Sao Martinho SA
BOVESPA:SMTO3
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
24.24
34.06
|
| Price Target |
|
We'll email you a reminder when the closing price reaches BRL.
Choose the stock you wish to monitor with a price alert.
This alert will be permanently deleted.
Sao Martinho SA
You don't have any saved screeners yet
Good afternoon, ladies and gentlemen, and thank you for waiting. Welcome to São Martinho S.A. conference call to discuss the first quarter of the 2018/'19 harvest earnings.
Today with us, we have Mr. Felipe Vicchiato, CFO and Investor Relations Officer; as well as Mrs. Aline Reigada, Investor Relations Manager of São Martinho.
The audio and the slides of this call are being broadcast simultaneously on the Internet at saomartinho.com.br/investorrelations. [Operator Instructions]
We would like to inform you that some remarks made during this call may be forward-looking statements. And as such, they are subject to known and unknown risk and uncertainties that could cause the company's actual results to differ materially from those expressed in these forward-looking statements.
Now we would like to turn the floor over to Mr. Felipe Vicchiato, who will start the presentation. Thank you.
Thank you very much. Good afternoon, everybody. Thank you very much for participating in our call for the results of the third quarter of 2018/'19 crop year.
First, I would like to mention our agenda for today. First, the financial highlights. Production costs for sugar and ethanol as well as production itself and a few remarks about the next year. The third item is about the indebtedness of the company. The fourth is our hedge position for sugar in dollar, and then we will be summing up with the ethanol scenario.
Going to Slide #4, our financial highlights. Net revenue dropping by 6%, BRL 899 million, vis-à-vis BRL 842 million mainly due to a drop in the average price of sugar, it's 10% and the drop in the volume of 26% of sugar sold, partially offset by the increase in ethanol sales, 17%, an increase in the average price of ethanol in the quarter. Due to this drop in revenues, we see a drop in the EBITDA, 16%. As we said in the financial statement, BRL 417 million and margin 49.5%. Adjusted EBIT, 43% drop, resulting in the result of the EBITDA drop and also the increase of expenses with depreciation this quarter and the year-to-date because last year, the crop was shorter, and most of the crop treatment were posted for this quarter. And in the comparison year-on-year, as of next year, you have the depreciation volume, which is either higher or lower given the crop results BRL 65 million here, a drop of 60%, vis-à-vis BRL 168 million in the previous year ended this quarter.
We had a situation in which the company understood that it would be worthwhile to carry over more sugar to be sold in the fourth quarter. And in the remaining inventory of sugar, we have approximately 363,000 tons of sugar to be sold in the last quarter. And this is equivalent to approximately 37% of the sugar production that will be realized in the last quarter. And we will see in detail in the hedge slide that most of that is already hedged, and once it is shipped in the third quarter -- in the fourth quarter, we should go back to a better sugar price. And this will be a reasonable contribution for the improvement in margin for the company and cash generation.
Regarding ethanol, as we are talking about the full year, São Martinho decided to increase the mix of production of ethanol. Through divestment of sugar, we decreased the production of sugar by 30%, given the average prices that were happening. And we increased the production of ethanol by approximately 20%, and due to this reason, the inventories of ethanol for the company went up over the quarters. And on December, we had approximately 440,000 cubic meters of ethanol to be sold in the fourth quarter, of which 54,000 cubic meters had a hedge position at an average price -- net average price close to BRL 1,780 per cubic meter.
So in terms of price exposure in December, we had 35% of the production of ethanol. And considering that we have to leave some carryover inventory, especially for anhydrous, to be sold in April. We believe that it would be close to 38% of the production of ethanol being sold in this quarter and 33% or 32% with average market price. And that we will be discussing in detail when we talk about the ethanol scenario in the last slide.
Cogeneration in the quarter. We had a drop in the volumes sold, 20.8%, due to the lower amount of crushing year-on-year. And as we said, in the last quarter, around 8% less because of the dry season that we have, the drought that we had during this crop year. And especially in the second quarter, we had this result because of the availability of dry gas and this is the reason why we had a lower cogeneration. Year-to-date, the company had a very healthy EBITDA margin, around 50%. EBIT 21%, and a BRL 228 million in income. And this should be posted in the fourth quarter.
