz SG&A in the first quarter 2025 was 70% higher than the first quarter 2024 due to higher personnel expenses mainly due to business acquired and collective bargaining agreement in addition to expenses of prospecting new business and a new marketing campaign. Ultragaz EBITDA totaled BRL393 million in the first quarter, 2% lower than the first quarter last year. This decrease is explained by the worst margins mainly due to increase in costs resulting from LPG acquired from auctions held by Petrobras, worse sale mix and higher expenses, partially offset by a greater contribution from new energies. For the second quarter, although LPG costs continued to be pressured by Petrobras auctions, we expect a recurring EBITDA marginally higher than the same quarter last year. Now moving to Ultracargo to talk about another quarter of consistent results. The company-installed capacity remains at 1,067 million cubic meters. The cubic meters sold increased by 4% year-over-year mainly due to lower fuel handling Santos and Itaqui, partially offset by increase in handling Opla and the spot operations in Aratu. Ultracargo's net revenue was BRL271 million in the first quarter, 3% higher than the first quarter last year due to the higher spot sales in Aratu and the start-up on operations in Opla, partially offset by lower volume of fuel handling. Combined cost and expenses were 5% higher than the first quarter last year due to the higher cost of materials and maintenance and the start-up on operations in Opla, partially offset by lower personnel expenses and expansion projects. Ultracargo's EBITDA totaled BRL166 million in the first quarter. It's 1% higher than the first quarter 2024 due to the spot sales in Aratu and lower personnel expenses and expansion projects, partially offset by the lower cubic meters sold with handling of fuel. The EBITDA margin per stack capacity remained stable at BRL52 per cubic meter compared to first quarter of 2024. For the second quarter, we expect an EBITDA similar to that seen in the second quarter of 2024. So with that, I now conclude my presentation. Thank you for your attention. Let's now move on to the Q&A session to answer your questions. Thank you.

[Operator Instructions] The first question comes from Gabriel Barra of Citi. Please unmute your mic.

Hello, good morning. Thank you for taking my questions. The first question concerns Ultragaz and what Palhares mentioned in his presentation. We've seen some changes in terms of regulation, some changes passed by the government, including reference prices, fractioning. Petrobras has recently mentioned that they have been adopting different pricing for industrial and residential use in their auctions. So how would that impact LPG? And what is flagging – what should be in our mind in terms of points of attention? Secondly, about Hidrovias. Inevitably, we have to ask you – congratulate you, of course, in your investments and now being able to control the company. Decio, the new CEO, when we consider investments, this is probably the business card, the flagship of this new step of the company, so something in this new era of the company. What are your plans for now on? What would be the main focus of you, Decio as the company CEO, what are the main priorities of Ultra focusing on Hidrovias? What can we expect in terms of capital allocation, balance sheet? We would like to hear more from you. These are my two points. Thank you very much.

Hi, Gabriel, this is [Julius] speaking. Concerning our social program, Vale Gas and gas to all, Gas paratodus, programs from the government that have been mentioned, nothing has been formally published yet. We are in favor of it, of course. We think it would be a very good way of employing resources. This is the kind of problem that can be appropriately addressed, taking the benefit to those who really need it. And of course, we are more than interested to support this program for its further development. In terms of regulation, the regulations that we have in Brazil serve as a reference throughout the world. It's modern. It provides an industry always working within the appropriate regulatory standards. And we've been observing the whole process of reform. Regulatory reforms tend to be quite common in Brazil, and we've been actively involved in it. And we hope that the changes that are implemented can improve the business as a whole.

Good morning, Gabriel. Thank you very much for your questions. Now concerning Hidrovias, much is already ongoing for the progression of the company. Now Decio joined the company, thanks to what had been done at Ultracargo, the same experience is going to be reproduced here, focused on operational efficiency, increasing the yields, administrative efficiency, leveraging what Ultra already has in our shared service unit in the holding and also financial efficiency and excellence. By reorganizing, we can have tax optimization and reduction of the cost of the debt, and at the same time, design the long-term development plan of the company. These are the two main points of attention for the upcoming years.

Great, thank you very much.

The next question comes from Monique Greco of Itau. Please unmute your mic.

Hello, good morning. Thank you for the opportunity to ask questions. I have two questions related to Ipiranga. The first one concerns the impact of open arbitration for exports and imports, considering the drop in gasoline prices and Petrobras has taken some time to react. So how has open arbitration been impacting the inventory prices and the margins of commercialization in the first quarter? And secondly, about ethanol single-phase taxation. Pizzinatto said that as of May 1, we had a valid single-phase taxation. What is your expectation about the effect of this implementation? Do you expect competitive gains being reflected in margin, volumes? I would like to understand more.

Hi, Monique, this is Leonardo Linden. Thank you for the question. First about Palhares mentioned in his introduction, since February, this arbitration has been open. And of course, it has an impact in the market. It is something consolidated in Brazil. If you analyze the lineup throughout the tax and import amount and what we can really forecast, we can see a robust channel for supplying the Brazilian market. And as we've always mentioned, it changes somewhat the dynamics of the market. You start observing some segments in Brazil, which are based on marginal molecule references, for example, [indiscernible]. This is how it's done. Petrobras, in turn, has taken frequent price adjustments initiatives, but not enough to put an end to price arbitration. And I think this is going to be how the market is going to move from now on. Market has a problem outside Petrobras. And in terms of supply, the price structure changes because we need additional supply. This is part of the game, really. I haven't seen major changes compared to what we've been observing in recent years. And we have to constantly focus on providing the best profile of supplies considering the effect it has in the market. Concerning the single-phase taxation, and it couldn't be different, really. We see it as a very positive thing. We've been in favor of it for ethanol for a while as a way to reduce the irregularity in the sector. We see it having a positive impact. Movements like that takes some time to get accommodated, of course. But if everything we've planned happens, the market tends to be benefited because of its efficiency. It is going – the single-phase taxation is going to bring advantage to those really who are the most prepared. Share is a consequence of this efficiency. And Ipiranga is very well positioned to keep on working as a very strong distributor of ethanol in a market that has less irregularity.

