Recurring EBITDA in 3Q22 was US$371 million In the year to date, the Company's Cash Generation was R$3.1 billion

Rhea-AI Summary

Braskem S.A. (NYSE: BAK) reported its 3Q22 earnings, revealing a Recurring EBITDA of US$371 million, a 54% decline from 2Q22, primarily due to decreased resin export volumes in Brazil and lower prices across key product lines. Year-over-year, EBITDA fell 75%. The company also faced a net loss of R$1.1 billion for the quarter, although net income for the year stands at R$1.4 billion. Despite challenges, Braskem maintained a robust cash position of US$2.2 billion, ensuring coverage for debt maturities for the next five years.

Positive

• Cash position of US$2.2 billion ensuring coverage for debt maturities over the next 63 months.
• In October, obtained licenses for a Joint Venture with Advario and completed land purchase for a new ethane terminal.

Negative

• Recurring EBITDA decreased by 54% from the previous quarter and 75% year-over-year.
• Net loss of R$1.1 billion in 3Q22.

SÃO PAULO, Nov. 10, 2022 /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 3Q22 Earnings Release.

3Q22 HIGHLIGHTS CONSOLIDATED

• In 3Q22, Recurring EBITDA was of US$371 million, lower 54% than 2Q22, mainly due to (i) the lower exports volume of resins in the Brazil segment, lower sales volume of PP in the United States and PE in the Mexico segment; (ii) lower international spreads for PE, PP and PVC in Brazil, PP in the United States and Europe, PE in Mexico; and (iii) the accounting effect of realization of inventories¹  in the net amount of US$77 million (R$400 million). Excluding this effect of realization of inventories, the Recurring EBITDA was US$448 million (R$2.4 billion).
• Compared to 3Q21, the Company's Recurring EBITDA in U.S. dollar decreased 75%, due to (i) the normalization of international spreads for PE, PP and PVC in Brazil, for PP in the United States and Europe and for PE in Mexico; and (ii) the lower sales volume of main chemicals and resins in the Brazil segment and PP in the United States and Europe. In Brazilian Real, Recurring EBITDA was R$2.0 billion, 50% and 74% lower than in 2Q22 and 3Q21.
• In the quarter, the Company posted a net loss² of R$1.1 billion. In the year to date, the Company registered net income attributable to shareholders of R$1.4 billion, representing R$1.73 per common share and class "A" preferred share³.
• Braskem's recurring cash generation was of R$1.6 billion and return⁴ on cash flow was 45% in 3Q22. Considering the payments related to the geological event in Alagoas made in 3Q22, the Company registered cash generation of R$0.9 billion and return³ on cash flow of 31%.
• Corporate leverage, measured by the ratio of adjusted net debt to Recurring EBITDA⁵ in U.S. dollar, ended the quarter at 1.55x.
• The cash position was US$2.2 billion, a level that guarantees coverage of debt maturities for the next 63 months. Note that this position does not include the international stand-by credit facility in the amount of US$1.0 billion, with maturity in 2026.
• In October, Braskem Idesa obtained licenses for the creation of the Joint Venture with Advario by the Mexican government institution COFECE (Comisión Federal de Competencia Económica) and concluded the purchase of land for the construction of the ethane terminal in the port of Coatzacoalcos.

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 WEDNESDAY, November 9 at 9:00 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 Accounting effect of realization of inventories in accordance with accounting standard CPC 16 (Correlation to International Accounting Standards - IAS 2).

² Based on net income (loss) attributable to the shareholders of the Company.

³ For the class "B" preferred shares, the amount is R$0.61 per share.

⁴ Based on recurring cash generation in U.S. dollar in the last 12 months divided by the Company's market capitalization in the quarter.

⁵ Excludes Braskem Idesa's debt and considers Recurring EBITDA in the last 12 months.

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SOURCE Braskem S.A.

FAQ

What was Braskem's Recurring EBITDA for 3Q22?

Braskem's Recurring EBITDA for 3Q22 was US$371 million.

How does Braskem's 3Q22 performance compare to 2Q22?

In 3Q22, Braskem's Recurring EBITDA decreased by 54% compared to 2Q22.

What was Braskem's net loss in 3Q22?

Braskem reported a net loss of R$1.1 billion in 3Q22.

What is Braskem's cash position?

Braskem's cash position stood at US$2.2 billion at the end of 3Q22.

What major developments occurred in October for Braskem?

Braskem received licenses for a Joint Venture with Advario and finalized the purchase of land for an ethane terminal.