BRASKEM
Q2 net income slips into red territory due to one-time charge for Alagoas conflict / Revenue down 16%
The Brazilian petrochemical group is again in the red (Photo: Braskem)
Braskem (São Paulo / Brazil; www.braskem.com) swung to a net loss of BRL 2.46 bn (EUR 373m) in Q2 2020 from the year-earlier quarter profit of BRL 84m, dragged down by a provision for the resettlement of villagers affected by its salt-mining activities in Alagoas (see Plasteurope.com of 31.07.2019). Revenue contracted 16% to BRL 11.19 bn while recurring EBITDA gained 2% to BRL 1.65 bn due to the Brazilian real currency depreciation.

The Brazil segment’s revenue plunged by one-fourth to BRL 7.42 bn as resin demand contracted following the coronavirus pandemic-triggered economic slowdown. But EBITDA soared 66% to BRL 1.17 bn on lower costs for feedstock and third-party services.

Thanks to the weak real, revenue at the United States and Europe unit rose to BRL 3.06 bn, up by almost one fifth in the Brazilian currency terms. EBITDA at BRL 235m fell 43% because of the narrowing of polypropylene spreads in the international market.

The company’s Mexico division was the star performer, with revenue at BRL 965m and EBITDA at BRL 523m. Both were significantly boosted by the real depreciation, higher sales volume and the lower ethane price.
26.08.2020 Plasteurope.com [245797-0]
Published on 26.08.2020
Braskem: Polyolefinkonzern weiter in der VerlustzoneGerman version of this article...

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