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Braskem(BAK) - 2022 Q4 - Annual Report
2023-04-24 16:00
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of April, 2023 (Commission File No. 1-14862 ) BRASKEM S.A. (Exact Name as Specified in its Charter) N/A (Translation of registrant's name into English) Rua Eteno, 1561, Polo Petroquimico de Camacari Camacari, Bahia - CEP 42810-000 Brazil (Address of principal executive of ices) Indicate by check mark whether the registrant ...
Braskem(BAK) - 2022 Q3 - Earnings Call Transcript
2022-11-10 00:18
Braskem S.A. (NYSE:BAK) Q3 2022 Earnings Conference Call November 9, 2022 9:00 AM ET Company Participants Rosana Avolio - Director of Investor Relations, Strategic Planning and Market Intelligence Pedro Freitas - Chief Financial Officer Roberto Simões - Chief Executive Officer Conference Call Participants Pedro Soares - BTG Pactual Bruno Montanari - Morgan Stanley Leonardo Marcondes - Bank of America Merrill Lynch Vicente Falanga - Banco Bradesco BBI S.A. Luiz Carvalho - UBS Group AG Gabriel Barra - Citigro ...
Braskem(BAK) - 2022 Q2 - Earnings Call Transcript
2022-08-13 12:08
Braskem SA (NYSE:BAK) Q2 2022 Earnings Conference Call August 11, 2022 1:30 PM ET Company Participants Rosana Avolio - IR Manager Pedro Freitas - CFO Danilo Garcez - Mexico CFO Conference Call Participants Guilherme Levy - Morgan Stanley Luiz Carvalho - UBS Leonardo Marcondes - Bank of America Merrill Lynch Barbara Halberstadt - JPMorgan Chase & Co. Gabriel Barra - Citigroup Operator Good afternoon, and thank you for standing by. Welcome to conference call for Braskem's Third Quarter Earnings Results Call f ...
Braskem(BAK) - 2022 Q1 - Earnings Call Transcript
2022-05-12 18:38
Braskem SA (NYSE:BAK) Q1 2022 Earnings Conference Call May 12, 2022 10:00 AM ET Company Participants Rosana Avolio - IR Manager Pedro Freitas - CFO Roberto Simoes - CEO & Director Conference Call Participants Guilherme Levy - Morgan Stanley Pedro Soares - BTG Pactual Vicente Falanga - Bradesco BBI Luiz Carvalho - UBS Gabriel Barra - Citigroup Operator Good morning, and thank you for waiting. Welcome to Braskem's Q1 2022 Earnings Conference. With us today, we have Mr. Roberto Simoes, CEO; Pedro Freitas, CFO; ...
Braskem(BAK) - 2021 Q4 - Annual Report
2022-04-27 16:00
Economic Conditions - Brazil's inflation rate reached 2,708% in 1993, with recent rates of 7.1% in 2018, 7.3% in 2019, 23.1% in 2020, and 17.7% in 2021, indicating persistent inflationary pressures [138]. - Mexico's GDP growth was 2.2% in 2018, followed by declines of 0.1% and 8.2% in 2019 and 2020, respectively, before a rebound of 5.0% in 2021, highlighting economic volatility [143]. - The Mexican government has implemented austerity measures and spending cuts, which could adversely affect the economy and the company's financial condition [143]. - Political instability in Mexico may significantly impact economic policies, potentially affecting the company's operations and financial results [147]. - The Mexican economy is increasingly correlated with the U.S. economy, and adverse conditions in the U.S. could significantly impact the financial performance of the company [150]. Financial Performance and Debt - As of December 31, 2021, the company had R$46.9 million in loans subject to the CDI rate, R$590.0 million subject to the IPCA, and R$5,552.9 million subject to LIBOR, with potential fluctuations adversely affecting financial performance [138]. - Foreign currency-denominated debt represented 98.6% of the company's total indebtedness as of December 31, 2021, increasing the risk of default and liquidity issues if payments are not met [140]. - The