Ethylene & propylene sales down in Q3, BRASKEM
BRASKEM S.A., the leading resin producer in the Americas, announces its 3Q10 results.
• Braskem's thermoplastic resin sales of 934 ktons in the domestic market, up 17% from the prior quarter.
• Operating rate for the crackers in the quarter was over 90% for the first time since the consolidation of the Quattor assets.
• Start up of the Green Ethylene plant at the Triunfo petrochemical complex, which has annual production capacity of 200 ktons, which is used as feedstock for the production of Green Polyethylene, which led Braskem to become the global leader in biopolymers. With investment and schedule according to estimates, its product was specified in a record 24 hours.
• Braskem advanced its strategy to become a global leader in sustainable chemicals and announced a project to produce Green Polypropylene at K Fair, one of the most important events in the plastic industry.
• Braskem entered into an agreement with Laboratório Nacional de Biociências (LNBio) located in Campinas to develop technologies for the production of polymers from renewable raw materials that are competitive, cost-effective and efficiently sequester carbon dioxide from the atmosphere.
• In line with its commitment to reduce leverage and obtain an "investment grade" credit rating, Braskem's net debt/EBITDA1 ratio reached 2.63x, declining 7% from the prior quarter.
• Braskem concluded another phase of its financial strategy in October by raising US$450 million in perpetual bonds with a coupon of 7.375% p.a., lengthening its pro-forma average debt term to 11.92 years.
• The Economic Oversight Department (SEAE) of the Ministry of Finance and the Economic Law Department (SDE) of the Ministry of Justice recommended to the Administrative Council of Economic Defense (CADE), Brazil's anti-trust authority, the unqualified approval of the acquisition of Quattor.
• Seeking to increase its proximity to Clients and better understand their needs, Braskem expands its global presence by inaugurating a commercial office in Colombia. Braskem is also preparing to open new commercial offices in Singapore and Peru.
• For the second time, Braskem received the Guia Exame Sustainability award by figuring among the 20 most sustainable companies in Brazil. The awards ceremony was held on November 10.
Basic Petrochemicals Performance
The higher operating rates of naphtha-based crackers, driven by stronger demand for ethylene and a slight and temporary drop in the competitiveness of gas-based players in 3Q10, increased the supply of co-products and consequently led to lower prices in the international market.
Ethylene and propylene sales in 3Q10 reached 236 ktons, down 8% from 2Q10, mainly due to (i) the lower propylene exports and (ii) the scheduled maintenance stoppages in 2nd generation ethylene clients.
The solid performance in the domestic market and the export opportunities increased butadiene sales in 3Q10 by 11% from the previous quarter.