Brazil's Petrobras has no planned investments in ethanol, distribution with Raizen
Shares in Raizen jumped earlier in the day following a weekend report from Brazilian newspaper O Globo, which said Petrobras is exploring investment opportunities with the sugar and ethanol producer.
They closed Monday at 1.15 Brazilian reais, up 10.6% versus where they finished at the end of last week.
Raizen, a joint venture between Cosan (CSAN3.SA), opens new tab and Shell (SHEL.L), opens new tab, saw its stock plunge more than 16% last week after posting a quarterly loss amid rising net debt.
The world's biggest sugar producer is going through difficulties as it contends with soaring net debt, which was just shy of 50 billion reais ($9.2 billion) at the end of the first quarter of the 2025-2026 crop year.
Raizen executives said on Thursday that a capital injection from a potential new partner could help turn the company around, alongside divestments of certain assets.
On Friday, Cosan's Chief Executive Marcelo Martins also said that securing a new strategic partner was a potential option to improve Raizen's capital structure.
In an email to Reuters, London-listed Shell declined to comment on the matter. On Saturday, Raizen declined to comment on the reports concerning itself and Petrobras.
($1 = 5.4368 Brazilian reais)
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