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Risks and Financial Instruments (Tables) | 12 Months Ended
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Dec. 31, 2023
Disclosure of detailed information about financial instruments [abstract] |
Assets and liabilities in foreign currencies |
| 12/31/2023 |  |  | 12/31/2022 |
Assets in foreign currency |  |  |  |  |
Cash, cash equivalents and financial investments in foreign currency (except hedging instruments) | 371,474 |  |  | 311,017 |
Foreign trade receivables, net of allowance for expected credit losses | 84,855 |  |  | 6,131 |
Other receivables | 715,877 |  |  | 727,057 |
Other assets of foreign subsidiaries | 152,393 |  |  | 280,738 |
| 1,324,599 |  |  | 1,324,943 |
Liabilities in foreign currency |  |  |  |  |
Financing in foreign currency, gross of transaction costs and negative goodwill of notes in the foreign market (1) | (5,297,013 | ) |  | (5,213,100 | )
Payables arising from imports | (1,730,426 | ) |  | (1,939,984 | )
| (7,027,439 | ) |  | (7,153,084 | )
Balance (gross) of foreign currency hedging instruments | 5,309,125 |  |  | 5,274,302 |
Net liability position - total | (393,715 | ) |  | (553,839 | )
Net liability position - effect on statement of income | (382,858 | ) |  | (553,839 | )
Net liability position - effect on equity | (10,857 | ) |  | - |
(1) | As of December 31, 2023, the amount of negative goodwill of notes in the foreign market was R$ 8,107 (R$ 10,968 as of December 31, 2022).
Sensitivity analysis of assets and liabilities in foreign currency | The table below shows the effects of the exchange rate changes on the net liability position of R$ 393,715 in foreign currency as of December 31, 2023:
| Risk |  |  | Probable Scenario |
Effect on statement of income | Real devaluation |  |  | (7,935 | )
Effect on equity | Real devaluation |  |  | (225 | )
| Net effect |  |  | (8,160 | )
Effect on statement of income | Real appreciation |  |  | 7,935 |
Effect on equity | Real appreciation |  |  | 225 |
| Net effect |  |  | 8,160 |
(*) Average US dollar on December 31, 2023, according to benchmark rates as published by B3.
Financial assets and liabilities exposed to floating interest rates | The financial assets and liabilities exposed to floating interest rates are demonstrated below:
| Note | 12/31/2023 |  |  | 12/31/2022 |
DI |  |  |  |  |  |
Cash equivalents | 4.a | 5,476,726 |  |  | 5,204,766 |
Financial investments | 4.b | 82,592 |  |  | 406,683 |
Trade receivables - sale of subsidiaries | 5.c | 208,487 |  |  | 369,508 |
Loans and debentures | 15 | (1,242,524 | ) |  | (2,460,698 | )
Liability position of foreign exchange hedging instruments - DI | 26.g | (4,629,475 | ) |  | (2,651,609 | )
Liability position of fixed interest instruments + IPCA - DI | 26.g | (3,938,201 | ) |  | (3,416,868 | )
Net liability position in DI |  | (4,042,395 | ) |  | (2,548,218 | )
TJLP |  |  |  |  |  |
Loans – TJLP | 15 | (1,264 | ) |  | - |
Net liability position in TJLP |  | (1,264 | ) |  | - |
Total net liability position exposed to floating interest |  | (4,043,659 | ) |  | (2,548,218 | )
Sensitivity analysis of floating interest rate risk | The tables below show the incremental expenses and income that would be recognized in finance income, if the market curves of floating interest at the base date were applied to the average balances of the current year, due to the effect of floating interest rate.
|  |  |  | 12/31/2023 |
Exposure to floating interest | Risk |  |  | Probable Scenario |
Effect on interest of cash equivalents and financial investments | Decrease in DI (i) |  |  | (774 | )
Effect on interest of debt in DI | Decrease in DI (i) |  |  | 17,516 |
Effect on income of short positions in DI of debt hedging instruments | Decrease in DI (i) |  |  | 123,687 |
Incremental revenues/(expenses) |  |  |  | 140,429 |
Effect on interest of debt in TJLP | TJLP decrease |  |  | 7 |
Incremental expenses |  |  |  | 7 |
(i) | The annual base rate used was 13.04% and the sensitivity rate was 10.82% according to reference rates made available by B 3, proportional to the 12 months period to sensitivity analysis.
