Braskem Q2 net profit plummets, but operating profit doubles

10 August 2010 15:02  [Source: ICIS news]

Q2 op profit doublesTORONTO (ICIS)--Braskem’s consolidated second-quarter net profit dropped to Reais (R) 45m ($26m) from R1.16bn in the 2009 second quarter due to currency effects, but operating profit doubled and revenues rose 77% to R6.5bn.

Results included the acquisition of the control of Quattor and of Sunoco’s chemicals business, Braskem said.

The year-over-year decline in net profit reflected the US dollar depreciation versus Brazil's Real, the Brazil-based company said.

Second-quarter consolidated operating income before financial results was R674m, compared with R342m in the 2009 second quarter, while EBITDA almost doubled to R1.04bn.

“In this second quarter we began to reap the gains from the Quattor merger, which presents opportunities to capture synergies estimated at R$400m in annual and recurring EBITDA as of 2012, confirming the acquisition's potential for value accretion,” said chief executive Bernado Gradin.

In its outlook, Braskem warned about the slow speed of the global recovery toward the end of the second half.

Said Gradin: “The scenario of the economy and international petrochemical industry require attention, whether due to the deterioration of the crisis in developed countries or the slight slowdown in the Chinese economy, which could cause downward pressure on demand for commodities in the international market, or due to the new resin or petrochemical production capacity coming online."

($1 = R1.76)

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