February 15, 2008

Brazil's Sao Martinho ethanol plant reports US$274 billion net sales for Q3

Sao Martinho, one of the largest ethanol producers in Brazil, reported a net revenue of BRL480.9 million (US$274 million) and adjusted EBITDA of BRL70.8 million (US$40 million) in the third quarter of 2007.

On December 2007, the Sao Martinho Group announced the transfer of the industrial operations of Usina Santa Luiza to its partners.

By 2008-09 harvest, crushing volume at Usina Sao Martinho was projected at approximately 750,000 tonnes.

Expected investments in Usina Boa Vista increased from BRL550 million (US$314 million) to BRL700 million (US$400 million).

The investment is to expand crushing capacity to 3.4 million tonnes by the 2010-11 harvest.

The Sao Martinho Group in Brazil crushed a total of 10.2 million tonnes of sugarcane in the 2007-08 harvest, an increase of 10.2 percent compared to the previous crop.

The production mix in the harvest was 62 percent ethanol and 38 percent sugar, in line with the company's strategy of prioritizing ethanol production on strong domestic demand.