We have now on the next slide the cost of production show over the quarters and year-to-date. On the upper part of the slide, we have the volume of sugarcane processed for year-to-date and also quarter-on-quarter, so that we may better understand what was the impact on the third quarter of the lower dilution of fixed costs. So we saw that during the year, we crushed 7.9% less vis-à-vis the previous crop year, 22,200 to 22,400.
And year -- quarter-on-quarter, we see that in the first quarter, the volume was 8.8% higher. In the second quarter, 10.2% lower. And in the last quarter, 42.8% lower than the same quarter last year. And this dynamic leads the fact that in the quarter in which I have all the fixed cost of labor plus a lower production, it goes up in the quarter, that is to say the unit cost goes up, and the -- also the last -- the ones that were not processed in the last 2 quarters, then they approached this quarter. So this was the major impact that we saw for this drop of the EBITDA, the EBITDA margin and the EBIT margin.
Looking at the cash cost of sugar in the quarter, 0.6%, due to the reasons that I mentioned a while ago. But for the year, an increase in cash cost of around 4% for sugar, more or less in line with inflation. Looking at ethanol now. In the quarter, 11.4% increase, and year-to-date, 8% increase. And the reason why year-to-date, the cash cost of ethanol was higher than the cash cost of ethanol, it is because of the mix. As I change the mix, last year, we did little ethanol in São Paulo. So the whole COGS that was there in the previous years, it was mostly the Boa Vista cost that is marginally lower than the cost for the production of ethanol by São Paulo or in São Paulo. And this year, as we produce more in São Paulo, in a comparison year-on-year, we have a higher production cost because the plants are in comparison with Goiás, is efficient. So there was no increase in costs besides the one that we had already estimated and what we had already planned for, that is to say the usual cost of the operation.
Afterwards we talk about the company's indebtedness. In December, BRL 3.1 billion, a 26% increase, vis-à-vis the last crop year in the '18 date. And this represents 1x net debt EBITDA. And the debt profile. Most of it is long term, 3.4 years on average. And the company grew in December with BRL 1.2 billion.
On the first chart, we see the debt -- net debt of the company. And most of this increase comes from working capital that was used in the crop because of the increase in inventory. And there is a little of [ MPB ]. And once we post ethanol and sugar and we have this inflow, then we revert this working capital of the company. Besides having a release of debt -- because of the monetization of the PIS and COFINS tax credit, so this should go down steeply in the last quarter because that will be selling and getting this inflow of funds -- of resources.
On Page #7, we see our hedge position for sugar for the company '18/'19 harvest. It's practically been fixed already. We're locked with a price level close to BRL 1,080 per ton. In the '19/'20 harvest, we have 50% of own cane locked at BRL 1,180 per ton. And the 50% of own sugarcane. I have the same mix that I had in the '18/'19 harvest. That is to say, something close to 1 million tons of sugar in the '19/'20 harvest. And the mix decision will be made during the harvest. But if you look at the minimum of sugar mix, the 50% of sugarcane locked, and if you look at the maximum, I would say that we have something close to 30% of our own cane already locked. So depending on the price dynamics, we could decide whether we will produce a little bit more sugar or not, but at least we have 50% -- we will have 50% of our harvest already locked with BRL 100 more than we had in the '18/'19 crop year as you can see on the slide.
And to finalize and open for questions, we see the dynamics of the ethanol market. The company had a strategy of producing more ethanol, given the average price of ethanol during the full crop year vis-à-vis the sugar prices. And in the last quarter, we sold mainly in October a lot of ethanol but as of November, prices started to go down. And our view was that prices would have a better recovery as of December, January and February, which did not occur.
And that you would see on the upper chart, you have the average price of anhydrous and hydrous ethanol in the green line. And in blue, you have the parity. Historically, around mid-December -- November, December, parity already goes to 70%, and in some years, we have even 73% as was the case in April '17, March '17, and this is something that is not occurring at the moment. And it's still quite lower than parity, something close to 65%, 66% depending on the phase that you're looking at.