company has a significant exposure to global financial market disruptions, which could adversely affect its financial condition [171]. - As of December 31, 2021, consolidated corporate debt was R$35,094.2 million (US$6,288.7 million) [173]. - The company is required to distribute 25% of adjusted net profit as mandatory dividends, but may suspend this distribution if financial conditions do not permit [156]. Operations and Supply Chain - The company relies on ethane supplied by Pemex TRI, and any modifications or interruptions to this supply agreement could materially affect operations and financial condition [141]. - The company sources part of its ethane feedstock from Pemex TRI, which is expected to remain the primary source until the Ethane Import Terminal is operational [153]. - Any significant damage to Pemex TRI's facilities or pipelines could materially adversely affect production volumes, net revenue, and profit margins [153]. - The Amended Ethane Supply Agreement (ESA) may be subject to interpretation differences with Pemex TRI, potentially impacting financial results [152]. - The company may face challenges in obtaining ethane of acceptable quality and quantity, which could adversely affect business operations [154]. Environmental and Sustainability Initiatives - The company invests in R&D to develop sustainable solutions, with 81% of its innovation projects focused on sustainability, including partnerships for advanced recycling and bio-based products [288]. - The company has developed a three-pronged approach to sustainability, focusing on sustainable sources, products, and solutions [304]. - The company has announced eight key global initiatives to support the transition to a circular economy, including partnerships for product development and increased investments in renewable products [305]. - The company recycles or reuses 59.1% of the solid waste generated and 22.4% of the water used in production processes [297]. - Consolidated annual expenditures on environmental control were R$857.3 million in 2021, R$537.9 million in 2020, and R$369.8 million in 2019 [293]. Production Capacity and Market Position - As of December 31, 2021, the company is the largest producer of plastics in the Americas, with a global installed capacity of 21.4 million tons per year [176]. - The Brazil Segment accounted for net revenue of R$69,494.9 million, representing 64.1% of the company's consolidated net revenue [176]. - The USA and Europe Segment generated net revenue of R$32,403.6 million, accounting for 29.9% of consolidated net revenue [176]. - The Mexico Segment contributed net revenue of R$6,506.3 million, which is 6.0% of consolidated net revenue [176]. - The company has established a strategic position in the polyolefins business across South America, North America, Europe, and Asia, aiming to reduce exposure to market cyclicality [241]. Regulatory and Compliance Issues - Changes in Brazilian tax laws could affect the taxation of dividends and interest on equity, impacting shareholder returns [158]. - The company operates under Brazilian corporate laws, which may provide fewer protections for shareholders compared to jurisdictions like the U.S. [164]. - The Brazilian Environmental Crimes Law allows fines up to R$50.0 million for corporations causing environmental damage [294]. - The company is subject to fines ranging from R$500 to R$50.0 million for lapses in environmental licenses and permits [295]. - Environmental compliance in the U.S. includes maintaining various permits related to air quality and wastewater treatment, with costs expected to increase due to regulatory requirements [299].
