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Braskem(BAK) - 2025 Q2 - Earnings Call Transcript
2025-08-07 16:00
Financial Data and Key Metrics Changes - The company reported a consolidated recurring EBITDA of $74 million, which is 67% lower compared to the previous year due to a challenging market environment [7] - Operating cash consumption increased to $31 million, up by $129 million from the previous quarter [7] - The company's cash position at the end of the second quarter was approximately $1.7 billion, sufficient to cover debt maturities over the next 30 months [7][18] - Corporate leverage stood at 10.59 times at the end of the quarter, reflecting the lowest EBITDA in the last twelve months [18] Business Segment Performance - In Brazil, the petrochemical plants maintained an average utilization rate consistent with the previous quarter, with the gas-based plant in Rio de Janeiro operating at 95% [9] - The recurring EBITDA for the Brazilian segment was $152 million, 24% lower than the previous quarter, impacted by stock effects and increased fixed costs [10] - The utilization rate of the green ethylene plant was 71%, down 16 percentage points from the previous quarter, while sales of green polyethylene increased due to higher demand [11] - In the United States and Europe segment, the plant utilization rate remained at 74%, but the recurring EBITDA was negative by $8 million due to inventory effects [12] - The Mexico segment faced significant challenges, with a utilization rate of 44% due to a general maintenance shutdown, resulting in a negative recurring EBITDA of $9 million [13] Market Data and Key Metrics Changes - The global petrochemical industry continued to experience a downturn, with utilization rates stable in Brazil and the U.S. but significantly impacted in Mexico [6] - The average global accident frequency rate was recorded at 1.11 events per million hours worked, below the industry average, indicating a strong commitment to safety [7] Company Strategy and Industry Competition - The company is focused on a transformation plan aimed at increasing productivity and generating EBITDA, particularly through a shift to green production and gas-based feedstocks [35][45] - The outlook for the international petrochemical industry remains challenging, with significant investments in ethylene and propylene chains expected to lead to oversupply and increased idleness in the sector [19] - The Brazilian chemical industry faces structural challenges, including high levels of autonomy and uncompetitive cost structures, which the company aims to address through its resilience and transformation program [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the recovery of spreads is taking longer than expected and emphasized the need for liquidity initiatives to improve financial health [31][35] - The company is committed to managing working capital effectively and addressing the challenges posed by imports and pricing imbalances in the Brazilian market [38] - Future controlling shareholders may revise company plans, but current management believes in the effectiveness of their existing strategy [45][66] Other Important Information - The company has made significant progress in its Alagoas project, with a total provision of approximately BRL 17.5 billion, of which BRL 13.1 billion has been disbursed [16] - The company is exploring partnerships for green production and evaluating the hibernation of less competitive production lines to enhance efficiency [26][68] Q&A Session Summary Question: Concerns about leverage and asset sales - Management acknowledged high leverage due to low EBITDA and discussed measures to improve financial health through a transformation plan focused on increasing productivity and cash generation [31][35] Question: Update on discussions with Petrobras - Management clarified that they are not directly involved in negotiations regarding shareholder control and emphasized the importance of focusing on operational challenges [39][41] Question: Strategic importance of U.S. assets - Management confirmed that U.S. assets are integral to the company's strategy, particularly for technology and green product development [56] Question: Cash burn forecast for the second half of the year - Management expects to continue cash consumption in the second half but at a reduced rate, focusing on improving productivity and cash generation [50] Question: Capacity closure dynamics and industry outlook - Management stated that all production plants must generate positive cash flow, and those that do not will be subject to intervention or closure [84]
Braskem(BAK) - 2025 Q2 - Earnings Call Presentation
2025-08-07 15:00
EARNINGS CONFERENCE CALL 2 ND QUARTER 2025 A U G U S T 7 , 2 0 2 5 This presentation may contain forward-looking statements. These statements are not historical facts and are based on the Company's current vision and estimates of the Company's management regarding future economic and other circumstances, industry conditions, performance and financial results, including any potential or projected impact related to Alagoas and related legal proceedings on the Company's business, financial condition and operat ...
Braskem: A New Shareholder Specializing In Turnarounds Could Be The Trigger
Seeking Alpha· 2025-05-30 16:08
Core Insights - The article emphasizes the importance of in-depth research and insights for informed investment decisions in the Latin American equity market [1]. Group 1 - The company has over 5 years of experience in equity analysis specifically focused on Latin America [1].
