Raízen shares evaporate after the global leader in ethanol production buys Shell lubricants plants in Rio de Janeiro
The oil giant Shell Brasil, announced on May 2 that it concluded the sale of its lubricants division in Brazil the largest global producer of ethanol, leader in the production of sugar cane, ethanol and bioenergy in Brazil.Raízen, who saw his shares evaporate on the stock market!
The negotiation of Raízen, a joint venture between Cosan and Shell that acts as Shell's exclusive lubricant sales agent in the country, came after the expiration of a 10-year contract between the companies.
According to Shell's statement, as of May 1, 2022, the lubricants plant on Ilha do Governador, in Rio de Janeiro, the oil base in Campos Elíseos, in Duque de Caxias (RJ), the lubricants division for Shell Marine ships and the supply and distribution of lubricants in the country passed to Raízen.
The longstanding partnership between Shell and Raízen includes the retail, aviation and fuel distribution portfolios. The integration of the lubricants division into the joint venture will generate synergies between the two companies and ensure a supply of lubricants and fuels with more opportunities for decarbonization.
“With an annual production capacity of 280 m³ of lubricants, the Ilha do Governador unit is strategically located, with an exclusive pier for imports and exports. The lubricant line has innovative solutions for light and heavy vehicles, trucks and motorcycles, operating under the Shell Helix, Shell Rimula and Shell Advance brands, in addition to a complete line of products to serve the various industrial segments", says the oil company in the communicated.
After the conclusion of the transaction, the Shell brand will remain in the spotlight, through the licensing agreement with Raízen. Customers will continue to have access to Shell branded products and services.
Raízen approves construction of two ethanol plants in SP
Raízen approved the construction of the 3rd and 4th Second Generation Ethanol Plants (E2G) in the Barra and Univalem Bioenergy Parks, both in the state of São Paulo.
The announcement was made by the company yesterday (11/05). According to the ethanol giant, the investment in the construction of the plants will be R$ 2 billion, adding a capacity of 164 thousand m³ of biofuel per year.
The plants will add a capacity of 164 cubic meters of biofuel per year and should start operating in 2024.
According to the company, the expected investment already considers the current inflation and exchange rate scenario for the supply of machinery, equipment and labor.
With the new plants, Raízen will be the only producer in the world to operate four industrial-scale cellulosic ethanol plants with a total installed capacity of 280 cubic meters per year, of which 80% of the volume was sold in long-term contracts, he added. the company.
Record net profit of BRL 1,21 billion
Raízen posted a record adjusted net profit of BRL 1,21 billion in the third quarter of the 2021-2022 crop year, corresponding to the fourth quarter of 2021. The result, on a pro forma basis, easily surpassed the BRL 384 million recorded by the company in the same period of 2020. The accounting net profit reached R$ 1,4 billion.
Net operating revenue reached BRL 55,3 billion in the quarter, an increase of almost 50% in the annual comparison, and BRL 142,7 billion in the first nine months of the crop year, representing a jump of almost 60%.
O Ebitda – Adjusted earnings before interest, taxes, depreciation and amortization – totaled a record R$3,36 billion, up 5,6% year-on-year. In the nine months of the crop year, the result increased by 39,4% in the annual comparison and ended at R$ 8,92 billion.
Raízen, a joint venture between Shell and Cosan, is an integrated energy company, leader in the production of sugarcane, ethanol and bioenergy in Brazil. Raízen has 35 sugar, ethanol and bioenergy production units, 1,3 million hectares of cultivated agricultural land, a network of more than 7,3 Shell-branded service stations, 1,3 Select convenience stores and more more than 4 commercial customers in Brazil, Argentina and Paraguay.
