Cosan quarterly financials show decreased ethanol production

By Erin Voegele | August 14, 2012

Cosan S.A., Brazil’s largest sugar and ethanol producer, recently released financial results its first financial quarter of the 2013, which ended June 30. Overall, the company reported a net revenue of BRL6.1 billion ($30 million), representing an 18.1 percent increase. However, net revenue associated with Cosan’s sugarcane and ethanol segment was down.

The quarterly report included information specific to Raízen Energia, Cosan’s ethanol and sugar business segment. The core business of the segment includes the production and sales of sugarcane-derived products, including raw sugar, anhydrous and hydrous ethanol, as well as activities related to energy cogneration from sugarcane bagasse.

According to Cosan, Raízen Energia operated 24 sugar, ethanol and energy cogeneration mills during the quarter, with a combined crushing capacity of 65 million metric tons per year.

The report shows that the segment produced approximately 11 million metric tons of crushed sugarcane during the quarter, representing a nearly 40 percent reduction compared to the 18 million metric tons crushed during the same period of last year.

The total recoverable sugars (TRS) rate for the quarter was 119.8 kilograms per metric ton (kg/t). This is a 3.8 percent reduction compared to the TRS level of 124.5 kg/t reported during the first financial quarter of 2012.

Regarding ethanol, Cosan reported 350,000 cubic meters (92 million gallons) of ethanol was produced during the quarter. This is a 44 percent reduction when compared to the 629,000 cubic meters produced during the same quarter of last year.

During the quarter, Cosan recorded net revenue of BRL1.3 billion for its Raízen Energia segment. This is a 22.8 percent reduction when compared to the net revenue of BRL1.6 billion posted during the first financial quarter of 2012.

Sugar sales accounted for BRL626 million, or 49.5 percent, of net revenue for the quarter. The average price for sugar was BRL1,043.2 per metric ton, which is a 10 percent increase over the first financial quarter of 2012.

Net revenue from ethanol sales was BRL383.9 million for the quarter, a 40 percent reduction from the same period of last year. However, the average price of ethanol increased by 2.3 percent compared to the first quarter of 2012, to BRL1,351.8 per cubic meter.