Braskem posts 11% drop in Q3 operating profit

07 November 2007 15:36  [Source: ICIS news]

TORONTO (ICIS news)--Braskem on Wednesday reported consolidated third-quarter operating profit before financial results of Brazilian reais (R) 408m ($236m), down 11% from the 2006 third quarter, on net revenue of R4.6bn, down 2% .

 

The Brazil petrochemicals major reported prior comparison periods on a pro forma basis, as if acquisitions it made and their effects had taken place on 1 January 2006, it said.

 

Net income was R132m, compared with a net loss or R54m in the 2006 third quarter.

 

Braskem described its third-quarter operating performance as solid with high utilisation rates but said results were affected by the lower international prices of aromatics and higher raw material and energy costs.

 

Braskem’s earnings before interest, tax, depreciation and amortisation (EBITDA) margin was 16.3% in the third quarter, slightly down from 16.8% in the 2006 third quarter but up by 0.2 percentage point from the 2007 second quarter, it said.

 

The company’s third-quarter thermoplastic resins production volumes reached a record of 714,000 tonnes, it said.

 

Domestic sales volumes for resins were 551,000 tonnes, a 5% increase from the 2006 third quarter.

 

Braskem’s polypropylene (PP) plants operated at 95% utilisation rates during the quarter, the polyethylene (PE) plants at 92% and the polyvinyl chloride (PVC) plants at 89%. This compares with 104%, 90% and 87% in the 2006 third quarter.

 

For the first nine months from January through September, Braskem’s consolidated net income was R541m, up from R$38m in the year-earlier period, on revenues of R17.7bn, up 9%.

 

($1 = R1.73)

By: Stefan Baumgarten
+1 713 525 2653

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