Cosan to seek more exposure to hard currency

Bioethanol, sugar and energy producer Cosan — one of the largest business groups in Brazil — continues to expand in the country and overseas but says it will try to sustain a relevant exposure of operating income to hard currency, or non-local demand. Today, about 45% of the Ebitda already meet this premise."The pie will grow, and we would like to keep this level, which is already relevant," Luis Henrique Guimarães, CEO of the holding company, said after the Cosan Day. Cosan is likely to end 2022 with EBITDA of about R$22 billion, with a growth of more than five times in 10 years.The recent acquisition of U.S. company PetroChoice by Moove — the group’s lubricants arm — illustrates this strategy well. But, according to the vice president of strategy Marcelo Martins, increasing the exposure to hard currency does not necessarily mean buying more assets abroad.Local operations, which are somehow related to international demand, are also alternatives. Both companies in the group’s current portfolio, such as Rumo (logistics), and new businesses that are under the umbrella of Cosan Investimentos, such as the joint venture with Aura Minerals that marks its entry into the mining sector, bring this contribution.So far, Cosan Investimentos, set up to explore new business opportunities, looking initially at the group’s ecosystem and disruptive solutions, already has R$2.5 billion invested or committed. "It is a new vehicle, which preserves [Cosan’s] value generation model but with a more medium- and long-term outlook, to capture opportunities beyond the current portfolio," CEO Leonardo Pontes said.According to Mr. Guimarães, the group remains optimistic about Brazil, despite the short-term challenges, and believes that the country has structural advantages that can benefit it in the reindustrialization process expected to happen in the Americas and Europe."Brazil is well positioned for that. Nevertheless, we are looking for opportunities of how to increase its connection with non-local demand," he said, adding that the group will also continue to seek opportunities for consolidation and new business in the country.Asked about energy scarcity in the world, Mr. Guimarães said that the high stress at this moment is temporary, amid the impacts of the Covid-19 pandemic, war in Ukraine, and disruptions in the global supply chain. Raízen — the fuel distribution arm in Brazil, Paraguay and...

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