Good morning, and welcome to Ecogro DOVES' First Quarter of 2021 Earnings Conference Call. With us here today are Mr. Marcelo Guidotti, CFO and IRO Andrea Fernandez, IR Director and executives of the company. This presentation is being recorded, and all participants will be in listen only mode during the presentation. After that, we will begin the question and answer session for analysts and investors only when further instructions will be provided.
The audio and the slides of this conference call are being broadcast simultaneously atri.ecorrodovies.com.br, where you will find the presentation for download from the webcast platform in the formed in the Investor Relations section. Before proceeding, we would like to clarify that the Forward looking statements that may be made during this conference call relating to EcoRodOVIES' business prospects, Projections and operational and financial targets are based on the management's beliefs and assumptions as well as on currently available information. They involve risks, uncertainties and assumptions as they refer to future events and hence depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions and other operating factors may affect the future performance of Ecoradovias and lead to results that differ materially from those expressed in such forward looking statements. I will now turn the floor over to Ms.
Andrea Fernandez, who will discuss the Q1 of 20 21's results. Ms. Andrea, you may proceed. Good morning. Welcome to Grupo EcoRodovic's conference call today discussing the earnings of the Q1 of 2021.
We thank you all for your interest and participation. The Q1 was marked by some important events, in particular Brazil's National Ground Transportation Agency's authorization of the startup toll collection at Ecovias do Cerrado at the P3P4 and P5 toll plazas. And as of from March 20, the concession is fully operational. In April, we won the federal concession BR 153 to Cantincoias to operate it for 35 years, in line with the company's growth strategy. The concession agreement and EcoRod Ovies' guidelines are aligned with the best ESG practices as highlighted in our results release.
In April, the company also made progress in our derisking efforts with the signing of the agreement Of Ecovias dos Immigrantes, we've established the assumptions that guide the extension of the termination of concession agreement from June 2026 to March 2030 3, based on traffic projections using the Artest and marginal cash flow methodologies. More details are available in the material fact of April 30. Our ESG agenda continues to advance. We published our 1st integrated report, our main tool to report environmental, social and governance indicators with the results achieved in material topics selected after consulting with our key stakeholders. We believe that part of our responsibility to create value involves building relationships with our stakeholders that are based on trust and guided by transparency and accountability.
In the governance aspect, the company obtained the International Anti Bribery Certification, ISO 37,001, which attests that the company's ethics program integrity system is capable of preventing, addressing and identifying bribery practices. Still on the topic of ESG, EcoRod Ovieso's stocks included the B3's Carbon Efficient Index for the 2nd consecutive 4 month period, an important recognition for companies with transparent practices regarding their carbon emissions. The emissions of the year 2020 were offset amounting to more than 32,000 tons of CO2. The emissions were offset by acquiring carbon credits from 3 projects: Renewable Energy Generation from Methane Gas at a Landfill, Wind Power Generation and the Projects Reducing Emissions from Forest Degradation in the Amazon Region. In May, Ecovias dos Imigranches issued BRL600 1,000,000 in debentures for a period of 1 year at the cost of CDI I plus 1.05 percent per year.
Moving on to operational performance on Slide 2, We can see the monthly traffic performance and comparable toll traffic until April 30, 2021. When we look at comparable traffic, we see a 9% increase year on year and a reduction of only 3.5% when compared to 2019. Compared with the 4th quarter, We see on Slide 3 that the variation of consolidated traffic of equivalent pay and vehicles posted an increase of 10.2%. Excluding the start of operations at Ecovias do Serrado, Consolidated traffic was up 2.8% in the period due to the increase in traffic of heavy vehicles, resulting mainly from the increase in soybean exports, influenced by the weaker Brazilian real. On Slide 4, we can see the monthly traffic variation in the Q1 of 2021.
This decline in light vehicle traffic in the Q1 of 2021 is due to the social distancing measures adopted by states and cities to combat COVID-nineteen starting from the second half of March twenty twenty and to the suspension of the optional extended holiday in 2021 due to the cancellation of Carnival celebrations. There was a fast recovery of comparable heavy vehicle traffic throughout the quarter, as shown in the chart, especially in March, with a 16.9% increase due to the increase in Sports of Agricultural Commodities influenced by the weaker Brazilian real. As for the group's consolidated financial performance, we show on Slide 5 our net revenue, excluding construction revenue, which was up 8.9% this quarter and net revenue of highway concessions increased 6.4% in the period. Moving on to Slide 6. Adjusted cash costs amounted to BRL247.2 million, an increase of 4.3%, below the inflation of 6.1% in the period.
