May 16, 2018
Volume 1 Issue 20
Results Up for Cosan, HollyFrontier
Moove, Cosan’s lubricants segment, reported increased net revenue and sales volumes, and HollyFrontier’s lubricants and specialty products segment posted higher revenues and income from operations for the first quarter, compared to 2017’s first quarter.
Moove posted net revenue of 724 million Brazilian reais (U.S. $197.8 million) for the first quarter, up 62 percent from a year earlier. The company attributed the increase to an expansion of international operations, higher sales volume and a better sales mix.
The Sao Paulo, Brazil-based company’s lubricant sales volume jumped 8.7 percent to 79,000 metric tons from the same quarter last year, which is due to its “strategy focused on increasing [its] automotive and industrial customer base, including domestic carmakers and in international markets,” according to the company’s earnings report.
The company also reported that, “2018 started with signs of gradual recovery in industrial activity and macroeconomic stability in Brazil. Again, Cosan’s business portfolio was resilient, and despite challenges, we managed to deliver earnings before interest, tax, depreciation and amortization growth in all operations of the group.”
Cosan, a producer of sugar and ethanol products since 1936, expanded through acquisitions beginning in 2008 to become a distributor of fuels and lubricants.
Novvi LLC, a joint venture formed by Cosan and U.S. research firm Amyris, develops renewable synthetic base oil from sugarcane. In July 2016, American Refining Group announced a 33.3 percent equity investment that made it an equal partner with the other two companies. Chevron and H&R Group USA have also made equity investments for undisclosed amounts in the joint venture.
HollyFrontier Corp. reported $32.9 million in income from operations for its lubricants and specialty products segment for the first quarter, up slightly from $32.3 million in the year-earlier period. Revenues from external customers for the segment amounted to $444.8 million for the first quarter, up 38.4 percent from $321.3 million in 2017’s first quarter.
Dallas, Texas-based HollyFrontier acquired Petro-Canada Lubricants Inc. in 2017. According to HollyFrontier’s earnings news release, the lubricants and specialty products segment includes Petro-Canada Lubricants’ production operations in Mississauga, Ontario, including products such as base oils, white oils, specialty products and finished lubricants, and the operations of the business that include marketing of products to both retail and wholesale outlets through a global sales network with locations in Canada, the United States, Europe and China. The segment also includes specialty lubricant products produced at HollyFrontier’s Tulsa refineries that are marketed throughout North America and distributed in Central and South America. In addition to API Group I base oil, the Tulsa refinery’s also produces specialty process oils, horticultural oils and wax, according to the company’s web site.
HollyFrontier noted it retroactively adjusted the lubricants and specialty products segment information for the first quarter of 2017 to reflect its current segment configuration.
“To date, crude spreads have been consistent, and we are optimistic about refining and lubricant margins going into the summer,” HollyFrontier President and CEO George Damaras said in the earnings news release.