Edgar Filing: ULTRAPAR HOLDINGS INC

01.02 - DIVIDENDS APPROVED AND/OR PAID DURING AND AFTER THE QUARTER

3 - APPROVAL

5 - BEGINNING OF PAYMENT

7 - TYPE OF SHARE

8 - AMOUNT PER SHARE

Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report Of Foreign Private Issuer

Pursuant To Rule 13a-16 Or 15d-16 Of

The Securities Exchange Act Of 1934

For the month of August, 2007

Commission File Number: 001-14950

ULTRAPAR HOLDINGS INC.

(Translation of Registrant’s Name into English)

Avenida Brigadeiro Luis Antonio, 1343, 9ºAndar

São Paulo, SP, Brazil 01317-910

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F

Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

ULTRAPAR HOLDINGS INC.

TABLE OF CONTENTS

ITEM
1.	English translation of Interim Financial Information for the three-month period Ended June 30, 2007 and Independent Accountants’ Review Report


	Ultrapar Participações S.A. Interim Financial Information for the three-month period Ended June 30, 2007 and Independent Accountants’ Review Report (A free translation of the original report in Portuguese as published in Brazil containing interim financial information prepared in accordance with accounting practices adopted in Brazil)

Independent accountant’s review report

To the Board of Directors and Shareholders

Ultrapar Participações S.A.

São Paulo - SP

We have reviewed the interim financial information (ITR) of Ultrapar Participações S.A. and the interim financial information of this Company and its subsidiaries (consolidated interim financial information) for the three-month period ended June 30, 2007, which comprises the balance sheet, the statement of income, management report and other relevant information, prepared in accordance with accounting practices adopted in Brazil and rules issued by the Brazilian Securities and Exchange Commission (CVM).

Our review was performed in accordance with review standards established by IBRACON - The Brazilian Institute of Independent Auditors and the Federal Council of Accounting, which comprised mainly: (a) inquiry and discussion with management responsible for the accounting, financial and operational areas of the Company and its subsidiaries, regarding the main criteria adopted in the preparation of the interim financial information; and (b) review of post-balance sheet information and events which may have a material effect on the financial position and the operations of the Company and its subsidiaries.

Based on our review, we are not aware of any material changes which should be made to the interim financial information described above, for them to be in accordance with the accounting practices adopted in Brazil and the regulations issued by the Brazilian Securities and Exchange Commission (CVM), specifically applicable to the preparation of interim financial information.

Our review was performed with the objective of issuing a review report on the interim financial information, as described in the first paragraph. The individual and consolidated statements of cash flows of Ultrapar Participações S.A. and its subsidiaries for the three-month period ended June 30, 2007 are supplementary information to the ITR, which are not required by the accounting practices adopted in Brazil, and have been included to facilitate additional analysis. These supplementary information were subject to the same review procedures applied to the aforementioned ITR and, in our opinion, is presented fairly, in all material respects, in relation to the ITR taken as a whole.

The interim financial information for the period ended June 30, 2006 was reviewed by other independent accountant’s, who issued an unqualified review report dated July 28, 2006. In addition, the financial statements for the year-ended December 31, 2006 were audited by those auditors, whose unqualified opinion was issued on January 31, 2007.

August 3, 2007

KPMG Auditores Independentes

CRC 2SP014428/O-6

Pedro Augusto de Melo	Alexandre Heinermann
Accountant CRC 1SP113939/O-8	Accountant CRC 1SP228175/O-0

ULTRAPAR PARTICIPAÇÕES S.A.

