Braskem (BAK) closed the last trading session at $6.38, gaining 1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $9.33 indicates a 46.2% upside potential.The average comprises three short-term price targets ranging from a low of $8 to a high of $10, with a standard deviation of $1.15. While the lowest estimate indicates an increase of 25.4% from the current price level, the most ...

EARNINGS CONFERENCE CALL 2 nd QUARTER 2024 A U G U S T 8 , 2 0 2 4 Braskem Industrial area (PE6) Triunfo, Rio Grande do Sul 2Q24 EARNINGS CONFERENCE CALL DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS CONFIDENTIAL PUBLIC 2 | 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 ...

Financial Data and Key Metrics Changes - In Q2 2024, Braskem's recurring EBITDA was $320 million, a 39% increase from the previous quarter and a 128% increase year-over-year [8][18] - Operating cash generation increased by 9% compared to the last quarter, reaching $214 million, while recurring cash generation was positive at $69 million [8] - The company maintained a liquidity position of $2.8 billion at the end of the quarter, with a leverage ratio of 6.8 times, down from the previous quarter [9][20] Business Line Data and Key Metrics Changes - In Brazil, the recurring EBITDA was $231 million, a 10% increase from the previous quarter, positively impacted by better spreads and cost reductions [14] - The United States and Europe segment saw a recurring EBITDA of $46 million, a 33% decrease from the first quarter, due to lower production and sales [16] - In Mexico, the recurring EBITDA was $56 million, a 53% increase from the first quarter, driven by higher sales volume and improved spreads [17] Market Data and Key Metrics Changes - The petrochemical spreads improved in the international market due to better supply-demand balance and increased maritime freight rates [7][18] - The utilization rate in Brazil decreased by 3 percentage points due to extreme weather, while the U.S. and Europe segment's utilization rate increased by 2 percentage points [11][16] - The Mexican segment's utilization rate was 78%, down 5 percentage points from the last quarter, impacted by lower ethane supply [17] Company Strategy and Development Direction - Braskem is advancing its corporate strategy towards 2030, with significant progress in the construction of an ethane import terminal in Mexico, expected to be operational by Q1 2025 [11][30] - The company is focusing on decarbonization initiatives, including partnerships for energy efficiency and the development of renewable energy projects [12][28] - A strategic partnership with Solvà and GRI aims to create a national platform for environmental solutions, resulting in a positive impact of R$284 million for Braskem [12][30] Management's Comments on Operating Environment and Future Outlook - Management expects improved usage rates in Brazil and increased sales volume in Q3 2024, driven by better product availability and demand [25] - The company anticipates a gradual balance in global petrochemical spreads, influenced by ongoing logistical restrictions [27] - Management highlighted the importance of government support for long-term restructuring and competitiveness in the Brazilian petrochemical industry [67] Other Important Information - Braskem's debt profile remains long-term, with 64% of debt maturing after 2030, and the company is committed to maintaining liquidity and reducing leverage [9][20] - The company reported a total provision of R$15.9 billion related to the Alagoas event, with significant disbursements already made [25] Q&A Session Summary Question: Demand outlook for Brazil in Q3 - Management forecasts a polymer demand growth of 13% in Brazil, with sales recovering at a slower rate of 2% to 3% [35] Question: Impact of container prices and butadiene prices - Increased freight rates due to conflicts in the Red Sea have affected resin prices, while butadiene prices have risen nearly 50% due to lower global supply [42][44] Question: Working capital and CapEx dynamics - CapEx is expected to be around $400 million for the year, with no significant changes in working capital anticipated [48][49] Question: Global supply and demand dynamics - New capacity is expected in polyethylene, while polypropylene capacity is increasing, particularly in China [55] Question: Cash generation outlook - The company anticipates neutral cash generation for 2024, excluding the Alagoas event, with a positive outlook for 2025 [68]

SÃO PAULO, Aug. 8, 2024 /PRNewswire/ -- BRASKEM S.A. (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) the largest resin producer in the Americas and the world's leading biopolymers producer, presents its 2Q24 Earnings Release.2Q24 HIGHLIGHTS CONSOLIDATEDRecurring EBITDA of US$320 million, around R$1,667million, higher than 1Q24 (+39%) and 2Q23 (+128%).Cash position of US$2.8 billion, ensuring coverage of debt maturities over the next 5 years.Operating Cash Generation¹ of US$69 million, around R$357 mi ...