Summary of credit risk of financial institution and government of cash, cash equivalents and financial investments | The credit risk of financial institutions and governments related to cash and cash equivalents, financial investments and derivative financial instruments, by counterparty rating, is summarized below:
|  | Fair value |
Counterparty credit rating |  | 12/31/2023 |  |  | 12/31/2022 |
AAA |  | 6,714,493 |  |  | 5,720,996 |
AA |  | 408,375 |  |  | 809,583 |
A |  | 464 |  |  | 3,457 |
Others (*) |  | 47,231 |  |  | 50,926 |
Total |  | 7,170,563 |  |  | 6,584,962 |
(*) Refers substantially to investments as minority interest, which are classified as long term investments.
Loss allowance for expected credit losses balances on trade receivables | The Company’s subsidiaries request guarantees related to trade receivables and other receivables in specific situations to customers. The Company’s subsidiaries maintained the following allowance for expected credit losses from its trade receivables and reseller financing:
| 12/31/2023 |  |  | 12/31/2022 |
Ipiranga | 350,375 |  |  | 373,514 |
Ultragaz | 116,583 |  |  | 120,076 |
Ultracargo | 1,301 |  |  | 2,450 |
Others | 591 |  |  | ‐ |
Total | 468,850 |  |  | 496,040 |
Credit risk exposure | The table below presents information on credit risk exposure, resulting from balances of trade receivables and reseller financing:
| 12/31/2023 |  |  | 12/31/2022 |
| Weighted average rate of losses |  |  | Accounting balance |  |  | Allowance for expected credit losses |  |  | Weighted average rate of losses |  |  | Accounting balance |  |  | Allowance for expected credit losses |
Current | 0.5% |  |  | 4,412,278 |  |  | 24,131 |  |  | 0.5% |  |  | 4,756,388 |  |  | 22,752 |
Less than 30 days | 17.6% |  |  | 61,451 |  |  | 4,683 |  |  | 7.5% |  |  | 29,817 |  |  | 2,230 |
31-60 days | 4.9% |  |  | 57,753 |  |  | 2,841 |  |  | 11.1% |  |  | 22,633 |  |  | 2,516 |
61-90 days | 15.3% |  |  | 23,845 |  |  | 3,646 |  |  | 26.5% |  |  | 32,522 |  |  | 8,617 |
91-180 days | 32.9% |  |  | 47,430 |  |  | 15,609 |  |  | 34.4% |  |  | 58,529 |  |  | 20,159 |
More than 180 days | 48.8% |  |  | 856,602 |  |  | 417,940 |  |  | 50.7% |  |  | 868,072 |  |  | 439,766 |
|  |  |  | 5,459,359 |  |  | 468,850 |  |  |  |  |  | 5,767,961 |  |  | 496,040 |
Summary of loss allowance for expected credit losses balances by geographic area | The information on allowance for expected credit losses balances by geographic area is as follows:
| 12/31/2023 |  |  | 12/31/2022 |
Brazil | 467,545 |  |  | 495,929 |
United States of America and Canada | 9 |  |  | 61 |
Other Latin American countries | 40 |  |  | 31 |
Europe | 425 |  |  | 5 |
Others | 831 |  |  | 14 |
| 468,850 |  |  | 496,040 |
Positions of derivative financial instruments to hedge commodity price risk | The table below shows the sensitivity analysis and positions of derivative financial instruments to hedge commodity price risk as of December 31, 2023 and December 31, 2022:
Derivative |  | Contract |  | Notional amount (m 3) |  |  | Notional amount (USD thousand) |  |  | Fair value (R$ thousand) |  |  | Possible scenario (∆ of 10% - R$ thousand) |