Thank you, Linden.

The next question comes from Rodolfo Angele, JPMorgan. Rodolfo, your microphone is available. Please unmute.

Hello, good morning. I have a question about sourcing of gas at Ultragaz. You've talked about the effect of the auctions. I'd like to hear what you anticipate. Is it going to be recurrent? Is it a one-off effect? And another thing that we've noticed in this quarter with open arbitration assumption of your working capital for the company. But looking ahead, how can you offset that? Prices will go down, so releasing working capital with the imports. So please tell us a little more about working capital of Ipiranga in terms of trends. These are my two questions. Thank you all very much.

Rodolfo, this is Julius speaking. Concerning Ultragaz sourcing, the auction started in the end of 2024, in November at limited volumes. And they got more and more prevalent as opposed – as of January. What we've seen in April and the beginning of May indicates that it's getting stabilized. And we do believe it's going to represent 5% to 10% of the total sourcing of Ultragaz.

Now concerning our take on it, this is Rodrigo speaking, this is a sector where the margins are very tight. It's inevitable to adjust prices. We try to minimize any effect to our customers by enhancing efficiency. The effect was present in the first quarter, but it's going to be more regular as of the second. Now Rodolfo, in terms of capital use and cash use in Ipiranga, and I think this is probably clear to all of you, but there have been four effects. One, higher inventory because of a position that we set to use the single-phase taxation. There is a second effect, which is the lower payment terms from our suppliers because of less imported product in our profile and an increase in the product cost, which resulted from the price movement by Petrobras. At the same time, offsetting part of that, receivables were paid shorter at Ipiranga. So we did take some of our cash in the first quarter, but we expect to pick up in the second quarter. Petrobras is offering prices higher than in the international market. What we can see in the second quarter are price reductions to try to be closer to it, but it's still more expensive than in the international market. The government is saying that Petrobras wants to offer the lowest price of fuel in the country. So this is something that we expect to be corrected soon.

Thank you very much. That was very clear.

The next question comes from Matheus Enfeldt, UBS. Please unmute your mic.

Good morning. I'd like to start by wishing all the best to Decio and [Julu] in your new positions. If I didn't get wrong calculations, I got a pro forma leverage of 2.0, 2.2x with Hidrovias. And this is part of an EBITDA of Hidrovias, which is still under pressure. But how is Ultra analyzing the ideal leverage? And looking ahead, does it make sense to analyze a pro forma leverage consolidating Hidrovias not impacting your capital allocation of the holding? But what would be an ideal value to consider your numbers in the end of 2025 and throughout 2026? I would also like to ask about other investments. Today, there was good news about investments in TRR. What are you seeing about this specific segment? Do you want to go further in this value chain? If you can tell us about additional investments that you are planning to have. Thank you

Good morning, Matheus, thank you for your questions. Concerning leverage and the effect of Hidrovias, with the consolidation of Hidrovias, which is going to happen in the second half of the year, we are not going to have more the share of loss, and we are going to consolidate the results of Hidrovias in all our numbers. That's going to be the effect as of the second half of the year. And in net debt, it will increase the net debt of Ultrapar, 0.4x, 0.3x, 0.4x. As we have cash generation business, the unleveraged will be quickly throughout the third quarter where we traditionally generate more cash. As to TRR, nothing new. This is something that we did at Ultra Mobility. It is a relatively small movement in a sector where we see good partners, regional operation, which is being operated as it used to be before. Now Matheus, about AmPm, the convenience stores, we can see a potential of growth in our Retail business. There are 1,450 stores in nearly 6,000 service stations. We still see a lot of potential for growth. So we want to incorporate into our business some brands that can add value to our franchising. For example, Krispy Kreme and other movements are part of this strategy of bringing to convenience stores products and brands that have high perceived value. Krispy Kreme was a possibility of learning more and more about retail. And we expect that these additional product lines will be available in our stores eventually.

Thank you very much.

Now the next question, it comes from Vicente Falanga with Bradesco. Please unmute your mic.

Good morning everyone. Thank you very much for the call. Thank you Ultrapar’s team.I have one quick question here about informal practices. We've seen some formal players talking about tax solidarity in SÃo Paulo. Would like to know if you agree with that. Have you seen better margins in the state of SÃo Paulo? And at the same time, is there any counterpart, any compensation, so to speak, coming from other states, so going from SÃo Paulo to other states to try to offset taxes?

Yes. There are some important successful fronts. I'm going to talk about that and expand that to further topics. The new law of RenovaBio is a very important new law, also the single-phase taxation for ethanol as well. The special tax regimens in São Paulo are very important. And it brings this concept of taxation solidarity, so to speak. Market has to understand that this is, of course, going to reduce tax evasion and punish those that evade taxes. But there's still a lot to do, of course. Brazil has been impacted by the market of naphtha without taxation. We have to be aware that the laws and the changes have to be enforced, laws that have been included in our regulatory framework to improve the sector. The mixture of biodiesel, the price is going down, but there is still a problem. Not mixing is still interesting for those who want to fail to pay taxes. And there are some states which are not part of the so-called CONFAS, which is like a committee that was created last year. And through that, we see those that did not join, still evading taxes. Said it all, we can feel some advances. We've seen some progression, especially in states that are more active in the regulated market. We've seen benefits to all of those who participate in the supply chain, benefits to consumers, agents, resellers, distributors to government. And São Paulo is a very good example of that. São Paulo state has been fighting irregularities in this industry and has achieved very important outcomes. Well, from our part, we have to keep on working, supporting the initiatives, regulatory agents so that we can have healthy competitive markets. I am optimistic, but I'm a careful optimistic because processes haven't developed as quickly as we expected. And those who work illegally, they are very creative. We have to be very careful and pay constant attention to whatever may come to hit us.

