Latest news with #RaizenSA
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.
Reuters
16-07-2025
- Business
- Reuters
World's top sugar maker shuts large Brazil plant to cut debt
July 15 (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 ( opens new tab, which is controlled by Shell (SHEL.L), opens new tab and Brazilian conglomerate Cosan SA ( opens new tab, 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)
Bloomberg
12-05-2025
- Business
- Bloomberg
Brazilian Ethanol Producer Raizen Agrees to Sell Sugar Plant in Debt-Slashing Push
Raizen SA, the Brazilian ethanol producer and fuel distributor co-owned by Cosan SA and Shell Plc, has agreed to sell one of its sugar-cane processing plants as part of efforts to slash debt. Ferrari Agroindustria SA and Agromen Sementes Agricolas Ltda will pay a total 425 million reais ($75 million) for the facility in Sao Paulo state, Raizen said in a filing. The deal is pending antitrust approval.
Bloomberg
16-04-2025
- Business
- Bloomberg
Mubadala-Backed Atvos Mulls Bid for Raizen Sugar Mills
Atvos, a Brazilian ethanol and sugar producer backed by Mubadala Capital, is among companies considering bids to acquire three sugar mills from Brazil's Raizen SA, according to people familiar with the matter. Raizen, a joint-venture between Shell Plc and Cosan SA, hired Banco Itau BBA for the sale, according to one of the people. The mills are located in the Brazilian state of Mato Grosso do Sul.
Yahoo
17-02-2025
- Business
- Yahoo
Brazil's Top Sugar Maker Raizen to Sell Assets, Trim Investments
(Bloomberg) -- Brazil's largest sugar and ethanol maker Raizen SA is looking at potential asset sales and halting projects to build new plants in an effort to reduce debt after borrowing costs soared in the country. Progressive Portland Plots a Comeback Why Barcelona Bought the Building That Symbolizes Its Housing Crisis A Filmmaker's Surreal Journey Into His Own Private Winnipeg How to Build a Neurodiverse City SpaceX Bid to Turn Texas Starbase Into City Is Set for Vote in May The company, a joint-venture between Brazilian conglomerate Cosan SA and oil giant Shell Plc, is undergoing a 'profound' portfolio revision, Chief Executive Officer Nelson Gomes told analysts during an earnings call on Monday. Brazil's central bank has increased its key rate by almost three percentage points since September to try to keep inflation in check. 'The rapid increase in interest rates has brought us a considerable sense of urgency right now, so that we can take all necessary actions to bring the company back to a stable and balanced position,' Gomes said. Raizen shares have plunged about 54% over the past year. The CEO didn't disclose which assets would be offered for sale, but said the core businesses of sugar, ethanol and fuel distribution in Brazil and Argentina would remain the company's focus. Raizen is also downsizing its trading arm, Gomes added. Chief Financial Officer Rafael Bergman said the company will only go ahead with two second-generation ethanol plants that are currently under construction, and will refrain from adding new projects that had been previously planned. Raizen posted a fourth-quarter net loss of 2.6 billion reais ($456 million), compared with an average 365 million-real profit in analyst estimates compiled by Bloomberg. The company saw sugar production slump after some of its cane fields were hit by drought, and also booked a 618 million-real charge from 'certain trading operations' involving futures contracts for sugar and ethanol. Raizen's shares fell as much as 7.3% in early Sao Paulo trading on Monday, before trimming losses. The company recently saw a series of leadership changes, with CEO Nelson Gomes taking the helm at the end of 2024. The change came as the Cosan conglomerate has been making efforts to reduce leverage. Bloomberg reported in November that Raizen considered the sale of a stake in its second-generation ethanol plants. Balance sheet weaknesses and lack of clarity on a turnaround and deleveraging processes may undermine investor optimism in the short term, Itau BBA analyst Monique Greco said in a report. 'In the long term, we believe the story offers an intriguing risk-reward proposition due to the potential outcomes of its just-begun turnaround process.' The Undocumented Workers Who Helped Build Elon Musk's Texas Gigafactory The Unicorn Boom Is Over, and Startups Are Getting Desperate Japan Perfected 7-Eleven. Why Can't the US Get It Right? The NBA Has Fallen Into an Efficiency Trap How Silicon Valley Swung From Obama to Trump ©2025 Bloomberg L.P. Sign in to access your portfolio