Joa_Souza Investment Thesis I recommend buying Braskem (NYSE:BAK) shares. Braskem's controlling company, Novonor, is in judicial recovery and has Braskem as its most valuable asset. Therefore, Novonor is looking for a buyer for its stake in Braskem. The most interesting thing is that Braskem is extremely cheap when we analyze its EV/EBITDA compared to its peers, and the company has already received numerous purchase proposals that place its valuation at double the current market cap. Introduction The pe ...

Core Insights - Braskem S.A. reported a recurring EBITDA of US$230 million (approximately R$1,140 million) for 1Q24, reflecting an increase of 9% compared to 4Q23 and 12% compared to 1Q23 [2] - The company maintains a strong cash position of US$3.3 billion, which ensures coverage of debt maturities over the next 69 months [2] - Operating cash generation for the quarter was US$196 million (around R$972 million), up from US$129 million in 4Q23 and US$254 million in 1Q23 [2] - The utilization rate for Green PE production reached 98%, an increase of 36 percentage points from 4Q23 and 89 percentage points from 1Q23, indicating a normalization of green ethylene supply after previous restrictions [2] Financial Performance - Recurring EBITDA for 1Q24 was US$230 million, marking a 9% increase from the previous quarter and a 12% increase year-over-year [2] - Operating cash generation was reported at US$196 million, showing significant growth compared to both the previous quarter and the same quarter last year [2] Production Metrics - The utilization rate for Green PE production was 98%, significantly higher than previous quarters, indicating improved operational efficiency and supply normalization [2]

Financial Reporting - Braskem filed its Annual Report on Form 20-F for the year ended December 31, 2023, with the U.S. Securities and Exchange Commission[4] - The report is available on Braskem's Investor Relations website, and shareholders can request a free copy of the audited financial statements[4] - The report does not constitute an offer of securities for sale in Brazil[7] - The company encourages stakeholders to review detailed information available in the prospectus for any public offer of securities[7] Risks and Uncertainties - The company is subject to various risks and uncertainties that could cause actual results to differ significantly from current expectations[7] - Legal and administrative proceedings may impact the company's business and financial condition[7] Forward-Looking Statements - Forward-looking statements in the report include projections related to operational and financing investment plans[7] - Braskem's management emphasizes the importance of new technologies and market conditions in shaping future performance[7] - The company is expanding its efforts to achieve sustainable macro objectives[7] Financial Performance Influences - Braskem's financial performance is influenced by industry conditions and operating factors[7]

