BAK Braskem SA

SÃO PAULO, May 5, 2021 /PRNewswire/ -- BRASKEM S.A. (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) announces today its results for 1Q21.

1Q21 HIGHLIGHTS:

Braskem - Consolidated:

• In 1Q21, the Company's recurring Operating Result was US$1,266 million, 52% higher than 4Q20, mainly due to: (i) better spreads for PE, PP and main chemicals in Brazil, for PP in the United States and Europe and for PE in Mexico; and (ii) higher PP sales volume in Europe. Compared to 1Q20, the recurring Operating Result in U.S. dollar increased 341%, due to: (i) better spreads for resins and main chemicals in Brazil, for PP in the United States and Europe and for PE in Mexico; and (ii) higher PP sales volume in the United States and Europe and main chemicals in Brazil. In Brazilian real, recurring Operational Income was R$6,943 million, 54% and 444% higher than in 4Q20 and 1Q20, respectively, reflecting the 23% depreciation in the Brazilian real against the U.S. dollar.
• In the quarter, the Company recorded a net profit of R$2,494 million, up 195% from 4Q20, representing R$3.14 per common share and class A preferred share.
• Free cash flow in 1Q21 was positive R$1,766 million, explained mainly by (i) the recurring Operating Result in the quarter; (ii) the monetization of PIS/COFINS credits in the approximate amount of R$761 million; (iii) the reduction in operating capex due to scheduled maintenance shutdowns in the United States and Europe and the operating adjustments carried out at the petrochemical complex in São Paulo in 4Q20; and (iv) the reduction in strategic investments. These positive impacts were mainly opposed by (i) the negative variation in working capital, mainly due to the impacts from higher prices for resins and main base chemicals in the international market on accounts receivable and from higher naphtha prices on the cost of finished goods in inventory; and (ii) the higher payments of interest in the quarter, which increased compared to the prior quarter due to the payment of interest on the bonds issued by the Company in 2020.   
• In line with the continuous commitment to its financial health and regaining its investment grade rating, the Company continued to reduce its corporate leverage, measured as the ratio of net debt to recurring Operating Result in U.S. dollar, which ended 1Q21 at 1.80x, down 39% in relation to 4Q20 (2.94x).
• In the year to date, the recordable and lost-time injury frequency rate stood at 0.75 (event/million hours worked), which is 72% below the industry average, with the highlight the results for January, when the Company registered zero reported and lost-time injuries.
• In February 2021, the Company entered into a strategic partnership with the world's largest logistics company, A.P. Moller – Maersk, and PSA Corporation Ltd (PSA), one of the largest port operators in the world, for the utilization of its terminals in Singapore and initiate the transshipment operation to serve the Asian continent. The agreement will enable the Company to offer its clients in Asia regular access to its vast polymer portfolio, representing yet another step in its geographical diversification by creating more favorable logistics conditions for serving clients directly.
• In April, Braskem was certified as an Authorized Economic Operator (AEO) – Compliance Modality by the Federal Revenue Service of Brazil. Being an OEA means being recognized internationally for adopting management processes that minimize events involving risks inherent to its import operations and that meet voluntarily criteria on compliance, reliability and safety applicable to the global logistics chain, as well as tax and customs obligations.
• The Company's class "A" preferred shares (BRKM5) gained 121% in the year to May 5, 2021.

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

Braskem will host conference calls to discuss its Results THURSDAY, May 06 at 13:00 a.m. US ET.

Additional information may be obtained from the Investor Relations Department at +55 11 3576-9531 or braskem-ri@braskem.com.br.

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SOURCE Braskem S.A.