November 7, 2018 / 10:11 PM / 13 days ago

UPDATE 1-Brazil energy firm Cosan reports sharp fall in quarterly profit

(Adds earnings details)

SAO PAULO, Nov 7 (Reuters) - Brazil’s energy and logistics group Cosan SA Indústria e Comércio posted a third-quarter net profit of 43.9 million reais ($11.8 million) on Wednesday, 91 percent lower than a year earlier.

The company, which partners Royal Dutch Shell Plc in Raízen, the world’s largest sugar producer, said the profit fall was partly due to the lasting impact from a nationwide truckers strike in May, as well as to exchange rate volatility.

In the second quarter, Cosan had reported a net loss of 64.3 million reais.

“We had a very adverse (third) quarter due to lingering effects of the truckers strike,” said Cosan’s investor relations manager Phillipe Casale.

He cited “uncertainty” surrounding diesel subsidies, which were introduced by the government as one of the measures to end the strike, as an example of problems the company still faces.

Cosan’s cash flow, as measured by earnings before interest, taxes, depreciation and amortization (adjusted Ebitda), decreased 25 percent to 1.2 billion reais in the quarter.

Revenues rose 19 percent in the period to 15.4 billion reais. ($1 = 3.7322 reais) (Reporting by José Roberto Gomes; Editing by Lisa Shumaker and Rosalba O’Brien)

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