IDENTIFICATION

01.01 - CAPITAL COMPOSITION
Number of shares	Current quarter	Prior quarter	Same quarter in prior year
(Thousands)	06/30/2007	03/31/2007	06/30/2006
Paid-up Capital
1 - Common	49,430	49,430	49,430
2 - Preferred	31,895	31,895	31,895
3 - Total	81,325	81,325	81,325
Treasury Stock
4 - Common	7	7	7
5 - Preferred	516	206	182
6 - Total	523	213	189

(A free translation of the original report in Portuguese as published in Brazil)

ULTRAPAR PARTICIPAÇÕES S.A. AND SUBSIDIARIES

BALANCE SHEETS AS OF JUNE 30, 2007 AND MARCH 31, 2007
(In thousands of Brazilian reais - R$)

			Parent Company				Consolidated							Parent Company						Consolidated
ASSETS	Notes		06/30/2007		03/31/2007		06/30/2007		03/31/2007		LIABILITIES	Notes		06/30/2007			03/31/2007			06/30/2007			03/31/2007

CURRENT ASSETS											CURRENT LIABILITIES
Cash and banks		-		297		67		47,069		30,938	Loans and financing		15		-			-			302,728			125,391
Temporary cash investments		4		67,739		103,880		1,474,828		838,142	Debentures		15		1,004,752			303,078			1,015,263			303,078
Trade accounts receivable		5		-		-		1,260,910		383,714	Suppliers		-		970			1,019			450,745			104,438
Inventories		6		-		-		540,443		228,013	Salaries and related charges		-		78			45			105,302			66,037
Recoverable taxes		7		9,840		2,770		193,599		110,671	Taxes payable		-		52			12			51,608			21,966
Deferred income and social contribution taxes		9a.		122		264		74,504		37,880	Dividends payable		-		35,581			34,681			39,611			39,288
Dividends receivable		-		-		43,211		-		-	Income and social contribution taxes		-		-			-			36,343			1,096
Other		-		451		309		31,277		7,442	Post-retirement benefits		23b.		-			-			7,240			-
Prepaid expenses		10		1,908		560		20,474		11,113	Provision for contingencies		21a.		-			-			11,749			-
Total current assets				80,357		151,061		3,643,104		1,647,913	Deferred income and social contribution taxes		9a		-			-			208			154
											Other		-		2,949			1			30,008			2,529
											Total current liabilities				1,044,382			338,836			2,050,805			663,977

NONCURRENT ASSETS											NONCURRENT
Long-term investments		4		-		-		118,946		551,311	Long-term liabilities
Trade accounts receivable		5		-		-		157,647		18,783	Loans and financing		15		-			-			1,149,132			1,040,252
Related companies		8		85,481		110,355		42,148		8,945	Debentures		15		-			-			350,000			-
Deferred income and social contribution taxes		9a.		13,484		1,191		109,707		55,432	Related companies		8		456			33,456			4,723			4,687
Recoverable taxes		7		18,595		25,171		72,437		73,244	Deferred income and social contribution taxes		9a.		-			-			26,514			26,163
Escrow deposits		-		193		193		25,100		17,164	Provision for contingencies		21a.		-			-			88,002			31,337
Prepaid expenses		10		45		47		29,077		12,196	Post-retirement benefits		23b.		-			-			71,691			-
Other		-		-		-		8,173		1,136	Other		-		-			-			11,343			2,724
Total long-term assets				117,798		136,957		563,235		738,211	Total noncurrent liabilities				456			33,456			1,701,405			1,105,163

											MINORITY INTEREST		-		-			-			1,115,685			33,795
Permanent assets
Investments:
Subsidiary		11a.		2,417,390		2,059,335		-		-	SHAREHOLDERS’ EQUITY
Goodwill		-		411,825		-		-		-	Capital		16a.		946,034			946,034			946,034			946,034
Affiliated companies		11b.		-		-		12,242		5,185	Capital reserve		16c.		3,026			3,026			702			626
Other		-		60		60		26,615		25,475	Revaluation reserve		16d.		12,310			12,644			12,310			12,644
Property, plant and equipment		12		-		-		1,998,374		1,178,536	Profit reserves		16e.,16f.		983,230			983,230			983,230			983,230
Intangible		13		-		-		67,967		59,917	Treasury shares		16b.		(25,530	)		(6,979	)		(29,960	)		(11,556	)
Deferred charges		14		11,644		377		543,840		116,219	Retained earnings				75,166			37,543			75,166			37,543
Total permanent assets				2,840,919		2,059,772		2,649,038		1,385,332	Total shareholders’ equity				1,994,236			1,975,498			1,987,482			1,968,521

