Investor Relations
Toggle navigation Logo da São Martinho
Results Center
Calendar
IR Mailing
Favorites

Harvest Outlook

According to the Material Fact announced to the market on June 20, 2022, the following table presents the production and capex guidance.

Production

Considering the expected volume of cane available for processing during the 2022/23 crop year, we expect to crush about 20.3 million tons of cane, an increase of 2% from the 2021/22 crop year. 

This expectation mainly reflects the effects of climate conditions during the period, especially at the start of the year, given: (i) the low rainfall; (ii) the less intense sunlight; and (iii) sharp decline in sugarcane TRS in relation to the same period last crop year, especially in the state of São Paulo where the bulk of the Company's sugarcane supplies are concentrated, and in the Center-South region, where much of the sugar supply is concentrated. 

More details on our guidance are available in the table:

  Guidance 22/23 21/22 Chg. (%)
Operational Data      
Crushing ('000 tons) 20,300 19,899 2.0%
Average TRS (kgs/ton) 142.1 146.7 -3.2%
Total TRS produced ('000 tons) 2,884 2,920   -1.2%
Production Data Max Sugar Max Ethanol    
Sugar ('000 tons) 1,320 1,040 1,303  
Ethanol ('000'3 875 1,055 913  
Cogeneration ('000 MWh) 760 740 760  
Mix Sugar - Ethanol 48% - 52% 38% - 62% 47% - 53%  

Capex


With regard to our capex guidance for the 2022/23 crop year, we estimate maintenance capex of around R$1.8 billion, an increase of about 11.3% mainly due to the price variations on inputs used in our planting operations (renovation) and crop treatments, and of diesel in the period.

Capex related to operational improvements is estimated at R$ 234 million, about 26.7% higher than in the previous crop year, mainly reflecting: (i) investments related to the closing of the water circuit at the São Martinho Mill to reduce water abstraction for industrial use, with a portion of the residual water being reused for irrigation to increase the fertility and growth of a part of the sugarcane fields; (ii) replacement of agricultural and industrial equipment; and (iii) other smaller projects with IRR between 20% and 25%. 


The modernization/expansion capex guidance for 2022/23 is estimated at approximately R$570 million, mainly earmarked for: (i) the corn ethanol plant in Goiás (~R$400 million); and (ii) the Thermal Power Plant related to the A-6 auction held in 2019 (~R$ 150 million).


As such, the Company’s total capex is estimated at approximately R$2.6 billion, an increase of 6.4%. 

A summary of capex guidance for the 2022/23 crop year is available in the table:

R$ MM Guidance 22/23 21/22 Chg. (%)
Maintenance 1,793 1,611 11.3%
Operational Improvements 234 185 26.7%
Upgrading/Expansion 570 646 -11.7%
Total Capex 2,597 2,441 6.4%