Braskem(BAK) - 2024 Q4 - Annual Report
2025-03-31 10:51
[Management Proposal for the Ordinary General Meeting](index=2&type=section&id=MANAGEMENT%20PROPOSAL%20FOR%20THE%20ORDINARY%20GENERAL%20MEETING) This section outlines the agenda for the Ordinary General Meeting, including the approval of 2024 financial statements and management report, election of Fiscal Council members, and setting 2025 compensation limits, along with shareholder participation guidelines [Agenda Item 1: Approval of 2024 Financial Statements](index=2&type=section&id=1.%20Exam%2C%20discussion%20and%20voting%20on%20the%20Company's%20Financial%20Statements) The management proposes the approval of the financial statements for the fiscal year ended December 31, 2024. These statements, which report a significant loss, have received favorable opinions from the Board of Directors and the Fiscal Council, and an unqualified opinion from the independent auditors. Due to the reported loss, preferred shares will have voting rights at the meeting - The Company reported a net loss of **BRL 11.32 billion** for the fiscal year ended December 31, 2024. This loss will be fully recorded under "Accumulated Losses," bringing the updated balance to **BRL 14.03 billion**[12](index=12&type=chunk) - The Board of Directors, Fiscal Council, and Statutory Compliance and Audit Committee have all issued favorable opinions or reports on the 2024 financial statements, which also received an unqualified opinion from the Independent Auditors[9](index=9&type=chunk) - Due to the reported loss in fiscal year 2024, Class "A" and "B" preferred shares will have voting rights at the meeting, voting jointly with common shares[8](index=8&type=chunk) [Agenda Item 2: Approval of 2024 Management Report](index=4&type=section&id=2.%20To%20examine%2C%20discussion%20and%20vote%20on%20the%20Management's%20Report) The proposal includes the examination and voting on the Management Report and the accounts of the administrators for the fiscal year ended December 31, 2024. This report was previously approved by the Board of Directors on February 26, 2025 - The Management Report for the fiscal year ended December 31, 2024, as approved by the Board of Directors, is submitted for shareholder appreciation and voting[15](index=15&type=chunk) [Agenda Item 3: Election of Fiscal Council Members](index=4&type=section&id=3.%20To%20resolve%20on%20the%20election%20of%20members%20of%20the%20Company's%20Fiscal%20Council) Management proposes the election of full members and their respective alternates to the Fiscal Council for a term lasting until the Annual General Meeting of 2026. A specific ticket of candidates has been nominated by shareholders Novonor and Petrobras Proposed Fiscal Council Members | FULL MEMBERS | ALTERNATES | | :--- | :--- | | GILBERTO BRAGA | TATIANA MACEDO COSTA REGO | | ANA PATRÍCIA SOARES NOGUEIRA | HEIDER JOSUÉ DE AQUINO NASCIMENTO | | MAURÍCIO NOGUEIRA | CAIO CESAR RIBEIRO | | PAULO CÍCERO DA SILVA NETO | FERNANDA BIANCHINI EGERT | - The proposed term for the new Fiscal Council members will last until the Annual General Meeting of 2026[16](index=16&type=chunk) [Agenda Item 4: Setting 2025 Compensation Limits](index=5&type=section&id=4.%20Setting%20the%20annual%20global%20compensation%20limit) The management proposes setting the annual global compensation limits for the Company's managers and Fiscal Council members for the fiscal year ending December 31, 2025. The proposal outlines separate limits for managers (Board of Directors and Officers) and Fiscal Council members Proposed Compensation Limits for FY 2025 | Group | Proposed Limit (BRL) | | :--- | :--- | | Managers (Board & Officers) | Up to 78,000,000.00 | | Fiscal Council Members | 1,115,100.00 | [Shareholder Participation Guidelines](index=5&type=section&id=I.%20Shareholders'%20Participation) The Annual and Extraordinary Meeting will be held exclusively in a digital format via the Webex platform. Shareholders can participate by submitting a remote voting ballot or by attending the meeting virtually. Specific documentation and deadlines are required for participation, with documents to be sent via email by April 26, 2025 - The meeting will be held exclusively in a digital manner to reduce costs and encourage shareholder attendance[7](index=7&type=chunk)[22](index=22&type=chunk) - Shareholders must submit required documents via email to braskem-ri@braskem.com by **April 26, 2025**, to access the digital platform[23](index=23&type=chunk)[28](index=28&type=chunk) - Participation