Electric cars without reverse

Fast, silent and economical. So is the electric car. And although there is resistance on the part of some Brontosaurs, Tyrannosaurs Rex or even a sprightly and agile Velociraptor, the trend seems inexorable: electric cars are coming and the fossilized industry struggles, as the “blood” of dinosaurs, in the form of oil , already had its peak and now the curve is downwards – at least for the mobility sector. In addition to being perfectly replaceable, “black gold” needs to be removed from the scene to alleviate the brutal level of smog in which the planet is shrouded.

Like the great entrepreneurs in history, the oil owners are already diversifying their businesses. The maxim that “you shouldn’t put all your eggs in a single basket”, which the investor market knows so well, also applies to this sector. The fact is that there will be an electric car yes. And the movement marks a path without going backwards; i.e. no turning back.

There are issues, however, that need to be seen in the sunlight. The evolution of batteries, representing, roughly, half the value of the car (making the product extremely expensive) and which, on average, have a range of 300 km; it is also necessary to take into account how much is consumed from the environment to produce so much energy for recharging (a subject that is usually “overtaken”, but is of profound importance) and, of course, the infrastructure of stations that inhibits displacements beyond a certain perimeter.

Translating into numbers, in December 2019 (pre-pandemic) Brazil had 24,600 electric units running sprightly and cheeky. Last December (2021) the number of these cars rose to 73,000. By State/Region, the fleet shows greater concentration in the Southeast, housing 24,721 in SP (33%); 5,788 in MG (7.9%) and 5,195 in RJ (7.1%). Amapá (121 units) and Roraima (82) are at the bottom of the table.

In the United States, while Fiat collapsed by 85% in sales, Nissan had a decline of 43% and Ford another negative 27% in the first quarter of the year, compared to the same period in 2019 (pre-pandemic), Tesla achieved growth of 256% (noting that it only makes electric cars). The quarterly numbers certainly give food for thought when looking to identify trends.

Returning to Brazil, it should be noted that at the press conference on the 8th of this month, the president of the National Association of Motor Vehicle Manufacturers (Anfavea) touched on the ‘infra’ subject, adding that the assemblers installed in the country are starting a work, via association , to “pull the development of the refueling infrastructure of these vehicles in the country”. Luiz Carlos Moraes spoke of the need for 135,000 charging points in the country, which should require investments of R$ 14 billion. With the expectation, according to the association itself, of having between 10% and 18% of the total fleet in circulation by 2035, things should now accelerate.

MOBILITY

Enel – an Italian multinational power generation and distribution company – has created a new business for the group. It is the Enel X Way Division, focused on electric mobility, which will produce a “global and innovative platform to develop technologies and services related to mobility”, says the company.

It is certain that it should focus on the electric car sector, working mainly with charging stations and related services.

SALES

Financed vehicle sales last March totaled 468,000 units, between new and used, according to B3 data. The number includes light cars, motorcycles and heavy vehicles across the country and represents a drop of 5.5% when compared to March last year.

The motorcycle segment recorded another month of increase. There were 103 thousand units financed throughout the month, with an increase of 25.3% compared to the previous year. On the other hand, the segments of heavy vehicles and light vehicles were the ones that showed the biggest drop in the period. Credit sales of heavy vehicles had a reduction of 17.6% compared to March of the previous year, while light sales registered 341 thousand units financed, a reduction of 11% compared to the same month of last year.

HIGHWAYS

B3 put into operation the auction promoted by the government of Rio Grande do Sul, for the concession of the highways that are part of the so-called Block 3. The project provides for the execution of works and exploration of operation, conservation, maintenance, improvements and expansion of the transport.

The auction was won by the Integrasul consortium, represented by the broker Ativa Investimentos, which offered a 1.30% discount to be applied on the standard tariff defined in the public notice. In total, 271.5 kilometers of highways were granted, 116.4 kilometers of duplicated roads and 59.9 kilometers of third lanes. The highways will receive R$ 3.4 billion in investments. The concession will have a term of 30 years.

Block 3 includes the following highways: ERS-122 (km 0.00 to km 168.65); ERS-240 (km 0.00 to km 33.58); RSC287 (km 0.00 to km 21.49); ERS-446 (km 0.00 to km 14.84); RSC-453 (km 101.43 to km 121.41); BRS-470 (km 220.50 to km 233.50).

RAILROAD

VLI – a logistics company that operates railroads, ports and terminals – presented the 2021 operating results of the North Branch of the North-South Railroad (FNS), the Brazilian agribusiness outflow corridor towards the northern ports. Net revenue grew by 19.6% compared to 2020, reaching R$1.097 billion.

There was a 10% increase in total cargo transported in 2021, compared to the previous year, reaching 11.1 million tons. The main products transported were soy, corn and cellulose.

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WASTE

Convale, an inter-municipal consortium for regional development that brings together eight municipalities in Minas Gerais, for the concession of exploration and provision of collection, transport, transshipment, treatment, and final destination of household solid waste, was successfully carried out on the Stock Exchange. from Brazil.

The winning bid of the auction was presented by Consórcio S, represented by the broker Ativa Investimentos, with a K factor of 0.6983, which is equivalent to a discount of 30.17%. During the 30 years of the concession, approximately R$ 164 million will be invested to improve services that will benefit approximately 430,000 miners. This was the first concession of these services in B3 carried out in the form of a common concession for a consortium of municipalities.

CLIMATE

On the 26th, the new SEC rules on the disclosure of climate impacts will be discussed, in an online event, by the Brazilian Association of Companies. Abertas (Abrasca) and the Brazilian Institute of Investor Relations (Ibri).

Among the specialists will be Thiago Spercel (Paul Hastings), Alexei Bonamin (TozziniFreire), Izabel Ramos (Petrobras), Joanes Ribas (Vivo) and Rafael Mingone (Gerdau).

Registration (free) and other information via the link https://conteudo.abrasca.org.br/220426_disclosure-sec

INCORPORATION

In a statement to the market, on the 14th, Sul América S/A informs that its shareholders approved, “in their respective Extraordinary General Meetings, the “Private Instrument of Protocol and Justification of Merger of Sul América SA by Rede D’Or” (“Protocol”), as well as the merger of SASA into Rede D’Or (“Operation” or “Merger”), as per the Material Fact disclosed by the Companies on February 23, 2022”.

The text also adds that “the Companies will keep their respective shareholders and the market informed about the relevant steps related to the Merger, in accordance with the law and CVM regulations”.

MEETING RI

The 23rd International Meeting on Investor Relations and Capital Markets will take place on the 27th and 28th of June.

Until the closing of this column, Thursday (weekend eve), the schedule was not 100% defined.

The Meeting, which was once the largest in Latin America in terms of investor relations, is jointly promoted by the Brazilian Association of Public Companies and the Brazilian Institute of Investor Relations.

FORECAST

For those who missed the post posted on social media by Shareholder PortalAtiva Investimentos predicted that the Ibovespa will reach 135 ml points by the end of this year.