Brazil Braskem estimates R50m loss due to power outage

06 September 2013 21:32  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--The head of the petrochemical major Braskem said on Friday that a power outage that struck northeast Brazil last week would cost the company an estimated Brazilian reais (R) 50m ($22m, €17m).

The 29 August outage, which caused a three-hour blackout in the region, affected operations at Braskem’s industrial complexes in the states of Bahia and Alagoas.

“You can see that it is not a trivial number,” said Braskem chief executive office Carlos Fadigas. “The costs will impact on the company’s third quarter results.”

According to the executive, the estimation was based on interruption to operations, the period the plants were off line and the costs involved to restart the units. Both the Bahia and Alagoas complexes were operating normally after four to five days.

The valuation did not include the cost of using more expensive thermoelectric power during the outage, which could run into “million of reais”, Fadigas said.

However, the impact of the outage was lower than it might have been due to investments Braskem had made since 2011 to minimise the impact of blackouts.

At the Camacari industrial complex in Bahia, Braskem produces basic petrochemicals including polypropylene (PP), polyethylene (PE), polyvinyl chloride (PVC) and ethylene vinyl acetate (EVA), according to information on the company’s website.

In the state of Alagoas, the company produces chlor-alkali at the Maceio industrial complex, while its Marechal Deodoro facility focuses on PVC production.

The company also operates industrial units in the states of Sao Paulo, Rio de Janeiro and Rio Grande do Sul.

($1 = €0.76, $1 = R2.32)

By: Simon West

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