BRAZIL: Cosan Q2 loses lower on year at US$17.05 million
Published: 08/10/2018, 8:47:23 AM
Brazil's energy and logistics group Cosan SA Indústria e Comércio posted a quarterly net loss on Wednesday citing smaller domestic fuel sales and reduced sugar exports, according to Reuters.
Cosan, which is a partner of Royal Dutch Shell Plc in the 50-50 joint venture Raízen, the world's largest sugar producer, said in a market filing that it lost BRL64.3 million (US$17.05 million) in the second quarter, slightly smaller than the BRL76 million loss a year earlier.
The company, which also controls Brazil's largest gas distributor Comgas, said it lost BRL200 million on its fuel distribution business due to the nationwide truckers strike in May. Fuel sales fell 2% compared to 2017.
It also reported a 30% fall on sugar sales in the quarter as it has adopted a strategy to stock the sweetener and carry the product forward waiting for better market prices.
Cosan's earnings before interest, taxes, depreciation and amortization (EBITDA) were 803 million reais in the quarter, stable compared to the same period last year.
The company announced a revision downwards in its guidance for total cane crush in the 2018/19 crop, as Brazil's centre-south faces a dryer-than-normal winter.
Cosan said the Raízen unit should crush between 60 million and 63 million tonnes of cane in the crop, versus a previous forecast of 62 to 66 million tonnes.