|  | Position |  | Product |  | Maturity |  | 12/31/2023 |  |  | 12/31/2022 |  |  | 12/31/2023 |  |  | 12/31/2022 |  |  | 12/31/2023 |  |  | 12/31/2022 |  |  | 12/31/2023 |  |  | 12/31/2022 |
Commodity Forward |  | Sold |  | Heating Oil |  | Feb-24 |  | 189,113 |  |  | 158,828 |  |  | 131,473 |  |  | 150,498 |  |  | 21,918 |  |  | (52,214 | ) |  | (2,308 | ) |  | (124,293 | )
Commodity Forward |  | Sold |  | RBOB |  | Feb-24 |  | 6,677 |  |  | 52,466 |  |  | 3,807 |  |  | 31,382 |  |  | 440 |  |  | (15,481 | ) |  | (11 | ) |  | (33,404 | )
Commodity Forward |  | Sold |  | Soybean Oil |  | Mar-24 |  | 1,951 |  |  | - |  |  | 2,977 |  |  | - |  |  | (52 | ) |  | - |  |  | 22 |  |  | - |
Commodity Forward |  | Sold |  | Sea Freight |  | Jan-24 |  | 40,000 |  |  | - |  |  | 1,533 |  |  | - |  |  | (1,505 | ) |  | - |  |  | 3,428 |  |  | - |
Commodity Forward |  | Sold |  | Marine Fuel |  | Mar-24 |  | 1,727 |  |  | - |  |  | 8,231 |  |  | - |  |  | (99 | ) |  | - |  |  | 1,532 |  |  | - |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 20,702 |  |  | (67,695 | ) |  | 2,663 |  |  | (157,697 | )
Contractual undiscounted cash outflows | The table below presents a summary of financial liabilities and leases payable as of December 31, 2023 by the Company and its subsidiaries, listed by maturity. The amounts disclosed in this table are the contractual undiscounted cash flows, and, therefore, these amounts may be different from the amounts disclosed in the statement of financial position.
| Total |  |  | Less than 1 year |  |  | Between 1 and 3 years |  |  | Between 3 and 5 years |  |  | More than 5 years |
Loans, including future contractual interest (1) (2) | 13,410,042 |  |  | 2,363,334 |  |  | 4,870,579 |  |  | 3,257,994 |  |  | 2,918,135 |
Derivative financial instruments (3) | 1,874,134 |  |  | 673,031 |  |  | 752,126 |  |  | 387,637 |  |  | 61,340 |
Trade payables | 4,682,671 |  |  | 4,682,671 |  |  | ‐ |  |  | ‐ |  |  | ‐ |
Trade payables - reverse factoring | 1,039,366 |  |  | 1,039,366 |  |  | - |  |  | - |  |  | - |
Leases payable | 2,309,776 |  |  | 418,450 |  |  | 549,950 |  |  | 337,721 |  |  | 1,003,655 |
Financial liabilities of customers | 362,581 |  |  | 18,670 |  |  | 343,911 |  |  | - |  |  | ‐ |
Contingent consideration | 112,196 |  |  | ‐ |  |  | ‐ |  |  | 112,196 |  |  | ‐ |
Other payables | 190,090 |  |  | 176,813 |  |  | 11,409 |  |  | 1,868 |  |  | - |
(1) | The interest on loans was estimated based on the US dollar futures contracts, Yen futures contracts, Euro futures contracts and on the future yield curves of the DI x fixed rate and DI x IPCA contracts, quoted on B 3 as of December 31, 2023.
(2) | Includes estimated interest on short-term and long-term loans until the contractually foreseen payment date.
(3) | The derivative financial instruments were estimated based on the US dollar futures contracts and the future yield curves of the DI x fixed rate and DI x IPCA contracts, quoted on B3 as of December 31, 2023. In the table above, only the hedging instruments with negative results at the time of settlement were considered.