is possible via a remote voting ballot or by attending and voting on the digital platform. If a shareholder who submitted a ballot also votes during the live meeting, the ballot instructions will be disregarded[22](index=22&type=chunk) [Exhibit I: Management's Comments on Financial Situation](index=9&type=section&id=EXHIBIT%20I%20-%20Comments%20by%20the%20Company's%20managers) This exhibit provides detailed management commentary on the company's financial and equity conditions, operating results, significant events impacting financials, non-accounting measures, and the strategic business plan [Financial and Equity Conditions](index=10&type=section&id=2.1%20%E2%80%93%20Directors'%20comments%20on%20financial%20and%20equity%20conditions) For the fiscal year 2024, the company reported a loss of **BRL 11.3 billion**, primarily due to a negative exchange rate variation of **BRL 11.5 billion**. This resulted in negative total equity of **BRL 4.8 billion** and a consolidated financial leverage of **8.68x** in BRL. The company maintains its financial strategy of a long average debt term and robust liquidity, with credit ratings of BB+ (Negative Outlook) from both S&P and Fitch. Total third-party capital stands at **BRL 106.4 billion** Key Financial Metrics (FY 2024) | Metric | Value | | :--- | :--- | | Loss for the year | BRL 11.3 billion | | Negative exchange rate impact | BRL 11.5 billion | | Total Equity | (BRL 4.8 billion) | | Third Party Capital | BRL 106.4 billion | | Financial Leverage (BRL) | 8.68x | | Financial Leverage (USD) | 7.42x | Credit Ratings (FY 2024) | Rating Agency | Rating | Outlook | | :--- | :--- | :--- | | Fitch Ratings | BB+ | Negative | | Standard & Poor's | BB+ | Negative | - The company's corporate financial strategy focuses on maintaining a long average debt term and a strong liquidity position, utilizing capital markets, commercial banks, and development banks as primary funding sources[44](index=44&type=chunk) - The company has an available revolving credit line of **US$1.0 billion**, maturing in 2026, to be used for additional liquidity needs[53](index=53&type=chunk) [Indebtedness Levels and Characteristics](index=12&type=section&id=2.1.f%20%E2%80%93%20Levels%20of%20indebtedness%20and%20the%20characteristics%20of%20such%20debts) This section details the company's debt profile, distinguishing between Braskem Corporate and Braskem Idesa, highlighting the predominance of long-term, exchange-rate-sensitive debt Braskem Corporate Debt Profile (excl. Braskem Idesa) - FY 2024 | Category | Value (BRL million) | | :--- | :--- | | Total Debt | 52,323 | | Short-term Debt | 2,278 | | Long-term Debt | 50,954 | | % Debt subject to exchange rate variations | 92% | Braskem Idesa Debt Profile - FY 2024 | Category | Value (BRL million) | | :--- | :--- | | Total Debt | 15,134 | | Short-term Debt | 857 | | Long-term Debt | 14,277 | | % Debt subject to exchange rate variations | 100% | - The company's debt is primarily composed of Bonds (**BRL 43.9 billion**) and Debentures (**BRL 3.1 billion**), with maturities extending to 2081[58](index=58&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) [Material Changes in Financial Statements](index=19&type=section&id=2.1.h%20%E2%80%93%20Material%20changes%20in%20each%20item%20of%20the%20financial%20statements) This section analyzes significant year-over-year changes in the income statement, highlighting the impact of negative financial results and exchange rate variations on the net loss, alongside improvements in operating cash flow Income Statement Comparison (FY 2024 vs FY 2023) | Item (BRL million) | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Net revenue | 77,411 | 70,569 | +10% | | Gross profit | 5,997 | 3,021 | +99% | | Net financial income | (16,654) | (3,400) | -390% | | Net loss for the period | (12,053) | (4,890) | +146% | | Net loss attributable to Shareholders | (11,320) | (4,579) | +147% | - The net loss for 2024 was primarily driven by a **BRL 12.0 billion** negative result from derivatives and net exchange variations, compared to a **BRL 511 million** gain in 2023. This was due to a **28% depreciation** of the Brazilian Real and a **20% depreciation** of the Mexican Peso against the US Dollar[90](index=90&type=chunk) - Net cash generated by operating activities was **BRL 2.43 billion** in 2024, a significant improvement from a **BRL 2.27 billion** use of cash in 2023, driven by higher operating results and positive working capital