Industry Risks - The cyclical and volatile nature of the petrochemical industry may reduce net revenue and gross margin, with downturns in global economic activity potentially causing demand for products to decline [42]. - Higher costs for raw materials, including naphtha, ethane, and propylene, may increase product costs and negatively impact overall financial performance [35]. - Competition from larger suppliers in the petrochemical industry may pressure pricing and reduce market share, particularly from North American, Middle Eastern, and Chinese producers [44]. - Global macroeconomic factors, including military conflicts, may adversely affect margins and demand for products [35]. - The company faces significant risks from geopolitical instability, including military conflicts and trade tensions, which could adversely impact financial conditions and operational results [70]. - The ongoing military conflict between Russia and Ukraine has caused market volatility and increased commodity prices, particularly oil and natural gas, affecting overall business operations [70]. - The company faces risks related to compliance with environmental regulations, which could impact operations and financial results [36]. Supply Chain and Raw Material Dependence - The company relies on Petrobras for a substantial portion of naphtha and other raw materials, which may pose risks if supply is disrupted [35]. - The company relies on Petrobras for up to 70% of its naphtha supply and has several contracts expiring between 2026 and 2029, with uncertain renewal terms [54]. - The company sources a significant portion of its ethane from Pemex TRI in Mexico, and any disruptions in supply could materially affect production volumes and profit margins [58]. - The ethane supply agreement with Pemex TRI includes a minimum volume commitment of 30,000 barrels per day until the operational startup of an ethane import terminal or February 2025 [60]. - The company relies on limited or sole-source suppliers for raw materials, which poses risks to production and revenue if suppliers fail to deliver acceptable quality or quantities [65]. - Petrobras controls a significant portion of the pipeline infrastructure for naphtha transport in Brazil, and any failure to renew agreements could lead to decreased production volumes and increased costs [55]. Financial Performance and Costs - Fluctuations in the real/U.S. dollar exchange rate could increase inflation in Brazil and raise the cost of servicing foreign currency-denominated debt, adversely affecting financial performance [38]. - Changes in tax laws could lead to increased direct and indirect taxes, reducing gross margin and overall financial performance [36]. - Credit risks associated with significant customers may adversely affect the company's liquidity and working capital [48]. - The company does not hedge against price changes in raw materials, exposing it to fluctuations that could negatively affect gross margins [53]. - The company’s financial performance may be adversely affected by fluctuations in interest rates, particularly for floating rate debt obligations [156]. Environmental and Regulatory Compliance - The company faces potential regulatory changes that could increase costs and limit the application of its products, impacting demand [47]. - Environmental regulations may require significant capital expenditures for compliance, and failure to meet these regulations could result in fines ranging from R$500 to R$50 million [90]. - The company is subject to potential liabilities for environmental damage, which could impact its financial condition and operations [91]. - The company has provisioned R$1.6 billion for actions related to closing and monitoring salt cavities, environmental actions, and other technical matters as of December 31, 2023 [93]. - The company is committed to stabilizing cavities and monitoring soil as part of its socio-environmental responsibilities [94]. Corporate Governance and Control - Novonor S.A. owns 38.3% of Braskem's total share capital, which could influence corporate decisions and strategies [106]. - The company is at risk of changes in corporate control due to Novonor's ongoing judicial restructuring proceedings, which may affect management and strategic direction [106]. - The potential migration to the Novo Mercado could result in Novonor losing its indirect majority voting stock if all class A and B preferred shares are converted into common shares [114]. - The company is exposed to risks related to Novonor's judicial restructuring proceedings, which could affect corporate control and operational stability [112]. - Changes in corporate control could lead to significant alterations in management, business plans, and corporate governance practices, impacting financial performance [113]. Strategic Growth and Acquisitions - The company may pursue strategic acquisitions and investments, but failures in these areas could negatively impact financial condition and results of operations [35]. - The company is focusing on growing its biobased and recycling business as part of its strategy to foster a low-carbon circular economy [47]. - In 2022, the company acquired a minority equity interest in Nexus Circular LLC, focusing on advanced recycling, and established a joint venture with Terra Circular in the Netherlands [81]. - In February 2023, the company completed the acquisition of a 61.1% equity interest in Wise Plásticos S.A., a Brazilian mechanical recycling company [81]. - The company has a growth strategy that includes both organic and inorganic growth, with a focus on biobased and recycling businesses to mitigate climate change impacts [81]. Market and Economic Conditions - The company’s ability to export products is contingent on economic growth in target markets, with prolonged volatility potentially reducing demand [68]. - Brazilian power generation capacity is primarily based on hydroelectric facilities, and drought conditions could lead to increased energy costs and operational disruptions [102]. - The Mexican economy is expected to grow by 3.4% in 2023, following growth rates of 5.0% in 2021 and 3.1% in 2022 [161]. - Political instability in Mexico has led to a negative outlook on investor confidence, impacting the overall economic resilience of the country [165]. - The company faces risks from political and economic instability in Brazil, which may negatively affect demand for its products and overall financial performance [148]. Legal and Compliance Issues - The company agreed to pay an aggregate amount of US$957 million (equivalent to R$3.1 billion) under the Global Settlement related to anti-bribery violations [130]. - The company is liable for an additional R$410 million under the CGU/AGU Agreement, which is subject to adjustments by the SELIC rate [132]. - The company faces ongoing investigations and potential liabilities related to geological events in Alagoas, with no clear estimate of future costs [136]. - The company is subject to the Brazilian General Data Protection Law (LGPD), which imposes significant penalties for non-compliance, including fines up to 2% of the company's revenue in Brazil from the last fiscal year, capped at R$50 million per infringement [141]. - The company has been subject to independent monitoring for compliance with anti-corruption laws, which concluded in 2020 [134]. Sustainability and Emissions - Braskem recorded 9.9 million tons in carbon emissions in 2023, which could be negatively impacted by any carbon tax mechanism [104]. - The company aims for a 15% absolute reduction in greenhouse gas emissions (GHG) in scopes 1 and 2 by 2030, relative to the average of 2018, 2019, and 2020 [105]. - Braskem plans to achieve carbon neutrality by 2050 and expand green biopolymer production capacity to 1 million tons by 2030 [105]. - The company intends to recover 1.5 million tons of plastic waste by 2030 and expand the commercialization of resins with recycled content to 300,000 tons by 2025 and 1 million tons by 2030 [105]. Financial Obligations and Debt - As of December 31, 2023, the company had total foreign currency-denominated debt obligations of R$48,414 million (US$10,000 million), representing 90.5% of its consolidated indebtedness [154]. - The company’s long-term supply agreement with Pemex TRI for ethane could be modified or terminated due to political pressures, impacting operations [158]. - The company’s level of indebtedness could limit its ability to raise additional capital and may affect its operational flexibility [202]. - The company has received communication regarding the temporary cancellation of the shares offering due to market volatility, with intentions to resume when conditions improve [114]. Market Position and Competitiveness - The company is the largest producer of plastics in the Americas, with a global installed capacity of 21.4 million tons per year [224]. - Brazilian producers have a competitive advantage with PE, PP, and PVC prices averaging 25% higher than international reference prices due to lower freight and import tariffs [228]. - The company has established a network of 2,270 clients worldwide as of December 31, 2023, focusing on long-term partnerships and individual value creation solutions [230]. - The company benefits from a diversified supply base with 19 sources of supply in North America, enhancing redundancy and flexibility at its PP plants [228].