What happened in this year was the following: ethanol production was very strong, and some players decided to bloat inventories and originating ethanol and renting tankers in order to have this; and the price dynamics didn't go to 70%, so these players that had never operated ethanol decided to sell in the market and they hurt the market quite a lot, especially in January, so São -- we pulled out of the market a little bit in January, São Martinho, because we slowed as expected. But in the last few weeks of January when we saw the situation, we just pulled out of the market. But now in February, so we went back to the market, and as the prices in February have already started to go up to more acceptable levels. In the last days of January up to now, price went up to around 9% already. So this is the situation. The parity is still lower than 80%.
To summarize this whole thing. Consumption is high year-on-year as you can see. On Chart #2, hydrous averaged high -- 40% higher than last year, but in spite of that, prices are still depreciated and the price of oil didn't really help because it went from $80 to $60, a very sudden drop around October, and it had a negative impact on the dynamic of ethanol prices. You have to keep this in mind, please. And São Martinho, initially we talked about carryover, we thought that EBITDA would be more or less at the same level of last year. And given this new reality, it started to materialize after November. And we understand that this will no longer be possible. We should see a drop in the EBITDA year-on-year, but not something very material, nothing higher than 20%. But a little bit according to the cycle of this sector, we expect to have BRL 1,700,000,000 EBITDA, a little bit more or less, depending on the recovery of ethanol prices until the end of March. And for sugar, we are comfortable because everything is hedged and -- but ethanol will really depend on pricing and their price dynamics for the next 2 months. In January, one important detail. São Martinho, in December, had more or less 42% of inventories from Goiás and the remainder was from São Paulo.
A lot of anhydrous to be sold, so the average price in the next few months should be higher than is of hydrous São Paulo, given the products that we have in our inventory. So this is the reason why I believe that this EBITDA is quite achievable. So these were my initial remarks. So now I would like to open for questions. Thank you very much.
[Operator Instructions] The first question, Danniela Eiger, Bank of America.
My first question has to do with the next crop year. We have to see the evolution of planting, but we believe that it was very favorable in November and October. In December, a little bit drier weather. So I would like to know how you see the evolution of your yield? I understand, of course, that we still have February and March ahead of us, but could you tell us what is your expectation because of the situation of the weather in the last few months? And also, could you talk about your mix for the next crop year because we saw this uncertainty regarding ethanol and the outlook for oil with lower prices, so should we think about a mix having more sugar than you had in this last crop year? And I think you said that you had 1.78 liter of ethanol hedged. Is this -- I really didn't understand, and I would like to understand how this works. At the last point, do you have an update to give us about Copersucar and the schedule that you had to receive the precatórios or the preorder credit notes? And the first one would be this crop year, and the second one would be in the next crop year? So these are my questions.
Danniela, thank you for the questions. Just to clarify your ethanol question. We hedged with the BM&F 54,000 cubic meters at an average price of BRL 1,780 per cubic meter. Of my total volume in our inventories in December, 443,000 cubic meters, 54,000 had already been priced. We are talking about hydrous ethanol net of taxes already, the price that I mentioned. So your first question has to do with the yield and the mix. The evolution of the yield. Up to November, our expectation was to grow something close to 10%, our crushing the next crop year, as the rainfall in October was very good as well as November. São Martinho has a lot of sugarcane with the first harvest situation of the first cut. And so our expectation was to grow at least 10% of sugarcane production in the next crop year. And it is true that December and January were very bad in terms of rainfall in the whole region. São Martinho was not different, especially in Goiás. Goiás was very, very dry. So you can see what is going on with whole being sold, it really has a negative impact on whole of agriculture. And the best information that I have based on what we have about this drought, we should grow maximum 5% in the next crop year.
If during February -- well, the rain is coming to Ribeirão and Guatapará today. February -- if in February, March and April, we have a lot of rain, we will be able to recover this, and we could see a higher growth. But based on the information that we have today and considering that there will be average rainfall, we would be growing about 5% in our crushing activities. And the last question about Copersucar, the second precatórios or the preorder credit note. Well, the budget of the government has already been approved in this market. The second preorder credit note or the precatórios was the -- that was included in the first tranche is still deposit judicially, and the judge is still analyzing claims from creditors. And I would like to remind you that the Copersucar proceeding and not ours. We are part of it. We have 13% of that. So among all that, we have other companies that no longer exist and some of them are facing the protection situation, so we have no control over that. Our expectation in November was that this could be solved by the end of December. Now we have January but we no longer have the judiciary working, and around mid-February and March that would be the deadline for the final decision to liberate these resources or to retain. And our expectation is that while still during this fiscal year, as I said in the last call, the idea is to have this coming in, in this year or the fiscal year up to March, and we will be treating this from the accounting viewpoint mirroring what Copersucar does. And it is important to keep in mind that this precatórios or the preorder credit note has already been -- we already have that. So yes, then you have the restatement of the value as well.
