Cosan falls -14.3%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 29 2024
0mins
- Stock Performance: Cosan's stock has decreased by 14.3%, dropping $1.05 to a current price of $6.27.
- Market Context: This decline reflects broader market trends or company-specific challenges as of October 2023.
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Analyst Views on CSAN
Wall Street analysts forecast CSAN stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 3.110
Low
5.00
Averages
5.00
High
5.00
Current: 3.110
Low
5.00
Averages
5.00
High
5.00
About CSAN
Cosan SA, formerly know as Cosan SA Industria e Comercio, is a Brazil-based company primarily engaged in the oil marketing sector. The Company's activities are divided into six business segments: Raizen Energia, which produces and distributes sugarcane derivatives, such as raw sugar and hydrated ethanol, and cogenerates energy from sugarcane bagasse; Raizen Combustiveis, which distributes fuel, mainly through a network of gasoline stations under the Shell brand name; Comgas, which focuses on the natural gas distribution in the state of Sao Paulo, Brazil; Radar, which is responsible for purchase, sale, management and leasing of agricultural land; Lubricants, which manufactures and sells lubricants under the Mobil brand name in Latin American market, as well as the Comma brand name in the European and Asian market, and Other, which includes investments in other businesses. The Company is a subsidiary of Cosan Ltd.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Raizen Reaches Out-of-Court Debt Restructuring Agreement
- Debt Restructuring Agreement: Raizen has reached an out-of-court debt restructuring agreement with creditors and bondholders covering approximately 65 billion reais ($12.6 billion), marking a crucial step in the company's efforts to improve its capital structure under high debt pressure.
- Creditor Support: Creditors holding 47% of the company's debt agreed to the restructuring, surpassing the one-third legal threshold required to initiate proceedings, thereby suspending debt obligations and granting Raizen 90 days to secure buy-in from remaining creditors for a more comprehensive plan.
- Market Environment Challenges: Once Brazil's leading biofuels producer, Raizen faces multiple challenges including high interest rates, weaker harvests, and heavy investments that have yet to yield returns, resulting in strained cash flow and increased debt burden, necessitating restructuring to restore financial health.
- Future Outlook: The successful completion of this restructuring agreement provides Raizen with breathing room, and if it can secure support from remaining creditors, it will help the company reposition itself in a competitive market and restore profitability.
See More
Cosan SA Reports Q4 2025 Earnings and Strategic Developments
- Financial Performance Overview: Cosan SA reported a managed EBITDA of BRL 7.8 billion for Q4 2025 and BRL 26.5 billion for the full year, reflecting a decline from 2024, indicating challenges in profitability.
- Debt Management Success: The company successfully reduced its expanded net debt by nearly BRL 14 billion to BRL 9.8 billion, showcasing effective debt management strategies that help improve financial health.
- Market Share Growth: Moove achieved a market share of 14.5% in Brazil and fully recovered its production capacity after a fire, demonstrating strong resilience in market competition.
- Capital Structure Optimization: Cosan raised over BRL 22 billion from capital markets to strengthen its capital structure and reduce leverage, actively seeking solutions despite challenges from Raizen's underperformance.
See More
Cosan Reports 8% Revenue Decline in FY Earnings
- Earnings Highlights: Cosan's FY GAAP EPS stands at BRL 3.94, indicating a decent per-share performance; however, total revenue of BRL 40.42 million reflects an 8% year-over-year decline, highlighting pressures in the competitive market landscape.
- Revenue Decline Reasons: The revenue drop is primarily attributed to operational struggles at sugar producer Raizen, as Cosan's talks with Shell to rescue the struggling entity fell through, adversely impacting the company's overall performance.
- Shell Investment Dynamics: Shell is set to invest $666 million in Raizen to bolster its ethanol production capabilities in Brazil, although this move did not save Cosan's revenue, it underscores ongoing market interest in renewable energy.
- Market Outlook: Despite current challenges, Cosan's financial data still indicates some profitability, and future focus will be on how the company adjusts its strategy to navigate market changes and restore growth.
See More
S&P Lowers Cosan's Rating to 'BB-' from 'BB' and Puts It on Negative CreditWatch
S&P Downgrades: The S&P has downgraded the credit rating of a company from 'BB' to a lower grade.
Credit Watch: The company has been placed on credit watch with a negative outlook, indicating potential further downgrades.
See More
Shell and Cosan Fail to Reach Financing Agreement, Raízen Faces Debt Crisis
- Failed Financing Agreement: Shell (SHEL) and Cosan (CSAN) could not agree on a financing plan for Raízen, leaving the joint venture in a precarious debt crisis, highlighting the significant divergence in their capital injection strategies.
- Shell's Investment Commitment: Shell has committed to investing 3.5 billion reais (approximately $666 million) in Raízen and expects another shareholder to match this amount, yet Cosan's inability to match this financial scale complicates the situation further.
- Increased Debt Pressure: Creditors are pressuring Shell and Cosan to inject up to 12 billion reais, arguing that both companies have sufficient cash flow to support Raízen's recovery, reflecting market concerns about their financial health.
- Shell's Future Plans: Shell is expected to present its own plan to banks, which, if successful, would make it the majority owner of Raízen and require it to absorb Raízen's debt into its balance sheet, significantly impacting its financial position.
See More
Shell Commits $666M to Support Raizen Ethanol Producer
- Investment Commitment: Shell (SHEL) has pledged approximately 3.5 billion Brazilian reais ($666 million) to Raizen, an ethanol producer co-owned with Cosan (CSAN), aiming to address challenges such as high interest rates and poor harvests faced by Raizen.
