Healthy demand in the US and Europe shored up Braskem's (São Paulo / Brazil; www.braskem.com.br) core operating profit last year, but net income swung to a loss of BRL 768m (EUR 200m) from a year-earlier BRL 2.88 bn profit due to nearly USD 1 bn provision to cover US penalties for corruption (see Plasteurope.com of 02.01.2017).

Revenue rose 2% to BRL 47.7 bn as exports helped compensate for a slump in recession-hit Brazil. EBITDA was up by nearly a quarter to BRL 11.5 bn, thanks to its Basic Petrochemicals business, healthy resin and basic petrochemical spreads in the international market as well as a weaker real. The Mexico segment also began to contribute to results, while the United States and Europe segments had a 100% average capacity utilisation rate, a 2 percentage points improvement due to the optimisation of PP grades implemented during the year and strong demand for resins in both regions.

The Brazil segment, whose profit accounts for three-fourths of the group, had a flat EBITDA of BRL 8.5 bn. Profit at the Basic Petrochemicals division increased 11% to BRL 4.9 bn but dipped at the three others – Polyolefins, Vinyls and Chemicals Distribution.

With higher feedstock availability at the gas-based cracker in Rio de Janeiro and an expanding sales volume outside of Brazil, Basic Petrochemicals' average capacity utilisation rate rose 3 percentage points to a record 92%, producing 4% more resin at 4.9 m t. A record 1.7 m t were exported, up 24%. Key petrochemicals sold in Brazil fetched a 1% revenue increase to BRL 19.5 bn but export revenue jumped 13% to BRL 5.57 bn, supported by a weaker real and better international price references for certain basic petrochemicals, especially butadiene.

The US and Europe segments boosted both revenue and EBITDA, by 8% to BRL 8.9 bn and by 120% to BRL 2.46 bn, respectively. PP demand in Europe grew faster than expected because of low PP prices, growth in automotive and construction industries and economic recovery in the region.