Schedule of leverage ratio at the end of the year | The leverage ratio at the end of the year is as follows:
| 12/31/2023 |  |  | 12/31/2022 |
Gross debt (a) | 13,291,951 |  |  | 13,274,130 |
Cash, cash equivalents, and short-term investments (b) | 7,170,563 |  |  | 6,584,962 |
Net debt = (a) - (b) | 6,121,388 |  |  | 6,689,168 |
Equity | 14,029,826 |  |  | 12,174,968 |
Net debt-to-equity ratio | 43.63% |  |  | 54.94% |
Position of hedging instruments | The table below summarizes the gross balance of the position of hedging instruments contracted as well as of the gains (losses) that affect the equity and the statement of income of the Company and its subsidiaries:
Derivatives designated as hedge accounting |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product |  | Hedged object |  | Contracted rates |  | Maturity |  | Note |  | Notional amount1 |  |  | Fair value as of 12/31/2023 |  |  | Gains (losses) as of 12/31/2023 |
|  |  |  | Assets | Liabilities |  |  |  |  |  | 12/31/2023 |  |  | Assets |  |  | Liabilities |  |  | Income Statement |  |  | Equity |
Foreign exchange swap |  | Financing |  | USD + 0.00% | 53.60% of DI |  | Oct-26 |  | 26.h.2 |  | USD 234,000 |  |  | - |  |  | (106,657 | ) |  | (145,949 | ) |  | (10,857 | )
Foreign exchange swap |  | Financing |  | USD + 5.47% | 110.02% of DI |  | Sept-25 |  | 26.h.1 |  | USD 206,067 |  |  | - |  |  | (119,094 | ) |  | (223,555 | ) |  | - |
Foreign exchange swap |  | Financing |  | EUR + 5.12% | 111.93% of DI |  | Jan-24 |  | 26.h.1 |  | EUR 22,480 |  |  | - |  |  | (22,529 | ) |  | (23,304 | ) |  | - |
Foreign exchange swap |  | Financing |  | JPY + 1.50% | 109.40% of DI |  | Mar-25 |  | 26.h.1 |  | JPY12,564,393 |  |  | - |  |  | (120,746 | ) |  | (130,726 | ) |  | - |
Interest rate swap |  | Financing |  | IPCA + 5.03% | 102.87% of DI |  | Jun-32 |  | 26.h.1 |  | BRL 3,226,054 |  |  | 598,311 |  |  | - |  |  | 260,301 |  |  | - |
Interest rate swap |  | Financing |  | 10.48% | 103.64% of DI |  | Jun-27 |  | 26.h.1 |  | BRL 615,791 |  |  | 12,515 |  |  | (3,182 | ) |  | 10,694 |  |  | - |
Commodity Forward |  | Firm commitments |  | BRL | Heating Oil/ RBOB |  | Jan-24 |  | 26.h.1 |  | USD 129,894 |  |  | 22,343 |  |  | (854 | ) |  | (50,977 | ) |  | - |
NDF |  | Firm commitments |  | BRL | USD |  | Feb-24 |  | 26.h.1 |  | USD 211,179 |  |  | 3,959 |  |  | (833 | ) |  | 19,012 |  |  | - |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 637,128 |  |  | (373,895 | ) |  | (284,504 | ) |  | (10,857 | )
Product |  | Hedged object |  | Contracted rates |  | Maturity |  | Note |  | Notional amount1 |  |  | Fair value as of 12/31/2022 |  |  | Gains (losses) as of 12/31/2022 |
|  |  |  | Assets | Liabilities |  |  |  |  |  | 12/31/2022 |  |  | Assets |  |  | Liabilities |  |  | Income Statement |  |  | Equity |
Foreign exchange swap |  | Financing |  | USD + 4.95% | 106.67% of DI |  | Sept-25 |  | 26.h.1 |  | USD 221,339 |  |  | 106,550 |  |  | (9,243 | ) |  | (121,296 | ) |  | - |
Foreign exchange swap |  | Financing |  | EUR + 3.42% | 111.60% of DI |  | Mar-23 |  | 26.h.1 |  | EUR 9,709 |  |  | 1,954 |  |  | - |  |  | 2,573 |  |  | - |