changes[93](index=93&type=chunk)[94](index=94&type=chunk) [Operating and Financial Results](index=25&type=section&id=2.2%20%E2%80%93%20Officers'%20comments%20on%20operating%20and%20financial%20results) The company's performance is significantly influenced by macroeconomic factors, particularly GDP growth in Brazil and other key markets, and the BRL/USD exchange rate, as most revenues and feedstock costs are dollar-linked. In 2024, the Brazilian Real depreciated **28%** against the US Dollar. The petrochemical industry's cyclical nature, volatile feedstock prices (naphtha, ethane), and Brazilian industrial policies like tax incentives (REIQ, Reintegra) are also major factors. Operationally, the average utilization rate for petrochemical crackers in Brazil was **72%**, in line with 2023, while the US/Europe rate fell to **74%** and Mexico's rose to **78%** - A substantial portion of the company's net revenue and feedstock costs are denominated in or linked to the U.S. dollar, making the BRL/USD exchange rate a critical factor. The Real depreciated **28%** against the dollar in 2024[99](index=99&type=chunk)[103](index=103&type=chunk) - The global petrochemical market is cyclical, affected by periods of limited supply and high margins followed by capacity additions that pressure prices. Structural changes, such as China's move to self-sufficiency, have led to longer-lasting downturns[115](index=115&type=chunk)[119](index=119&type=chunk) Capacity Utilization Rates - 2024 | Product/Region | Utilization Rate | | :--- | :--- | | Ethylene Brazil | 72% | | PP USA and Europe | 74% | | PE Mexico | 78% | - The company benefits from Brazilian tax incentives such as REIQ (PIS/COFINS reduction), which provided a **BRL 277 million** credit in 2024, and Reintegra, which provided a **BRL 8.6 million** credit[144](index=144&type=chunk)[146](index=146&type=chunk) [Segment Performance Analysis](index=37&type=section&id=2.2.b%20%E2%80%93%20Variations%20in%20revenues%20attributable%20to%20price%20changes) This section analyzes the financial performance of Braskem's key operating segments—Brazil, United States and Europe, and Mexico—highlighting revenue growth, operating profit changes, and key drivers such as international prices and sales volumes - **Brazil Segment:** Net revenue increased **11%** to **BRL 54.8 billion**, driven by higher international prices for resins and chemicals, increased sales volume of main chemicals, and the **8% depreciation** of the Real. The segment's operating result turned from a **BRL 1.9 billion** loss in 2023 to a **BRL 119 million** profit in 2024[178](index=178&type=chunk)[180](index=180&type=chunk) - **United States and Europe Segment:** Net revenue grew **11%** to **BRL 19.4 billion** due to higher PP prices. However, operating profit decreased by **39%** to **BRL 541 million**, impacted by a **12% increase** in the cost of goods sold from higher propylene prices[185](index=185&type=chunk)[186](index=186&type=chunk) - **Mexico Segment:** Net revenue rose **16%** to **BRL 5.1 billion**, thanks to a **5% increase** in PE sales volume and higher international PE prices. The segment's operating result improved significantly, moving from a **BRL 337 million** loss in 2023 to a **BRL 131 million** profit in 2024[189](index=189&type=chunk)[190](index=190&type=chunk) - Consolidated recurring EBITDA for 2024 was **BRL 5.76 billion**, an increase from 2023, mainly due to a **98% rise** in gross profit driven by higher spreads in Brazil and Mexico and increased sales volumes[191](index=191&type=chunk) [Relevant Events Affecting Financial Statements](index=42&type=section&id=2.4%20%E2%80%93%20Officers'%20comments%20on%20relevant%20effects%20on%20DFs) The company's financials are materially impacted by the geological event in Alagoas, for which a provision of **BRL 5.57 billion** was recorded as of December 31, 2024. This provision covers relocation, compensation, mine closure, and socio-urban measures. The company also concluded the sale of its controlling stake in Cetrel S.A. in September 2024. Additionally, a Leniency Agreement related to Operation Car Wash has a remaining balance of **BRL 636 million** payable Geological Event Provision (Alagoas) | Item | Amount (BRL million) | | :--- | :--- | | Balance at Dec 31, 2023 | 5,240 | | Provisions in 2024 | 2,237 | | Payments and reclassifications in 2024 | (2,052) | | **Balance at Dec 31, 2024** | **5,570** | - The provision for the Alagoas event is allocated to four main areas: support