Braskem(BAK) - 2021 Q4 - Earnings Call Transcript
2022-03-17 19:25
Financial Data and Key Metrics Changes - In 2021, Braskem reported a record high recurring operating result of $5.6 billion and net cash generation of R$10.7 billion [6][10] - The net profit for 2021 was approximately R$14 billion, a significant recovery from the accumulated losses of R$4.5 billion in 2020 [10][11] - The consolidated recurring operating result for Q4 2021 was around $1.1 billion, which was 23% lower than Q3 2021, primarily due to lower international spreads for main chemicals [9][10] Business Line Data and Key Metrics Changes - In Brazil, the recurring operating result for Q4 2021 was $761 million, with an annual result of $3.6 billion [12] - The utilization rate of petrochemical crackers in Brazil increased to 85%, up 6 percentage points from Q3 2021, driven by higher feedstock supply and stronger demand [11][12] - In the United States, the PP plants operated at a utilization rate of 73%, down 21 percentage points due to scheduled maintenance [14] - In Mexico, the utilization rate was 81%, increasing 13 percentage points, with sales volume up 20% year-over-year [15] Market Data and Key Metrics Changes - The company experienced a 13% increase in exports from Brazil, reflecting higher product availability [12] - The sales volume in the United States decreased by 2% to 442,000 tons in Q4 2021 [15] - The recurring operating result for the U.S. and Europe segment in Q4 was $281 million, with an annual result of R$1.6 billion [15] Company Strategy and Development Direction - Braskem aims to expand its Green PE production capacity to 1 million tons by 2030 and is focusing on recycling and productivity improvement [28][29] - The company is committed to maintaining a robust cash position and a long debt maturity profile, with a focus on efficient capital allocation [20][21] - Braskem is working on a repurchase program for shares, considering feedback from investors [40][41] Management's Comments on Operating Environment and Future Outlook - Management expects spreads to return to normal levels but remain above historical averages, with potential volatility due to geopolitical events [31][32] - The company anticipates a stable production and sales volume in Brazil, with higher PE production expected in Mexico [26] - Management highlighted the importance of maintaining a strong cash position and the potential for additional dividend payments throughout the year [41][52] Other Important Information - Braskem's CapEx for 2021 was $691 million, with an estimated $1.2 billion for 2022, focusing on maintenance and growth projects [25][26] - The company has made significant progress in its ESG agenda, including advancements in environmental, social, and governance initiatives [7][21] Q&A Session Summary Question: Can you explain the impact of spreads and when it will affect the bottom line? - Management indicated that spreads are expected to normalize but remain above historical averages, with volatility anticipated due to geopolitical factors [31][32] Question: What is the rationale behind the CapEx guidance? - Management clarified that the increase in operating CapEx reflects both maintenance and innovation investments, with a baseline maintenance CapEx of $600 million [35][36] Question: What is the rationale for the dividend figure announced? - The decision to suggest a lower dividend figure was made to allow for potential share repurchase programs in the future [40][41] Question: Can you provide updates on the Alagoas geological event provisions? - Management stated that the overall provision for the Alagoas issue is around R$12 billion, with no significant risk of changes to the current provisioning [43][45]
Braskem(BAK) - 2021 Q3 - Earnings Call Presentation
2021-11-15 17:24
Financial Highlights - Braskem's recurring Operating Result in 3Q21 was US$1,469 million, a 17% decrease compared to 2Q21, but a 116% increase compared to 3Q20[6] - Net Income for 3Q21 was R$3,537 million[9] - Year-to-September 2021 Net Income was R$13,455 million, representing R$1691 per common share and class "A" preferred share[9] - Free cash flow in 3Q21 reached a new quarterly record of R$3,911 million[46] Operational Performance - Utilization rate of petrochemical crackers in Brazil increased by 3 percentage points to 79% in 3Q21 compared to 3Q20[11] - Braskem Idesa imported an average of 18,600 barrels per day of ethane from the USA in 3Q21, representing approximately 74% of Fast Track's current capacity[30] - Resin sales (PE+PP+PVC) in Brazil reached 792 kt in 3Q21, an 11% increase compared to 3Q20[11] Geological Event in Alagoas - The balance of provisions related to the geological event in Alagoas was approximately R$71 billion in 3Q21, with 68% registered under Current Liabilities and 32% under Non-Current Liabilities[14, 16] - Approximately 97% of families are outside of risk areas as of October 31, 2021[19] Market Trends - Petrochemical spreads remained at high levels and above the upcycle of the petrochemical industry in 3Q21[3] - PE US – Naphtha ARA Spread was $1,259/ton in 3Q21, a 122% increase compared to 3Q20[3] - PP US – Propylene US Spread was $1,411/ton in 3Q21, a 121% increase compared to 3Q20[3] Credit Rating and Debt - S&P upgraded Braskem's credit rating on the global scale to BBB-, with a stable outlook[58] - Approximately 55% of Braskem's liabilities mature after 2030[47]