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Braskem's EBITDA reaches R$3.2 billion in 2Q18, increasing 5% from 2Q17 and 20% from 1Q18

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Braskem's EBITDA reaches R$3.2 billion in 2Q18, increasing 5% from 2Q17 and 20% from 1Q18

PR Newswire

SÃO PAULO, Aug. 8, 2018 /PRNewswire/ -- BRASKEM S.A. ((B3: BRKM3, BRKM5 and BRKM6, NYSE:BAK, LATIBEX: XBRK)) announces today its results for 2Q18.

HIGHLIGHTS:

Braskem - Consolidated:

  • EBITDA amounted to US$877 million, 7% higher than in 1Q18, due to (i) higher spreads for key chemicals in the international market, for vinyls and for PP in the United States; and (ii) the positive effect from Brazilian real depreciation on costs and expenses pegged to the currency.
  • Parent company's net income was R$547 million, corresponding to R$0.69 per common share and class "A" preferred share, down 48% and 50% from 1Q18 and 2Q17, respectively, reflecting local-currency depreciation in the comparison period, which affected the financial result.
  • Financial leverage in U.S. dollar of 1.90x.
  • Free cash flow of R$3.3 billion.
  • In May, R$1.5 billion additional dividends were paid to the holders of common shares and class "A" preferred shares.
  • As per the Material Fact notice disclosed on June 15, 2018, Braskem was communicated by Odebrecht S.A., its controlling shareholder, about the beginning of discussions with LyondellBasell, a listed company headquartered in Rotterdam, for a potential transaction involving the transfer to LyondellBasell of the totality of Odebrecht S.A.'s interest in Braskem.

Brazil:

  • In 2Q18, average capacity utilization rate of crackers of 90%.
  • Brazilian demand for resins (PE, PP and PVC) reached 1.3 million tons in 2Q18, in line with 2Q17.
  • Braskem's resin sales in the Brazilian market were 821 kton in 2Q18, decreasing 2% from 2Q17.
  • In 2Q18, 320 kton of resins exported, down 13% from 2Q17.
  • EBITDA of R$1,784 million.

 United States and Europe:

  • In 2Q18, the capacity utilization rate stood at 84%, declining 11 p.p. and 8 p.p. from 2Q17 and 1Q18, respectively, reflecting the scheduled shutdown at the Oyster Creek Unit in Texas and operational problems at the Marcus Hook Unit in Pennsylvania.
  • EBITDA of US$170 million.

Mexico:

  • In 2Q18, the PE plants operated at capacity utilization rate of 72%, down 11 p.p. and 13 p.p. from 2Q17 and 1Q18, respectively, due to lower supply of ethane and a scheduled shutdown.
  • In the quarter, PE sales to the Mexican market amounted to 135 kton, up 4% from 2Q17 and down 8% from 1Q18, representing 68% of total sales.
  • EBITDA of US$161 million.

The full earnings release is available on the Company's IR website: http://www.braskem-ri.com.br/home-en

Braskem will host conference calls to discuss its Results TOMORROW, August 9, at 12:00 p.m. US ET. See connecting details on the Company's IR website.

For further information, contact Braskem's Investor Relations Area: braskem-ri@braskem.com.br, (+55 11) 3576-9531

Cision View original content:http://www.prnewswire.com/news-releases/braskems-ebitda-reaches-r3-2-billion-in-2q18--increasing-5-from-2q17-and-20-from-1q18--300694470.html

SOURCE Braskem S.A.

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