Aug 8, 2018   SOURCE: PR NewsWire

Braskem's EBITDA reaches R$3.2 billion in 2Q18, increasing 5% from 2Q17 and 20% from 1Q18

SÃO PAULO, Aug. 8, 2018 /PRNewswire/ -- BRASKEM S.A. (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) announces today its results for 2Q18.

HIGHLIGHTS:

Braskem - Consolidated: 

    --  EBITDA amounted to US$877 million, 7% higher than in 1Q18, due to (i)
        higher spreads for key chemicals in the international market, for vinyls
        and for PP in the United States; and (ii) the positive effect from
        Brazilian real depreciation on costs and expenses pegged to the
        currency.
    --  Parent company's net income was R$547 million, corresponding to R$0.69
        per common share and class "A" preferred share, down 48% and 50% from
        1Q18 and 2Q17, respectively, reflecting local-currency depreciation in
        the comparison period, which affected the financial result.
    --  Financial leverage in U.S. dollar of 1.90x.
    --  Free cash flow of R$3.3 billion.
    --  In May, R$1.5 billion additional dividends were paid to the holders of
        common shares and class "A" preferred shares.
    --  As per the Material Fact notice disclosed on June 15, 2018, Braskem was
        communicated by Odebrecht S.A., its controlling shareholder, about the
        beginning of discussions with LyondellBasell, a listed company
        headquartered in Rotterdam, for a potential transaction involving the
        transfer to LyondellBasell of the totality of Odebrecht S.A.'s interest
        in Braskem.

Brazil: 

    --  In 2Q18, average capacity utilization rate of crackers of 90%.
    --  Brazilian demand for resins (PE, PP and PVC) reached 1.3 million tons in
        2Q18, in line with 2Q17.
    --  Braskem's resin sales in the Brazilian market were 821 kton in 2Q18,
        decreasing 2% from 2Q17.
    --  In 2Q18, 320 kton of resins exported, down 13% from 2Q17.
    --  EBITDA of R$1,784 million.

United States and Europe: 

    --  In 2Q18, the capacity utilization rate stood at 84%, declining 11 p.p.
        and 8 p.p. from 2Q17 and 1Q18, respectively, reflecting the scheduled
        shutdown at the Oyster Creek Unit in Texas and operational problems at
        the Marcus Hook Unit in Pennsylvania.
    --  EBITDA of US$170 million.

Mexico:

    --  In 2Q18, the PE plants operated at capacity utilization rate of 72%,
        down 11 p.p. and 13 p.p. from 2Q17 and 1Q18, respectively, due to lower
        supply of ethane and a scheduled shutdown.
    --  In the quarter, PE sales to the Mexican market amounted to 135 kton, up
        4% from 2Q17 and down 8% from 1Q18, representing 68% of total sales.
    --  EBITDA of US$161 million.

The full earnings release is available on the Company's IR website: http://www.braskem-ri.com.br/home-en

Braskem will host conference calls to discuss its Results TOMORROW, August 9, at 12:00 p.m. US ET. See connecting details on the Company's IR website.

For further information, contact Braskem's Investor Relations Area: braskem-ri@braskem.com.br, (+55 11) 3576-9531

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SOURCE Braskem S.A.