Foreign exchange swap |  | Financing |  | USD + LIBOR-3M + 1.14% | 105.00% of DI |  | - |  | 26.h.1 |  | - |  |  | - |  |  | - |  |  | (21,566 | ) |  | - |
Interest rate swap |  | Financing |  | IPCA + 5.03% | 102.87% of DI |  | Jun-32 |  | 26.h.1 |  | BRL 3,226,054 |  |  | 173,741 |  |  | (59,789 | ) |  | (143,762 | ) |  | - |
Interest rate swap |  | Financing |  | 6.47% | 99.94% of DI |  | Nov-24 |  | 26.h.1 |  | BRL 90,000 |  |  | - |  |  | (9,513 | ) |  | (5,069 | ) |  | - |
Commodity Forward |  | Firm commitments |  | BRL | Heating Oil/ RBOB |  | Jul-23 |  | 26.h.1 |  | USD 181,880 |  |  | 2,936 |  |  | (70,630 | ) |  | (944,896 | ) |  | - |
NDF |  | Firm commitments |  | BRL | USD |  | Jan-23 |  | 26.h.1 |  | USD 127,233 |  |  | 4,712 |  |  | (3,074 | ) |  | 53,672 |  |  | - |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 289,893 |  |  | (152,249 | ) |  | (1,180,344 | ) |  | - |
Product |  | Hedged object |  | Contracted rates |  | Maturity |  | Note |  | Notional amount1 |  |  | Gains (losses) as of 12/31/2021 |
|  |  |  | Assets | Liabilities |  |  |  |  |  |  | 12/31/2021 |  |  | Income Statement |  |  | Equity |
Foreign exchange swap |  | Financing |  | USD + 4.65 | 104.87% DI |  | Sept-23 |  |  | 26.h.1 |  | 125,000 |  |  | 11,712 |  |  | - |
Foreign exchange swap |  | Financing |  | USD + LIBOR-3M | 105.00% DI |  | Jun-22 |  |  | 26.h.1 |  | 50,000 |  |  | 10,779 |  |  | - |
Interest rate swap |  | Financing |  | 4.59% + IPCA | 102.00% DI |  | Sept-28 |  |  | 26.h.1 |  | 2,226,054 |  |  | (17,922 | ) |  | - |
Interest rate swap |  | Financing |  | 6.47% | 99.94% DI |  | Nov-24 |  |  | 26.h.1 |  | 90,000 |  |  | (10,088 | ) |  | - |
Term |  | Firm commitments |  | BRL | Heating Oil/ RBOB |  | Jan-22 |  |  | 26.h.1 |  | 120,260 |  |  | (130,773 | ) |  | - |
NDF |  | Firm commitments |  | BRL | USD |  | Jan-22 |  |  | 26.h.1 |  | 68,361 |  |  | 813 |  |  | - |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | (135,479 | ) |  | - |
Derivatives not designated as hedge accounting |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Product |  | Hedged object |  | Contracted rates |  | Maturity |  | Notional amount1 |  |  | Fair value as of 12/31/2023 |  |  | Gains (losses) as of 12/31/2023 |
|  |  |  | Assets | Liabilities |  |  |  | 12/31/2023 |  |  | Assets |  |  | Liabilities |  |  | Income Statement |  |  | Equity |
Foreign exchange swap |  | Financing |  | USD + 0.00% | 52.99% of CDI |  | Jun-29 |  | USD 375,000 |  |  | 186,925 |  |  | (45,877 | ) |  | (188,395 | ) |  | - |
NDF |  | Firm commitments |  | USD | BRL |  | Mar-24 |  | USD 457,099 |  |  | 1,468 |  |  | (8,409 | ) |  | (105,597 | ) |  | - |
Commodity forward |  | Firm commitments |  | BRL | Heating Oil/ Marine Fuel/Others |  | Mar-24 |  | USD 18,127 |  |  | 1,524 |  |  | (2,310 | ) |  | 5,489 |  |  | - |
Interest rate swap |  | Financing |  | USD + 5.25% | 1.36% of CDI |  | Jun-29 |  | USD 300,000 |  |  | - |  |  | (196,243 | ) |  | 9,257 |  |  | - |
|  |  |  |  |  |  |  |  |  |  |  | 189,917 |  |  | (252,839 | ) |  | (279,246 | ) |  | - |
Product |  | Hedged object |  | Contracted rates |  | Maturity |  | Notional amount1 |  |  | Fair value as of 12/31/2022 |  |  | Gains (losses) as of 12/31/2022 |
