Adecoagro ethanol production nearly doubled in Q2

By Erin Voegele | August 22, 2013

South American agricultural company Adecoagro S.A. has released its financial results for the second quarter of 2013, reporting ethanol production increased by 85.5 percent compared to the same period of 2012.

The company reported gross sales of $192.65 million for the quarter, up 24.2 percent from the $155.12 million reported for the second quarter of last year. Total adjusted EBITDA was 41.45 million, an increase over the $29.75 million reported for same three months of 2012. Adecoagro’s sugar, ethanol and energy segment accounted for $25.84 million of the total adjusted EBITDA, an increase of 91.1 percent from the second quarter 2012 level of $13.52 million.

In the report, Adecoagro notes that despite a challenging start to the harvest caused by above average precipitation, the company crushed 1.8 million tons of sugarcane during the second quarter, up 78.1 percent from the same period of last year. Sugar, ethanol and energy production volumes all grew, with ethanol production growing by 85.5 percent.

During the second quarter, the company produced 76,581 cubic meters of ethanol, compared to 41,287 cubic meters during the same period of 2012. The most recent quarter’s production included 36,004 cubic meters of hydrous ethanol and 40,577 cubic meters of anhydrous ethanol. The production of hydrous ethanol increased 121 percent compared to the second quarter 2012 production level of 16,291 cubic meters, while anhydrous ethanol production increased by 62.3 percent compared to second quarter 2012 production of 24,996 cubic meters.

According to the company, its new mill in Ivinhema, Brazil, began the 2013/14 sugarcane harvest on April 25. The facility has 2 million tons of nominal sugarcane crushing capacity and can produce both sugar and ethanol. In the financial release, Adecoagro notes his has begun construction on the second phase of the project, which will double the crushing capacity by 2015.

The company has also increased the amount of sugarcane it cultivates. Its sugarcane plantation was expected from 76,517 hectares at the end of the second quarter of last year, to 94,214 hectares as of June 30, representing a 23.1 percent growth.