November 16, 2016
Volume 17 Issue 52
Cosan Lubricants’ Net Revenue Declines
Cosan’s net revenue from the sale of lubricants and other goods and services, plus the resale of base oils, totaled 463.6 million Brazilian reais (U.S. $134.4 million) for the three months ending Sept. 30, down 4.3 percent from the year-earlier period.
Lubricant sales volumes declined 6 percent to 84,000 cubic meters.
The lubricants manufacturer and distributor said in its quarterly earnings news release that the lower net revenue reflected the lower sales volume.
The company noted that Brazil’s lubricants market, which remains affected by that country’s recession, contracted 6 percent in 2016 and adversely affected sales volume at Cosan Lubricants, compared to the same quarter last year. “Despite this impact, year to date domestic sales continued to outperform the industry average, growing 3 percent, compared to 8 percent contraction in the market, according to Sindicom,” the company stated. Sindicom represents the main fuels and lubricants distributors in Brazil.
Sao Paulo-based 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, a joint venture between Cosan and U.S. research firm Amyris, develops renewable synthetic base oil from sugarcane.