Thank you, Linden.

The next question comes from Rodrigo Almeida with Santander. Please unmute your mic.

Good morning. Let me go back to Hidrovias. You've talked about the next steps in terms of your agenda in the company. What can we expect? However, in terms of synergy with Ultracargo, any operational synergies on the daily practices? Are you working towards that? This is going to help us have more clarity of the explanation you've already provided.

Good morning, Rodrigo, no relevant synergy with Ultracargo and Hidrovias at present. The greatest benefit is to have competent people at Ultracargo who can really dedicate. So we are going to replace some of our head count. Now Decio will be our main executive there. We also have a legal, our support counselor who has had also worked at Hidrovias. But apart from that, we have no synergies identified so far. Thank you, General counselor, I mean.

The next question comes from Bruno Amorim, Goldman Sachs. Please unmute your microphone.

Good morning. Thank you for taking my question. Let me go back to the competition in the distribution of fuels. I do understand all the tax evasion prevention initiatives. But for the past two years, there had been continuous progression, for example, in diesel, smaller players, not the three large players, have been gaining market share consistently. There was diesel single-phase taxation, gasoline single-phase taxation, but the trend has not been reverted. So I'd like to hear from you whether you think it has happened because in addition to the favorable measures for formal players, some other measures were added. Linden said that they tend to be created – creative. Or do you believe there are competitive players regardless of how they act? How do you see the smaller players which play by the book, right? Do you see healthy players who have been gaining share legally? So that we can understand if the problem is just the informal illegal practices or whether it is a competitive dynamics, right, that would impact the results. I know how informal business has impacted all, but is there anything else, in other words? Now concerning Hidrovias, I know you are going to announce a more concrete plan ahead. But what can we expect? Is it an improved Hidrovias? Is it going to be more efficient in its operation? Or are you planning to open new business lines? Is there anything else you can already share with us?

Hi, Bruno, concerning market dynamics, I think there are the two points you've mentioned, both valid. There is informal practice, and there is a new dynamic of how markets are getting positioned, how the segments are getting positioned in terms of supply. The informal dynamic is what we've called, they are creative, they keep on doing. There are things to focus on. It used to be gasoline, now it's biodiesel. There has been a progression, but there has also been some setbacks. However, it's all still impacting distributors, which act informally any irregularly. But there is a new market dynamic at the same time. Just to reinforce what I have said, it is consolidated once there is a very long period of open arbitration – price arbitration. So markets have to be segmented. If we analyze – I'm going to talk about Ipiranga, right? If you analyze the market share loss by Ipiranga, it is all the spot market and not contracted share. And spot market is exactly where we have the imports. There are some segments which are supported on spot supply, which is all based on imported product. It changes the dynamic, of course. And there are some regions more focused, working on such platform. And even if we considered they are working accordingly and they are serving the way for their own advantage. That is why market in Brazil is under transformation. And we have to make the right adjustments and model all of our operation to focus the segments of main interest. So there are the two issues: irregular practice and a new supply model in Brazil.

Good morning, Bruno, about Hidrovias, the company is great. The assets are wonderful. We expect to make the company even better, gaining efficiency with more productivity out of the assets and more capital discipline. At the same time, we are going to work with an expansion plan. There we are going to focus on the North region, where we have more possibility of growth of the company.

That's great. Thank you very much.

The next question comes from Luiz Carvalho, BTG. Please unmute your mic.

Hello, good morning. Thank you for taking my questions. I have two questions here about Ipiranga and Hidrovias. Piggybacking on what you've said, Linden, if you observe the share – market share of the three main players in recent years, there has been a significant loss of share. But it has led to increased margin. Do you think there is going to be a change in this trend. And though it has been in a spot market and less on contracted market, but in the end of the day, it impacts the scales. Then you, of course, have to work to avoid loss of margin. So do you think the company market share is fair, is ideal? Or do you expect to gain more share without losing margin? And secondly, asking about Hidrovias. I don't know if it's Pizzinatto or Decio who can answer that. Hidrovias has positively surprised the market in this quarter. First, do you think that this new level of operation is a level that we can expect for the next 12 to 18 months? And secondly Pizzinatto, what is the kind of capital allocation that you are anticipating for the company? Maybe open – have the IPO of the other three businesses. Would it make sense for Hidrovias? Would you plan to close the capital going to a no longer publicly traded company? What are you anticipating?

Let me start by answering about the share, the share is focused primarily on spot market. I don't like to consider it as a loss because we actively decided not to be part of the market within the size it has. It's very low-profitability market. So we decided we opt out. Of course, we want to have stronger and stronger position. But as a consequence, the share is a consequence of good regulatory dynamic, better than what we currently have. But what's in our power is to recover or to expand our businesses by enhancing efficiency. And we have our initiatives to do that efficiency to get better logistics, ERP is being revisited. We are constantly fine-tuning our profile of supplies, understanding the market dynamics. Our investments have been well thought to attract investments that add value to our supply chain. A lot of cost discipline always and support of Ipiranga to all applicable agencies to fight illegal market. So I don't think the share is an objective. It's a consequence. We have to strike the best balance, and then share increases. It is a result of our capacity to generate results and efficiency. Concerning Hidrovias, just to set the context, to set the background, the main driver of results of Hidrovias is the fact that we have a crop being now distributed. So the company – peak of the company is on the second and third quarter of the year. There is an additional element, which is the hybrid element. So seasonality, rain, but it has improved the draft of Rio Paraguay. It has increased viability even in periods of lower water availability. So that's what we are observing. The main driver is always distribution of the crops, and at the same time, the water conditions and seasonality, the water in terms of river conditions, right? In terms of capital, we have no plans of closing the capital and start negotiating them outside the stock market.