Total noncurrent assets				2,958,717		2,196,729		3,212,273		2,123,543	Total minority interest and shareholders’ equity				1,994,236			1,975,498			3,103,167			2,002,316

TOTAL ASSETS				3,039,074		2,347,790		6,855,377		3,771,456	TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY				3,039,074			2,347,790			6,855,377			3,771,456

The accompanying notes are integral part of these interim financial information

(A free translation of the original report in Portuguese as published in Brazil)

ULTRAPAR PARTICIPAÇÕES S.A. AND SUBSIDIARIES

STATEMENTS OF INCOME
FOR THE QUARTERS ENDED JUNE 30, 2007 AND 2006
(In thousands of Brazilian reais - R$, except for earnings per share)

			Parent Company						Consolidated
	Notes		06/30/07			06/30/06			06/30/07			06/30/06

GROSS SALES AND SERVICES		2a.		-			-			6,432,960			1,300,713
Deductions		-		-			-			(251,838	)		(103,375	)

NET SALES AND SERVICES				-			-			6,181,122			1,197,338
Cost of sales and services		2a.		-			-			(5,704,234	)		(960,708	)

GROSS PROFIT				-			-			476,888			236,630

EQUITY IN SUBSIDIARIES AND AFFILIATED COMPANIES		11a.,11b.		63,138			91,775			(26	)		588

OPERATING (EXPENSES) INCOME				(10,920	)		(405	)		(332,151	)		(146,770	)
Selling		-		-			-			(124,596	)		(47,573	)
General and administrative		-		(70	)		(404	)		(144,637	)		(67,780	)
Management compensation		-		-			-			(1,459	)		(1,402	)
Depreciation and amortization		-		(10,851	)		-			(65,604	)		(30,562	)
Other operating income, net		-		1			(1	)		4,145			547

INCOME FROM OPERATIONS BEFORE FINANCIAL ITEMS				52,218			91,370			144,711			90,448
Financial income (expenses), net				(27,034	)		2,296			(27,291	)		22,482
Financial income		19		2,193			13,606			37,098			40,143
Financial expenses		19		(29,227	)		(11,310	)		(64,389	)		(17,661	)

INCOME FROM OPERATIONS				25,184			93,666			117,420			112,930
Nonoperating (expenses) income, net		17		-			-			(1,127	)		(11,143	)

INCOME BEFORE TAXES ON INCOME AND
MINORITY INTEREST		-		25,184			93,666			116,293			101,787

INCOME AND SOCIAL CONTRIBUTION TAXES				12,151			(5,561	)		(28,689	)		(12,532	)
Current		9b.		-			(5,572	)		(47,689	)		(37,756	)
Benefit of tax holidays - ADENE		9b.		-			-			3,282			19,384
Deferred		9b.,9c.		12,151			11			15,718			5,840

INCOME BEFORE MINORITY INTEREST				37,335			88,105			87,604			89,255

Employees statutory interest		-		-			-			(2,816	)		-
Minority interest		-		-			-			(47,453	)		(1,150	)

NET INCOME				37,335			88,105			37,335			88,105

EARNINGS PER SHARE - R$				0.46206			1.08589			0.46206			1.08589

The accompanying notes are integral part of these interim financial information

(A free translation of the original report in Portuguese as published in Brazil)

ULTRAPAR PARTICIPAÇÕES S.A. AND SUBSIDIARIES

STATEMENTS OF INCOME

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2007 AND 2006

(In thousands of Brazilian reais - R$, except for earnings per share)

			Parent Company						Consolidated
	Notes		06/30/07			06/30/06			06/30/07			06/30/06

