The 2017/2018 crop year was marked by various challenges and, above all, by a team that is constantly pushing itself to new levels, that excels and makes a difference. We achieved record results despite the scenario we faced, with lower sugarcane availability, lower sugar prices and daily adjustments as a result of Petrobras's pricing policy. We broke records in several indicators, making this a historical harvest for Raízen and reflecting the essence of our culture, which integrates people, broadens talents, engages partners and clients, builds the future, and nurtures productive relations with a zero-accident objective.
We spare no effort to mobilize employees and partners on workplace safety, a non-negotiable premise of our management. During the crop year, we reduced the number of accidents with lost time and did not record any fatalities. Our entire team was trained, from field to service stations, and participated in initiatives developed about respect for life.
We ended the crop year with total crushing of 61.2 million tons of sugarcane. After completing the processes of acquiring the Santa Cândida (Bocaina - SP) and Paraíso (Brotas - SP) units, we began operating with total crushing capacity of 73 million tons of sugarcane per crop year.
I highlight the reduction in the cost of our processes, the opportunities in trading and the record production of electric energy, in line with the plan to increase our share in this market. At Raízen Combustíveis (Fuels), we continue to expand our market share, thanks to our integrated pricing, procurement and trading strategy, coupled with our infrastructure, quality of our partners, our brand, excellence of our products and services, more humanized service at our stations and, above all, the ongoing search for having the best team.
To increase our logistics, we continue to invest in new technologies and in optimizing our own and third-party assets; we inaugurated a fuel distribution terminal in Marabá (PA), with capacity to handle up to 500 million liters per year; and we expanded and improved the storage tanks for gasoline, diesel, and ethanol at the Port of Santarém (PA), and other projects that started in the period.
In aggregate, our adjusted EBITDA totaled BRL 7.1076 billion and net profit was BRL 2.311 billion.
We strengthened the elements in our culture that have allowed us to get where we are and with which we will continue to determine our history. We organized our beliefs into four behaviors that drive the narrative of this Annual Report and reflect our ability to predict scenarios, develop people, create business opportunities, and increasingly integrate the stages of our value chain.
Nurturing productive relationships and focusing on the long term puts sustainability at the core of our strategy. We are continuously improving a circular business model, with maximum use of our raw material. As an example, I am proud to highlight our advancements in the production of second-generation ethanol (E2G), an operation already integrated to the Costa Pinto plant in Piracicaba (SP). During the crop year, we managed to produce 12 million liters, equivalent to 211 liters of E2G per ton of sugarcane on a dry basis ─ the target is 290 liters. We'll get there!
Another important project is producing biogas from industrial waste to generate energy. We advanced in the development of the initiative at the Bonfim unit, in Guariba, Araraquara region (SP). When completed, the plant will have an installed capacity of 21 MW.
In order to identify new medium- and long-term opportunities for growth, we created Raízen Ventures, an agent that promotes innovation, which will identify ideas that may be transformed into business opportunities.
We also created Pulse, a startup accelerator, to leverage opportunities in our operations in the short term, in partnership with the best resources on the market. We had another edition of the Inovar Program, challenging our employees in search of creative solutions to improve processes and create value - 314 ideas were entered and 10 teams were shortlisted, with suggestions already under development.
Our commitment to everything we do results in excellence of our operations and service and in the quality of the products and services we offer. Constantly improving our portfolio involves consolidating the partnership with our dealers and promoting the best consumer experience. We offer consumers the best technology associated with better human service. The goal is for consumers to leave our stations and stores feeling better than when they arrived, by turning that short period of time as agreeable as possible – this is our "humanology!"
In 2017/2018, we launched the new generation of Shell V-Power premium gasoline in the more than 6,000 stations of our network throughout Brazil, in conjunction with 26 other countries. It is the best Shell V-Power of all times, since it has the exclusive Shell technology, which improves performance and fuel efficiency of the vehicle.
We also redesigned Shell Select stores to give consumers a simpler, more pleasant and intuitive experience. In addition, the action aims to create value to the business and increase productivity for franchised dealers.
Our results are in line with the signs of gradual recovery of the Brazilian economy, which keeps us optimistic to continue investing. At the beginning of the 2018/2019 harvest, we announced our entry into the energy trading and marketing segment through a joint venture with WX Energy. We also communicated the acquisition of Shell assets in Argentina, which will provide us with an additional sales volume of approximately 6 million liters per year. With steady and determined strides, we will continue to grow and care for those who walk with us. We thank you all for another crop year.
Thank you and enjoy your reading.
Luis Henrique Guimarães