Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to Ultrapar's Fourth Quarter 2018 Results Conference Call. There is also a simultaneous webcast that may be accessed through Ultrapar's website at ri.ultra.com.br and on the 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 1 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. Hello, everyone. It's a pleasure to be here with you to discuss Ultrapar's fourth quarter 2018 results, and also to tell you about our perspectives and priorities for the next quarters. With me today are the officers from our businesses as well as our Investor Relations team. Starting with Slide 3. Let's begin with the consolidated results for Ultrapar in the fourth quarter. Net revenues amounted to BRL23 billion, 10% higher than in the fourth…

[Operator Instructions]. The first question comes from Frank McGann with Bank of America Merrill Lynch.

Yes. Just kind of a broad question, if I might. The outlook for this year should be helped by the economy and continued recovery from what was obviously a very tough year, particularly at Ipiranga last year. Looking at Ipiranga or fuel distribution in general though, I was just -- we've had some new competitors that have come in to the market. And I was just wondering how you're seeing the competitive environment. The market has -- even before that, it has gotten more competitive over the last couple of years. And you've had some opportunities and issues with imports and with Petrobras changing pricing strategy. I was just wondering how you are seeing the overall market right now, but particularly focused on the competitive environment with yourselves competing against, not only Raízen and BR, but also what perhaps could be some more -- or stronger new competitors. André Pires: Frank, thanks for your question. Well, it is -- talking about the new entrants, I would say that it's somewhat too early to tell. I mean, they have recently announced their entrance here, true. The acquisitions that they've made in 2018. So it's too early to, at least, verify or observe some different type of behaviors. But there are some specific visions we have that relates to this movement. I think the first one, which is a conceptual one but I mean very clear one is that, if they are coming to the market it's because they see a positive market and a market with capacity to keep on generating value. I mean those guys are -- all of them are, let's say, players that do have their principles in terms of getting value generation and the return on the money that they had -- that they are investing in Brazil. So it shows from our perspective the health of this market. In addition to that, I mean, if you think about, I mean, the -- let's say, the type of investments they are making in their fuel distribution business, from our perspective, I mean, those guys are going to basically raise the bar in terms of compliance, in terms of focusing on economic returns, which again, I think is positive -- is overall positive for the market. Clearly, there is a vision that this market, going forward in the next few years, is going to be a market that -- where, let's say, international trade is going to be important. That's something that we've been focusing our attention on. We've been, let's say, basically, helping our structure and strategy relating to that. And again, their entrance in Brazil is also a testament on that direction as well. So overall, we saw that as a positive movement.

[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 -- pardon, we do have a couple of questions that just joined the queue. First question comes from Gabriel Barra with UBS.

I had really one regarding the new criteria of service station. Is that possible to give us some more color regarding the difference between the previous methodology and the current one? Mainly, the difference of 10% that you have between the numbers? And how many gas stations from this difference we could expect to return to Ipiranga at work in the future? André Pires: Gabriel, basically, I mean, we've talked about that before, but basically, the decision on changing the criteria relates to the fact that -- showing [indiscernible] in terms of net additions, gas stations that have already been contracted for, but have not been inaugurated as we were doing before, didn't correctly showed the reality of our network. So basically what we are doing that, is we are considering as, let's say, our active network to gas stations that are actively selling fuel in the markets. And the growth is going to be related to those gas stations, to those service stations that are in inaugurated in a given period, in a given year. So having said that, when you look at the difference between the latest criteria and the current criteria, around 1/3 of this difference are what we call service stations that are part of our backlog. I mean, gas stations that have been contracted for, but have not been inaugurated as of yet. I mean, I talked about that throughout 2018 and that we were going to focus our attention, focus our energy in inaugurating gas stations that were -- that had already been contracted for. It's the objection to reduce the backlog. This backlog in the beginning of 2018 was around 500 gas stations. We reduced that by roughly 60%. And now the focus is to bring these other service stations back to our network or to our network. So 1/3 of this difference comes from this gas stations. The other 2/3 is basically some gas stations that have already -- the contracts expired or there are different types of negotiations with Ipiranga, but they are not currently selling fuel.

The next question comes from Lilyanna Yang with Aegis.

I have a question on capital allocation. I wonder where your thoughts on Ultrapar expanding investment in terms of structure of logistics assets, meaning via acquisition. If you see the opportunity and the intent there. And also on a related question. I wondered if from a portfolio-management standpoint, looking at your core fuel distribution business, the transportation one or even thinking about specialty chemicals and pharma. If you would consider freeing up capital in some of these segments and too much dedicate more -- it's not only capital, but it's management time to where is the fuel distribution segment, where we return seems to be much better and where the growth often seems to be, I don't know, maybe more interesting. André Pires: Lily, basically -- well, talking about logistics infrastructure, yes. This is a very important focus of attention for Ultrapar, I would say, 2019 and going forward. You obviously are following, say, the developments here in Brazil. We see that -- we expect that we might have an interesting opportunities in terms of logistics infrastructure investments over the next few years. This is not only important with Ipiranga but also very important to Ultracargo. We are expecting a more favorable environment from now on in terms of, let's say, potential auctions in ports, potential auctions in infrastructure that is something that is core to our business. And where we operate very well. I mean, if you look at the results of Ultracargo over the last 12 months, you're going to see how much this business has improved. The type of returns that this business has. And we believe that we might have some interesting opportunities in the next few years. I'm talking about the next 2 to 3 years. But clearly, this new administration have shown a more…

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: Okay, everyone. Thanks for the participation. We hope to see all of you again when we report our first quarter results next May. Thank you very much. Have a good day.

Thank you. This concludes today's Ultrapar's Fourth Quarter 2018 Results Conference Call. You may disconnect your lines at this time.