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Braskem(BAK) - 2025 Q3 - Earnings Call Transcript
2025-11-11 16:30
Financial Data and Key Metrics Changes - In Q3 2025, Braskem recorded consolidated recurring EBITDA of $150 million, which is 104% higher than in Q2 2025 [5][13] - The company's cash position at the end of the quarter was approximately $1.3 billion, sufficient to cover debt maturities over the next 27 months [6][18] - Corporate leverage stood at approximately 14.7 times at the end of Q3 2025, mainly due to lower EBITDA over the last 12 months [18] Business Line Data and Key Metrics Changes - In Brazil, recurring EBITDA was $205 million, a 35% increase from the previous quarter, driven by prioritization of higher value-added sales [7][8] - The utilization rate of the Green Ethylene Plant was 40%, down 31 percentage points from the previous quarter due to lower demand from Asian markets [8] - The Mexico segment had a recurring EBITDA of negative $37 million, impacted by higher idle expenses and lower provisions for fine receivable [11] Market Data and Key Metrics Changes - Utilization rates at petrochemical plants in Brazil were lower due to maintenance stoppages and production optimization strategies [4][6] - Resin sales in the Brazilian market decreased due to higher polyethylene imports and lower polypropylene demand [7] - The global macroeconomic scenario was marked by moderate growth, accelerated inflation, and high interest rates, impacting industrial activity in resin processing [6] Company Strategy and Development Direction - Braskem's resilience program aims to implement tactical initiatives to generate sustainable value, focusing on maximizing EBITDA and mitigating cash consumption [19][20] - The company is pursuing a transformation program structured around optimizing naphtha base, increasing gas base flexibility, and migrating to renewable products [19][24] - The Transform Rio project was approved to expand the Rio de Janeiro plant's capacity, expected to add 220,000 tons per year of ethylene capacity [25][27] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the petrochemical industry is facing a prolonged downturn, with expectations of a challenging environment until at least 2030 [32][38] - The company anticipates a significant gap between supply and demand in the petrochemical industry, driven by expansions in China and the Middle East [38] - Despite negative outlooks, Braskem continues to advance its resilience project to enhance global competitiveness [39] Other Important Information - Braskem signed an agreement related to the Alagoas geological event, providing for a total payment of BRL 1.2 billion, with around BRL 139 million already paid [15][53] - The company has established 79 action plans globally, with potential for capturing around $400 million in EBITDA and $500 million in cash generation for 2025 [20][22] Q&A Session Summary Question: When will a decision on the restructuring be made? - The company is currently completing a diagnostic with external advisors, and no options are confirmed or discarded at this moment [44] Question: What was the main economic driver for weak resin volumes this quarter? - The demand for resins is strongly associated with Brazilian GDP, and a drop of about 4% is expected for the next months, with a recovery of about 3% for the following year [45] Question: What is the timeline and expected impact of the Transform Rio project? - The project will begin its engineering phase now and is expected to be completed by the end of 2028, potentially adding just under $200 million per year to EBITDA [47][48] Question: What is the status of the PRESIC bill? - The bill has been approved by the Chamber of Deputies and is awaiting urgent evaluation in the Senate, with hopes for approval by the end of 2025 [51] Question: Can you provide details about the Alagoas agreement? - The agreement involves a total payment of BRL 1.2 billion over a 10-year period, with initial installments respecting the company's projected financial condition [53]
Braskem(BAK) - 2025 Q3 - Earnings Call Presentation
2025-11-11 15:30
AGENDA This presentation was updated as of September 30, 2025, and Braskem does not assume any obligation to update it in light of new information and/or future developments. Braskem undertakes no liability for transactions or investment decisions made based on the information in this presentation. 2 | PUBLIC EARNINGS CONFERENCE CALL 3 RD QUARTER 2025 N O V E M B E R 1 1 , 2 0 2 5 DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS 3Q25 EARNINGS CONFERENCE CALL This presentation may contain forward-looking stat ...
Braskem(BAK) - 2025 Q2 - Earnings Call Presentation
2025-08-07 15:00
Financial Performance - Braskem's Recurring EBITDA in 2Q25 was US$74 million, a decrease of 67% compared to 1Q25 and 77% compared to 2Q24[8] - Operational cash generation was US$(31) million, an increase of $129 million compared to 1Q25[8] - Recurring EBITDA in Brazil was US$152 million, 24% lower than in 1Q25, mainly due to the reduction in PE and PVC spreads[14] - USA & Europe Recurring EBITDA decreased by 142% from 1Q25, resulting in a negative value[25] - Mexico's Recurring EBITDA decreased by 124% from 1Q25, resulting in a negative value[29] Operational Highlights - The utilization rate in Brazil was 74%[8] - Green Ethylene utilization rate was 71%, a decrease of 16 percentage points compared to 1Q25[8, 20] - USA & Europe plants utilization rate was 74%[8, 24] - Mexico's PE plant utilization rate was 44%, a decrease of 35 percentage points compared to 1Q25[8, 28] Financial Stability - The company has a cash position of approximately US$17 billion, providing about 30 months of coverage[9] - The company's liquidity is approximately US$27 billion, including cash position and revolving credit facility[9] - Approximately 68% of the company's debts mature from 2030 onwards[9, 47]