Braskem reports consolidated recurring EBITDA of US$ 336 million

SÃO PAULO, May 8, 2019 /PRNewswire/ -- BRASKEM S.A. (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) announces today its results for 1Q19.

HIGHLIGHTS:

Braskem - Consolidated:

    --  Braskem's recurring EBITDA was US$ 336 million, down 16% and 60% from
        4Q18 and 1Q18, respectively, influenced by lower petrochemical spreads
        in the international market. Including non-recurring impacts, EBITDA was
        US$ 729 million, reflecting the positive impact of US$394 million
        related to PIS/COFINS tax revenue from overpayments between January 2012
        and February 2017 and the reversal of provisioning related to the Energy
        Development Account and to REIQ in 2017.
    --  In the period, net income was R$1,028 million, compared to a net loss of
        R$78 million in 4Q18, and 2% lower than in 1Q18, corresponding to R$1.29
        per common share and class "A" preferred share.
    --  The Company posted free cash generation of R$130 million, down 70% from
        4Q18, mainly due to: (i) lower recurring EBITDA and (ii) higher
        concentration of interest payments on bonds.
    --  Financial leverage measured by the ratio of net debt to EBITDA3 in U.S.
        dollar stood at 2.09x.

Brazil:

    --  Resin demand (PE, PP and PVC) was 1.4 million tons, growing 7.8% and
        4.2% from 4Q18 and 1Q18, respectively.
    --  In 1Q19, the crackers operated at an average capacity utilization rate
        of 88%, up 1 p.p. from 4Q18. Compared to 1Q18, capacity utilization fell
        2 p.p.
    --  Resin sales volume came to 878 kton, with the growth of 10% on 4Q18
        outpacing the industry average. In this scenario, Braskem's market share
        stood at 64% in 1Q19. Compared to 1Q18, resin sales were down 1%.
        Meanwhile, sales of key chemicals fell 4% and 3% from 4Q18 and 1Q18,
        respectively, to 689 kton.
    --  In 1Q19, the Company exported 356 kton of resins, up 16% from 4Q18, and
        194 kton of key chemicals, down 10% from 4Q18. Compared to 1Q18, exports
        of resins and key chemicals increased 11% and 64%, respectively.
    --  In the quarter, the units in Brazil and exports posted EBITDA of US$293
        million (R$1,104 million), to account for 63% of the Company's
        consolidated EBITDA from all segments.

United States and Europe:

    --  Domestic PP demand in the U.S. market was lower due to high inventories
        throughout the chain and the weak performance of the textile fibers
        segment. In Europe, demand recovered in 1Q19, with the market expanding
        primarily in anticipation of a series of scheduled shutdowns programmed
        for the second quarter.
    --  Plants in the region operated at a capacity utilization rate of 90%, 4
        p.p. higher than in 4Q18 and 2 p.p. lower than the 1Q18.
    --  In the quarter, the units in the United States and Europe posted EBITDA
        of US$72 million (R$279 million), representing 16% of the Company's
        consolidated EBITDA.

Mexico:

    --  PE demand in Mexico came to 504 kton, down 8% and 9% from 1Q18 and 4Q18,
        respectively.
    --  In 1Q19, the average utilization rate of the PE plants increased 6 p.p.
        from 4Q18 to 79% and decreased 7 p.p. from 1Q18.
    --  In the quarter, the Mexico unit posted EBITDA of US$100 million (R$382
        million), representing 22% of the Company's consolidated EBITDA.

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, May 9, at 12:00 p.m. US ET. See connecting details on the Company's IR website.

View original content:http://www.prnewswire.com/news-releases/braskem-reports-consolidated-recurring-ebitda-of-us-336-million-300846897.html

SOURCE Braskem S.A.