GROSS SALES AND SERVICES		2a.		-			-			7,725,997			2,499,693
Deductions		-		-			-			(370,762	)		(204,614	)

NET SALES AND SERVICES				-			-			7,355,235			2,295,079
Cost of sales and services		2a.		-			-			(6,655,116	)		(1,859,417	)

GROSS PROFIT				-			-			700,119			435,662

EQUITY IN SUBSIDIARIES AND AFFILIATED COMPANIES		11a.,11b.		97,045			153,870			(129	)		647

OPERATING (EXPENSES) INCOME				(10,931	)		(406	)		(488,051	)		(286,605	)
Selling		-		-			-			(177,781	)		(93,556	)
General and administrative		-		(81	)		(405	)		(214,317	)		(130,339	)
Management compensation		-		-			-			(2,612	)		(2,646	)
Depreciation and amortization		-		(10,851	)		-			(97,418	)		(61,140	)
Other operating income, net		-		1			(1	)		4,077			1,076

INCOME FROM OPERATIONS BEFORE FINANCIAL ITEMS				86,114			153,464			211,939			149,704
Financial income (expenses), net				(21,981	)		3,806			(35,137	)		34,896
Financial income		19		8,791			28,280			68,865			73,817
Financial expenses		19		(30,772	)		(24,474	)		(104,002	)		(38,921	)

INCOME FROM OPERATIONS				64,133			157,270			176,802			184,600
Nonoperating (expenses) income, net		17		-			-			(1,945	)		(13,234	)

INCOME BEFORE TAXES ON INCOME AND
MINORITY INTEREST		-		64,133			157,270			174,857			171,366

INCOME AND SOCIAL CONTRIBUTION TAXES				10,437			(6,068	)		(49,297	)		(24,185	)
Current		9b.		-			(6,150	)		(77,347	)		(66,186	)
Benefit of tax holidays - ADENE		9b.		-			-			6,084			30,753
Deferred		9b.,9c.		10,437			82			21,966			11,248

INCOME BEFORE MINORITY INTEREST				74,570			151,202			125,560			147,181

Employees statutory interest		-		-			-			(2,816	)		-
Minority interest		-		-			-			(48,174	)		(2,288	)

NET INCOME				74,570			151,202			74,570			144,893

EARNINGS PER SHARE - R$				0.92287			1.86356			0.92287			1.78580

The accompanying notes are integral part of these interim financial information

	(Amounts in thousands of Brazilian reais – R$, unless otherwise stated)

1.	OPERATIONS

	Ultrapar Participações S.A. (the “Company”), with headquarters in the city of São Paulo, invests in commercial and industrial activities, including subscription or purchase of shares of other companies with similar activities. Through its subsidiaries, the Company is engaged in the distribution of liquefied petroleum gas - LPG (Ultragaz), production and sale of chemicals (Oxiteno), and services in integrated logistics solution for special bulk (Ultracargo). After acquisition of the Ipiranga Group, in April 2007, the Company became engaged in the distribution of fuels/lubricants and related products in the South and Southeast Regions of Brazil. The Company also became engaged in oil refining (“Refinery”) through its stake in Refinaria de Petróleo Ipiranga S.A.

2.	PRESENTATION OF INTERIM FINANCIAL INFORMATION AND SIGNIFICANT ACCOUNTING PRACTICES

	The accounting practices adopted to record transactions and for the preparation of the interim financial information - ITR are those established by accounting practices derived from the Brazilian Corporation Law and the Brazilian Securities Commission (CVM).

	a)	Results of operations

		Determined on the accrual basis of accounting. Revenues from sales and respective costs are recognized when the products are delivered to the customers or services are performed, and the transfer of risks, rights and obligations associated with the ownership of products takes place.

	b)	Current and noncurrent assets

		Temporary cash and long-term investments are stated at cost, plus accrued income (on a “pro rata temporis” basis), which approximate their market value. Temporary cash investments include the results from hedges, as described in Notes 4 and 20, that management intends to hold to maturity.

