Brazil’s Braskem swings to Q3 net loss on lower sales volumes

Pearl Bantillo

09-Nov-2022

SINGAPORE (ICIS)–Brazilian producer Braskem swung into a net loss in the third quarter of 2022 due to a combination of lower sales volumes and normalisation of international spreads for resins.

In $m Q3 2022 Q3 2021 Change Jan-Sept 2022 Jan-Sept 2021 Change
Sales 4,832 5,413 -11% 15,120 14,548 4%
Recurring EBITDA* 371 1,469 -75% 2,092 4,510 -54%
Net profit -211 677  N/A 256 2,535 -90%

*Recurring earnings before interest, taxes, depreciation, and amortisation (EBITDA) in July-September 2022 slumped by 75% year on year due to “normalization of international spreads” for polyethylene (PE), polypropylene (PP) and polyvinyl chloride (PVC) in Brazil, for PP in the US and Europe, and for PE in Mexico, said Braskem.

Sales volumes of main chemicals and resins in Brazil declined, along with those of PP in the US and Europe, it added.

In the Brazilian market, third-quarter sales volume for main chemicals fell by 10% year on year, led by paraxylene (PX) and toluene.

Exports for the period fell by 3% year on year “mainly due to lower exports of benzene, explained by the strategy of prioritising the domestic market in the period”, it added.

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