- Funding Needs: As one of the world's largest ethanol producers, Raizen is seeking new funding to cope with a series of investments that have yet to yield significant returns, and Shell's capital injection will provide essential financial support.
- Restructuring Possibility: Shell's executive Cristiano Pinto da Costa indicated that while the company is open to restructuring Raizen's sugar and ethanol businesses separately from its fuel distribution operations, the preferred approach is to first recapitalize the company to enhance financial stability.
- Geopolitical Opportunity: Pinto da Costa noted that the ongoing U.S.-Israeli conflict presents Brazil with an
See More
Raizen Reaches Out-of-Court Debt Restructuring Agreement
- Debt Restructuring Agreement: Raizen has reached an out-of-court debt restructuring agreement with creditors and bondholders covering approximately 65 billion reais ($12.6 billion), marking a crucial step in the company's efforts to improve its capital structure under high debt pressure.
- Creditor Support: Creditors holding 47% of the company's debt agreed to the restructuring, surpassing the one-third legal threshold required to initiate proceedings, thereby suspending debt obligations and granting Raizen 90 days to secure buy-in from remaining creditors for a more comprehensive plan.
- Market Environment Challenges: Once Brazil's leading biofuels producer, Raizen faces multiple challenges including high interest rates, weaker harvests, and heavy investments that have yet to yield returns, resulting in strained cash flow and increased debt burden, necessitating restructuring to restore financial health.
- Future Outlook: The successful completion of this restructuring agreement provides Raizen with breathing room, and if it can secure support from remaining creditors, it will help the company reposition itself in a competitive market and restore profitability.
See More
Cosan SA Reports Q4 2025 Earnings and Strategic Developments
- Financial Performance Overview: Cosan SA reported a managed EBITDA of BRL 7.8 billion for Q4 2025 and BRL 26.5 billion for the full year, reflecting a decline from 2024, indicating challenges in profitability.
- Debt Management Success: The company successfully reduced its expanded net debt by nearly BRL 14 billion to BRL 9.8 billion, showcasing effective debt management strategies that help improve financial health.
- Market Share Growth: Moove achieved a market share of 14.5% in Brazil and fully recovered its production capacity after a fire, demonstrating strong resilience in market competition.
- Capital Structure Optimization: Cosan raised over BRL 22 billion from capital markets to strengthen its capital structure and reduce leverage, actively seeking solutions despite challenges from Raizen's underperformance.
See More
Cosan Reports 8% Revenue Decline in FY Earnings
- Earnings Highlights: Cosan's FY GAAP EPS stands at BRL 3.94, indicating a decent per-share performance; however, total revenue of BRL 40.42 million reflects an 8% year-over-year decline, highlighting pressures in the competitive market landscape.
- Revenue Decline Reasons: The revenue drop is primarily attributed to operational struggles at sugar producer Raizen, as Cosan's talks with Shell to rescue the struggling entity fell through, adversely impacting the company's overall performance.
- Shell Investment Dynamics: Shell is set to invest $666 million in Raizen to bolster its ethanol production capabilities in Brazil, although this move did not save Cosan's revenue, it underscores ongoing market interest in renewable energy.
- Market Outlook: Despite current challenges, Cosan's financial data still indicates some profitability, and future focus will be on how the company adjusts its strategy to navigate market changes and restore growth.
See More
S&P Lowers Cosan's Rating to 'BB-' from 'BB' and Puts It on Negative CreditWatch
S&P Downgrades: The S&P has downgraded the credit rating of a company from 'BB' to a lower grade.
Credit Watch: The company has been placed on credit watch with a negative outlook, indicating potential further downgrades.
See More
Shell and Cosan Fail to Reach Financing Agreement, Raízen Faces Debt Crisis
- Failed Financing Agreement: Shell (SHEL) and Cosan (CSAN) could not agree on a financing plan for Raízen, leaving the joint venture in a precarious debt crisis, highlighting the significant divergence in their capital injection strategies.
- Shell's Investment Commitment: Shell has committed to investing 3.5 billion reais (approximately $666 million) in Raízen and expects another shareholder to match this amount, yet Cosan's inability to match this financial scale complicates the situation further.
- Increased Debt Pressure: Creditors are pressuring Shell and Cosan to inject up to 12 billion reais, arguing that both companies have sufficient cash flow to support Raízen's recovery, reflecting market concerns about their financial health.
- Shell's Future Plans: Shell is expected to present its own plan to banks, which, if successful, would make it the majority owner of Raízen and require it to absorb Raízen's debt into its balance sheet, significantly impacting its financial position.
See More
Shell Commits $666M to Support Raizen Ethanol Producer
- Investment Commitment: Shell (SHEL) has pledged approximately 3.5 billion Brazilian reais ($666 million) to Raizen, an ethanol producer co-owned with Cosan (CSAN), aiming to address challenges such as high interest rates and poor harvests faced by Raizen.
- Funding Needs: As one of the world's largest ethanol producers, Raizen is seeking new funding to cope with a series of investments that have yet to yield significant returns, and Shell's capital injection will provide essential financial support.
- Restructuring Possibility: Shell's executive Cristiano Pinto da Costa indicated that while the company is open to restructuring Raizen's sugar and ethanol businesses separately from its fuel distribution operations, the preferred approach is to first recapitalize the company to enhance financial stability.
- Geopolitical Opportunity: Pinto da Costa noted that the ongoing U.S.-Israeli conflict presents Brazil with an
See More