Pro form a EBITDA amounted to BRL575.4 million in the first quarter, 8.5% higher than in the Q1 of 2020 with a margin of 68.8%. The concessions, Equivias do immigrants, Eco 101, Eco Ponte, Eco 135 and Eco050 presented an increase in EBITDA due to the increase in exports of agricultural commodities and the pulp cycle at Eco 101's region. The EBITDA of the other concessions suffered the impact of traffic reduction due to the restriction measures adopted to combat COVID-nineteen. On Slide 7, we present the evolution of net income in the Q1 of 2021 with an 11.9% decrease. Net income suffered the negative impact of the higher depreciation on account of the updated traffic curve for amortizing intangible assets, the termination of concession agreements at ECCO via Camino do Mar and ECCO Cattaratas in November 2021 the start of toll collection by Ecoviras do Cerrado and the financial result due mainly to monetary variation on the concession fee of Eco135 and debentures.
As for investments on Slide 8, CapEx in the Q1 of 2021 reached BRL223 million, with particular notice to the investments in road widening at ECCO 50 and ECCO 101. On Slide 9, we closed the quarter with net debt of BRL6.9 billion, stable visavisheprevious quarter. And the net debt over pro form a EBITDA indicator was 3.3x. Moving on to Slide 10. We closed the quarter with cash balance of approximately BRL1.7 billion, which together with future cash generation, makes us comfortable with the group's financial capacity.
On Slides 11 to 13, we present the main ESG indicators. In order to strengthen EcoRodOVIA's financial and competitive situation, shareholders signed a dissociation agreement that included, among other events, capitalization of the company that will enable the search for investment opportunities in the Brazilian Highway Market. The company is currently studying Federal Concession BR 116-101 Dutra, the Sao Paulo Coast Patch by the State of Sao Paulo's Government and the Federal Concessions in Parana. Before we close, we would like to inform that we continue to take preventive and mitigation measures to minimize as much as possible the impacts of the pandemic on the safety of our employees, users and service providers and to the continuity of the company's business. This concludes our presentation.
We would like to move on to the questions and answer session. Operator, we are ready for the questions from our analysts and investors. Thank you. Thank you. We will now begin the question and answer session for Investors and We ask that you use the handset when asking the question in order to maintain excellent sound quality.
Please stand by while we collect the questions. Our first question, Vitor Mizusaki, Bradesco BBI. Good morning. I have two questions. The first on the results of the Q1, when we look at the breakdown of highways, You talk about the cost increase in 3rd party services related to consulting Services, I'd like you to talk a little bit more if this is a recurring cost or if the consulting services will generate future efficiency gains and if you can quantify that?
And my second question about some of the projects, If you can talk about the Sao Paulo VR 153, how we can see that for the end of the year. Good morning, Victor. Thank you for the question. About the consulting services that are the services of EcoConstruzsoins that provides engineering automation services and other administration services for the concessions. There are intercompany costs And the breakdown of the concessions, that's where they are.
Their margin adjustments, But in only these costs, you see that the costs are actually increasing. It's an adjustment of the split between the concessions and Eco Construcioins. About the new opportunity, We won 153. We're in the obligation process, and we're looking at the main projects That will come Dutra and the Sao Paulo Coast. We enter 153 with a financial partner to reduce a little bit of the equity We're monitoring cash generation and investments.
I believe the company has the capacity to enter these new projects, always maintaining a comfortable balance situation. We announced in a material fact the furlong possibilities also on the table. So We have means to plan and continue believing in winning projects. Thank you. Next question, Andressa Varuto, Banco UBS.
Good morning, Andre and Ghedotti. One question about the timing of the bids or the offer, what you expect for this year? And what do you think can help deleverage for 2021, 'twenty two? Andresa, hello. Thank you for your question.