|  |  |  | Assets | Liabilities |  |  |  | 12/31/2022 |  |  | Assets |  |  | Liabilities |  |  | Income Statement |  |  | Equity |
Foreign exchange swap |  | Financing |  | 0.00% | 53.0% of CDI |  | Jun-29 |  | USD 375,000 |  |  | 230,145 |  |  | (9,174 | ) |  | (85,474 | ) |  | - |
NDF |  | Financing |  | USD | BRL |  | Jul-23 |  | USD1,116,702 |  |  | 36,472 |  |  | (54,067 | ) |  | (440,359 | ) |  | - |
Interest rate swap |  | Financing |  | USD + 5.25% | CDI - 1.36% |  | Jun-29 |  | USD 300,000 |  |  | - |  |  | (308,821 | ) |  | (266,445 | ) |  | - |
|  |  |  |  |  |  |  |  |  |  |  | 266,617 |  |  | (372,062 | ) |  | (792,278 | ) |  | - |
Product |  | Hedged object |  | Contracted rates |  | Maturity |  | Notional amount1 |  |  | Gains (losses) as of 12/31/2021 |
|  |  |  | Assets | Liabilities |  |  |  | 12/31/2021 |  |  | Income Statement |  |  | Equity |
NDF |  | Firm commitments |  | USD | BRL |  | Jun-22 |  | 625,762 |  |  | 54,743 |  |  | - |
Interest rate swap |  | Financing |  | 5.25% | DI - 1.36% |  | Jun-29 |  | 300,000 |  |  | (109,081 | ) |  | - |
Foreign exchange swap |  | Financing |  | 2.67% | 100.00% |  | May-21 |  | - |  |  | 17 |  |  | - |
|  |  |  |  |  |  |  |  |  |  |  | (54,321 | ) |  | - |
1 Currency as indicated. 2 Amounts, net of income tax.
Summary of foreign exchange hedging instruments designated as fair value hedge | The foreign exchange hedging instruments designated as fair value hedge are:
In thousands, except the DI % | 12/31/2023 |  |  | 12/31/2022 |  |  | 12/31/2021 |
Notional amount – US$ | 206,067 |  |  | 221,339 |  |  | 175,000 |
Result of hedging instruments - gain/(loss) - R$ | (223,555 | ) |  | (142,863 | ) |  | 21,812 |
Fair value adjustment of debt - R$ | (3,768 | ) |  | 28,000 |  |  | 47,064 |
Financial result of the debt - R$ | 117,983 |  |  | 28,291 |  |  | (105,059 | )
Average effective cost - DI % | 110 |  |  | 107 |  |  | 105 |
Notional amount – EUR | 22,480 |  |  | 9,709 |  |  | - |
Result of hedging instruments - gain/(loss) - R$ | (23,304 | ) |  | 2,573 |  |  | - |
Fair value adjustment of debt - R$ | 230 |  |  | (8 | ) |  | - |
Financial result of the debt - R$ | 2,756 |  |  | ‐ |  |  | - |
Average effective cost - DI % | 112 |  |  | 112 |  |  | - |
Notional amount – JPY | 12,564,393 |  |  | - |  |  | - |
Result of hedging instruments - gain/(loss) - R$ | (130,726 | ) |  | - |  |  | - |
Fair value adjustment of debt - R$ | (4,775 | ) |  | - |  |  | - |
Financial result of the debt - R$ | 63,670 |  |  | - |  |  | - |
Average effective cost - DI % | 109 |  |  | - |  |  | - |
The interest rate hedging instruments designated as fair value hedge are:
In thousands, except the DI % | 12/31/2023 |  |  | 12/31/2022 |  |  | 12/31/2021 |
Notional amount – R$ | 3,226,054 |  |  | 3,226,054 |  |  | 2,226,054 |
Result of hedging instruments - gain/(loss) - R$ | 262,920 |  |  | (143,762 | ) |  | (17,922 | )
Fair value adjustment of debt - R$ | (313,641 | ) |  | (44,312 | ) |  | 166,374 |
Financial result of the debt - R$ | (353,080 | ) |  | (293,955 | ) |  | (245,710 | )
Average effective cost - DI % | 102.9 |  |  | 102.9 |  |  | 102.0 |
