The financial performance of companies manufacturing and importing biofuels certified by RENOVABIO

Abstract

In 2017, the National Biofuels Policy was established (RenovaBio), establishing annual decarbonization targets for the fuel sector, having the negotiation of the Decarbonization Credits (CBIOs) innovative strategy. This study analyzed the financial performance of biofuel manufacturing and importing companies certified by RenovaBio. The main financial analysis technique applied is the financial ratio technique on the financial statements of publicly traded companies for the period from 2020 to 2023. The results showed an increase in asset turnover rates, indicating growth in sales volume, but stable net margin margins rates with low growth, in other words, there wasn’t significant increase in net profit in relation to sales, and asset profitability indexes showed growth, what indicates investments recovery, that provide feedback to companies’ operations year after year. In terms of profitability on equity, some companies showed fluctuations, and the major part showed growth; that is, profit in relation to equity has grown, which offers security to shareholders and attractiveness to new investors. However, the disclosure needs to be improved, given that the topic still has not been discussed in the way it should be, since the commercialization of CBIOs is relatively new (June of 2020), and the public’s political schedules are inherent in public politics and need to be continually supplied.

Key-words: biofuel; decarbonization credits; financial analysis.