BRASKEM
Second quarter operating profit rises by 16% to BRL 2.6 bn / Recovery of petrochemical margins and weaker local currency support gains / Joint venture in Mexico with Idesa reaches final stages
Brazilian resins major Braskem (São Paulo; www.braskem.com.br) said that a 7% depreciation of the Brazilian real, a recovery in petrochemical prices and higher sales volumes contributed to a 16% year-on-year increase in operating profit (EBITDA) to BRL 2.6 bn (EUR 678m) in the second quarter of 2015. Sales in the quarter were up 7% to BRL 11.6 bn (EUR 3 bn), with the rise driven by a combination of external and domestic factors, the company said.
Carlos Fadigas, Braskem CEO, said: “Braskem’s strong operating performance this quarter in a more favourable international scenario should not divert our focus from the challenges faced by the domestic industry of staying competitive, particularly in the chemical and petrochemical industry.” He added that the strengthening of the company’s production chain depends on long-term access to feedstock under competitive terms, which will help it face competition from US shale gas.
The company operated its petrochemical units at an average utilisation rate of 93% in the second quarter of 2015, up from 89% in the previous quarter. This expansion reflects operating efficiency driven by streamlined processes and investments made in recent years, it said. With the exclusion of the gas-powered Rio de Janeiro unit, which is facing insufficient feedstock supply, the company’s utilisation rate in the second quarter was 97%.
The worsening state of the Brazilian economy was reflected in low demand for PP, PE and PVC in the domestic market, which totalled 1.2m t in the quarter, a 15% decline from Q1, which had been positively affected by inventory rebuilding and in anticipation of orders due to the prospects of a recovery in international resin prices.
Braskem’s resin sales followed the downward trend in domestic demand, decreasing by 17% to 792,000 t in the quarter. This decline was offset partially by the increase in exports, which reached 373,000 t, up 53% year-on-year. Basic petrochemical exports totalled 353,000 t, up 23% from the first quarter of 2015.
The average capacity utilisation rate of the company’s PP plants in the USA and Europe exceeded nominal capacity, reaching 101% and resulting in a record production of 506,000 t. PP sales grew 7%, with notable growth in the US reflecting improved performance in the consumer goods, automotive and rigid packaging markets in the country.
Braskem’s joint venture project with Idesa in Mexico is entering its final stages, it said. Construction of the project reached 95% physical completion and operational start-up is expected at the end of this year (for most recent coverage, see Plasteurope.com of 21.04.2015. Braskem invested around BRL 282m (EUR 73m) in the project in the first half of 2015. The first steam generation boiler started operating in June, after fuel gas was made available.
Carlos Fadigas, Braskem CEO, said: “Braskem’s strong operating performance this quarter in a more favourable international scenario should not divert our focus from the challenges faced by the domestic industry of staying competitive, particularly in the chemical and petrochemical industry.” He added that the strengthening of the company’s production chain depends on long-term access to feedstock under competitive terms, which will help it face competition from US shale gas.
The company operated its petrochemical units at an average utilisation rate of 93% in the second quarter of 2015, up from 89% in the previous quarter. This expansion reflects operating efficiency driven by streamlined processes and investments made in recent years, it said. With the exclusion of the gas-powered Rio de Janeiro unit, which is facing insufficient feedstock supply, the company’s utilisation rate in the second quarter was 97%.
The worsening state of the Brazilian economy was reflected in low demand for PP, PE and PVC in the domestic market, which totalled 1.2m t in the quarter, a 15% decline from Q1, which had been positively affected by inventory rebuilding and in anticipation of orders due to the prospects of a recovery in international resin prices.
Braskem’s resin sales followed the downward trend in domestic demand, decreasing by 17% to 792,000 t in the quarter. This decline was offset partially by the increase in exports, which reached 373,000 t, up 53% year-on-year. Basic petrochemical exports totalled 353,000 t, up 23% from the first quarter of 2015.
The average capacity utilisation rate of the company’s PP plants in the USA and Europe exceeded nominal capacity, reaching 101% and resulting in a record production of 506,000 t. PP sales grew 7%, with notable growth in the US reflecting improved performance in the consumer goods, automotive and rigid packaging markets in the country.
Braskem’s joint venture project with Idesa in Mexico is entering its final stages, it said. Construction of the project reached 95% physical completion and operational start-up is expected at the end of this year (for most recent coverage, see Plasteurope.com of 21.04.2015. Braskem invested around BRL 282m (EUR 73m) in the project in the first half of 2015. The first steam generation boiler started operating in June, after fuel gas was made available.
12.08.2015 Plasteurope.com [231807-0]
Published on 12.08.2015
German version of this article...