Cosan Limited (NYSE:CZZ) Q1 2020 Earnings Conference Call - Final Transcript
Jun 01, 2020 • 09:00 am ET
Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to Cosan S.A.'s First Quarter of 2020 Results Conference Call. Today with us we have Mr. Luis Henrique Guimaraes, CEO; Mr. Joao Arthur Souza, Head of Finance; and Phillipe Casale, Investor Relations Executive Manager. We would like to inform you that this event is being recorded. [Operator Instructions] The audio and slide show of this presentation are available through the live webcast at ir.cosan.com.br. These slides can also be downloaded from the webcast platform. Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of Cosan's management and on 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 Cosan and could cause the results to differ materially from those expressed in such forward-looking statements.
Now, I'll turn the conference over to Mr. Phillipe Casale. Mr. Casale, you may begin the call.
Good morning, and welcome to Cosan S.A.'s first quarter 2020 earnings conference call. It isn't possible to begin this presentation without talking about the current situation. No one could have imagined the challenges such as we have been facing since March. We started 2020 with a positive outlook, important to global growth and improved local indicators. Our results indicated the quarter would be in line with expectations but then everything changed. To recap, in one week there was a sudden drop in oil prices. More than 30% in one single day, while at the same time, demand for the commodity fell, already a reflection of increasing social distancing around the globe. On March 11, Cosan suffered a criminal cyber attack that led to the temporary suspension of some of our operations.
On the same day, the World Health Organization declared the new coronavirus epidemic and since then we have been focusing all of our efforts on making sure that we keep our operations, most of which are considered essential up and running while ensuring the safety of our people and the teams that needed to be in distress [Phonetic]. During the conference call in late April, we had the opportunity to talk a little more about the impacts of the pandemic on our business and the measures we are adopting in line with our social responsibility efforts. Our earnings release also included a summary of the group's main initiatives to fight the pandemic, but I think it's important to highlight a few of them here. As a group, we announced a donation of BRL17 million to various initiatives fighting the pandemic. We were pioneers in not laying off employees at this difficult time and have donated more than one million liters of 70% sanitizer alcohol mainly to hospitals, healthcare teams, in local communities in the areas where we