Latest news with #CosanSA
Yahoo
2 days ago
- Business
- Yahoo
Cosan: Q2 Earnings Snapshot
SAO PAULO SP, Brazil (AP) — SAO PAULO SP, Brazil (AP) — Cosan S.A. (CSAN) on Thursday reported a loss of $167 million in its second quarter. The Sao Paulo Sp, Brazil-based company said it had a loss of 36 cents per share. The bioethanol company posted revenue of $1.85 billion in the period. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on CSAN at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 days ago
- Business
- Bloomberg
Shell-Backed Raízen Seeks Fresh Funds as Shares Hit Record Low
A Brazilian sugar and ethanol powerhouse backed by Shell Plc is seeking fresh capital after bad bets led to a surge in debt. The shares tumbled to an all-time low on Thursday. Raízen SA, controlled by Brazil's Cosan SA and London-based Shell, is 'in active talks' for a capital injection, Chief Financial Officer Rafael Bergman told investors on an earnings call on Thursday. Shares slumped as much as 15% in Sao Paulo to just 1.02 reais (19 cents). The drop marks the biggest slump since the company went public in 2021.
Yahoo
15-07-2025
- Business
- Yahoo
World's top sugar maker shuts large Brazil plant to cut debt
By Marcelo Teixeira (Reuters) -Raizen SA, the world's largest sugar producer, said on Tuesday that it was shutting down for an indefinite period one of its largest plants in Brazil, the Santa Elisa mill, as the company continues to adopt measures to deal with a large debt load. Raizen, which is controlled by Shell and Brazilian conglomerate Cosan SA, said that as a result of the plant's closure it had entered into agreements with six sugar companies to sell 3.5 million metric tons of sugarcane that would be processed by the Santa Elisa mill. It said the sale of that sugarcane would bring in 1.045 billion reais ($188.18 million) that Raizen will use to cut its debt of over 30 billion reais. The Santa Elisa mill was a historical site for the Brazilian sugar and ethanol industry. The plant was founded 90 years ago in the main sugar belt of Ribeirao Preto, and helped consolidate Brazil's position as the world's largest sugar exporter. Its past owners were behind the political movement in the 1970s to create Brazil's ethanol program, called Proalcool, in a time when the world was struggling with record high oil prices. CEISE Br, an association of equipment makers for the sugar and ethanol industry, said the closure of Santa Elisa was worrying for the segment. "There are concerns about the impact of this action in the industry, particularly regarding ongoing contracts for maintenance, technical support and supply of equipments in the current crop," it said. Raizen sold one of its plants in May and has offered other assets to competitors in Brazil as it tries to cut debt. The company's woes happen in a moment of weak sugar prices, with benchmark raw sugar futures on the ICE exchange having hit a four-year low in June. ($1 = 5.5531 reais)
Yahoo
15-07-2025
- Business
- Yahoo
World's top sugar maker shuts large Brazil plant to cut debt
By Marcelo Teixeira (Reuters) -Raizen SA, the world's largest sugar producer, said on Tuesday that it was shutting down for an indefinite period one of its largest plants in Brazil, the Santa Elisa mill, as the company continues to adopt measures to deal with a large debt load. Raizen, which is controlled by Shell and Brazilian conglomerate Cosan SA, said that as a result of the plant's closure it had entered into agreements with six sugar companies to sell 3.5 million metric tons of sugarcane that would be processed by the Santa Elisa mill. It said the sale of that sugarcane would bring in 1.045 billion reais ($188.18 million) that Raizen will use to cut its debt of over 30 billion reais. The Santa Elisa mill was a historical site for the Brazilian sugar and ethanol industry. The plant was founded 90 years ago in the main sugar belt of Ribeirao Preto, and helped consolidate Brazil's position as the world's largest sugar exporter. Its past owners were behind the political movement in the 1970s to create Brazil's ethanol program, called Proalcool, in a time when the world was struggling with record high oil prices. CEISE Br, an association of equipment makers for the sugar and ethanol industry, said the closure of Santa Elisa was worrying for the segment. "There are concerns about the impact of this action in the industry, particularly regarding ongoing contracts for maintenance, technical support and supply of equipments in the current crop," it said. Raizen sold one of its plants in May and has offered other assets to competitors in Brazil as it tries to cut debt. The company's woes happen in a moment of weak sugar prices, with benchmark raw sugar futures on the ICE exchange having hit a four-year low in June. ($1 = 5.5531 reais) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