Financial Data and Key Metrics Changes - Braskem's recurring EBITDA was $211 million in Q4 2023, totaling $743 million for the year, reflecting a significant decrease compared to 2022 due to lower petrochemical spreads [5][16] - The company recorded a loss of approximately $935 million in 2023, with a recurring cash consumption of $375 million, excluding payments related to Alagoas [6][16] - Braskem ended the year with $3.6 billion in cash, sufficient to cover debt maturities over the next seven years, and maintained a long debt profile with an average maturity of 12 years [6][18] - The company's leverage ratio was 8.12 times, a reduction of approximately 4 times compared to the previous quarter [6][18] Business Line Data and Key Metrics Changes - In Brazil, the utilization rate of petrochemical plants in Q4 was 66%, with a 2 percentage point decrease from the previous quarter, and resin sales volume was 11% lower than the previous quarter [12] - The U.S. and Europe segment had a utilization rate of 82% in Q4, with a 6% decrease in sales volume compared to Q3, but recurring EBITDA increased by 45% to $87 million [14][15] - In Mexico, the utilization rate increased by 18 percentage points to 84% in Q4, with recurring EBITDA reaching $26 million, nearly three times higher than Q3 [15][12] Market Data and Key Metrics Changes - The global accident frequency rate decreased by 2% compared to the previous quarter, ending the year at 1.08 events per million hours worked, below the industry average [8] - The company experienced a significant impact from the imbalance between global supply and demand, leading to historic lows in international spreads throughout the year [5] Company Strategy and Development Direction - Braskem is focusing on balancing capital allocation to advance its growth agenda, with significant investments in industrial decarbonization and technology [9][10] - The company aims to enhance its green ethylene production capacity and has made strides in recycling initiatives, including acquisitions and joint ventures [10][11] - The strategic focus for 2024 includes optimizing the asset portfolio, reducing costs, and increasing productivity while maintaining a commitment to safety [28][31] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for the Brazilian segment in 2024, anticipating increased utilization rates and sales volumes [25][26] - The company expects a stabilization trend in spreads and improved cash generation, with a focus on higher value-added sales [26][29] - Management emphasized the importance of maintaining liquidity and cost discipline while continuing to implement measures to reduce corporate leverage [18][31] Other Important Information - Braskem's total provisions related to the Alagoas event reached BRL15.5 billion, with BRL9.5 billion already paid [24] - The company has committed to fulfilling its obligations under the agreement signed in Maceio, focusing on social, urban, and environmental actions [25][31] Q&A Session Summary Question: Details on ongoing due diligence processes - Management confirmed that Petrobras's due diligence is nearly complete, with two other players also conducting due diligence, but timing is uncertain [34][36] Question: Update on Alagoas provisions and Senate discussions - An additional provision of BRL1 billion was made, primarily due to operational downtimes and changes in well categories [34][37] Question: Outlook on spreads and recovery - Management indicated that spreads are expected to improve in 2024, transitioning towards normalization by 2025 [35][41] Question: CapEx and portfolio optimization for 2024 - CapEx for 2024 is projected at $400 million, significantly lower than 2023, with no major new projects planned [44][45] Question: Sustainability of PEMEX supply and market share in Brazil - PEMEX has maintained stable ethane production, and Braskem has seen opportunities to regain market share due to logistics disruptions [52][53]

SÃO PAULO, March 19, 2024 /PRNewswire/ -- BRASKEM S.A. (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) the largest resin producer in the Americas and the world's leading biopolymers producer, presents its 4Q23 Earnings Release. 4Q23 HIGHLIGHTS  CONSOLIDATED Recurring EBITDA of US$ 211 MM, around R$1,049 million. Higher than 3Q23 (+US$23 million) and 4Q22 (+US$243 million). Cash position of US$ 3.6 billion, ensuring coverage of debt maturities over the next 72 months. Cost reduction: Reduction of ~23 ...