Brazilian state-controlled oil giant Petrobras announced late Monday that it has no investment plans involving ethanol production or fuel distribution in partnership with Raizen, reported Reuters.
Earlier in the day, shares of Raizen surged after a report by Brazilian newspaper O Globo over the weekend suggested that Petrobras was considering investment opportunities with the sugar and ethanol company.
Raizen, a joint venture between Cosan and Shell, suffered a stock drop of over 16% the previous week after reporting a quarterly loss and a sharp increase in net debt.
As the world’s largest sugar producer, Raizen is currently facing financial issues, with net debt approaching 50 billion reais ($9.2 billion) by the end of the first quarter of the 2025-2026 crop year.
Company executives stated last Thursday that a capital injection from a potential new partner, along with asset sales, could help stabilize the business.
Cosan CEO Marcelo Martins also commented on Friday that bringing in a strategic partner is one of the options being explored to strengthen Raizen’s capital position.
As per news report by Reuters, Shell, listed in London, declined to comment when contacted by Reuters. Raizen also chose not to comment on the reports about a possible deal with Petrobras when approached on Saturday.
