Brazil's Raizen lifts guidance after strong quarterly results

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SAO PAULO, Feb 15 (Reuters) - Brazilian energy company Raizen SA (RAIZ4.SA) lifted its full-year guidance slightly after reporting strong quarterly results helped by a robust performance by its renewables business, a securities filing showed late on Monday.

Raizen SA said adjusted net income for the October-December quarter came in at 1.219 billion reais ($233.75 million), up 218% year-on-year, leading the firm to revise guidance for the remainder of the fiscal year that will end in March.

The quarterly result was in line with a market consensus of 1.2 billion reais, according to a Refinitiv Eikon poll. Raizen's net operating revenue reached 55.4 billion reais, a 49.6% rise from a year earlier.

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The company, a joint venture between Shell (SHEL.L) and Cosan SA (CSAN3.SA), said the figures are "pro forma," reflecting results of the acquisition of ethanol and sugar producer Biosev SA a year ago.

Raizen's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was 3.36 billion reais in the quarter, up 5.6% from the previous year. Its renewables unit posted adjusted EBITDA of 1.43 billion reais, 30.2% above the same quarter in 2020.

The result was sustained by "the better pricing of our products, benefiting from the favorable scenario for biofuel, despite the lower own volumes sold, both of ethanol and bioenergy."

Raizen updated its guidance for the fiscal year ending in March, with its adjusted EBITDA rising from the range of 10 billion reais and 11 billion reais, to between 10.4 billion reais and 11.2 billion reais.

The renewables business guidance was also updated, on the face of the better performance in the quarter.

Previously, the company saw the adjusted EBITDA for the unit in the range of 4.1 billion reais and 4.4 billion reais. It is now seeing the figure in the range of 4.7 billion reais and 5 billion reais.

The better outlook reflects "mainly the movement of prices of ethanol and energy, contributing to maximize the margin of the commercialization operations as well as of own products," it said in a securities filing.

($1 = 5.2149 reais)

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Reporting by Gabriel Araujo and Peter Frontini; Editing by Andrew Heavens and Susan Fenton

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