The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Milene Clifford Carvalho - JPMorgan Chase & Co, Research Division - Analyst
: I have 2 questions here. The first referring to the supply scenario. Yesterday, we were discussing price policies and the import policies of Vibra and
the increase in the imports of diesel. I would like to understand how this dynamic is working out, if it has had an impact on margins, and if you will
also adopt that strategy of importing fuel?
The second question refers to working capital. Of those BRL 2 billion of cash flow that you generated in the first quarter, most of it was the release
of receivables and working capital and also because of your inventory levels, aiding and abetting the company margins. What can we expect for
the rest of the year?
Question: Thiago Callegari L. Duarte - Banco BTG Pactual S.A., Research Division - Analyst
: I would like to go back to the discussion of the past question and perhaps reword the question about margins. You have always been very transparent
with the market in that attempt to share with us, which would be your replenishment margin for the business, excluding that inherent volatility
that you have. And in these last 2 or 3 quarters, the magnitude of that volatility differently from the margin that you reported vis-a-vis the
replenishment margin, taking away the inventory levels and hedge, it seems to be so large that the market has somewhat lost reference of your
replenishment margins, your benchmark margins. We have discussed this at length, and I think the answer will be yes.
But I would like to hear that from you. Does it make sense, when we look at this quarter to adjust based on the evolution of inventories, the
replenishment margin is BRL 140 per cubic meter. Of course, there are other effects, the parachute effect? But if we think of order of magnitude
and with what you have done to reduce inventories and volatility, does it make sense to imagine margins of this magnitude? We already spoke
about February, March and April. Simply to re-anchor our expectations because we all have the expectations that the inventory variations will not
have the same magnitude as previous quarters. That's the first question.
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MAY 15, 2023 / 1:00PM, VBBR3.SA - Q1 2023 Vibra Energia SA Earnings Call (English, Portuguese)
The second question is a follow-up of your presentation. Simply to clarify a point in one of these slides, you speak about the increase of penetration
of premium fuel, and you speak of a gain of volume and 4 percentage points in your mix. What is that 4% referring to? And if you could speak to
us about the present day penetration of the premium fuels in your gas station network?
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