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(Bloomberg) -- Hidrovias do Brasil SA, an operator of barges that transports soybeans and corn via the Amazon and its tributaries, extended a selloff to a sixth day after disclosing a loss driven by a severe drought.

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Shares of the Brazilian company plunged as much as 13% in Sao Paulo to the lowest level since March 2023 before trimming losses, bringing this year’s decline to nearly 30%. The grain and iron ore hauler saw fourth-quarter losses more than double from a year earlier due to a decline in transported volumes, it said in a Monday statement.

Hidrovias do Brasil was one of the first companies to tap Amazon river tributaries for transportation of soybeans, opening up a new export route for Brazil’s booming harvests. It also operates in other riverways. But drier-than-normal conditions last year eroded navigation conditions, limiting its ability to move cargoes across the nation’s rivers.

Sailing conditions on the Tapajos river, in the Amazon region, are expected to improve considerably in the second half of the year as local authorities are dredging the waterway, according to Chief Executive Officer Fabio Schettino.

“We should not have problems anymore,” Schettino said during the call.

Hidrovias do Brasil will soon announce the terms of a capital increase after scrapping a previously announced plan, the company said. The proceeds will be used to fund capacity expansion.

The company’s debt has jumped to 6.6 times earnings before items such as interest and taxes, according to the statement. Its $398 million in notes due in 2031 are trading below 88 cents on the dollar.

(Adds CEO comment in fourth paragraph)

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