Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to Ultrapar's Third Quarter 2017 Results Conference Call. There is also a simultaneous webcast that may be accessed through Ultrapar's website at www.ultra.com.br/ri and MZiQ platform. Please feel free to flip through the slides during the conference call. Today with us, we have Mr. André Pires, Chief Financial and Investor Relations Officer, together with other executives of Ultrapar. We would like to inform you that this event is being recorded. [Operator Instructions] A replay of this call will be available for one week. Before proceeding, let me mention that forward-looking statements are being made under the safe harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of Ultrapar 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 Ultrapar, and could cause results to differ materially from those expressed in such forward-looking statements. Now I'll turn the conference over to Mr. Pires. Mr. Pires, you may begin the conference. André Pires: Thank you very much. Good morning, everyone. It's a pleasure to be here with you to discuss Ultrapar's results for the third quarter of 2017. Here with me are the leaders of our businesses as well as the Investor Relations team to help answering your questions. Moving on to Slide number 3; I would like to open our presentation today by discussing the performance of our businesses, starting with Ipiranga. Since last year, Ipiranga has prepared itself to accelerate its expansion…

[Operator Instructions] The first question comes from Felipe Santos with JPMorgan.

In the -- again, you've spoken during the Portuguese call, just to further understand more clearly, the -- in the call, in the Portuguese call, there was a question seen about the size of the additional gas stations, and we have seen especially in the B series of Brazil these additional gas stations have been connected with smaller gas stations. Are you seeing the same kind of trend throughout the rest of the countries, especially -- where you invest more? Or do you think that there's still a sizeable number of gas stations bigger with good proportionate -- bigger volume, so the EBITDA expands? Or we are reaching like a limit of those bigger gas stations not being there anymore and just like now they are [indiscernible] to put meter is more than gas stations to be converted? André Pires: Felipe, thanks for your question. Felipe, it's exactly the opposite. What is being seen in terms of opportunities for the pipeline that Ipiranga is pursuing is normally gas stations at higher throughput than the average throughput that Ipiranga has in its network. Now the strategy -- the expansion strategy that Ipiranga is undertaking is, obviously, a combination, in some cases, of a fragmented conversion of some individual gas stations, eventually gas stations with higher throughput, but also looking for opportunities to brand a network of unbranded gas stations as well. So we've seen a lot of interesting opportunities of white-flag network of 10, 15, 20, 25 gas stations that are being branded into Ipiranga's brand. So in general, the trend that we are seeing is quite the opposite. It's a trend of pursuing gas stations with higher throughput than our average. And in fact, as I mentioned during the morning call, obviously, we normally report these numbers as a number of gas stations, but the focus is much more in terms of the volume contracted or volume added to our network that could be eventually even higher with a lower number of gas stations, so this is very important. And the focus is looking for gas stations with higher throughput. Obviously, you don't have the potential throughput of these gas stations right at Day 1, right? There is a maturity process or maturity period, and they reach their -- let's say, their peak normally after 12 to 18 months after being opened.

That's great. Then one follow-up question; would you consider start releasing the -- some sort of breakdown of number of gas stations by volume, so we could increase or update and do better estimates for our forecast? Saying the target would be to increase these number of gas stations in volumes that we have bigger volumes. And then like we have -- like the kind of opening that we have in Extrafarma? André Pires: Felipe, I'm not sure I understood. It would be practically impossible that we -- I mean, we're talking about opening in this particular case...

Yes, opening [indiscernible] number of gas stations by volume, not like a range. Or do we think this could be doubled? And we could see business strategy, the application and enforcement of diesel structure to do throughout the quarters? André Pires: No -- well, we'll have to check. But I don't think it's viable to do that, because in the end, I mean, you're opening gas stations, the volumes are not fully maturing in the year that you open the gas stations itself -- themselves. Then you would have to wait for 12 to 18 months until you have this information. Obviously, over time, we're going to have the volume that Ipiranga has. You don't have the growth and volume that Ipiranga has. You're going to have the growth of -- the volume growth of the market, and you would be able to assess if the strategy is working or not. If you look at the volume and the number of gas stations, obviously, on average, you would be able to assess if the strategy of opening gas stations with higher throughput is actually happening or not, all right? But I think it's very difficult to disclose this. There is one station per station; there are too many stations, all right? If you think about it.