for relocation and compensation (**BRL 997 million**), mine closure and monitoring (**BRL 2.6 billion**), socio-urban measures (**BRL 1.1 billion**), and other additional measures (**BRL 825 million**)[206](index=206&type=chunk)[212](index=212&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk) - The company faces contingent liabilities with a possible loss prognosis related to the Alagoas event totaling **BRL 9.33 billion** as of 2024, primarily from civil claims[224](index=224&type=chunk) - In December 2024, the company signed an amendment to its Leniency Agreement, adjusting the payment schedule. The balance payable as of Dec 31, 2024, is **BRL 636 million**[257](index=257&type=chunk)[258](index=258&type=chunk) [Non-Accounting Measurements](index=53&type=section&id=2.5%20%E2%80%93%20Non-accounting%20measurements) The company uses non-accounting measures like Adjusted Consolidated EBITDA and Financial Leverage to provide a clearer view of its operating performance and financial position. For 2024, Adjusted Consolidated EBITDA was **BRL 5.76 billion**, resulting in a financial leverage ratio of **8.68x** in BRL and **7.42x** in USD. These figures are adjusted for non-recurring items such as the Alagoas geological event provision and exclude the debt and EBITDA of the Braskem Idesa subsidiary for leverage calculation purposes Key Non-Accounting Measures (FY 2024) | Metric | BRL (million) | USD (million) | | :--- | :--- | :--- | | Adjusted Consolidated EBITDA | 5,759 | 1,083 | | Adjusted Net Debt | 38,205 | 6,170 | | Financial Leverage | 8.68x | 7.42x | - Adjusted Consolidated EBITDA is calculated by starting with net loss and adding back taxes, net financial results, depreciation/amortization, and then adjusting for non-recurring items like the Alagoas provision, inventory adjustments, and tax regularization programs[264](index=264&type=chunk)[271](index=271&type=chunk) - For its primary leverage calculation, the company excludes the net debt and EBITDA of its subsidiary Braskem Idesa, as its financing is structured as non-recourse project finance[276](index=276&type=chunk) [Business Plan](index=65&type=section&id=2.10%20%E2%80%93%20Business%20Plan) Braskem's business plan focuses on three strategic pillars: growing its traditional business with high-return investments and decarbonization efforts; expanding its bio-based resins and chemicals portfolio; and growing its circular products through recycling. The company aims to achieve carbon neutrality by 2050, produce **1 million tons** of green products by 2030, and produce **1 million tons** of products with recycled content by 2030. Total planned investment for 2025 is **BRL 2.9 billion** for Braskem and **BRL 623 million** for Braskem Idesa - Strategic goals include achieving carbon neutrality by **2050** and reducing scope 1 and 2 emissions by **15%** by **2030**[288](index=288&type=chunk) - The company has set targets to expand production capacity to **1 million tons** of green (bio-based) products and **1 million tons** of products with recycled content by **2030**[288](index=288&type=chunk) Planned Investments for 2025 | Entity | Planned Investment (BRL) | | :--- | :--- | | Braskem (ex-Idesa) | 2.9 billion | | Braskem Idesa | 623 million | [Exhibit II: Nomination of Candidates for the Fiscal Council](index=71&type=section&id=EXHIBIT%20II%20%E2%80%93%20Nomination%20of%20candidates) This exhibit presents the professional qualifications and backgrounds of the candidates nominated by shareholders Novonor and Petrobras for both full and alternate positions on the Fiscal Council [Candidate Profiles for Fiscal Council](index=71&type=section&id=7.3%2F7.4%20%E2%80%93%20Composition%20and%20professional%20experience%20of%20the%20management%20and%20fiscal%20council) This section provides the professional backgrounds of the candidates nominated by shareholders Novonor and Petrobras for the full and alternate positions on the Fiscal Council. The candidates have diverse experience in law, finance, accounting, and management, with several having prior experience at Petrobras, Banco do Brasil, or within the Novonor Group - Candidates for full member positions include Gilberto Braga (Economist/Accountant), Ana Patrícia Soares Nogueira (Lawyer), Maurício Nogueira (Financial Advisor from Petrobras), and Paulo Cicero da Silva Neto (Accountant from Petrobras)[318](index=318&type=chunk)[320](index=320&type=chunk)[323](index=323&type=chunk)[326](index=326&type=chunk) - Candidates for alternate member