Fernanda Cunha, Citi Bank.
Can you say anything about the impact of the IFRS on you? Because the last time we talked, there was a doubt whether agricultural partnerships and leases would be included. So could you give us an update about that. And the second part is a follow-up on the last question. You said that the second part -- so could you please confirm what you said about the second part of this precatórios. Not the second. The second precatórios, the preorder credit, thought it has already been included as approved, it's not the second part of it. Second precatórios, we had 2 precatórios issues, 2 preorder credit notes issued. And the first one or the first partial has already been deposited in a quarter for us, because the second one has already been issued and approved in the government's budget in 2018.
So this is the situation. Once the preorder credit notes is approved then the government paid this in mid-April 2018. The first part of the first precatórios, but this money is still in court deposit. And the second part of the first precatórios should be paid and the first one of the second one should be paid within the fiscal year of 2019, between April 19 and March 20. Yes, the IFRS. What we know is that leases are going to be included. Land lease will be considered as the debt, that is to say, an obligation, a liability. So you have the assets under liability being covered. And all that will be posted to financial expenses. And ultimately, what will happen is that the company's EBITDA will increase artificially, as I would describe it, and we are thinking about the best way to deal with that. But lease will certainly be included. Regarding agricultural partnerships, this is still being discussed, and there is no news. In principle, this should not be included because this involves risks on the part of the partner, but the discussion is happening with HydroCOM and the auditors, et cetera.
Lucas Ferreira, JPMorgan.
My question is about the ethanol market. How do you see the inventory position of the industry? Do you think there could be a risk at the end of the crop year? Should demand at the pump continue to drop or at least growing less than expected? Do you still see some risks because of the gasoline prices where they are being sold at the refinery vis-à-vis what is being sold at the pump? So how do you see the consumption of ethanol at the pump in the next crop year? And what about this inventory, how does it compare with the consumption trend up to the end of the crop year?
Lucas, thank you for the question. Ethanol consumption is growing, it's 40% increased hydrous year-on-year. Consumption is very strong. This is what we see. And part of that is because the price is lower, much lower than parity, but consumption is strong. And we do not expect to see an excess or surplus inventory between March and April. Just to give you some fresh figures, today, you have the UNICA data that was published. Those are the sales of January. Today, we have an inventory of hydrous ethanol close to 3.5 billion liters. If you consider that the consumption of hydrous is close to 1.8 billion, which was the figure for December last, we believe that our inventory is quite well balanced. There will be no shortage of hydrous, but we do not have anything excess or any excess that could ultimately destroy the price.
Gustavo Allevato, Banco Santander.
Felipe, 2 questions. One regarding your ethanol inventory, 440,000 cubic meters of ethanol. What percentage comes from Boa Vista? And going back to the first question, this is related to mix. Would it make sense to produce more sugar in the next crop year or is it too early to say anything about it?
Gustavo, about 40% of our inventory, Boa Vista and 60%, São Paulo. Regarding our mix, it's too early to say anything about that. São Martinho is not going to give guidance for mix. We are going to give a guidance about the size of our crushing, maximum production of ethanol, minimum of sugar and ethanol, but we are not going to talk about the specific mix because we understand that this level of disclosure from the commercial viewpoint would have a negative impact on us. Maybe when we realize that sales of ethanol at São Martinho is too big, we have 1,100,000,000 of ethanol. And when we look at the market on a monthly basis, it's very bad or it would be very bad to give this kind of guidance. And the mix decision about more sugar and more ethanol will depend on pricing, the market and you will be tracking this on a monthly basis. So what we'll be producing will depend on prices. And sugar, although it has a slightly lower price than ethanol comparatively, this is a product that we can be certain about the price because of the hedging situation. Unfortunately, for ethanol, you do not have the same dynamics. If you take historically, the price of ethanol and the price of oil or the price of gasoline, you will see that in the intercrop period, regardless of the price of gasoline, you go to 75%, 73% parity. And this is not happening now because of the strategy of carrying over inventory on the part of everybody. And many companies are originating ethanol from third parties, and they just put this in their inventories and they hold on to that. So we will give you a guidance about crushing, but we are not going to talk about the mix, okay?