The next question comes from Luiz Carvalho with UBS.

Just two quick questions; the first one regarding Oxiteno. You have the plant, then in U.S. coming -- looking forward, and we saw better margin, something over the second -- the third quarter, sorry. Just would like to understand how do you see the spreads going forward and in terms of getting to the profitability of the business? The second question, it's a follow-up from the question that I made on the -- today on the Portuguese call. You had a very aggressive, let's say, CapEx plan, mainly for Ipiranga. And when I aggressively compared to the other companies that we have access to the information. And so far, despite that, you accelerate, let's say, CapEx -- the CapEx disbursement, we haven't seen, let's say -- or at least we're expecting to see a larger number of gas stations. So I just would like to understand if there is something about, let's say, the branding process that would take more time? Or there's some, I'm going to say, inertia in the beginning of the process? My real question is, how can we, how can I say, try to forecast? Or how can we try to understand what would be, let's say, the number of gas stations added by -- I don't know, by the couple quarters? André Pires: Thanks, Luiz. Hello, again. Well starting for Oxiteno, well, basically, as I mentioned in the call, we are assuming the completion of the construction of the plant throughout the first quarter of 2018. This will bring, obviously, better volumes and better results for Oxiteno as a whole. In addition to that, we've been seeing a consistent increase in volumes for Oxiteno, five quarters in a row, especially for specialty chemicals in the domestic market. We've seen some one-off impacts starting to, in a way, fade away from the results of Oxiteno, if you look at, specifically, the PKO inventory adjustment as an inventory loss; this should be over by the fourth quarter already. So if we see certain stability in its indicators, then we can expect a positive EBITDA growth for Oxiteno in 2018. An improvement in terms of profitability, especially if you consider that one of its main raw material, the PKO is back to more normal levels in terms of price, which is positive for margins as well. So we see good prospects for Oxiteno looking towards 2018. Coming back on the question on Ipiranga's CapEx; I mean, a few things that you have to take into consideration. First of all, the additional budget -- the additional CapEx budget that was informed [Technical Difficulty].

Hello?

We appear to have lost audio from the main speaker's location. Give me one second, while I activate the backup line. I've rejoined the speakers on the backup line. Thank you.

André, are you there?

This is the Operator. We've reconnected the speaker's location. Thank you. André Pires: Hello?

Yes, your line is open, Mr. Pires. André Pires: Okay. Well, I was answering a question. I would note, it's not my fault. I don't think it was her. Luiz, are you there?

Luiz, your line is open.

Okay, thank you. André, sorry about that. You were starting to answer the second question regarding -- you said the number of gas stations. You said that two things, the additional budget that was informed or signed, and then cut the line. Thank you. André Pires: Okay. So I'll start over to answer your question on the CapEx for -- additional CapEx for Ipiranga. So basically, you have to keep in mind that the approval of this additional budget happened in mid-September by the board, right? So you do not deploy capital immediately right after you have the approval of this additional budget. But nevertheless, you're going to see a significant pace of new gas stations or branding of unbranded gas stations throughout the fourth quarter and throughout 2018. Very hard to be precise on the number but it's going to be significantly higher than the third quarter of 2017. Again, we have to take into consideration the timing effect, which is the approval of this additional budget that happened by mid-September. In addition to that and the decision of this strategy to accelerate the expansion process was taken and proposed after the end of that preceding final need of the rejection of the [indiscernible] previously which happened early August. So those things take some time but independency of the timing in fact and what we can say looking forward is the accelerating the pace, which is going to be able to be seen in the fourth quarter of 2017 and throughout 2018 as well.

Okay. Thank you very much.

[Operator Instructions] Showing no further questions. This concludes the question-and-answer session. At this time, I would like to turn the floor back to Mr. Pires for any closing remarks. André Pires: Thank you very much. And I hope to talk to you again when we release our fourth quarter results next February. Thank you very much. Bye, bye.

Thank you. This concludes today's Ultrapar's third quarter 2017 results conference call. You may disconnect your lines at this time.