The company attributed the improvement in net revenues to a better product mix, meaning increased sales of finished lubricants compared to base oils and selling more synthetic lubricants than conventional products.

Cosan noted the second quarter was particularly challenging for the Brazilian market in view of a domestic economic slowdown and rising inflation.

The economic slowdown directly affects domestic demand for lubricants in Brazil, given the reductions in industrial production and in transportation activities, the company said in its earnings news release. Lubricant sales volumes fell 3.3 percent to 80,200 cubic meters.

According to Cosan, its lubricants segment results include the manufacturing and distribution of Mobil and Comma lubricants, and the resale of base oil and automotive specialties in Brazil and in 40 other countries. The products are produced at plants in Rio de Janeiro and in Kent, United Kingdom.

Sao Paulo-based Cosan, a producer of sugar and ethanol products since 1936, expanded through acquisitions beginning in 2008 to become a distributor of fuels and lubricants.

Novvi, a joint venture between Cosan and U.S. research firm Amyris, develops renewable synthetic base oil from sugarcane.