Braskem Achieves Recurring EBITDA of R$1,7 billion in 2Q24 with Growth of 46% and Priority in Optimization and Sustainability Initiatives

Braskem's recurring EBITDA grows 46% in 2Q24 driven by the international market and sales optimization, highlighting the positive impact of geographic diversification.

Braskem's recurring EBITDA increased significantly by 46% in the second quarter of 2024, positively impacted by the international market and sales optimization. These results are the result of the success of well-executed strategies and rigorous financial management, focused on keeping the company economically healthy.

Braskem, the largest producer of thermoplastic resins of the Americas, obtained a recurring EBITDA of R$1,7 billion in the period. This performance reflects not only the benefits of optimized sales, but also the effects of geographically diversified operations. Efficient management and financial discipline were fundamental in achieving these expressive numbers. This strategic approach has guaranteed solid results and continuous growth, increasingly consolidating the company's position in the global market.

In the second quarter of 2024, Braskem showed an increase of 46% compared to the first quarter of that year and an increase of 137% compared to the same period in 2023. This growth was driven by the positive effects on international market spreads, a higher volume sales and the continuous implementation of cost and expense reduction initiatives. Recurring cash generation in the quarter reached R$357 million.

Results for the second quarter of 2024

'We had a quarter of superior results compared to previous ones,' stated Roberto Bischoff, CEO of Braskem. 'These results were driven by higher spreads in the international market, due to a better balance between global supply and demand, in addition to the impacts of conflicts in the Red Sea that increased freight rates, added to our continuous efforts in implementing initiatives focused on maximizing our results.'

When compared to the first quarter of 2024, there was an increase of 8% in international spreads for resins and 19% for the main chemicals in Brazil. In Mexico, the PE increase was 4%. Operationally, the geographic diversification of Braskem's petrochemical plants played a crucial role in maintaining customer service and mitigating the impacts of shutdowns during the quarter.

In Brazil, weather events in Rio Grande do Sul affected production, but this was partially offset by an increase in the utilization rate of petrochemical plants in Bahia and São Paulo. Braskem, the largest producer of thermoplastic resins of the Americas, recorded a net loss of R$3,7 billion this quarter, mainly due to the impact of exchange rate variation caused by the 11,3% depreciation of the real against the dollar.

Investment agreement and new partnerships

During the period, Braskem announced the signing of an investment agreement with Solví and GRI, involving the company's shareholding in Cetrel. This transaction will strengthen Cetrel, a leader in environmental and industrial solutions, transforming GRI into a national growth platform and will result in Braskem receiving R$284 million.

The company also obtained approval to become a Brazilian Shipping Company (EBN), anticipating the start of maritime operations in the coming months. With this license, it will be possible to rent or operate ships with hired crew for maritime transport, and the first cabotage operation must take place between Bahia and Rio de Janeiro.

Braskem also highlighted its partnership with Petrobras, which allowed successful industrial-scale tests to be carried out in the production of Refinery Light Hydrocarbon Stream (HLR) with renewable content, from sugar cane ethanol. The quarter also saw the first sale of circular polypropylene, under the Wenew brand, in partnership with the Swiss company Georg Utz AG. This circular PP was produced from chemical recycling of plastic waste and is ISCC certified.

Resin strategy and sales implementation

In terms of corporate strategy, the construction of the ethane import terminal in Mexico, an ongoing effort by the company, reached 75% progress as of June. Construction is expected to be completed by the end of 2024, with operations beginning during the first quarter of 2025.

In Brazil, in the second quarter, the sales volume of resins and main chemicals fell 2% and 5%, respectively, compared to the first quarter of the year. The stoppage of operations at the Triunfo Petrochemical Complex, in Rio Grande do Sul, caused by an extreme weather event, was partially offset by the sales of plants in Bahia and São Paulo. Compared to the second quarter of 2023, there was an increase of 4% and 3%, due to greater demand and stock formation in the chain.

Measures in Maceió and support for relocation

Safety remains the highest priority for Braskem, especially in Maceió. With the risk area completely unoccupied since 2020, the company is moving forward with socio-urban measures, neighborhood care, soil monitoring and definitive closure of the salt wells. These actions are in line with agreements with the authorities and approved by the courts.

Braskem is also working to complete compensation for families, traders and businesspeople in unoccupied areas. Until July, the Financial Compensation and Relocation Support Program presented 19.153 compensation proposals, representing 99,9% of the total. Of these, 98,4% were accepted. The differences between proposals presented and accepted are due to the time required for families to evaluate or re-analyze the values.

Source: © Braskem Press