Sao Martinho boiler fire could reduce Iracema's capacity up to 30%

The Brazilian energy company announced on Wednesday that a fire at Sao Martinho’s Iracema facility has caused a boiler to be shut down, which could result in a 30 percent reduction in the sugarcane crushing capability at the site.

In a press release, the company stated that the fire took place on Sunday. It added that the updated forecast for 2025/26 will be released at the end of June.

The company responded to questions by saying that the incident would reduce daily production up to 30% and the crushing estimate for 2025/26 to 2.4 (metric) tonnes.

The company did not provide any further information.

According to the company, its current forecast for 2025/26 shows a sugar production of 1,57 million tons and 1,15 million cubic meters ethanol.

In late Sao Paulo trade, shares in Sao Martinho fell 0.9% while the benchmark index Bovespa rose by 0.43%. (Reporting and editing by Gabriel Araujo, Ana Mano and Oliver Griffin)

(source: Reuters)