One follow-up. You said 5% crushing, vis-à-vis '18/'19, the level of crushing for you for the '19/'20 would be lower from '17/'18?
Yes, is that correct (sic) [ that is correct ].
[Operator Instructions] Thomas Budoya, Itaú BBA.
I have one simple question, which is about the people that are carrying this inventory over for the intercrop period and sometimes even renting up spaces or facilities. Do you believe that these people that you referred to, they didn't have enough margin to continue doing this in the next year? So my reading has to do with the next crop year. If we had the same dynamics that we saw, that is to say, everybody or most people carried this over, do you believe that they will do this again? And the second point has to do with import. There are quite a lot of news being published about that, and I would like to know whether this will continue?
Well, we do not believe that things are matching, that is to say, the triggers to do this origination of ethanol. So we believe this will not happen in the next crop year. Regarding imports of ethanol, the maturity is in September, and we do not have an update about this. In 2017, this tax rate started at 20%, and it will be coming to an end in September. And we -- anyway, this is going to remain up to September.
Roberto Browne, Morgan Stanley.
As you decided to sell less ethanol in January, do you intend to carry this over to the next crop year should the price not be very favorable? Because there was a slight recovery in prices now in February, but if it drops again, are you going to resort to this again?
Well, tentatively, no. We understand that this harvest will be selling within the fiscal year. And as I said before, the inventories are quite well balanced, and the drop of ethanol -- 10% price of ethanol was totally irrational. It does not really represent the market of supply and demand of ethanol, and our strategy is to sell ethanol by the end of March.
Ian Miller, Crédit Suisse.
I would like to ask a question about cash cost. There was a high volatility in this quarter because of crushing among other factors, but at the end of the crop, there was an increase of 8% in ethanol, 4.2% in sugar. So for the next crop year -- I know it's a little bit too early, but I believe that crushing will be in line with what you expect. Is there [ any way to ] cause your cash cost going up and going higher than inflation? So how are you dealing with that in your budget?
Our budget is being drafted now and it will be ready by the end of March. In terms of pressures on cost, it will be labor that represents 1/3 of the cost plus inflation. And there is a pressure on the part of diesel, because you have to look year-on-year how or for how much we bought diesel and how much it will cost next year, which is a proxy for oil. But if the price of diesel goes up in 15 days, there will be an increase in the price of ethanol with an impact on the net revenue of the company. Everything remaining the same, we do not expect an increase in our cash cost or much higher than we had in terms of inflation for the next crop year.
Gabriel Barra, UBS.
I have 3 quick questions. I think you said that you expected to crush 22.6 million first in the next crop year, and you said 21.4 million. Now 1 million less than, I believe, you said in October. Is there any specific impact on that? My second question has to do with the preorder credit notes. Do -- can you say anything about the payment of taxes on the amounts received of the precatórios? And looking at ethanol now, in the last call, you talked about the realization for this crop is BRL 1,850 or 5% up or down. So what do you believe this will be for ethanol, for [ Goiás ], for the fourth quarter and for the crop year?
Thank you for the questions. Our expectation until November was to grow 10%. And that would mean 22.5, which was the figure that we were discussing in -- during the cycle bit and as October and November had a very good rainfall. And what occurs is that in January -- December, January, we had a very dry weather all over Brazil, and it affected other crops such as soybean and sugarcane was not an exception. So based on the situation that happened in January -- December and January. And assuming that rain will come back to normal levels in February and March, we will not be able to grow 10%. We will be able to grow 5% because the weather was completely out of the normal levels in these months. Regarding the growth of sugarcane. If rainfall in February and March is higher than average and we still have an important rainfall in the intercrop period where the high volume is very well scattered all over the region and we will have a better situation, and we would have more than 5%. But the best information that we have today is that, unfortunately, we will probably grow only 5%. I can guarantee to you that the remainder of this sector will not grow more than that and will probably grow even less than that. Regarding the taxes. On the preordered credit notes, we have no update to give you. And the situation is exactly the same as it was. No change. And lastly, I forgot the average price. Up to November, our expectation was to have an average price of BRL 1,850 for the full crop. And giving us comfort to have the EBITDA coming close to what we had in the last crop year. In the third quarter, we had a price close to BRL 1,850. I think it was BRL 1,830 per cubic meter, but as the price dropped steeply in January and as incredible as it may seem, parity for the first time, in the intercrop period, is around 64%. We do not expect to get BRL 1,850 for the full crop year. And this is the main reason why we will see a drop in the EBITDA year-on-year. I don't really remember the figure for that crop year, thus BRL 1,850. Well, this period was worse than expected, as I said.
