Braskem(BAK) - 2023 Q1 - Earnings Call Presentation

Financial Highlights - Braskem's Recurring EBITDA in 1Q23 was US$205 million[4], primarily driven by demand recovery, higher sales volume across all segments, and improved resin spreads in the international market[8] - The company maintained a strong liquidity position sufficient to cover liabilities coming due in the next ~6 years[7] - Braskem has a very long debt maturity profile, with an average term of ~14 years[7] - The corporate leverage ratio is 386x[7] Operational Highlights - The global frequency rate of accidents (CAF + SAF) was 108 (event/1MM MHW), an 8% reduction compared to 1Q22[7] - There was an increase in utilization rate across all regions compared to the previous quarter[7] - Higher sales volume was achieved in all segments compared to the previous quarter[7] - The utilization rate of petrochemical complexes in Brazil was 86% for ethylene in 1Q22, decreased to 72% in 4Q22, and recovered to 81% in 1Q23[11] Strategic Initiatives & Outlook - Expansion of current green ethylene capacity by 30% with physical progress of 94% by Mar/23[7] - A new wind power purchase agreement with Casa dos Ventos is expected to reduce 32 MM CO2e, considering this and other signed agreements[7, 62] - Braskem anticipates a stable ethylene utilization rate in Brazil, even with a pitstop in the RJ cracker during 2Q23[70] - The company expects an increase in resin sales volume in the United States and Europe due to the reduction of inventory levels in the chain in these regions[71] Geological Event in Alagoas - The total amount of provisions related to the geological event in Alagoas is R$132 billion, of which R$75 billion has already been disbursed[17, 25] - The relocation program for residents is ~99% executed as of Mar/23[25]