Great. Thank you very much.

Well, our question-and-answer session is finished now. I would like to hand it over to Alexandre Palhares for his closing remarks.

Well, thank you very much for your time, your interest. And our Investor Relations team is at your availability for any follow-up questions. Thank you all very much.

Our earnings release call is finished now. Thank you all very much for your participation. Have a great day.

Welcome to Ultrapar's Fourth Quarter '24 Results Conference Call. There is also a simultaneous webcast that may be accessed through Ultrapar's website at ri.ultra.com.br and through MZiQ platform. The presentation will be conducted by Mr. Rodrigo Pizzinatto, Ultrapar's Chief Financial and Investor Relations Officer. And in the Q&A session, we will have the presence of Mr. Marcos Lutz, Ultrapar's CEO; and the CEOs of Ultragaz and Ultracargo Tabajara Bertelli and Decio Amaral respectively. We will also have Mr. Pedro Guedes and Mr. Sebastian Ferkin, CFO and VP of operations of Ipiranga respectively. I would like to inform you that this event is being recorded. [Operator Instructions] A replay of this call will be available immediately after for seven days. Before proceeding, I would like to state that, forward-looking statements are being made under the Safe Harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of Ultrapar management and all information currently available to the company. They involve risks, uncertainties and assumptions, because they relate to future events and therefore, depend on circumstances that may or may not occur in the future. Investors should understand that, general economic conditions, industry conditions and other operating factors could also affect the future results of Ultrapar and could cause results to differ materially from those expressed in such forward-looking statements. Now I would like to turn the conference over to Mr. Rodrigo Pizzinatto, who will start our conference. Mr. Pizzinatto, you have the floor.

