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Total ethylene & propylene sales higher in Q2, BRASKEM
12 Aug '10
4 min read
BRASKEM S.A., the leading thermoplastic resin producer in the Americas, announces its results for the second quarter of 2010 (2Q10).
With the acquisition of the control of Quattor Participações SA and Sunoco Chemicals in April 2010, this release is based on pro-forma consolidated information that includes 100% of the results from these new assets for all periods stated. In accordance with CVM Instruction 247, these figures consider the proportional consolidation of the interest in Cetrel S.A. - Empresa de Proteção Ambiental. The quarterly information was reviewed by independent external auditors, with the exception of Braskem America (the former Sunoco Chemicals) in 2009 and 1Q10.
On June 30, 2010, the Brazilian real/U.S. dollar exchange rate was R$1.8015/US$1.00.
According to Braskem CEO Bernardo Gradin:
"With each passing quarter, Brazil has demonstrated the capacity to grow its economy, which has kept resin demand at high levels. This scenario helped Braskem's strong performance, in particular the recovery in the Quattor operations, as a consequence of the company's new administration initiatives, aiming always at better serving the Brazilian market. In this second quarter we began to reap the gains from the Quattor merger, which presents opportunities to capture synergies estimated at R$ 400 million in annual and recurring EBITDA as of 2012, confirming the acquisition's potential for value accretion.
“The scenario of the economy and international petrochemical industry require attention, whether due to the deterioration of the crisis in developed countries or the slight slowdown in the Chinese economy, which could cause downward pressure on demand for commodities in the international market, or due to the new resin or petrochemical production capacity coming online."
Green ethylene plant
The green ethylene plant located at the Triunfo petrochemical complex is in the commissioning and pre-operational phase, with operations for the global market expected to begin in September 2010. In July, the Rio Grande do Sul State Environmental Protection Foundation (FEPAM/RS) granted the plant's operating license, and Braskem has already finished contracting the ethanol required to guarantee feedstock supplies. The new plant will consume 460,000 m3 of ethanol per year. Braskem will be the first company in the world to produce polyethylene certified as made from renewable raw materials on an industrial scale.
Basic Petrochemicals Performance
In line with the international scenario for thermoplastic resins, ethylene and propylene prices reversed the upward trend in May and June, reflecting (i) the increase in naphtha supply due to higher production at the refineries in Asia, which limited the exports opportunities from Europe and led to lower prices; (ii) decrease in oil prices, which were impacted by the more pessimistic outlook for the global economy; (iii) the weaker demand in 2nd generation operations.
With the acquisition of the control of Quattor Participações SA and Sunoco Chemicals in April 2010, this release is based on pro-forma consolidated information that includes 100% of the results from these new assets for all periods stated. In accordance with CVM Instruction 247, these figures consider the proportional consolidation of the interest in Cetrel S.A. - Empresa de Proteção Ambiental. The quarterly information was reviewed by independent external auditors, with the exception of Braskem America (the former Sunoco Chemicals) in 2009 and 1Q10.
On June 30, 2010, the Brazilian real/U.S. dollar exchange rate was R$1.8015/US$1.00.
According to Braskem CEO Bernardo Gradin:
"With each passing quarter, Brazil has demonstrated the capacity to grow its economy, which has kept resin demand at high levels. This scenario helped Braskem's strong performance, in particular the recovery in the Quattor operations, as a consequence of the company's new administration initiatives, aiming always at better serving the Brazilian market. In this second quarter we began to reap the gains from the Quattor merger, which presents opportunities to capture synergies estimated at R$ 400 million in annual and recurring EBITDA as of 2012, confirming the acquisition's potential for value accretion.
“The scenario of the economy and international petrochemical industry require attention, whether due to the deterioration of the crisis in developed countries or the slight slowdown in the Chinese economy, which could cause downward pressure on demand for commodities in the international market, or due to the new resin or petrochemical production capacity coming online."
Green ethylene plant
The green ethylene plant located at the Triunfo petrochemical complex is in the commissioning and pre-operational phase, with operations for the global market expected to begin in September 2010. In July, the Rio Grande do Sul State Environmental Protection Foundation (FEPAM/RS) granted the plant's operating license, and Braskem has already finished contracting the ethanol required to guarantee feedstock supplies. The new plant will consume 460,000 m3 of ethanol per year. Braskem will be the first company in the world to produce polyethylene certified as made from renewable raw materials on an industrial scale.
Basic Petrochemicals Performance
In line with the international scenario for thermoplastic resins, ethylene and propylene prices reversed the upward trend in May and June, reflecting (i) the increase in naphtha supply due to higher production at the refineries in Asia, which limited the exports opportunities from Europe and led to lower prices; (ii) decrease in oil prices, which were impacted by the more pessimistic outlook for the global economy; (iii) the weaker demand in 2nd generation operations.
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