		The allowance for doubtful accounts is recorded based on estimated losses and is considered sufficient by management to cover potential losses on accounts receivable.

		Inventories are stated at the lower of average cost of acquisition or production, that do not overcome the market value.

		Other assets are stated at the lower of cost or realizable values, including, when applicable, accrued income and monetary and exchange variation incurred or net of allowances for losses.

	c)	Investments

		Significant investments in subsidiaries and affiliated companies are recorded under the equity method, as shown in Note 11.

		Other investments are stated at acquisition cost, net of allowances for losses, should the losses not be considered temporary.

	d)	Property, plant and equipment

		Stated at acquisition or construction cost, including financial charges incurred on constructions in progress and include revaluation write-ups based on appraisal reports issued by independent appraisers, in accordance with item 68, letter b), of CVM Resolution No. 183/95, as well as costs related to the maintenance of significant assets during scheduled factory maintenance operations.

		Depreciation is calculated on a straight-line basis at the annual rates described in Note 12, and is based on the economic useful live of the assets.

		Leasehold improvements in gas stations are depreciated over the effective contract terms or the useful life of the assets, if shorter.

	e)	Intangible

		Stated at acquisition cost, net of allowance for losses, should the losses not be considered temporary, as shown in Note 13.

	f)	Deferred charges

		Deferred charges comprise costs incurred in the installation of Company and its subsidiaries equipment at customers’ facilities amortized over the terms of the LPG supply contracts with these customers, project expenses and goodwill on acquisition of subsidiaries, as stated in Note 14.

	g)	Current and noncurrent liabilities

		Stated at known or estimated amounts including, when applicable, accrued charges, monetary and exchange rate variations incurred until the interim financial information date.

	h)	Income and social contribution taxes on income

		Income and social contribution taxes, current and deferred (according to CVM Resolution No. 273/98) are measured on the basis of effective rates and include the benefit of tax holidays, as mentioned in Note 9.b).

	i)	Provision for contingencies

		The provision for contingencies is recorded for contingent risks with an estimated probable loss, based on the opinion of the internal and external legal advisors and administrators. Amounts are recorded based on the estimated costs and results of proceedings (see Note 21.a).

	j)	Actuarial commitment with post-retirement benefits

		Actuarial commitments with the post-retirement benefits plan granted and to be granted to employees, retired employees and pensioners (net of plan assets) are provided for based on the actuarial calculation prepared by an independent actuary in accordance with the projected credit unit method, as mentioned in Note 23.b).

	k)	Basis for translation of the interim financial information of foreign subsidiaries

		The interim financial information of foreign subsidiaries are translated into Brazilian reais at the current exchange rate in effect at the date of the interim financial information - ITR. The criteria for preparation of the interim financial information have been adapted to conform to accounting practices derived from the Brazilian Corporation Law.

	l)	Cash flow statement

		The Company is presenting the statement of cash flow as supplementary information, prepared in accordance with Accounting Standards and Procedures No. 20 (NPC) issued by IBRACON - Brazilian Institute of Independent Auditors.

	m)	Use of estimates

		The preparation of interim financial information in accordance with accounting practices derived from the Brazilian Corporation Law requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet dates and the reported amounts of revenues, costs and expenses for the years presented. Although these estimates are based on management’s best available knowledge of current and expected future events, actual results could differ from those estimates.

