Braskem posts Recurring EBITDA of US$230 million in the quarter, 9% higher than 4Q23 and 12% higher than 1Q23

Rhea-AI Summary

Braskem, the largest resin producer in the Americas, reported a recurring EBITDA of US$230 million in 1Q24, a 9% increase from 4Q23 and a 12% increase from 1Q23. The company also highlighted a cash position of US$3.3 billion, operating cash generation of US$196 million, and an increase in green PE production utilization rate. Braskem's full earnings release can be found on their IR website.

Positive

• Recurring EBITDA increased by 9% from 4Q23 and 12% from 1Q23, reaching US$230 million in 1Q24.

• Cash position of US$3.3 billion provides coverage for debt maturities over the next 69 months.

• Operating cash generation rose to US$196 million in 1Q24, a significant increase from both 4Q23 and 1Q23.

• Green PE production utilization rate improved to 98%, showing positive growth compared to previous quarters.

Negative

• None.

Insights

Financial Analyst

The increase in Braskem's Recurring EBITDA to $230 million represents a robust performance, particularly given the sequential growth from the previous quarter and the year-over-year improvement. This metric is important as EBITDA serves as a proxy for a company's operating profitability before non-cash expenses and is often used by investors to gauge the company's financial health. The positive change in Operating Cash Generation, signifying an uptick to $196 million, is indicative of a solid operating efficiency and effective capital deployment strategy. Braskem's bolstering of its cash position to $3.3 billion provides a substantial buffer for upcoming debt obligations, which is reassuring for debt holders and equity investors alike. The significant rise in the utilization rate for Green PE production to 98% suggests a successful resolution of prior supply chain challenges, likely contributing to the enhanced operating metrics. Given these elements, the overall financial health of Braskem seems to be on an upward trajectory.

Sustainability Analyst

The reported 98% utilization rate for Braskem's Green Polyethylene (PE) production is a standout figure, reflecting the company's leadership in the biopolymers sector. Green PE is derived from renewable resources like sugarcane and its increased production efficiency signals a strategic alignment with global sustainability trends. This not only helps in reducing the carbon footprint but also positions Braskem favorably in markets with growing eco-conscious consumer bases. Furthermore, the efficient management of green ethylene supply after previous climate-related constraints demonstrates operational resilience. Investors are increasingly factoring in ESG (Environmental, Social and Governance) metrics when making investment decisions and Braskem's progress in this area could potentially enhance its attractiveness as a sustainable investment.

SÃO PAULO, May 9, 2024 /PRNewswire/ -- BRASKEM S.A. (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) the largest resin producer in the Americas and the world's leading biopolymers producer, presents its 1Q24 Earnings Release.

1Q24 HIGHLIGHTS

CONSOLIDATED

• Recurring EBITDA of US$230 million, around R$1,140 million, higher than 4Q23 (+9%) and 1Q23 (+12%).
• Cash position of US$3.3 billion, ensuring coverage of debt maturities over the next 69 months.
• Operating Cash Generation¹ of US$196 million, around R$972 million, higher than 4Q23 (+US$129 MM) and 1Q23 (+US$254 MM).
• Green PE Production: utilization Rate of 98%, +36 p.p. vs. 4Q23 and +89 p.p. vs. 1Q23. Normalization of green ethylene supply after restrictions in 4Q23 due to the climate conditions.

 

The full earnings release is available on the Company's IR website: www.braskem-ri.com.br/en

Braskem will host conference calls to discuss its Results Thursday, May 9 at 10:00 a.m. US ET.

Additional information may be obtained from the Investor Relations Department at +55 11 3576-9531 or braskem-ri@braskem.com.br.

¹ Operating Cash Generation (=) Recurring EBITDA (-) Operational CAPEX (-) Strategic Investments (+/-) Changes in Working Capital.

 

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SOURCE Braskem

FAQ

What was Braskem's recurring EBITDA in 1Q24?

Braskem's recurring EBITDA in 1Q24 was US$230 million.

How does Braskem's 1Q24 EBITDA compare to 4Q23 and 1Q23?

Braskem's 1Q24 EBITDA was 9% higher than 4Q23 and 12% higher than 1Q23.

What is Braskem's cash position in 1Q24?

Braskem's cash position in 1Q24 was US$3.3 billion.

Where can the full earnings release be accessed?

The full earnings release can be found on Braskem's IR website.