Brazil's Cosan posts loss as Raizen unit builds sugar stocks
SAO PAULO Nov 11 (Reuters) - Brazil's Cosan SA Industria e Comercio, a diversified energy and logistics company, posted a loss in the third quarter as its Raízen joint venture with Royal Dutch Shell PLC consumed cash to build sugar and ethanol stocks, the company said on Wednesday.
Cosan lost of 13.3 million reais ($3.53 million) in the quarter ending Sept 30, compared with a profit of 15.2 million reais a year earlier.
Cosan, which owns Raízen in a 50-50 joint venture with Shell, said net revenue, or total sales minus sales taxes, rose 14 percent to 11.44 billion reais. Raízen is the world's largest sugar-cane processor.
Earnings before interest, taxes depreciation and amortization, a measure of cash flow known as EBITDA, rose 1.7 percent, to 991.8 million reais.
Raízen is the top sugar exporting company in the world and ranks among the three largest fuel distributors in Brazil.
Besides its 50 percent share of Raízen, Cosan controls Comgás, Brazil's largest natural gas distributor, and Rumo Logística, one of the largest rail-freight companies.
"The third quarter of the year (the second of crop year) is typically marked by cash burn at Raízen Energia due to the inventory building strategy," said Cosan in a securities filling.
Sugar and ethanol companies that can afford it usually build stocks during the peak of the cane processing period to sell the products later in the year when lower supplies drive up prices.
Cosan said Raízen's cane crush was affected by unusually heavy rains during the third quarter, resulting in a total processed volume or 24.9 million tonnes, 0.9 percent less than a year earlier. Continuación...