positions include Tatiana Macedo Costa Rêgo, Heider Josué de Aquino Nascimento, Fernanda Bianchini Egert, and Caio Cesar Ribeiro, with backgrounds in administration, accounting, and economics, primarily from Novonor and Petrobras[329](index=329&type=chunk)[331](index=331&type=chunk)[333](index=333&type=chunk)[336](index=336&type=chunk) - All candidates have declared that they have no criminal or significant administrative convictions that would disqualify them from their professional activities[319](index=319&type=chunk)[322](index=322&type=chunk)[324](index=324&type=chunk)[328](index=328&type=chunk) [Exhibit III & IV: Management Compensation Proposal](index=97&type=section&id=EXHIBIT%20III%20%26%20IV%20%E2%80%93%20Proposal%20for%20management%20compensation) This exhibit details the proposed compensation limits for the company's managers and Fiscal Council members for 2025, outlines the compensation policy, and describes the share-based compensation plan, including a breakdown of individual compensation [Compensation Proposal Summary](index=97&type=section&id=1.%20Proposal%20for%20the%20Compensation%20of%20Managers%20for%202025) For the 2025 fiscal year, the company proposes a total global compensation of up to **BRL 78 million** for its managers (Statutory Officers and Board of Directors), a decrease from the **BRL 84.4 million** approved for 2024. The reduction is mainly due to the settlement of a retention program in 2024. The compensation for the Fiscal Council is proposed at **BRL 1.115 million**, the same as the previous year. The actual compensation paid in 2024 was **BRL 74.6 million** for managers, below the approved limit Proposed vs. Approved Manager Compensation (BRL thousands) | Category | 2025 Proposal | 2024 Approved | | :--- | :--- | :--- | | Monthly and Short-Term Fees | 63,460 | 59,126 | | Long-Term Fees (ILP) | 12,750 | 13,080 | | Benefits | 1,790 | 1,809 | | Others (Retention Program) | 0 | 10,380 | | **Total** | **78,000** | **84,395** | - The proposed global compensation for the Fiscal Council in 2025 is **BRL 1.115 million**, unchanged from the amount approved for 2024[360](index=360&type=chunk)[362](index=362&type=chunk) - The actual compensation realized for managers in 2024 was **BRL 74.6 million**, which was lower than the **BRL 84.4 million** proposed, despite including termination payments for five statutory directors[363](index=363&type=chunk) [Detailed Compensation Policy](index=100&type=section&id=8.1.%20Describe%20the%20policy%20or%20practice%20adopted%20for%20compensation) Braskem's compensation policy aims to be competitive and transparent to attract and retain top professionals. Compensation for the Board of Directors and Fiscal Council is fixed monthly fees based on market surveys. For the Statutory Office, compensation is a mix of fixed monthly pay, short-term variable incentives tied to individual and company performance (EBITDA and ESG goals), and long-term incentives through a restricted stock plan. The company targets the third quartile of the market for its officers' compensation - The Board of Directors and Fiscal Council receive only fixed monthly fees to maintain their supervisory independence[367](index=367&type=chunk)[377](index=377&type=chunk)[382](index=382&type=chunk) - Statutory Officers' variable compensation is linked to short-term individual and company performance (EBITDA) and long-term incentives via a restricted stock plan, aligning their interests with shareholders[378](index=378&type=chunk) - Individual goals for officers include ESG indicators such as investments in circular economy, reduction of CO2 emissions, and management of socio-environmental risks[378](index=378&type=chunk) [Share-Based Compensation Plan](index=113&type=section&id=8.4.%20Regarding%20the%20stock-based%20compensation%20plan) The company has a Restricted Stock Grant Plan for its officers, with the current plan (2023 Plan) valid until 2028. Under the plan, eligible officers can voluntarily invest **10-20%** of their short-term incentive to acquire company shares ('Owned Shares'). In return, the company grants them a multiple of 'Restricted Shares' (typically **2-for-1**), which vest after a three-year waiting period, provided the officer remains with the company and retains their Owned Shares. The plan is designed to align long-term interests of executives and shareholders - The current Restricted Stock Grant Plan (2023 Plan) is effective until **2028** and covers up to **1.5%** of the company's capital stock[397](index=397&type=chunk)[431](index=431&type=chunk) - Participants voluntarily invest **10% to 20%** of their short-term bonus to acquire 'Owned Shares'. The company then grants 'Restricted Shares' as a counterpart, typically at a **2-for-1 ratio**[427](index=427&type=chunk)[428](index=428&type=chunk) - The granted shares are subject to a three-year waiting (vesting) period, during which the participant must remain employed by the company and hold their initial investment shares[429](index=429&type=chunk) [Management Compensation Breakdown (Min, Max, Avg)](index=135&type=section&id=8.15.