Good morning, everyone. It is a pleasure to be here once more to talk about Ultrapar's results. We will start with a brief overview of 2024. Last year was another year of important improvements for the company, even in an environment of volatility and uncertainty. We continue to see growth in neutral gas and natural cargo and resilience in Ipiranga despite the environment of significantly regular practices in the fuel sector. We maintained a strong operational cash flow generation, which allowed the company to increase its investment level, while maintaining financial leverage at comfortable levels. We made our largest capital allocation in a single asset for the last 10 years with a RMB 1.8 billion investment, including proceeds from the advance for future capital increase to acquire a 42% stake in Hidrovias Brazil. We also acquired Witzler for RMB 124 million complementing our portfolio of energy solutions at Ultragas. We evolved our management model with a new governance, providing greater agility, autonomy, and accountability for our portfolio companies. We also announced the planned transition process for the positions of CEO and CFO of Ultrapar to be concluded by April 2025. And with that, I will now move on to the presentation of our results for the fourth quarter and the full year of 2024. And in Slide 2, I would like to remind you of the reporting criteria and standards used throughout this presentation. And moving now to Slide 3 with Ultrapar's consolidated results. As you can see in the upper left chart, our recurring EBITDA totaled RMB 1.284 billion in the fourth quarter of twenty four, a 23% decrease over the fourth quarter of 2023, mainly due to the lower EBITDA at Ipiranga and the negative impact from the share of loss of Hidrovias of RMB 104 million in the fourth quarter. Looking at annual results, our recurring EBITDA totaled RMB 5.375 million, a 4% decrease over 2023 due to a lower EBITDA at Ibiranga and the share of loss of Hidrovias partially offset by rapid results at Ultragaz and Ultracargo. Ultrapar's net income was RMB 2.526 billion in 2024, the same level we had in 2023, due to lower recurring EBITDA at Ipiranga and the reversal of deferred income tax from KMB, which was offset by higher extraordinary tax credits. As we have already announced, our Board of Directors approved the additional payment of dividends of RMB 493 million equivalent to RMB 0.46 per share. It will be paid from March 14 in addition to the payment made in August, totaling a distribution of RMB 769 million in dividends for the year 2024. And moving now to Slide 4 to comment on the cash generation for the year. We had an operational cash generation of RMB 3.736 million in 2024, 2% lower than that of 2023 due to higher working capital investment, which was primarily driven by lower imported product mix. And, as you can see in the graph at the center, in 2024, we've received the final payments related to the sale of Oxiteno and Extrafarma totaling RMB 977 million. We allocated a much higher capital to acquisitions that totaled RMB 1.782 billion, mainly with the investment in Hidrovias and RMB 150 million to the buyback program we also increased our CapEx, which totaled RMB 2,213 million in 2024, a 14% increase over 2023, mainly driven by higher investments in Ultracargo. Moving now to Slide 5 to talk about our reliability management and leverage. Our leverage increased in the last quarter from 1.3x to 1.4x due to a lower LTM EBITDA, partially offset by a reduction in net debt. The reduction in net debt is due to higher operational cash generation, partially offset by three items: the advance payment for future capital increases in the RVs amounting to RMB 500 million reduction in draft discount by RMB 276 million and the launch of the buyback program, which consumed RMB 150 million in the period. And at the bottom of this slide, you can also see a table with the total amount of the direct discount to vendor and pending receivables from the sales of Oxiteno and Extrafarma. The net debt, as of December 2024, including these effects, was BRL 8.9 billion, which is BRL 2.4 billion higher than the balance in December 2023, driven by the investments and acquisitions already mentioned. And moving to Slide 6 to discuss the competitive environment in the fuel industry. Brazil has experienced an increase in unlawful activities in recent years in the fuel sector. According to data from the Instituto Comoxtivo Lagao, the country loses RMB 29 billion a year due to tax evasion and fuel deuteration. We included this slide to highlight the main challenges we have been facing regarding these unlawful practices, as well as evolutions Brazil has conquered to regulate the sector with tax collection gains. Over the unlawful activities that affect the most of our recent results is the non-compliance with the required biodiesel blend in diesel. Biodiesel is more expensive than diesel, and its price has increased since the beginning of 2024. There is also a large number of distributors who fail to meet renewable targets and do not purchase the mandatory carbon tax credits annually. These unlawful practices have allowed the companies to gain market share over the companies that follow the rules. The market share of unlawful companies that follow the rules decreased 2.9 percentage points in 2024. We are also experiencing advancements recently as the new law for renewable turned in non compliance environmental crime, among other things, and the anticipation of Monophasia for Pizzing Coffins for ethanol. We expect that the fight against unlawful practices continue to advance and allow a better competitive environment for the companies that follow the rule. Moving to Slide 7, let's talk about Ipiranga's results. The volume sold in the quarter decreased 1% year-over-year with a 3% growth in the auto cycle and a 6% decline in diesel mainly in the spot market. In 2024, Ipiranga sale volume grew 2%, with a 5% increase in the auto cycle and a 1% drop in diesel. We ended 2024 with a network of 5,860 service stations, in line with that of 2023. Additionally, we closed the quarter with 1,450 AmPm stores, with a 9% same-store sales growth in the fourth quarter of '24. Ipiranga's SG&A decreased by 13% over the fourth quarter of '23, driven by lower personnel expenses and one-off expenses related to the conclusion of the service station reviewing process of the legacy network, and marketing expenses in the fourth quarter of '23. The other operating results line totaled negative RMB 114 million in the quarter, an improvement of RMB 16 million compared to the fourth quarter of '23 due to lower expenses with carbon tax credits. The line of results from disposal of assets totaled RMB 63 million, resulting mainly from the sale of 16 real estate assets. Ipiranga's EBITDA was RMB 1.841 billion in the quarter. The recurring EBITDA amounted to RMB 844 million, 27% lower year-over-year. The lower EBITDA mainly reflects reduced margins impacted by unlawful practices in the industry and higher inventory levels, and lower sales volume, partially offset by lower expenses. In 2024, Epiranga's total EBITDA was RMB 4.445 billion. Recurring EBITDA totaled RMB 3.3 billion reais, a 6% reduction year-over-year, mainly due to industry unlawful practices and higher inventory levels throughout the year. For this first quarter, we continue to see a high level of unlawful practices in the industry, particularly in biodiesel. Even so, we expect profitability levels not below that of the fourth quarter of '24 despite the lower seasonality helped by inventory gains in the first quarter of '25. Now moving to the next Slide #8, to talk about another good quarter for Ultragas. The volume of LPG sold in the fourth quarter was 3% higher year-over-year due to a 3% increase in the bottled segment as a result of higher market demand, and to a 4% increase in the bulk segment, mainly reflecting higher sales to industries. The total volumes sold in 2024 was 1% higher, driven by a 3% increase in bulk sales due to higher industrial demand, while the bottles segment declined by 1%. Ultragaz's G&A in the fourth quarter of '24 was 16% higher than that of the fourth quarter of '23 due to higher personnel expenses mainly due to collective bargaining agreements and acquired businesses, as well as expenses on lawsuits. Ultragaz's recurring EBITDA totaled RMB 441 million in the quarter, a 9% growth year-over-year. Ultragaz's recurring EBITDA was RMB1.687 billion in 2024, a 2% growth over 2023. The growth was driven by higher volume and better sales mix, in addition to results of new energy solutions, despite the higher costs and expenses, mainly due to freight and the effects of inflation. And for this first quarter, we expect an EBITDA similar to that seen in the first quarter of '24. Moving now to Slide 9, we will talk about another great quarter of Ultracargo. The installed capacity remained at 1,067,000 cubic meters the cubic meters sold grew by 9% year-over-year, mainly due to the start of operations at Opla and Rondonópolis and greater handling of FUZE in Vila do Conde. The Ultracargo's net revenue reached RMB 283 million in the fourth quarter of '24, '10 percent higher year-over-year. In 2024, net revenues totaled RMB 1.076 billion, a 6% increase over 2023. The growth reflects higher cubic meters sold, an improved sales mix, and higher spot and contractual tariffs, partially offset by lower spot sales of fuel. Combined costs and expenses were 11% higher than that of the fourth quarter of '23 due to higher maintenance costs, personal expenses and consulting services for expansion projects. Ultracargo's EBITDA totaled RMB 169 million in the quarter, a 9% growth year-over-year, driven by an improved sales mix, higher tariffs from spot sales, and contractual adjustments. EBITDA margin was 60% in the fourth quarter of '24, the same level as in the fourth quarter of '23. In 2024, Ultracargo's EBITDA was RMB 668 million, a 6% growth over 2023, reflecting higher cubic meters sold, higher spot tariffs, and contractual adjustments despite increased expenses. And for this first quarter, we expect an EBITDA similar to that seen in the first quarter of 2024. To conclude the presentation today, moving on to the next Slide #10, let's talk about our investments. In 2024, we invested RMB 2.230 billion, with RMB 1.304 billion allocated to expansion, representing 59% of the total. This amount was RMB 465 million lower than the plan, mainly due to the postponement of investments to 2025 and highlights to Ipiranga's infrastructure projects and new Ultracargo terminals, as well as efficiency gains in Ultracargo's projects. I also remind you of our 2025 investment plan that was announced at the beginning of this month, totaling RMB 2.542 billion. We are also allocating approximately 60% to expansion, and the highlights are detailed both in this presentation and in the market announcement. This concludes my presentation. We will now move on to the Q&A session to answer the questions you may have. Thank you very much for your attention.

