SAO PAULO, Nov 10 (Reuters) - Brazil’s Biosev SA, the sugar and ethanol unit controlled by French commodities trader Louis Dreyfus, said on Tuesday that third-quarter losses expanded more than five-fold after heavy currency-related impairments.
The world’s No. 2 sugar-cane processor recorded a net loss of 219 million reais ($58.4 million) in the three months ending Sept. 30, compared with a loss of 42 million reais in the same period a year earlier.
Company debt, mostly denominated in dollars, increased by 17 to 7.66 billion reais. A decline in the value of Brazil’s real against the U.S. dollar in the July-September period was responsible for 1.6 billion reais of the increase.
“Certainly the real’s depreciation impacted our results, but it also brought a new reality to the Brazilian sugar sector,” said Biosev’s CEO Rui Chammas, referring to gains in competitiveness by local sugar and ethanol producers.
Biosev bet revenue rose 56 percent to 1.74 billion, compared with the year-earlier period.
Chammas said the operational performance was positive, despite weak financial result impacted by the currency.
The company increased its cane crush by 7 percent in the quarter to 12.08 million tonnes. Total recoverable sugar (ATR), a measure of agricultural yields, rose to 137.5 kilograms per tonne of cane from 135.9 kg/t in the same period last year.
($1 = 3.75 Brazilian real)
Reporting by Marcelo Teixeira; Editing by Alan Crosby