%20Minimum%2C%20maximum%20and%20average%20annual%20compensation) This section details the minimum, maximum, and average individual compensation for members of the Statutory Office, Board of Directors, and Fiscal Council over the last three fiscal years. In 2024, the highest individual compensation for a Statutory Officer was **BRL 18.4 million**, which included non-recurring termination payments Individual Annual Compensation in 2024 (BRL) | Body | Highest (BRL) | Lowest (BRL) | Average (BRL) | | :--- | :--- | :--- | :--- | | Statutory Office | 18,437,691 | 6,964,064 | 10,831,864 | | Board of Directors | 2,554,800 | 894,000 | 1,257,006 | | Fiscal Council | 212,400 | 212,400 | 212,400 | - The highest individual compensation for the Statutory Office in 2024 included non-recurring amounts related to the contract termination of the former CEO[471](index=471&type=chunk)
Braskem S.A. (BAK) Q4 2024 Earnings Conference Call Transcript
Seeking Alpha· 2025-02-27 18:50
Company Overview - Braskem S.A. held its Fourth Quarter of 2024 and Full Year of 2024 Results Conference Call on February 27, 2025, featuring key executives including CEO Roberto Ramos and CFO Felipe Jens [1][2]. Conference Call Structure - The conference call included a presentation in Portuguese with simultaneous translation into English, allowing participants to choose their preferred language [2]. - Following the presentation, a question and answer session was scheduled, with further instructions provided at that time [3]. Investor Relations - The audio of the conference will be available on Braskem's investor relations website after the event concludes, ensuring accessibility for stakeholders [3].
Braskem(BAK) - 2024 Q4 - Earnings Call Transcript
2025-02-27 18:50
Financial Data and Key Metrics Changes - In Q4 2024, Braskem reported a consolidated recurring EBITDA of US$102 million, with operating cash generation of US$204 million and recurring cash generation of US$45 million [7] - For the full year 2024, consolidated EBITDA reached US$1.1 billion, a 46% increase compared to 2023, with operating cash generation of approximately US$788 million [8] - The company's leverage ratio improved to approximately 7.42 times, a reduction of 0.7 times compared to the previous quarter [9][23] Business Line Data and Key Metrics Changes - In Brazil, the recurring EBITDA for the petrochemical segment was US$889 million, a 1% increase over the previous year, driven by higher sales volume of main chemicals [14] - The green polyethylene sales increased by 24% in Q4 2024, with annual sales reaching an all-time high of 191,000 tons, a 23% increase year-over-year [16] - The United States and Europe segment's recurring EBITDA was US$177 million, a 34% decrease compared to 2023, attributed to lower production and sales volumes [18] Market Data and Key Metrics Changes - The average global accident frequency rate improved to 0.91 events per million hours worked, a 16% reduction compared to 2023 [10] - The Mexican segment saw a 5% increase in polyethylene sales for the year, while Q4 sales decreased by 6% due to seasonality [19] Company Strategy and Development Direction - Braskem's strategic focus includes enhancing financial health, optimizing asset utilization, and increasing the use of ethane as a feedstock to improve competitiveness [35][37] - The company plans to accelerate the growth of its green business and has announced a project to increase ethane capacity in Rio de Janeiro by 220,000 tons per year [39] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter of 2025 is expected to show higher utilization rates across all segments, driven by stable feedstock supply and increased demand [32] - The company anticipates challenges in international spreads due to new capacities oversupplying the market, but expects potential improvements in global demand influenced by geopolitical resolutions [34] Other