June 12, 2018 / 11:41 PM / a year ago

Dreyfus Brazil sugar unit 2017-18 crop ends with $342 mln loss

SAO PAULO, June 12 (Reuters) - Biosev SA, the Brazilian sugar and ethanol company controlled by commodities trader Louis Dreyfus, posted a net loss of 1.27 billion reais ($341.73 million) in the 2017-18 cane crop season, the company said on Tuesday.

The net loss widened sharply from a loss of 600 million reais in the previous crop. This is the first earnings report Biosev has released since closing two deals that boosted its capital structure and reduced its leverage.

Biosev said in March it reached a deal with banks to extend maturities on 3.7 billion reais in debt. It also said Dreyfus would inject $1 billion in the company by buying shares and increasing its controlling stake to 94 percent.

The Brazilian company said that among the main factors behind its poor annual result were a downward revision in the value of its cane fields, or biological assets, a currency-related loss of 259 million reais and depreciation/amortization of 1.49 billion reais.

Biosev posted its largest ever annual cane crush at 32.7 million tonnes, which makes it the second largest cane processor in the world only behind Brazil’s Raízen, a joint venture between Royal Dutch Shell Plc and Cosan SA Indústria e Comércio. ($1 = 3.7164 Brazilian reais) (Reporting by Marcelo Teixeira, editing by G Crosse)

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