Cosan reports increased ethanol production in Q2 financial report

By Erin Voegele | August 13, 2013

Cosan Ltd. and Cosan S.A. Industria E Comercio recently released financial results for the second quarter of 2013, reporting consolidated EBITDA of R$833 million ($364.92 million) and a net revenue of R$8.7 7 billion. Raizen Energia, the company’s sugar and ethanol business unit, reported a net revenue of R$1.48 billion, while Raizen Combustiveis, Cosan’s fuel distribution business segment, posted a net revenue of R$11.78 billion.

Raizen Energia operated 24 sugar, ethanol and energy cogeneration mills during the quarter, with a crushing capacity of 65.6 million metric tons of sugarcane per year. According to data released by Cosan, the business segment crushed 18.53 million tons of sugarcane during the quarter, up from 11.06 million metric tons during the same three-month period of last year.

During the quarter, Raizen Energia produced 595,000 cubic meters of ethanol, up from 350,000 cubic meters during the second quarter of 2012. The 595,000 cubic meters included 260,000 cubic meters of anhydrous ethanol and 335 cubic meters of hydrous ethanol. The business unit also produced 1.19 million tons of sugar during the quarter.

In its quarterly report, Cosan notes that the 2013-’13 harvest was intentionally delayed in an attempt to leave the sugarcane longer in the field to recover lost productivity. However, the beginning of the 2013-’14 crop was moved forward by most of the mills due to the quantity of available sugarcane in Central-South Brazil. According to the company, an increase in productivity coupled with a 3 percent larger area is expected to lead to higher sugarcane availability in the region. The company also notes that higher than average rainfall during the second quarter prevented many mills from performing as initially expected, resulting in long pauses in harvesting. This directly impacted the processed sugarcane volume.

Cosan reported net revenue of R$1.48 billion for the Raizen Energia business unit, up 16.9 percent year-over-year. The increase is attributed to the earlier beginning of the 2013-’14 crop compared to 2012-’13. Ethanol sales accounted for R$580.7 million of that revenue, including R$323.2 million in the domestic market and R$187.6 in the foreign market.

The Raizen Combustiveis business unit reported a net revenue of R$11.78 billion in fuel sales, of which R$372.3 million was for ethanol. Net revenue from ethanol sales increased by 24.4 percent compared to the same period of 2012.