Braskem Q1 profit triples on jump in sales, exports

Lane Kelley

05-May-2016

HOUSTON (ICIS)–Braskem’s net income more than tripled in the first quarter of 2016 on higher sales and exports plus continued high performance in the US and Europe, the Brazil-based petchem producer said on Thursday.

Q1 earnings totaled Brazilian reais (R) 747m ($211.6m), compared with R204m in the same quarter of 2015, according to Braskem’s quarterly earnings report.

Total sales during the quarter jumped 19% year on year to R12.17bn.

Exports increased 62% over the first quarter last year. Braskem’s polypropylene (PP) exports from Brazil more than doubled to 136,580 tonnes, compared with 52,788 tonnes in Q1 2015.

Resin consumption in Brazil during the quarter declined 18% compared with the same period last year.

But the company’s operations in the US and Europe helped boost overall performance with high margins and stronger PP demand. PP production at plants in the two regions rose 8% over Q1 2015, Braskem said.

Spreads at Braskem’s five PP plants in the US more than doubled year on year, reflecting the decline in propylene prices from oversupply, lower oil prices and strong demand for the polymer, the company said.

The producer also noted that its new petrochemical complex in Mexico, operated by the joint venture subsidiary Braskem Idesa, started up the cracker there on 16 March and began polyethylene (PE) production in April.

($1 = R3.53)

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