Cosan’s Moove lubricants arm reported higher profits, revenue and sales volumes for the fourth quarter and full year, finishing 2020 strong after a tough second quarter impacted by the early months of the COVID-19 pandemic.
The Moove arm posted a net profit of 57.8 million Brazilian reals (U.S. $10.8 million) for the quarter ended Dec. 31, improving from a net loss of 11.3 million real in 2019’s fourth quarter. Net operating revenue reached 1.3 billion reals in the quarter, up 43% from 906.7 million reals.
For the full year, Moove reported that net income increased 105% to 149.3 million reals, up from 73 million reals in 2019. Net operating revenue for 2020 rose 9% to 4.4 billion reals.
Cosan said the improved financial performance reflected the capture of scale gains from lubricant demand recovery across all markets where Moove operates.
Lubricant sales volumes for the Sao Paulo, Brazil-based company reached 110.7 million liters (100,000 metric tons) in the fourth quarter, up 18%. This was due to the recovery of economic activity in Brazil and the effectiveness of the supply and commercialization strategy, Cosan said in its earnings news release. For the full year, lubricant sales volumes were were up 2% at 398.4 million liters.
“In view of the challenges caused by the social distancing measures adopted by all countries where Moove operates, sales in 2020 remained stable compared to 2019,” the company noted, offsetting the decrease in lubricants demand that occurred mainly in the second quarter last year. In that quarter, Moove’s lubricant sales volumes dropped to 66 million liters, its lowest for a quarter in several years. Its net operating revenue for 2020’s second quarter, 796.9 million reals, was its lowest since 724.6 million reals in 2018’s first quarter.
Cosan, a producer of sugar and ethanol products since 1936, expanded through acquisitions beginning in 2008 to become a distributor of fuels and lubricants.