Cosan SA (CSAN) Q1 2025 Earnings Call Highlights: Strategic Divestments and Operational Challenges
Release Date: May 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cosan SA (NYSE:CSAN) reported a significant reduction in net debt, closing the quarter with 17.5 billion HIs, mainly due to the divestment of the Valley stake. The company received substantial dividends from Compass, reinforcing its position as a strong cash generator. Cosan SA (NYSE:CSAN) improved its interest coverage ratio to 1.2 times, positively impacted by distributions from Compass. Operational efficiency and increased average tariffs in the railway logistics segment highlight the competitiveness of Cosan SA (NYSE:CSAN)'s logistics solutions. The company successfully executed liability management, reducing costs and improving the maturity profile of its debt. Cosan SA (NYSE:CSAN) reported a net loss of 1.8 billion HIs for the quarter. The quarter was negatively impacted by a fire at the Inaur industrial complex, affecting operational results. Lower volumes in sugar operations and trading negatively impacted quarterly results. The interest coverage ratio is expected to drop in the coming quarters, indicating a need for further debt reduction. The company faces challenges in maintaining a balanced capital structure amidst ongoing divestment and restructuring efforts. Warning! GuruFocus has detected 4 Warning Signs with CSAN. Q: Could you provide an update on the capital structure and short-term divestments, particularly regarding the migration of debt to equity and the impact of lower interest rates? Also, what is the strategy for Move following the fire incident? A: (Rodrigo Araujo, CEO) After the fire, Move has focused on quickly finding alternatives to maintain volumes over margins. The company is executing risk management strategies, including relocating some operations. The focus is on restoring capacity and addressing supply issues. Regarding capital structure, we are exploring various alternatives to reduce leverage without compromising our portfolio quality. We are committed to improving our capital structure while maintaining a balanced portfolio. (Marcello Martins, CFO) We are actively seeking solutions beyond divestments and have made significant progress in improving our capital structure. We are not considering selling significant stakes in key assets like Compass or Rumo. Q: How do you view Raizen's recent performance and its operating prospects for fiscal year 2026, given the challenging sector circumstances? Also, what are the plans for liability management and preferred shares? A: (Marcello Martins, CFO) Raizen is implementing necessary changes with speed and realism. The focus is on core business efficiency and returns, with substantial divestments planned, including energy assets. We are optimistic about the impact of these divestments on deleveraging. (Rodrigo Araujo, CEO) We have been active in liability management, extending debt duration and reducing costs. We continuously monitor the preferred shares structure for fiscal efficiency and are prepared to address it as needed. Q: With the interest cover ratio potentially dropping below 1 in the second quarter, is there a sense of urgency to address this, and could it trigger any covenants? A: (Rodrigo Araujo, CEO) The interest cover ratio is not a covenant trigger but highlights the need for a healthier capital structure. We are actively exploring alternatives to reduce net debt and improve the balance. The urgency is more about achieving a balanced structure rather than covenant concerns. Q: What are the expectations for Move's CapEx in the next 1-2 years, considering the fire incident? Also, how might a capital increase at Raizen affect Cosan 9? A: (Rodrigo Araujo, CEO) We do not have a specific CapEx estimate for Move yet, as we are still assessing facility migrations. Insurance will cover a significant portion of any required CapEx. Regarding Cosan 9, there is no specific clause for capital increases at Raizen, but any structural changes may require renegotiation. Q: Given the current interest rates, will Radar ramp up land sales, and what can we expect in terms of sales volume? A: (Rodrigo Araujo, CEO) Yes, we are already increasing land sales, capturing significant value above portfolio appraisal. While we do not have a specific target, we are actively selling land to optimize our portfolio in the current interest rate environment. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
