...February 26, 2024 Higher tariffs support stronger EBITDA guidance for Rumo S.A. Rumo recently released its 2024 guidance with expected volumes transported between 81 million to 84 million revenue ton kilometers (RTK) and an EBITDA generation between Brazilian real (R$) 7.2 billion to R$7.7 billion. Volume growth is similar to our previous expectations for the company, but EBITDA is higher, similar to the company's prior 2025 guidance. We believe this is mostly because of higher tariffs due to the company's commercial initiatives and solid demand. Even amid uncertain climate conditions, due to the effects of El-Ni±o (scarce and poorly distributed rainfall) this year, volume growth will likely come from still-solid corn and soybean crops, combined with higher industrial activities domestically. Also, Rumo's cash flows are protected by the take-or-pay contracts in case of crop failure. The company already disclosed January volume data, indicating an increase of 18.3% in total volume transported...
