(Adds details of the earnings report)

SAO PAULO, Nov 12 (Reuters) - Brazilian sugarcane

processor Raizen posted on Tuesday a 158.3 million

real ($27.5 million) net loss for the second quarter of its

fiscal year, due in part to lower margins on its ethanol

business and higher income tax expenses.

The result represents a sharp drop from the 28.4 million

real profit it logged a year earlier.

WHY IT'S IMPORTANT

Raizen, whose main shareholders are Brazilian

conglomerate Cosan ( CSAN ) and Shell, is the world's

largest sugarcane processor.

The firm produces sugar and ethanol, while also

operating as a fuel distributor, including to gas stations.

BY THE NUMBERS

Adjusted earnings before interest, taxes, depreciation

and amortization (EBITDA) came in at 3.7 billion reais in the

quarter, down almost 2% year on year and below the 4 billion

reais estimated by analysts in a LSEG poll.

Net revenue rose 22.6% in the period to 72.9 billion

reais.

KEY QUOTES

"The net loss for the quarter was driven by lower

generation of gross profit, due to the drop in margins in

mobility and renewable (units)," Raizen said in the earnings

report, adding that offset higher profitability in its sugar

business.

"A larger accounting income tax expense due to a

temporary difference in the earnings between the group's legal

entities also contributed to these results," it added.

($1 = 5.7490 reais)