Braskem(US:BAK)2025-11-12 11:12Financial Performance - In Q3 2025, Braskem recorded a consolidated recurring EBITDA of US$150 million, a 104% increase compared to Q2 2025[28]. - The net revenue for Q3 2025 was US$3,175 million, reflecting a 1% increase from Q2 2025 but a 17% decrease year-over-year[22]. - The gross profit for 3Q25 was R$615 million, reflecting a 14% decrease compared to 2Q25 and a 61% decrease compared to 3Q24[65]. - Recurring EBITDA for 3Q25 was R$1.1 billion, an increase of 29% compared to 2Q25, but a decrease of 40% compared to 3Q24[83]. - The net financial result for Q3 2025 was a loss of R$904 million, a significant improvement compared to a loss of R$2,332 million in Q3 2024[182]. - The company recorded a net loss of R$174 million in Q3 2025, a 55% improvement from a loss of R$390 million in Q2 2025[168]. - The company recorded a net loss attributable to shareholders of US$1 million (R$26 million) in 3Q25, primarily due to geological event provisions and the hibernation of the chlor-alkali plant[195]. Sales and Market Performance - Sales volume of main chemicals in Brazil increased by 11% in the domestic market and 10% in exports[25]. - The sales volume of resins in Brazil decreased by 5%, while exports remained stable[25]. - The Brazil/South America segment recorded a 35% increase in Recurrent EBITDA compared to 2Q25, despite a 39% decrease compared to the same quarter last year[37]. - Resin sales in the Brazilian market decreased by 5% compared to 2Q25, primarily due to higher import volumes[43]. - Exports of resins increased by 1% compared to 2Q25 and by 9% compared to 3Q24, driven by higher product availability[46]. - The sales volume of main chemicals in the Brazilian market increased by 11% compared to 2Q25, driven by higher demand for paraxylene, ethylene, and propylene[50]. Utilization Rates - The average utilization rate for ethylene in Brazil was 65%, down 9 percentage points from Q2 2025[22]. - The utilization rate in the United States and Europe was 79%, with a negative recurring EBITDA of US$15 million[26]. - In Mexico, the utilization rate was 47%, significantly impacted by a general maintenance shutdown[27]. - The average utilization rate of petrochemical complexes fell by 9 percentage points compared to 2Q25, attributed to scheduled maintenance shutdowns[41]. - The Green Ethylene utilization rate in 3Q25 was 40%, down 31 percentage points from 2Q25 and 55 percentage points from 3Q24[84]. - The average utilization rate of PE plants in Mexico increased by 3 percentage points compared to 2Q25, reaching 47%[129]. - The utilization rate of PP plants increased by 5 percentage points compared to 2Q25, reaching 79%[98]. Debt and Financial Structure - The corporate gross debt at the end of Q3 2025 was approximately US$8.4 billion, with an average maturity of 9 years[29]. - As of September 30, 2025, gross debt stood at US$2.179 billion, with net debt increasing by 9% year-over-year to US$2.133 billion[160]. - The average debt maturity was approximately 5.2 years, with a weighted average cost of debt at exchange variation +7.3% per annum[157]. - Fitch and S&P downgraded Braskem Idesa's ratings to 'CCC+' and 'CCC', respectively, due to concerns over its capital structure[163]. - The company announced it is evaluating a range of economic-financial options to improve its capital structure amid macroeconomic uncertainties[126]. Investments and Projects - The Company approved the Transforma Rio Project with an estimated investment of R$ 4.2 billion to expand ethylene and polyethylene capacity in Rio de Janeiro[31]. - Total investments planned for 2025 amount to US$104 million, including US$23 million for the completion of the ethane import terminal[149]. - The ethane import terminal has a capacity to import up to 80,000 barrels of ethane per day, covering 120% of Braskem Idesa's needs[153]. - Total investments expected for 2025 are US$404 million (R$2.4 billion), with approximately US$133 million (R$725 million) invested in 3Q25[197]. - The total investment in Brazil for 9M25 was R$1.478 billion (US$270 million), with a projected total of R$2.174 billion (US$363 million) for 2025[199]. - Braskem advanced in capacity expansion projects through resources from REIQ Investimentos, with an updated investment estimate of R$405 million (US$72 million) for 2025[200]. Cost and Expenses - COGS in 3Q25 was impacted by R$435 million due to the hibernation of the chlor-alkali plant in Alagoas[72]. - SG&A expenses increased by 40% in reais compared to 3Q24, primarily due to higher provisions for losses in accounts receivable[80]. - SG&A expenses increased by 8% in dollars compared to 2Q25, mainly due to higher spending on personnel and IT[119]. - COGS decreased by 7% in dollars compared to 2Q25, primarily due to a 5% reduction in international propylene price references in the U.S.[115]. Geological Events and Provisions - The Company faced a geological event provision of approximately R$ 524 million, impacting its financials[40]. - The provision balance for the geological event in Alagoas at the end of 3Q25 was R$3.8 billion, a decrease of 19% compared to the end of 2Q25[61]. - The Company entered into a State Agreement with the State of Alagoas on November 10, 2025, involving a total payment of R$1.2 billion, with R$139 million already paid[61]. - The company recorded a provision of R$524 million related to the geological event in Alagoas, impacting other operating expenses[81].