09 August 2013 20:47 [Source: ICIS news]
“We had a 5% figure – we are now thinking of something between 7% and 8%,” said Braskem chief executive officer Carlos Fadigas in a conference call with investors.
Fadigas pointed to strong growth in the agribusiness, automotive and infrastructure sectors that had helped push resin demand to 1.4m tonnes, a 10% increase compared with the first quarter.
The company’s own domestic sales of resins increased by 3% from the previous quarter to 947,000 tonnes, accounting for 66% of total market share – five percentage points down from the first quarter.
Fadigas described the company’s second quarter results as “strong”, with net revenue increasing by 6% year on year to Brazilian reais (R) 9.5bn ($4.2bn, €3.2bn), and earnings before interest, tax, depreciation and amortisation (EBITDA) up 24% to R1.05bn.
The 94% capacity utilisation of Braskem’s crackers during the quarter was “the best performance in four years”, Fadigas said. The rate was helped by a government initiative that reduced tax rates for raw material purchases in the chemical sector.
“On the other hand, a lot of things have to come together to run at 94%,” the director said, showing caution in suggesting that this rate could be maintained in the remaining quarters. “I will be a little bit more conservative – I think something between 90% and 94% would be more feasible for the third quarter.”
Fourth quarter capacity would be impacted by planned maintenance on the company’s cracker unit in Bahia, northeast Brazil, at the end of September, Fadigas said.
The stoppage, which is scheduled every 6 years, would last for about 40 days and temporarily reduce the cracker’s 1.2m tonne capacity by 50%, he said.
($1 = €0.75, $1 = R2.28)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections