Ribeirão Preto, 7 – director of financial relations and investors of Sao Martino Group, Felipe Vickiato, said on Wednesday in a telephone conversation with analysts that there are no short-term plans for large investments of the company to increase production, especially of ethanol. For him, only after the new national biofuel policy, innovation, "attraction and profit" can be possible contributions to expand supply. "Maybe in two years, when Renewabio will win the traction, we're starting to think about new investments," he said.
According to him, the "most clear project" of Sao Martino will be an extension of the Boa Vista plant, in Quirinópolis (GO), the youngest in the group with a possible area to plant new sugarcane plantations. "It will be two or three years to grind another million tons, and another four years to expand by 3 million tons of sugar cane if there is accelerated planting," he said. "So any new investment in ethanol should be considered, because it's a lot of capital invested initially, and after a refund, it takes time," he added. He mentioned that the Goias mill itself began to return only after eight or ten years.
For the current crop, Vicchiato said the average ethanol prices received by the company should be at $ 1.85 per liter, up 7% from R $ 1.73 per liter from 2017/2018. The director explained that the supply of ethanol in the current crop, 66% will be equipped to sell the third and fourth quarters of 2018/2019, between October this year and March 2019, that is, most off-season of the crop.
He estimated the chances of the next harvest as premature, but rejected the expectation of the cane drill for March, as well as some mills to take advantage of more favorable prices. According to the management, "it makes sense to maintain even the mix of fate and fate fate in the next harvest," over 60% for the production of ethanol below 40% sugar. Vichchiato finally pointed out that the October rains were good and preferably the productivity of sugar cane harvest in the middle of the next harvest.
In a statement released Tuesday night, the Sao Martino Group reported a net profit of $ 58,547 million in the second quarter of 2018/2019, which ended on September 30. The result is 10.4% higher than that of the same period of 2017/2018, amounting to $ 53,015 million. In the six-month harvest, cumulative net profit fell 4.3 percent to $ 1262.506 million.
The adjusted EBITDA (profit before interest, taxes, depreciation and amortization) of the sugar and ethanol company decreased by 19.1% in the corresponding quarter to $ 316,238 million. In the first half of 2018/2019, the revised EBITDA decreased by 17.2% compared with the first six months of 2017/2018 to $ 717,628 million
The net income of the Sao Martino Group totaled $ 643,427 million in the second quarter of the year, down 12.6%, and fell 11.8% year on year to $ 1.415 billion. Cash profit reached $ 58,547 million in the second quarter of 2018/2019, a decrease of 4.3% and $ 222,152 million in the first half, a decrease of 44.1%.