Braskem swings to Q1 net loss, but sales and EBITDA improve

14 May 2010 16:28  [Source: ICIS news]

TORONTO (ICIS news)--Braskem reported a first-quarter net loss of reais (R) 123m ($69m, 55m), compared with a net profit of R10m in the 2009 first quarter, but net revenues and earnings before interest, tax, depreciation and amortisation (EBITDA) improved sharply on better margins, the Brazilian petrochemicals major said on Friday.

Quarter over quarter, Braskem narrowed its net loss by R770m from a net loss of R893m in the 2009 fourth quarter.

EBITDA for the three months ended 31 March rose 59% to R729m from R457m in the 2009 first quarter as net revenues rose 37% to R4.47bn from R3.26bn. Gross profit doubled to R793m.

Braskem's first-quarter EBITDA margin was 16.3%, up from 14.0% for the 2009 first quarter and up from 14.4% for the preceding 2009 fourth quarter, Braskem said.

Bottom line net results were affected by the depreciation of the real among other factors, Braskem said.

“Since Braskem holds net exposure to the US dollar - more dollar-pegged liabilities than dollar-pegged assets - any shift in the path of the exchange rate has an impact on the accounting financial result,” it said.

($1 = R1.77)
($1 = €0.80)

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By: Stefan Baumgarten
+1 713 525 2653



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