Braskem reports recurring Operating Result in 2Q21 of US$1,776 million, up 40% on 1Q21
Braskem S.A. reported significant financial results for 2Q21, with a recurring Operating Result of US$1,776 million, marking a 40% increase from 1Q21 and a 530% rise year-over-year. The net profit reached R$7,424 million, a 198% increase from the prior quarter. Corporate leverage improved to 1.10x, down 39% from 1Q21, indicating enhanced financial health. The company also successfully reduced gross debt by approximately US$1.7 billion this year. Additionally, Fitch and Moody's upgraded Braskem's outlooks, signifying positive market sentiment.
- Recurring Operating Result of US$1,776 million, up 40% from 1Q21.
- Net profit increased to R$7,424 million, 198% higher than 1Q21.
- Corporate leverage improved to 1.10x, down 39% from 1Q21.
- Reduced gross debt by approximately US$1.7 billion year-to-date.
- Fitch upgraded outlook to positive; Moody's maintained stable outlook.
- None.
Corporate leverage reaches 1.10x at the end of the second quarter of 2021
SÃO PAULO, Aug. 4, 2021 /PRNewswire/ -- BRASKEM S.A. (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) announces today its results for 2Q21.
2Q21 HIGHLIGHTS:
Braskem - Consolidated:
- In 2Q21, the Company's recurring Operating Result was US
$1,776 million ,40% higher than 1Q21, mainly due to: (i) better international spreads for PE, PVC and main chemicals in Brazil, for PP in the United States and Europe and for PE in Mexico; and (ii) higher sales volumes of PP in the United States and PE in Mexico. Compared to the same quarter last year, recurring Operating Result in U.S. dollar increased530% , due to: (i) better international spreads for main chemicals in Brazil and resins in all regions; and (ii) higher sales volume of resins and main chemicals in Brazil and PP in the United States and Europe. In Brazilian real, recurring Operating Result was R$9,400 million ,35% and522% higher than in 1Q21 and 2Q20, respectively, due to the appreciation of Brazilian real against U.S. dollar.
- In the quarter, the Company recorded net profit of R
$7,424 million ,198% higher than 1Q21, representing R$12.47 per common share and class "A" preferred share.
- The Company's free cash flow generation was R
$1,554 million and the free cash flow yield was12.7% in 2Q21.
- In line with the continuous commitment to financial health and to regaining investment grade rating, the Company continued to reduce its corporate leverage, measured as the ratio of net debt to recurring Operating Result in U.S. dollar, which ended 2Q21 at 1.10x, a decrease of
39% in relation to 1Q21 (1.80x).
- In May, the risk rating agency Fitch Ratings upgraded Braskem's outlook to positive and reaffirmed its risk rating on the global scale of BB+. Furthermore, in July, the risk rating agency Moody's upgraded Braskem's outlook to stable and reaffirmed its risk rating on the global scale of Ba1.
- In the quarter, given its strong cash position and to reduce its gross debt, the Company concluded several operations totaling US
$643 million . In the year, the Company reduced in approximately US$1.7 billion its corporate gross debt, considering the operations performed in July.
- The Company's class "A" preferred shares (BRKM5) registered a price gain of approximately
153% in the 1st semester of the year.
The full earnings release is available on the Company's IR website: www.braskem-ri.com.br/home-en
Braskem will host conference calls to discuss its Results THURSDAY, August 05 at 1:00 p.m. US ET.
Additional information may be obtained from the Investor Relations Department at +55-11-3576-9531 or braskem-ri@braskem.com.br.
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SOURCE Braskem S.A.
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