Brazilian petrochemical producer Braskem (São Paulo; www.braskem.com) has announced a 9% drop in second-quarter revenue to BRL 17.75 bn (EUR 3.3 bn), with recurring EBITDA plummeting 82% to BRL 703 mn due to stuttering global demand, higher interest rates, and inflation.

The news comes as various suitors circle the Brazilian firm.

Headwinds are said to have also come from the de-stocking effect in the processing chain, the weaker-than-expected economic recovery in China, and lower chemical and petrochemical spreads in the international market, for which new capacity coming onstream was partially to blame. 

Despite the anaemic operating results, Braskem said it managed to narrow the Q2 net loss to BRL 771 mn from the year-earlier contraction of BRL 1.4 bn thanks to returns on investments and the strength of Brazilian and Mexican currencies against the US dollar. 

Related: Weak Q4 leaves Braskem in the red 

Recurring EBITDA in the Brazilian operations, home to 56% of group sales, fell 82% to BRL 407 mn, the firm said. With total resin sales volume easing 10% to 789,000 t amidst weakness in the domestic packaging, household appliances, and hospital materials sectors, revenues slumped 34% to BRL 12.43 bn. 

The US and European operations produced a recurring EBITDA decline of 90% year-on-year to BRL 119 mn as the average polypropylene spread plunged 59%. In Europe, where industrial activity slowed, a drop in total PP volume sales helped drag division revenue down 37% to BRL 4.2 bn.

Sales volume increased 2% to 536,000, according to the company, partly helping to stabilise the average utilisation rate. 

At the Mexico division, revenues tumbled 27% to BRL 1.189 bn even though sales volume grew 13% to 214,000 t, Braskem reported. The utilisation rate improved 19 percentage points to 86% on the back of higher supply of domestic and imported feedstock. Recurring EBITDA for the operations plunged 58% to BRL 199 mn.