[Operator Instructions] The first question comes from Gabriel Barra, City. Mr. Barra, please move on. Mr. Barra?

Thank you very much for taking my questions. I have two quick questions. The first one, something that attracted my attention, concerned the margins of Ipiranga. When we started the year, we had an expectation of margins, which would be better than 2024, because of all that interesting information you shared about unlawful practices. And there was a perspective of improvement. And there had been some gains throughout the year last year. So we really expected 2024 to have been a better year in terms of profitability to the industry. And, when you look through competitors, it's something that didn't turn out to be a reality. So my question is exactly about that. What do you expect for 2025? In your opinion, do you think that, the industry, this potential increase in margin would come, just if we change that unlawful practices? Is there anything limited within the industry that can help to improvement? I know how competitive it is, but anything else that can be done to improve margin sourcing, pricing? I would like to hear more about this dynamic of margins. Analyzing '24 and looking ahead to '25 to understand the dynamic of the whole industry. My second question concerns investment analyzing Ultra. It's role, this is the company that has the most comfortable balance sheet to make investments, when interest rates are higher, macroeconomic challenges. So, my question is, how are you going to use that favorable balance towards the benefit of the company, during which -- a moment which companies are being more conservative in terms of investment. Would it be the right time to increase that moderation pace, try to regain more market share? So that's what I would like to hear from you, understanding the fact that you have a more favorable balance sheet than the competition. Thank you.

Good morning, Gabrielle. This is Rodrigo speaking. Starting from Ipiranga's margins and the slide that we showed you. It was exactly to highlight the main factors that have affected the margin throughout the year and not uniformly. The year started with the effect of [indiscernible] and BARN, but it end up having an effect on the fourth quarter of biodiesel. And what happened throughout the year in addition to the increase of the mix of fuel and supply and demand? The biodiesel price as opposed to diesel price really picked in the third quarter, which really gives an advantage to distributors, who do not make the appropriate mix. Those who have unlawful practices, they end up benefiting in a market. That's what affected -- and that can be seen in our, highway stations. Why have we suffered so much? Because we have our resellers maintain competitiveness in this scenario, where there were more unlawful practice concerning biodiesel. Now looking ahead, and if we refer back to what happened in 2024, the return on investment is really low, lower than have fixed investments. There has been approval of Renewable Bill law and the anticipation in monophase for PIS coffins in ethanol. So it means that companies that are paying tax can really compete in a fair play field. But, of course, there is a risk of the operation. So this is the expectation. Trying to move ahead in our fight against the regularities concerning biodiesel in the first quarter. The spread reduced because diesel prices went up and there was a reduction of the biodiesel prices because of the crop season. So I think that's going to help, but we still have to have better regulation of biodiesel to avoid these asymmetries between those that pay tax and those that do not. Let me hand it over to Pedro Guedes, our CFO of Ipiranga, to answer the question about CapEx.

Good morning. Thank you for the question. This is Pedro speaking. Concerning CapEx opportunities, any positive balance sheet, we have reduced the number of our service stations. So in terms of branded stations, we'd rather focus on quality than on speed. It is a pace and acceleration that will be determined on the opportunities that we are considering all the time. When we correlate that with market share, market share is resulting of the activities more than a target. Part of our portfolio is correlated with branded stations, resellers. This is something that has given us good stability, and part of our portfolio are just more opportunistic initiatives, spot market, and what shows to us. Branded, will think about quality and branding, and the other spot will just depend on margins and the benefits we might derive from that. Great. Thank you. And let me congratulate the new officers that you have now. Thank you, Gabriel.

The next question comes from Rodrigo Almeida from Santander. Please unmute your mic.

Good morning. I would like to talk about Ultragaz. Within your portfolio, it seems that Ultragaz is the platform that are using to create more options of growth. It is contributing with additional EBITDA for new business. Can you please share with us, what is exciting you the most in terms of new businesses? Where can you expect more mid and long-term returns? Something that can gives us an understanding of, magnitude. It can be with gas, stellar gas. What can you share with us really about the use of Ultragaz as the grow the platform of growth for the Group? And secondly, I'd like to ask about working capital. Can you talk about reduction of inventory levels in the quarter? Probably, it's related with biodiesel, inventory levels. It would be good. We've said something about that in the last call. Finally, capital leverage. We've already asked about that, and we've seen a difference in, buying back. So considering your history and, what has changed, really? What has changed to put you into buying back the shares? Whatever you can share with us would be most appreciated. Mostly appreciated.

Good morning. This is Tabajara speaking. Thank you for the question. As you were talking about new energy, we are happy with what we've developed. The idea is not to have segregated businesses. And this quarter, we have combined our businesses. We can see individual contribution of new energy, new fuel sources of about 5% with a trend to have an increase over the months, but we've been confirming our thesis of having a portfolio of energy solutions. They are getting close to maturation level, but there's a lot to develop really. In the year of 2024, we started to operate with biomethane, and then it was part of the operation by the end of the year with a relevant portfolio of clients confirming our thesis. And, also, negotiation of, energy in the free market, something more recent. Still a lot to do, but we are very excited about it.

This is Pedro speaking. Thank you for the question. You've understood that, in terms of working capital, we've got that by managing the inventories in the previous quarter. We talked about our planned movement of making investments biodiesel, ethanol, and this is something that was done gradually throughout the quarter. In addition, we've also made additional efforts, to have oil derivatives at a more balanced account. So inventory, especially of biofuels. Rodrigo, concerning capital allocation, why buyback? Because the price of shares went down, and we can have better control of investment concerning our dividend, which is the how we want to re return really value to our shareholders. The payout was 35%, about 25%, and it's part with the buyback strategy. Depending on the price of those $25 million, that would be something like BRL 500 million.

