Cosan FY 2013 results show improved ethanol revenue

By Erin Voegele | June 19, 2013

Brazil-based Cosan Ltd. and Cosan S.A. Industrial e Comercio recently results financial results for the fiscal year (FY) 2013, which ended March 31. According to information released by the company, its ethanol business Raizen crushed 56.2 million metric tons of sugarcane in FY 2013.

In a statement included in the financial results, Cosan CEO Marcos Marinho Lutz said several initiatives were implemented at Raizen during the year, many of which sought to reduce capital needs. “An example of these initiatives was the launch of a major partnership program with our sugarcane suppliers, Cultivar, to increase efficiency and the percentage of third party sugarcane in our crushing,” he said.

The Raizen Energia business unit, which focuses on the production and sale of sugarcane products, operated 24 sugar, ethanol and cogeneration mills during the fourth quarter of FY 2013, with a combined annual crushing capacity of 66 million metric tons of sugarcane. 

According to the release, the 2012/13 sugarcane crop in the central-south region of Brazil was delayed as a result of unfavorable weather conditions. However, rains that harmed harvesting operations proved good for the fields, with productivity increasing to 76 metric tons per hectare from 69 metric tons per hectare during the previous year. The final quarter of the year proved extremely favorable for harvest, Cosan said in the release. As a result, mills in the region managed to process 150 million metric tons of sugarcane by the end of the year, an increase of 92 percent compared to the prior year.

Raizen Energy recorded 56.2 million metric tons of crushed sugarcane in FY 2013, a 6.2 percent increase over the prior year. Approximately 56 percent of the crush went to sugar, with 1.9 billion liters  (501.93 million gallons) of ethanol produced.

Raizen Energia’s fourth quarter 2013 net revenue was R$2.4 billion ($1.1 billion). For all of FY 2013, net revenue reached R$8.5 billion, an increase of 16.8 percent from the year prior. The volume of ethanol sold for the year increase by 4.8 percent, with average prices up 9.5 percent. According to Cosan, the average price in the foreign market was the key driver of the growth in net revenue from ethanol sales. FY 2013 sales of ethanol in the foreign market accounted for 52 percent of total volume sold.