In thousands, except the DI % | 12/31/2023 |  |  | 12/31/2022 |  |  | 12/31/2021 |
Notional amount – R$ | 615,791 |  |  | 90,000 |  |  | 90,000 |
Result of hedging instruments - gain/(loss) - R$ | 8,074 |  |  | (5,069 | ) |  | (10,088 | )
Fair value adjustment of debt - R$ | (10,163 | ) |  | (486 | ) |  | 11,756 |
Financial result of the debt - R$ | (16,637 | ) |  | (6,330 | ) |  | (5,914 | )
Average effective cost - DI % | 103.6 |  |  | 99.9 |  |  | 99.9 |
The foreign exchange hedging instruments and commodities designated as fair value hedge are as described below and are concentrated in subsidiary IPP. The objective of this relationship is to transform the cost of the imported product from fixed to variable until fuel blending, as occurs with the price adopted in its sales. IPP carries out these operations with over-the-counter derivatives that are designated in a hedge accounting relationship, as a fair value hedge in an amount equivalent to the inventories of imported product.
In thousands | 12/31/2023 |  |  | 12/31/2022 |  |  | 12/31/2021 |
Notional amount – US$ | 341,074 |  |  | 309,113 |  |  | 188,621 |
Result of hedging instruments - gain/(loss) - R$ | (62,064 | ) |  | (891,223 | ) |  | (129,670 | )
Notional amount – US$ | 61,625 |  |  | 34,126 |  |  | (4,352 | )
Fair values and the carrying values of the financial instruments | The fair values and the carrying amounts of the financial instruments, including derivative instruments and the hierarchy of fair value for each class of financial instruments, are stated below:
|  | Carrying value |  |  | Fair value |
12/31/2023 | Note | Measured at fair value through profit or loss |  |  | Measured at fair value through other comprehensive income |  |  | Measured at amortized cost |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and banks | 4.a | - |  |  | - |  |  | 125,152 |  |  | - |  |  | - |  |  | - |
Securities and funds in local currency | 4a | - |  |  | - |  |  | 5,476,726 |  |  | - |  |  | - |  |  | - |
Securities and funds in foreign currency | 4.a | - |  |  | - |  |  | 323,810 |  |  | - |  |  | - |  |  | - |
Financial investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities and funds in local currency | 4.b | 82,592 |  |  | - |  |  | - |  |  | - |  |  | 82,592 |  |  | - |
Derivative financial instruments and other financial assets | 4.b | 1,162,283 |  |  | - |  |  | - |  |  | - |  |  | 1,162,283 |  |  | - |
Trade receivables | 5.a | - |  |  | - |  |  | 4,269,473 |  |  | - |  |  | - |  |  | - |
Reseller financing | 5.b | - |  |  | - |  |  | 1,189,886 |  |  | - |  |  | - |  |  | - |
Trade receivables - sale of subsidiaries | 5.c | - |  |  | - |  |  | 924,364 |  |  | - |  |  | - |  |  | - |
Other receivables |  | - |  |  | - |  |  | 393,036 |  |  | - |  |  | - |  |  | - |
Total |  | 1,244,875 |  |  | - |  |  | 12,702,447 |  |  | - |  |  | 1,244,875 |  |  | - |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financing | 15.a | 1,584,452 |  |  | - |  |  | 4,449,857 |  |  | - |  |  | 1,584,452 |  |  | - |
Debentures | 15.a | 4,618,704 |  |  | - |  |  | 488,269 |  |  | - |  |  | 4,618,704 |  |  | - |