Great. A quick follow-up concerning working capital. Do you still see space for optimization, especially at Ipiranga throughout the year because of higher cost of capital? Anything to be done there in terms of optimizing inventory levels? Anything that can be of help?

I think, turnover is something, and rather, the working capital is something important, and we always focus on that. There was a price increase in this quarter. We do have some initiatives to optimize the working capital focusing more in Ipiranga right now, but we still have to observe all the changes in market conditions.

That's great. Thank you.

The next question comes from Matheus Enfeldt, UBS. Please unmute your mic.

Good morning. Thank you very much. Great result. The first question is about capital allocation and potential of additional diversification at the holding more than at the subsidiary levels and focused on your feelings about investments rather than short-term plans. What does Ultra have to see to get more excited, to start making more investments, such as investments you've made at Hidrovias. If you had an opportunity today, in other words that would -- how would you determine that? Would you prefer lower leverage, lower interest rates, or would you have to wait for the maturation of investments in Hidrovias or even have more labor or investments? What would be really, your plan towards that? Concerning Ultracargo, you have a very well defined pipeline with deliveries of installed capacity for 2025. It has been part of your investment plan. But there has also been a reduction of expansion in '26 and '27. That's what I understood. Does it make sense? Have you been considering other possibilities of growth in Ultracargo? And would it be possible to adjust the CapEx throughout the year to include potentials opportunities that might come to you during the year of '25 and ahead? Thank you.

Hi, Matheus. Thank you for the questions. Let me start about capital allocation first. I think you've answered your question to some extent. These are the two factors. First, we have a balance sheet, and we can make new movements, but it will depend on the capacity to execute and execute well. We have a plan of integration and of value generation with Hidrovias and it's ongoing, lots of efforts towards that. But we are still considering potential investments. And if we have good return on investment and execution capacity, we can consider new capital allocations, but not short-term.

Mateus, this is Decio speaking. Good morning. Thank you for the question. We've been making investments in growth. In 2024, it was a record of investments at Ultracargo port expansions and our inland project, and the results are going to be noticed throughout the year. We have Opla, other railway systems, Bal Palmeirantes Second Quarter, Itaqui at the end of the year, strong investments. The level of investments for 2025 are the same level as previous year. We are going to start the expansion in Suape. Suape has become an important hub for ethanol receivings, and we have a very robust pipeline in our portfolio with investments. We talk about the railway structure in sample Santos, near peers. We don't see a slowing down. But with high interest rate, what we have to do is reallocate as demand increases. Our vision today is not to make changes in the plans that we have presented to you in our annual events.

Thank you. Quick follow-up on answer. The timeline of expectations for maturation of your efforts in Hidrovias that you showed in by 2025, have it already -- is it maintained as an expectation from your side?

Yes. We maintain that.

Great. Thank you very much.

Our next question comes from Pedro Soares, DTG Pactual. Please go ahead.

Good morning, everyone. Good morning, everyone who's connected. The first question concerning your investment plan that you announced in some weeks ago. If I recall that, in your last earnings release conference, you had anticipated that, there would be a decrease compared what had been budget or forecast for 2024, because of gain of efficiency and the postponement that you mentioned. I don't know whether you can share with us a breakdown within this number. Within the investment plan of 2024, what had to be postponed for '25 and what was resulted from efficiency gains? And in your plan for 2025, would there be more gain of efficiency to be delivered? And finally, concerning Ipiranga's strategy, especially B2B, in general, it has suffered more than B2B, because of the unlawful practices. And we've seen some strategies, executed by other players of TRR purchase, addressing the source of market share, especially in B2B. Is it part of your plan? Could you please tell us more about the rationale and the possibilities that you see. Thank you.

Good morning, Pedro. Thank you for the questions. Now starting from CapEx, when we share the plan for the year, this is the maximum CapEx that we allocate for the period. It's a combination of all projects that had been approved with the board of directors to be executed throughout the year. It already has the maximum level of approval that would be made in terms of investments. Of course, we always focus on efficient management of such investments. And the main highlight in this efficiency comes from Ultracargo this year, for example. If you look at the total CapEx approved, we always focused on efficient management of such investments. Within Ultra Gas, a broader question, we've seen the news and we've been monitoring the discussion of the program, yes, to everyone in the population. And the model they are considering is the replacement of the current benefit, to low income people to a benefit that would be provided as product, let's say, a bottle of gas that would be provided for free.

What is your take on this discussion with this model? If confirmed, what would you expect in terms of changes to the industry because of that?

Good morning, Monique. This is Pedro Guedes with Ipiranga. You've understood that the fourth quarter, we increased our inventory because of, arbitration and also the incentives of anticipating the purchase, really to avoid tax. And we are going to observe that. We are now going to see a reduction of these high inventory levels going into normal levels, and we expect to have it, normalized by the March.

Monique, this is Tabajara speaking about gas to everyone, the government broad program. We are taking part in the discussion trying to support the government. We think it's a very positive movement by the government. This is something being discussed all over, energy poverty, those that do not have access to reliable energy sources. The program is applicable in Brazil, but it's a smaller scale. Addressing it accordingly, as a society would be extremely good, and we try to support that. This is going to be done through the industry, through the sector. A lot is being discussed. The government is leading the process. We think it's quite positive. It means an improvement to us as a society. We've developed a lot in terms of LPG, throughout the decades, and we have reference to the world. We know there's some discussions that may take place, but that would be very positive. So having gas being brought to those that need it the most that would be very good for us as a society.

Thank you.

The next question comes from Regis Cardoso, XP. Please unmute your mic.

Hello? Can you all hear me well?

Yes, Regis. Quite good.

