Indústria de Biocombustíveis reported net revenue in the ethanol segment of BRL 1.050,3 million in the 2nd quarter of fiscal year 2022

FS Agrisolutions Indústria de Biocombustíveis Ltda, leader in corn ethanol production, animal nutrition and energy, reported net revenue of R$1,05 million in the ethanol segment in the 2nd quarter of fiscal year 2022 (2Q22). In addition, the company presented EBITDA (amount of resources that the company generates only in its main activities) of R$ 617 million and net profit of R$ 125 million in the same period.

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During this stage, FS processed around 834,5 thousand tons of corn, which represents an increase of 29,2% compared to 2Q21, the latter being influenced by the beginning of the expansion of the headquarters in Sorriso / MT, in February 2021.

With this expansion, the biofuel industry became capable of producing 1,4 million cubic meters of anhydrous ethanol annually. The total production of anhydrous ethanol in the quarter was 366,7 thousand cubic meters, which, in relation to the previous period, represents an increase of 32,9%.

Net revenue by segment

The net income of the ethanol totaled R$1.050,3 million in 2Q22, 158,7% higher than 2Q21. In addition, sales volumes were another highlight compared to 2Q21 – there was an increase of 32,1%, as a result of the implementation of the expansion of the Sorriso/MT plant, an event that also boosted animal nutrition.

Net revenue in this segment totaled R$305,1 million, 118,1% higher than 2Q21. The appreciation of the prices of so-called substitute products – soy and corn derivatives – together with commercial initiatives and better positioning of products, were other essential facts for the increase in prices of the animal nutrition.

At the same time, the net revenue of the corn oil totaled R$62,7 million in 2Q22, 180,9% higher than the same period of the previous year.

in the sector of energy cogeneration, the amount reached R$ 17,9 million, 189,9% higher than 2Q21. In addition, sales volume increased by 35,1% in 2Q22 compared to 2Q21 in this segment.

Plans for the sustainable expansion of FS Agrisolutions Indústria de Biocombustíveis

FS Agrisolutions announced this month that it will invest R$ 2,3 billion in its third plant de corn ethanol in the municipality of Primavera do Leste/MT, generating around 8 indirect jobs during the construction phase and 500 direct and indirect jobs during operation.

The inauguration is scheduled for 2023 and the total production capacity will be 585 million liters of ethanol/year.

FS currently owns the two largest 100% corn-based ethanol plants in Brazil, located in Lucas do Rio Verde and Sorriso, in Mato Grosso, with a production capacity of over 1,4 billion liters of ethanol per year. 

With the inauguration of the new plant in Primavera do Leste, it is likely that the biofuel industry will become one of the four largest ethanol producers in the country, with a production capacity of 2 billion liters of ethanol/year.

FS Agrisolutions' investment plans include three more industrial units by 2026, all in the state of Mato Grosso. This will make the company reach a production capacity of approximately 5 billion liters of ethanol a year.

Obtaining the Certificate Renovation

The company made six long-term commitments to the community – the FS 2030 Sustainability Commitment – ​​after obtaining certification Renovation in 2020. Such commitments have targets related to the Sustainable Development Goals of the United Nations (UN) and the Paris Agreement.

FS currently has the best Energy-Environmental Efficiency Rating (NEEA) for anhydrous ethanol and the second best for hydrous ethanol. According to the industry, it is also the only certified corn ethanol producer with the disclosure of primary data, which includes the traceability of agricultural emissions from grain suppliers and adheres to the Climate Bonds Initiative, according to the evaluation of Sustainlytics.

This year, FS announced the implementation of BECCS – Bioenergy with carbon capture and storage (Bioenergy with carbon capture and storage), with an initial investment of R$250 million and an estimate of eliminating 400 tons of carbon per year. The program will be installed at the Lucas do Rio Verde unit and the carbon injection site will be defined through geological and seismic studies.

“With the implementation, FS will be one of the few companies in the world and the first in the RenovaBio to have a negative carbon footprint. The expectation is to reach 32 million Cbios issued by 2030 with the operation of this pioneering technology in Brazil and the advancement of the expansion plan”, said the biofuels company.