3.	CONSOLIDATION PRINCIPLES

	The consolidated interim financial information have been prepared in accordance with the basic consolidation principles established by accounting practices adopted in Brazil and by the Brazilian Securities Commission (CVM), and include the following direct and indirect subsidiaries:

	Ownership interest - %
	06/30/2007				03/31/2007
	Direct		Indirect		Direct		Indirect

Ultragaz Participações Ltda.		100		-		100		-
SPGás Distribuidora de Gás Ltda.		-		99		-		99
Companhia Ultragaz S.A.		-		99		-		99
Bahiana Distribuidora de Gás Ltda.		-		100		-		100
Utingás Armazenadora S.A.		-		56		-		56
LPG International Inc.		-		100		-		100
Ultracargo - Operações Logísticas e Participações Ltda.		100		-		100		-
Transultra - Armazenamento e Transporte Especializado Ltda.		-		100		-		100
Petrolog Serviços e Armazéns Gerais Ltda.		-		100		-		-
Terminal Químico de Aratu S.A. – Tequimar		-		99		-		99
Melamina Ultra S.A. Indústria Química		-		99		-		99
Oxiteno S.A. Indústria e Comércio		100		-		100		-
Oxiteno Nordeste S.A. Indústria e Comércio		-		99		-		99
Oxiteno Argentina Sociedad de Responsabilidad Ltda.		-		99		-		99
Oleoquímica Indústria e Comércio de Produtos Químicos Ltda.		-		100		-		100
Barrington S.L.		-		100		-		100
Oxiteno México S.A. de C.V.		-		100		-		100
Oxiteno Servicios Corporativos S.A. de C.V.		-		100		-		100
Oxiteno Servicios Industriales S.A. de C.V.		-		100		-		100
Oxiteno International Corp.		-		100		-		100
Oxiteno Overseas Corp.		-		100		-		100
Imaven Imóveis e Agropecuária Ltda.		100		-		100		-
Distribuidora de Produtos de Petróleo Ipiranga S.A.		32		-		-		-
Companhia Brasileira de Petróleo Ipiranga (*)		1		11		-		-
am/pm Comestíveis Ltda. (*)		-		11		-		-
Centro de Conveniências Millennium Ltda. (*)		-		11		-		-
Empresa Carioca de Produtos Químicos S.A.		-		11		-		-
Ipiranga Comercial Importadora e Exportadora Ltda.		-		11		-		-
Ipiranga Trading Limited		-		11		-		-
Tropical Transportes Ipiranga Ltda.		-		11		-		-
Ipiranga Imobiliária Ltda.		-		11		-		-
Ipiranga Logística Ltda.		-		11		-		-
Maxfácil Participações S.A. (**)		-		9		-		-
Isa-Sul Administração e Participações Ltda.		-		32		-		-
Comercial Farroupilha Ltda.		-		32		-		-
Ipiranga Administração de Bens Móveis Ltda.		-		32		-		-
Refinaria de Petróleo Ipiranga S.A. (***)		10		-		-		-

(*) As informed in the “Relevant Event” of March 19, 2007 and the “Market Announcement” of April 19, 2007, distribution of fuels/lubricants and related products of these companies are divided between Ultrapar (South and Southeast Regions of Brazil) and Petrobras (North, Northeast and Center West Regions of Brazil).

(**) Joint control among DPPI (16%), CBPI (34%) and União de Bancos Brasileiro S.A. – UNIBANCO (50%).

(***) Oil refinery operations of Refinaria de Petróleo Ipiranga S.A. are equally shared among Petrobras, Ultrapar and Braskem, and the subsidiary was proportionality consolidated in these interim financial information in accordance with Article 32 of CVM Instruction No. 247/96.

On April 18, 2007 the Company, together with Petróleo Brasileiro S.A. (“Petrobras”) and Braskem S.A. (“Braskem”), acquired the controlling interest of Ipiranga Group, as informed in “Relevant Event” published on April 19, 2007. Under the terms of the Acquisition Agreement signed by the three buyers, the Company acted as commission agent of Braskem and Petrobras, and for itself for the acquisition of the fuels/lubricants distribution and related products businesses located in the South and Southeast Regions of Brazil and Empresa Carioca de Produtos Químicos S.A. (“Ipiranga”), maintaining the brand Ipiranga. Petrobras holds the control of fuel distribution and lubricant businesses located in the North, Northeast and Center West Regions of Brazil (“North Distribution Assets”), and Braskem holds control of the petrochemical assets, represented by Ipiranga Química S.A., Ipiranga Petroquímica S.A. (IPQ) and the ownership in Copesul – Companhia Petroquímica do Sul (Copesul) (“Petrochemical Assets”).

