Brazil-based Cosan recently released second quarter financial results, reporting Raízen Energia, its sugar, ethanol and cogeneration business unit, was adversely affected by the late start of the crushing season due to heavy rains.

According to the company, sales volumes of sugar were down 29 percent in during the quarter, while ethanol sales volumes were down 27 percent. Raízen’s 23 mills in operation crushed 19.2 million metric tons of sugarcane during the second quarter, down 8.1 percent compared to the prior year. Rain during the intercrop period, however, increased agricultural productivity to 89.9 tons of cane per hectare, up from 79.5 tons per hectare during the same period of last year. Total recoverable sugars reached 122.6 kilograms per ton, down from 124.3 kilograms per ton during the same period of 2014. Due to improved weather conditions since early June, Cosan said the company has been achieving higher daily crush volumes and expects production volumes to normalize during the coming quarters.

Net revenues for the Raízen Energia business unit were down 2.3 percent when compared to the second quarter of 2014, reaching R$1.6 billion ($461.3 million). Net revenues for ethanol increased 7 percent when compared to the second quarter of last year, reaching R$940.5 million. According to Cosan, price increases and reinstatement of the CIDE tax on gasoline improved the relative competitiveness of ethanol. The sales volume of ethanol increased 10.2 percent during the quarter, mainly due to resale and trading operations. Due to higher inventory levels at the start of the current crop year and better expectations for crushing volumes, Cosan indicated the average ethanol price was down 2.9 percent when compared to the second quarter of 2014, falling to R$1,501 per cubic meter.

Overall, Cosan reported pro forma EBITDA of R$873.9 million, up 6 percent compared to the same quarter of last year. Net revenues for the quarter were R$10.11 billion, compared to R$9.41 billion during the same three months of 2014. Gross profit was R$1.13 billion, up from R$1.11 billion during the second quarter of last year. Net income was R$49.4 million, down from R$104.1 million during the same period of last year.