Cosan reports slight increase in ethanol production in Q3 results

By Erin Voegele | November 12, 2014

Brazil-based Cosan has released financial results for the third quarter, reporting a slight increase in the volume of ethanol produced despite reduced sugarcane crush volumes.

Cosan’s Raízen Energia business unit crushed 24.47 million tons of sugarcane during the quarter, down 9 percent from the 26.82 million tons crushed during the same period of 2013. The reduction is attributed to dry weather that damaged the sugarcane planting and reduced the resulting crush level.

While sugar production dropped 12 percent when compared to the third quarter of 2013, ethanol production was up 2 percent. Raízen Energia produced 903,000 cubic meters of ethanol during the quarter, up from 884,000 cubic meters during the same period of the previous year. The 903,000 cubic meters included 496,000 cubic meters of hydrous ethanol and 407,000 cubic meters of anhydrous ethanol.

The company’s Raízen Combustíveis business unit sold 590 million liters (155.86 million gallons) of ethanol during the quarter, up from 577 million liters during the third quarter of the prior year. Net revenue for ethanol increased from R$756 million ($295.03 million) during the third quarter of 2013 to R$832 million during the third quarter of 2014.

The Raízen Energia business unit reported ethanol net revenue of R$952 for the third quarter, down from R$1.52 billion during the same period of the previous year.

Overall, Cosan reported net revenue of R$10.28 billion for the quarter, up 8 percent from R$9.55 billion reported for the same period of last year. EBITDA was down 12 percent, reaching R$1.06 billion with the EBITDA margin at 10.3 percent. The company reported net income of R$15 million, down significantly from R$206 million during the same quarter of last year.