10 November 2011 17:13 [Source: ICIS news]
SAO PAULO (ICIS)--Brazil's Braskem swung to a third-quarter loss of reais (R) 1.05bn ($588m, €435m) because of currency fluctuations, the company said on Thursday.
Braskem reported earnings of R532m ($298m, €221m) in the third quarter of 2010.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped 9% to R940m from R1.04bn in the third quarter of 2010.
“The effect of the 19% devaluation of the real on Braskem’s net dollar exposure had a negative impact of R1.6bn on the [third quarter] financial result,” the company said.
Meanwhile, net revenue increased to R8.7bn from R7.5bn, Braskem added.
Financial losses amounted to R2.1bn, compared with a gain of R180m in the same period last year, the company added.
The company said earnings were impacted by a weaker global demand for resins and volatile oil prices.
“Oil market volatility and reduced demand for petrochemicals continue to affect the scenario in the short term,” the company said.
“In the medium and long term, however, the outlook remains positive, given that the supply from the new petrochemical capacities is expected to be lower than the demand growth.”
Braskem stock rose 1.4% to $17.07/share, as of 10:22 Houston time (16:22 GMT).
($1 = R1.78) ($1 = €0.74)
For more on Braskem visit ICIS company intelligence
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