Braskem announces 1Q14 Results

News provided by

Braskem S.A.

08 May, 2014, 14:38 GMT

SAO PAULO, May 8, 2014 /PRNewswire/ -- BRASKEM S.A. (BM&FBOVESPA: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) announces today its results for 1Q14.

HIGHLIGHTS:

  • Braskem's resin sales were 901 kton, virtually stable in relation to 4Q13. Compared to 1Q13, resins demand expanded 3%, while the Company's sales decreased 2%.
  • In 1Q14 the capacity utilization rate of Braskem's crackers stood at 85% and was affected by the scheduled maintenance shutdown at the Triunfo site and by operational issues.
  • PP sales volume at the United States and Europe business unit totaled 460 kton in the quarter, in line with 4Q13. Compared to 1Q13, PP sales volume grew by 7%, driven by the recovery in demand from the European and U.S. markets.
  • Braskem divested the assets forming the Water Treatment Unit ("WTU") located at the Triunfo complex for R$315 million, recognizing a gain of R$277 million in the quarter.
  • In 1Q14, Braskem's consolidated EBITDA was R$1,637 million. The following factors contributed to this result: the gain from the divestment of non-strategic assets, the stability in petrochemical spreads in the international market and the 4% depreciation in the Brazilian real in relation to 4Q13. In U.S. dollar, consolidated EBITDA was US$690 million.
  • Net income amounted to R$396 million, explained by WTU divestment and the operating performance in the quarter.
  • Leverage in U.S. dollar stood at 2.71x, down 6% from the previous quarter. In Brazilian real, the leverage ratio also stood at 2.71x, decreasing 13%.
  • Fast Company magazine selected Braskem as one of the world's 50 most innovative companies, being the only Brazilian company to figure on the ranking.
  • Mexico Project
    • Progress continued to advance on the project's construction, which reached 66% physical completion. The startup of the new complex is expected for 2H15.
    • In April, the subsidiary Braskem-Idesa withdrew the third installment of the project finance in the amount of US$465 million.

The full earnings release is available on the Company's IR website: www.braskem.com.br/ir

Braskem will host conference calls to discuss its Results on Friday, May 9, 2014, at 01:30 p.m. ET in English and 12:00 p.m. ET in Portuguese. See connecting details on the Company's IR website.

For further information, contact Braskem's Investor Relations Area:
braskem-ri@braskem.com.br, (+55 11) 3576-9531.