Thiago Duarte, BTG Pactual.
Felipe, I would like to ask 2 questions. First, I would like to hear from you the view for the sugar market in the next 12 months. We believe that it will be more or less a situation of sitting and waiting. It seems there should be a shortage in India, but it has not been confirmed yet. You said that you're not going to give a guidance for the mix, but when you talked about hedge, you said that there will be a possibility of producing a little bit more sugar. So I would like to know your opinion about sugar and how this will be impacting your hedging for the next few months. And the second question is classic already. It is always asked in your calls, and it has to do with your leverage and the use of cash. So with the inventory of ethanol that you have, based on your remarks, and to be sold in the fourth quarter, it seems to me that your net debt was BRL 3.1 billion at the end of the third quarter, and it would make sense, as the exchange rates helped a little bit and your inventories as well. Maybe it would go to 2.6. So could you say a few words about that, and with EBITDA of around 8.8, would seem to be feasible. We are talking about a leverage at the end of the crop year around 1.4. And with this level of leverage, it seems very close to the level that in the past, you have already discussed with us as the ideal level in terms of your capital. And should we expect more buybacks or more dividends? And I know that we always ask this kind of question.
Thiago, thank you for the question. Regarding the sugar market, it's more or less as you described. Our expectation is to produce less in the current crop year. And maybe 2 million, 3 million tons less. Brazil should have a lower production of sugar overall because of the shortfall that we should have, given all the reasons that I said, the drought, et cetera. So São Martinho invested quite a lot of money in the last 2 years in planting of sugarcane and technology. And the lot of investments show, we see only a small growth of 5% of productivity that will be lower than 80 a yield. That will be lower than 80, which is far from what should happen at São Martinho with a possibility of reaching a TCH of 90. So we could gain momentum, but we don't know whether all the producers will be turning or shifting towards sugar. As we had this situation in the last crop year, 36 million tons at '17 -- in '17/'18, and then the situation in '18/'19. And it could go back to 5% given the mix more towards sugar.
And there we would have an imbalance, and there could be pressure on prices. And we believe that the price that we mentioned is a good price for hedging. It could be 1.3, 1.4, but 1.2 would be a good figure. BRL 1,200. We had BRL 1,800 -- BRL 1,180, and prices are slightly improving. And we are continuing to hedge an even higher volume for the next year. This is what we expect. And the second question about our leverage, the level of indebtedness of the company. We expect a further drop in our net debt. We expect something close to March last year, close to BRL 2.4 billion. And in this working capital, we have a liberation because of the realization of PIS and COFINS taxes and all that we are doing on PIS and COFINS, we have a lot of tax credit that we will be offsetting. And because of that, we will have an additional help from that to reduce our net debt. This figure is not in the EBITDA because it's only for accounting purposes. But if you look at the liberation of the working capital, you will see this offsetting of the situation with the PIS and COFINS tax credit vis-à-vis the ethanol volume that I'm selling. Meaning, after we merge Boa Vista into São Martinho and a 1.5 net debt EBITDA is a very interesting figure, and we shouldn't go much further or much lower than that. And with that, we would be paying dividend and may also some buybacks with BRL 18 as the level given all the hidden assets that I have in my books, which are the landholdings, 55 million hectares, not to mention the precatórios is almost BRL 4 per share.
[Operator Instructions] Ladies and gentlemen, now we close our Q&A session, and we give the floor back to Mr. Felipe Vicchiato for his closing remarks.
Thank you, everybody, for participating in our call. Any news about our crop, we will be available to you at all times. And we believe that around the mid-March and April, we will have better color about yields for the next year, and anything new, we will be informing you immediately. Thank you very much. Have a good afternoon.