Foreign exchange, interest rate and commodity hedging instruments | 15.a | 626,735 |  |  | - |  |  | - |  |  | - |  |  | 626,735 |  |  | - |
Trade payables | 16.a | - |  |  | - |  |  | 4,682,671 |  |  | - |  |  | - |  |  | - |
Trade payables - reverse factoring | 16.b | - |  |  | - |  |  | 1,039,366 |  |  | - |  |  | - |  |  | - |
Subscription warrants – indemnification | 19 | 87,299 |  |  | - |  |  | - |  |  | - |  |  | 87,299 |  |  | - |
Financial liabilities of customers |  | - |  |  | - |  |  | 308,934 |  |  | - |  |  | - |  |  | - |
Contingent consideration | 28.a | 112,196 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 112,196 |
Other payables |  | - |  |  | - |  |  | 190,090 |  |  | - |  |  | - |  |  | - |
Total |  | 7,029,386 |  |  | - |  |  | 11,159,187 |  |  | - |  |  | 6,917,190 |  |  | 112,196 |
|  | Carrying value |  |  | Fair value |  |
12/31/2022 | Note | Measured at fair value through profit or loss |  |  | Measured at fair value through other comprehensive income |  |  | Measured at amortized cost |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and banks | 4.a | - |  |  | - |  |  | 111,797 |  |  | - |  |  | - |  |  | - |
Securities and funds in local currency | 4.a | - |  |  | - |  |  | 5,204,766 |  |  | - |  |  | - |  |  | - |
Securities and funds in foreign currency | 4.a | - |  |  | - |  |  | 305,206 |  |  | - |  |  | - |  |  | - |
Financial investments |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |
Securities and funds in local currency | 4.b | 406,683 |  |  | - |  |  | - |  |  | - |  |  | 406,683 |  |  | - |
Derivative financial instruments and other financial assets | 4.b | 556,510 |  |  | - |  |  | - |  |  | - |  |  | 556,510 |  |  | - |
Trade receivables | 5.a | - |  |  | - |  |  | 4,533,327 |  |  | - |  |  | - |  |  | - |
Reseller financing | 5.b | - |  |  | - |  |  | 1,234,634 |  |  | - |  |  | - |  |  | - |
Trade receivables - sale of subsidiaries | 5.c | - |  |  | - |  |  | 1,096,565 |  |  | - |  |  | - |  |  | - |
Other receivables |  | - |  |  | - |  |  | 235,586 |  |  | - |  |  | - |  |  | - |
Total |  | 963,193 |  |  | - |  |  | 12,721,881 |  |  | - |  |  | 963,193 |  |  | - |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financing | 15.a | 1,216,341 |  |  | - |  |  | 3,973,816 |  |  | - |  |  | 1,216,341 |  |  | - |
Debentures | 15.a | 3,575,195 |  |  | - |  |  | 2,460,698 |  |  | - |  |  | 5,949,028 |  |  | - |
Foreign exchange, interest rate and commodity hedging instruments | 15.a | 524,311 |  |  | - |  |  | - |  |  | - |  |  | 524,312 |  |  | - |
Trade payables | 16.a | - |  |  | - |  |  | 4,710,952 |  |  | - |  |  | - |  |  | - |
Trade payables - reverse factoring | 16.b | - |  |  | - |  |  | 2,666,894 |  |  | - |  |  | - |  |  | - |
Subscription warrants – indemnification | 19 | 42,776 |  |  | - |  |  | - |  |  | - |  |  | 42,776 |  |  | - |
Financial liabilities of customers |  | 450,586 |  |  | - |  |  | - |  |  | 450,586 |  |  | - |  |  | - |
Contingent consideration | 28.a | 89,640 |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 89,640 |
Total |  | 5,898,849 |  |  | - |  |  | 13,812,360 |  |  | 450,586 |  |  | 7,732,457 |  |  | 89,640 |

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