BRAZIL: Biosev 2017/18 posts net loss of US$341.73 million
Published: 06/13/2018, 12:47:07 PM
Biosev SA, the Brazilian sugar and ethanol company controlled by commodities trader Louis Dreyfus, posted a net loss of BRL1.27 billion (US$341.73 million) in the 2017/18 cane crop season, the company said on Tuesday, according to Reuters.
The net loss widened sharply from a loss of BRL600 million in the previous crop. This is the first earnings report Biosev has released since closing two deals that boosted its capital structure and reduced its leverage.
Biosev said in March it reached a deal with banks to extend maturities on BRL3.7 billion in debt. It also said Dreyfus would inject US$1 billion in the company by buying shares and increasing its controlling stake to 94%.
The Brazilian company said that among the main factors behind its poor annual result were a downward revision in the value of its cane fields, or biological assets, a currency-related loss of BRL259 million and depreciation/amortization of BRL1.49 billion.
Biosev posted its largest ever annual cane crush at 32.7 million tonnes, which makes it the second largest cane processor in the world only behind Brazil's Raízen, a joint venture between Royal Dutch Shell Plc and Cosan SA Indústria e Comércio.