About the follow on, We have a material fact on the stages of the controlling shareholders' actions. So the company is monitoring it and preparing, but there's no decision made. But we will have this information, potentially September this year, about the leverage for 'twenty one, 'twenty two that will depend On all the follow on and the and winning our projects Eventually, it maintains stable with the 153 should remain stable and the new projects for 'twenty two. We'll see what's going to come and when and what projects to get to a possible leverage level for 'twenty two. In 'twenty one, I would say that except for 153, it should remain stable.
Good morning. Two questions. First, about the possible rebalancing of COVID with the discussions at the federal level and the state levels. It's something that we can see on the very short term. And the second question is an update about a possible project with the bridge tunnel at the Santos Port, how this discussion is going on with the government.
Thank you, Guilherme, about the COVID rebalancing in the federal and state levels. We're moving along and with the numbers and the protocols of the letters and beginning discussions. So in all levels, the developments are running at the same timing, but it's a discussion that will take place over the next few months. It's Important to have this negotiation and this desire to proceed with the rebalancing. What we need To do is the calculation and the letters, and we'll close the methodology.
ANTT is defining the methodology that it's going to use, but it's a discussion that's starting and going well. We don't for C and E surprises. It's as expected. About the project, Erekovias, The bridge between the two margins of the Santos Port, There's no news at this point. We're having discussions with the government for the investments.
It's an investment that needs to be used on the level of the federal government. Ecovid Villas and Ecovid Villas have been doing their role, improving the projects and working on them, but there is nothing new so far. We're still waiting. Murillo Scarborough, Bank of America. I have two questions.
About the results, we see the company in the last quarters has been working strongly on operating costs, even though the macro scenario is challenging with the COVID. And We look at margin, it's almost stable. Comparable cash costs, up 4%, I think. So I'd like to know in those today's cost structure, is there any measure, a temporary salary reduction, the basis for comparable and recurring, we can assume that the company is being able to maintain margins at a challenging scenario. And the second question is a follow-up, I think Guilherme asked.
Some of the assets that the government plans for this year are rebids of existing assets, both Dutra and the competitive bids and the integration ring at Parana, EcoVias and Eco Parana, trico cataratas that are under your concession. But what's your view of the time line for this bidding process? If you expect an extension on the concession terms because it seems to be very short notice the government should be able to run the bids and work on these assets by the end of this year. Those are the two questions we have on our side. Murilo, good morning.
About operating costs and margins, I'd say It's quite normalized in terms of operating costs and What we're trying now internally is to work seriously on the quality of costs and how the resources are being used and actions to improve processes and innovate so that constantly over the next few years, we can Be efficient and maintain our margin. It's not EcoRodofiez is proposing the increased efficiency in the next years and looking at The cost of applications and technology solutions, innovation, processes review, it's something that is ongoing. It's continuously happening. So we intend to maintain always within the limit of that operating costs and efficient. About the rebids, we follow the Government's programs and everything indicates that things are moving along well.
There may be some delay, and Parana, I agree with you. We're still experiencing the pandemic. So our contracts expire in November 2021. And at this time, there's No different information. The government of Parana and the federal government will decide how to proceed.
Good morning. One question. If you can talk quickly about Ecovia do Serrado, How the asset's been performing is regarding your expectation? And what can we expect in terms of margin evolution for this specific asset. Gabriel will Being positively surprised with the highways In Dominas and Ecovias do Serrado, it's going well.
We're happy And it's normal that now in the beginning of our work, the widening works that was expected in our business plan. In time, this will bring even more traffic. So it will depend on the pace of investment and EBITDA since we already have the widening work, but it will bring better margins. But traffic started at a very good level. A question from the webcast by Roberta Vezziani, Citi.
Hello. Any news for the Ecoporto and Santos? How are the long term initiatives for operational improvements at Ecoporto? Ecoporto is going well. It's almost at a record.
It's an asset that we've been operating for some time. We had many rounds of improvements. It's an asset that is doing very well at this time. It's an atypical moment, but it's performing well. And we'll see it goes until 'twenty 3, but Ecovillias has been maintaining it operational at the best value possible, but it's going well.
We're pleased. We can close the questions and answer session at this time. I would like to turn over to Andrea Fernandez for her closing remarks. EcoRodOVIA's conference call is now closed. Thank you very much for your participation, and we wish you a very good day.