The transaction is structured in 4 stages:

(i) acquisition of Ipiranga Group controlling interest (occurred on April 18, 2007);

(ii) tag along offering for the purchase of common shares issued by Companhia Brasileira de Petróleo Ipiranga (CBPI), Refinaria de Petróleo Ipiranga S.A. (RPI) and Distribuidora de Produtos de Petróleo Ipiranga S.A. (DPPI), which registration order was filed with CVM on May 2^nd, 2007;

(iii) merger of shares issued by CBPI, RPI and DPPI into Ultrapar; and

(iv) segregation of assets among Ultrapar, Petrobras and Braskem.

The conclusion of the transaction is forecasted to occur in the fourth quarter of 2007. In the first stage, the Company spent the net amount of R$ 676,432, Petrobras R$ 742,747 and Braskem R$ 651,928. Based on the initial balance sheet of March 31, 2007, the Company recorded a goodwill in the amount of R$ 424,680 in the first stage of the transaction, which is being amortized over 10 years starting in April 2007, based on the expected future profitability of Ipiranga.

The assets, liabilities and income of Ipiranga are reflect in the Company’s interim financial information since April, 2007, with minority interest presented separately in the consolidated interim financial information. As the Company acted as commission agent for Braskem and Petrobras, the assets acquired in for them were recorded as reduction of the amounts received in the same first stage of the transaction, not producing any effect in the Company’s interim financial information. The assets related to the operations of RPI’s oil refinery were proportionally consolidated in the Company’s interim financial information, since their control is shared equally with Petrobras and Braskem.

On April 30, 2007 subsidiary Transultra - Armazenamento e Transporte Especializado Ltda. acquired the company Petrolog Serviços e Armazéns Gerais Ltda. for the amount of R$8,083, recording goodwill in the amount of R$6,507, amortized in 10 years, based on its expected of future profitability.

Upon consolidation, intercompany investments, accounts, transactions and profits were eliminated. Minority interest in subsidiaries is presented separately in the interim financial information.

4.	TEMPORARY CASH AND LONG-TERM INVESTMENTS

	These investments, contracted with leading banks, are substantially composed of: (i) private securities issued by leading banks and fixed-income funds, all linked to the interbank deposit rate (CDI); (ii) abroad, in cash investments, in notes issued by the Austrian Government in Brazilian reais and linked to the interbank deposit rate (CDI), and in Dual Currency Deposits; and (iii) currency hedge transaction. Such investments are stated at cost plus accrued income on a “pro rata temporis” basis.

	Parent Company				Consolidated
	06/30/2007		03/31/2007		06/30/2007		03/31/2007

Austrian notes		-		-		439,197		430,326
Dual Currency Deposits (a)		-		-		248,613		540,247
Foreign investments (b) (c)		-		-		454,144		215,455
Securities and fixed-income funds in Brazil		67,739		103,880		519,190		265,404
Net expenses on hedge transaction (d)		-		-		(67,370)		(61,979)
Total		67,739		103,880		1,593,774		1,389,453

Current portion		67,739		103,880		1,474,828		838,142
Noncurrent portion		-		-		118,946		551,311

	(a)	Dual Currency Deposits are investments of the subsidiary Oxiteno Overseas Corp., whose yield can be in US dollars or Brazilian reais, depending on the US dollar rate as of the maturity date. If the US dollar rate is lower than the strike rate on the maturity date, the yield of this operation will be in US dollars plus interest of 7.5% per year; otherwise, it will be in Brazilian reais plus average interest of 16.2% per year. The subsidiary records the investment at the lower of the two alternative yields, which until June 30, 2007 was represented by the US dollar. Up to June 30, 2007 the exchange rate has always remained below the strike rate.

	(b)	Investments made by th