Important Information - Braskem increased its provision for the Alagoas event by US$1.3 billion, with a total provision balance of R$17.7 billion at the end of 2024 [25][27] - The company issued US$850 million in debt securities in October 2024, maturing in 2034, to maintain financial health [24] Q&A Session Summary Question: How does the company view the competitive scenario with respect to imports after the increase in import taxes? - Management emphasized the importance of balancing market share and price policy to ensure the quality of the Brazilian chemical industry, noting that the increase in tariffs has helped protect local producers [41][47] Question: What gains are expected from the newly acquired vessel for logistics optimization? - Management highlighted that owning the vessel will enhance competitiveness by reducing dependency on external shipping and improving operational efficiency for transporting ethane [62][72] Question: What is included in the 2025 CapEx and how does it compare to historical maintenance CapEx? - The company announced a 2025 CapEx of US$484 million, with maintenance CapEx expected to remain around US$550 million, focusing on strategic investments that generate positive cash flow [80][82]
Braskem reports Recurrent Cash Generation of R$265 million in 4Q24; Recurring EBITDA of US$1.1 billion in 2024 (46% higher than 2023)
Prnewswire· 2025-02-27 09:47
Core Insights - Braskem S.A. is the largest resin producer in the Americas and a leading biopolymers producer globally [1] Financial Performance - The company reported a recurring EBITDA of US$102 million for 4Q24 [2] - Braskem's cash position stands at US$2.4 billion, which ensures coverage of debt maturities over the next 47 months [2] - Operating cash generation for the quarter was US$204 million, approximately R$1.1 billion [2]
Has Braskem (BAK) Outpaced Other Oils-Energy Stocks This Year?
ZACKS· 2025-02-07 15:46
Company Performance - Braskem has returned 18.1% year-to-date, significantly outperforming the Oils-Energy sector, which has gained about 3.4% on average [4] - The Zacks Consensus Estimate for Braskem's full-year earnings has increased by 118.7% over the past three months, indicating a strong improvement in analyst sentiment and earnings outlook [3] Industry Ranking - Braskem is part of the Oil and Gas - Integrated - International industry, which currently ranks 137 in the Zacks Industry Rank, with an average gain of 3.7% year-to-date [6] - In contrast, National Fuel Gas, which belongs to the Oil and Gas - Integrated - United States industry, is ranked 74, with the industry moving up by 1.1% this year [7] Sector Context - The Oils-Energy group consists of 247 companies and is currently ranked 3 in the Zacks Sector Rank, which evaluates the average Zacks Rank of individual stocks within the sector [2] - National Fuel Gas has also shown strong performance with a year-to-date return of 19% and a consensus EPS estimate increase of 16.7% over the past three months, holding a Zacks Rank of 1 (Strong Buy) [5]
Does Braskem (BAK) Have the Potential to Rally 63.29% as Wall Street Analysts Expect?
ZACKS· 2025-01-28 15:56
Group 1 - Braskem (BAK) closed at $5.04, with a 32.6% gain over the past four weeks, and a mean price target of $8.23 suggests a 63.3% upside potential [1] - The average price targets range from a low of $5.40 to a high of $10, with a standard deviation of $2.22, indicating variability among analysts [2] - Analysts show strong agreement on BAK's ability to report better earnings, which supports the potential for stock upside [4][9] Group 2 - The Zacks Consensus Estimate for the current year has increased by 200% over the past month, indicating positive earnings revisions [10] - BAK holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [11] - While consensus price targets may not be reliable for predicting exact gains, they can indicate the direction of price movement [12]
New Strong Buy Stocks for January 28th
ZACKS· 2025-01-28 12:21
Group 1 - Potbelly Corporation (PBPB) has seen a 14.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Concrete Pumping Holdings, Inc. (BBCP) has experienced a 38.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Braskem S.A. (BAK) has reported a 41.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] Group 2 - Novavax, Inc. (NVAX) has seen a 6.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Eton Pharmaceuticals, Inc. (ETON) has experienced a 6.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]