In 9M19, Braskem generated free cash flow of R$2.8 billion

SÃO PAULO, Nov. 14, 2019 /PRNewswire/ -- BRASKEM S.A. (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) announces today its results for 3Q19.

HIGHLIGHTS:

Braskem - Consolidated:

    --  Recurring EBITDA was US$389 million, in line with 2Q19, due to higher
        resin sales volume from Brazil in both the domestic and export markets
        and by PP sales in Europe, which partially offset lower international
        spreads. In Brazilian real, recurring EBITDA came to R$1,549 million,
        increasing 2% from 2Q19.


    --  Free cash generation was R$401 million in 3Q19, down 82% from 2Q19, due
        to the impact on working capital from the lower feedstock consumption,
        which were offset by the efficient management of inventories in the
        quarter.


    --  Financial leverage measured by the ratio of net debt to EBITDA in U.S.
        dollar stood at 2.78x.


    --  The recordable and lost-time injury frequency rate (CAF + SAF),
        considering both Team Members and Partners per million hours worked,
        stood at 1.17 in 3Q19, 34% lower than 2Q19 and 63% below the industry
        average.


    --  In October, the Company filed 20-F Forms for fiscal years 2017 and 2018
        with the U.S. Securities and Exchange Commission (SEC). As a result,
        trading in Braskem's American Depositary Shares (ADSs) was resumed on
        the New York Stock Exchange (NYSE).


    --  Braskem's shareholders approved, in the Extraordinary Shareholders'
        Meeting of October 3, 2019, the distribution of minimum mandatory
        dividends for the fiscal year 2018, in the amount of R$667.4 million, to
        be paid by December 31, 2019.


    --  In November, Braskem placed US$2.25 billion in bonds in the
        international market, with US$1.5 billion due in 10 years and US$750
        million in 30 years, making it the Company's largest bond issue ever. In
        the same period, the Company issued R$550 million in promissory notes
        due in up to five years. The proceeds are being used primarily to repay
        other shorter-term, higher-cost liabilities.
    --  In order to improve its communication with the market, Braskem releases
        today its first report prepared based on the International Integrated
        Report Framework developed by the International Integrated Reporting
        Council (IIRC). In the integrated report, we identify how the Company
        manages its 6 capitals (financial, manufactured, social and
        relationship, natural, intellectual and human).

Brazil:

    --  The PVC plants operated at a capacity utilization of 57%, 9 p.p. higher
        than in 2Q19, due to the stabilization of EDC imports.
    --  EBITDA in Brazil was US$231 million (R$919 million), up 38% from 2Q19,
        which is explained by higher resin sales in the local and export markets
        and by lower feedstock prices.

United States and Europe:

    --  EBITDA in the United States and Europe was US$91 million (R$361
        million), down 15% on 2Q19, which is explained by the lower sales in the
        United States due to operational problems at the PP plants and by the
        lower PP spreads also in the United States, though still at high levels,
        with these factors partially offset by the higher sales in Europe after
        the resumption of propylene supply to one of the PP plants in Germany.

Mexico:

    --  EBITDA in Mexico was US$96 million (R$385 million), up 9% in 2Q19, which
        is mainly explained by the commercial strategy to direct shipments to
        more profitable regions.
    --  Braskem Idesa obtained from its creditors waivers of the non-pecuniary
        obligations in the project finance agreements, including postponement of
        the Guaranteed Physical Completion Date, from November 30, 2016 to
        November 30, 2020, and of the Guaranteed Financial Completion Date, from
        December 31, 2016 to December 31, 2020. As a result, the principal debt
        may be reclassified from current to non-current liabilities in the
        annual financial statements for 2019.

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 MONDAY, November 18, at 11:00 a.m. US ET.

Additional information may be obtained from the Investor Relations Department at +55 11 3576-9531 or braskem-ri@braskem.com.br

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SOURCE Braskem S.A.