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Thermoplastic resin sales up 6% in Q1 at Braskem
10
May '13
Braskem SA, a world-class Brazilian petrochemical company announces its first quarter 2013 results.

HIGHLIGHTS:

Operations

- In 1Q13, Brazil’s resins demand totaled 1.3 million tons, increasing by 5.6% and 5.0% from 4Q12 and 1Q12, respectively. Meanwhile, Braskem's sales amounted to 921 kton, growing by 6.2% and 8.8%, while its market share reached 71%.

-The crackers operated at an average capacity utilization rate of 90%, compared to 82% in the prior quarter, which was affected by electricity supply problems.

- EBITDA in 1Q13 amounted to R$937 million, growing by 6% from the recurring EBITDA in 4Q12, which is explained by the higher sales volume, the recovery in international spreads and the gains in operating efficiency. In U.S. dollar, EBITDA was US$470 million.

Macroeconomic scenario

-In response to the proposal submitted by the Chemical Industry Competitiveness Council, the government approved on May 2013 a reduction in the rate of PIS and COFINS taxes on feedstock purchases by the first- and second-generation of chemical producers.

- Expansion and diversification of feedstock

- Mexico Project (Ethylene XXI):

- The construction of the new petrochemical complex remains on schedule and the project’s physical completion reached 26%.

Brazil:

As part of its strategy to increase the value of its cracker streams, Braskem has already begun the construction of the pipeline to supply propylene to the acrylic complex of Basf, scheduled to start operations in the second half of 2014.

Comperj: the basic engineering studies are on schedule and the conceptual design is expected to be concluded within the new few months.

Commitment to financial health

- Receipt of the first installment of R$163 million from the divestment of the assets of the Water Treatment Unit.

EXECUTIVE SUMMARY

In a still uncertain global scenario, the 1Q13 was marked by the recovery of prices and global demand for resins and basic petrochemicals, influenced by the restocking trend in Asia and the scheduled and unscheduled maintenance shutdowns.

The average price of naphtha, the main feedstock used by the petrochemical industry, remained practically stable in relation to 4Q12. Consequently, the spreads for resins1 and basic petrochemicals2 in the international market increased by 24% and 6%, respectively.

The Brazilian market followed the global trend and domestic demand for thermoplastic resins reached 1.3 million tons, growing by 5.6% from 4Q12. In line with its focus, Braskem’s sales amounted to 921 kton, increasing by 6.2% and supporting a market share gain of 1 p.p. to 71% in 1Q13.

After the volatility in the electricity supply in the 4Q12, the Company’s industrial facilities normalized their operations, and the average capacity utilization rate of the crackers reached 90% in the first quarter of this year.

EBITDA in 1Q13 amounted to R$937 million, growing by 6% from 4Q12 recurring EBITDA , explained by the higher sales volume and better spreads, which followed the international market trend. In U.S. dollar, EBITDA was US$470 million.

Click here to read full results

Braskem


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