Braskem announces 1Q15 Results

Brazil - Português

News provided by

May 07, 2015, 09:28 ET

SAO PAULO, May 7, 2015 /PRNewswire/ -- Braskem S.A. (BM&FBOVESPA: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) announces today its results for 1Q15.

HIGHLIGHTS:

The average cracker utilization rate stood at 89%, increasing 3 p.p. from 4Q14.

In 1Q15, Brazilian demand for thermoplastic resins (PE, PP and PVC) was 1.4 million tons, increasing 6% and 9% from 1Q14 and 4Q14, respectively. This performance is mainly explained by the restocking trend in the converters chain. Braskem's sales followed the market trend and amounted to 954 kton, an increase of 6% and 12% on 1Q14 and 4Q14, respectively.

Braskem's consolidated EBITDA was R$1,485 million in 1Q15, up 10% from the previous quarter. The decrease in petrochemical spreads in the international market was offset by: (i) the higher resin sales volume; (ii) the depreciation of Brazilian real; and (iii) the recognition of a R$220 million refund related to the retroactive adjustment of the amendment to the naphtha supply agreement with Petrobras, which expired in February 2015. Compared to 1Q14, on a recurring basis, the increase in Brazilian real was 9%.

Braskem's leverage in U.S. dollar stood at 2.55x, down 1% from the previous quarter. In Brazilian real, the leverage ratio stood at 3.30x, up 13%, reflecting the Brazilian real's depreciation.

In 1Q15, Braskem recorded net income of R$204 million.

S&P maintained Braskem's rating to "BBB-" with a "Stable" outlook.

The Mexico project's construction reached 92% completion and all engineering and procurement activities were finalized. In parallel, the complex's pre-commissioning activities begun and are progressing on schedule.

On April 22, 2015, the subsidiary Braskem-Idesa withdrew the fifth installment of the project finance in the amount of US$291 million, totaling US$3,167 million.

Braskem was recognized in Guia Voce S/A - The Best Companies to Start a Career, a project of Voce S/A magazine in partnership with Cia de Talentos and Fundacao Instituto de Administracao.

The full earnings release is available on the Company's IR website: www.braskem.com.br/ir

Braskem will host conference calls to discuss its Results on May 8, 2015, FRIDAY, at 10:30 a.m. ET in English and 9:00 a.m. ET in Portuguese. See connecting details on the Company's IR website.

For further information, contact Braskem's Investor Relations Area:

[email protected], (+55 11) 3576-9531.

SOURCE Braskem