Good morning. Thank you. Let me start by congratulating Ms. Guedes for your new positions. There are two topics that I would like to address. First, increase in capital of Hidrovias, and a second one about branding. At Hidrovias, the management of Hidrovias is expecting a capital increase in the first quarter in March. So we'd like to hear your perspective about it after the announcements that have been made. We believe that the capital increase would be of about RBL 1 billion, RBL 1.25 billion concerning the gross up of your participation in the RBL 500 million range. Does it make sense, the price, to be close to that of the screen price, to offer a maybe an economic incentive for minorities to join in? I'd like to understand on your take, how much capital would it be necessary, and what would be the purposes of it? A CapEx, less leverage, up to a specific EBITDA, net debt. EBITDA is really affected by the drought. It's a question about the rationale and the dynamic of capital increase. My second question concerns amortization. The anticipation that you've been offering is running below amortization. What is the system behind it? Is it short-term contract? Are branded initiatives costing less? Is it an anticipated push? Although I don't think there is any scale there between amortization and branded initiatives. These are my two topics. Thank you.

Hi, Regis. Thank you very much for your question. I was starting from Hidrovias. We had in December one initiative, initiative, but we didn't increase capital because of information asymmetry. Because of that, as we anticipated in March, we are going to have the capital increase formally announced. The two main elements that are considered are unleash the growth of the company and reduce leverage. There is a covenants in a bond issuance of Hidrovias below 3.5x prevents new investments. That's a limitation of appropriate management and cost capital structure in the company. We want really to deal with those two issues. Release, really, the opportunities for more growth and reducing, really the cap, the limitation. The company is going to announce it, eventually. About Ipiranga, part of that is because of the postponement. We had a CapEx increase compared to anticipated capital in Ipiranga branded stations, and it is following volumes. There is an amortization correlated with volumes. And depending on the volume and of these different branded initiatives, there might be, more or less recognition of this bonus that it comes from it.

Okay. Thank you. Just one quick follow-up about Hidrovias. Any concerns of consolidation? Do you want to go over 51%? Just thinking about how much more capital would come in addition to yours in terms of capital increase. And I always wondered, whether the fact that this is Novo Mercado, whether it would have any implications there.

I'm not sure I understood your question, Regis. We are going to support the company in whatever it takes. This is something that we've been doing, and it's following exactly, the idea that we've had in mind, since the beginning.

Thank you.

The next question comes from Guilherme Martins, Goldman Sachs. Please unmute your mic.

Hello. Good morning. Great results. Quick questions. First, about this agenda against unlawful practices. A lot has been said. Approval of some federal initiatives with ethanol. A player of the area said that, there would be some gains from EBITDA from these measures. Any estimate that you would like to share with us? What would be gains in profitability with for Ipiranga with this measure? So more exposure to ethanol. And second question, Pizzinatto, about capital allocation. Ultrapar balance is light below, what had been the initial plans. Has said that you do not expect something non-organic, to need the capital. So does it make sense that, you are going to run it about this level of 2.5 more than any other?

Good morning, Guilherme. Short answer about that, unlawful practice agenda is, no. We are not calling it informal practice. We are calling it unlawful, right? He was using really informal, but, no, it's unlawful. It's against law. If all these practices are solved, we would go to a level that we used to have in 2016, 2017, if as a country, we can solve these problems. Now concerning capital allocation, I'm afraid I didn't understand your question.

Ultra is running at a leverage of 1.4x, and the guidance you have shared was 1.5x with interest rate going up. Do you expect to run at a high level from now on?

Yes. Closer to the bottom.

Okay. Thank you.

The next question comes from Gustavo Sadka, Bradesco BBI.

Hello. Good morning. Thank you for taking my question. I have two questions. First, when we analyze the results that, Petro agency reports since the February has been showing a healthier margin. We don't know what's reseller, what is distribution, but the network as a whole system seems to have healthier margins even taking into consideration the increases of ICMS and the increased price of diesel by Petrobras. Is it something that you've been observing at Ipiranga? And if yes, is it something that has been levered by the three big players, or do you think it's a natural trend of the whole lack of system after tougher times in the fourth quarter? My second question about the informal, unlawful practices. The media has been publishing that, and even Ipiranga staff has been saying that the National Agency of Petro is investigating, and really inspecting further biodiesel, mass balance. Do you see any results coming out of it? Do you expect it to impact your results in the short-term? And the remaining agenda against the unlawful practices such as the increase of tax solidarity in Sao Paulo, see bio growth, environmental crimes. What elements should we pay closer attention to in 2025, and when are we going to observe any result of that in your own production data?

Concerning prices, probably you were seeing an increase in prices of Petrobras and the combination that it has with tax increase. The average price is going up, and as such, the gain of inventory that companies have had will be transformed into larger benefits. So these are the short-term effects. Now concerning our regulatory agenda, we can see better alignment of, really, the government to fight these practices. The main point that we've been discussing is the combination of, diesel and the combination with biodiesel. And this is something really serious in terms of tax and the government objectives in defining a required mix of, biodiesel to reduce emissions and increasing, really, the mix, really to fight against the regular practices that the industry normally execute.

My first question was the following. Considering the increase of Petrobras and tax, it seems that there is a higher margin for reseller and distribution. Have you been observing that or not?

No. I've said that the price effect that you've been observed comes from price increase and taxes.

Okay. Thank you.

Thank you. Further questions will be answered later by our investors relation team. We would like now to hand it over to mister Rodrigo Pizzinatto for his closing remarks. Mr. Pizzinatto, you have the floor.

Thank you all very much for your questions. Thank you for your attention and interest. In May, we'll see each other again for the first quarter '25. Thank you very much. Have a great day.

Thank you. This call is closed now. Thank you very much, and disconnect your lines. Have a great day.