Braskem reports record-high free cash flow generation of approximately R$3.9 billion on 3Q21
09 Novembro 2021 - 10:22PM
PR Newswire (US)
SÃO PAULO, Nov. 9, 2021
/PRNewswire/ -- BRASKEM S.A. (B3: BRKM3, BRKM5 and
BRKM6; NYSE: BAK; LATIBEX: XBRK) announces today its results for
3Q21.
3Q21 HIGHLIGHTS:
Braskem - Consolidated:
- In 3Q21, the Company's recurring Operating Result was
US$1,469 million, 17% lower than
2Q21, mainly due to: (i) lower spreads for resins in Brazil, PP in Europe and PE in Mexico, but above the historical average of
the past ten years; and (ii) higher PP sales volume in the United States and Europe. Compared to 3Q20, recurring Operating
Result in U.S. dollar increased 116%, due to: (i) better spreads
for main chemicals, PE and PVC in Brazil, for PP in the United States and Europe and for PE in Mexico; and (ii) higher sales volume of main
chemicals in Brazil and of PP in
the United States and Europe due to the recovery in demand after
COVID impact. In Brazilian real, recurring Operating Result was
R$7,670 million, 18% lower than 2Q21,
reflecting the Brazilian real appreciation against the U.S. dollar
of 1%, and 109% higher than 3Q20.
- In the quarter, the Company reported Net Income of R$3,537 million. Additionally, year-to-date
through September, Braskem reported net income of R$13,455 million, representing R$16.91 per common share and class "A"
preferred share.
- The Company's free cash flow generation in 3Q21 was
R$3,911 million, representing a
historic quarterly record, with return on cash flow in the
period of 21%.
- In line with its continuous commitment to financial health and
to be reassigned as an investment grade company, Braskem continued
to reduce its corporate leverage, measured by the ratio of adjusted
net debt to recurring Operating Result in USD, which ended 3Q21 at
0.83x, declining 24% in relation to 2Q21(1.10x).
- In September, the risk rating agency S&P Global Ratings
upgraded the Company's risk rating on the global scale to BBB-,
with a stable outlook. The agency noted that the upgrade to an
investment grade rating reflects the considerable improvement in
indicators of profitability and cash generation, Braskem's
commitment to deleveraging and the agency's expectation that the
Company will continue to benefit from high petrochemical spreads
over the coming quarters.
- In September, Braskem Idesa signed the following documents: (i)
an amendment to the ethane supply agreement signed with PEMEX with
settlement of previously existing contractual pending issues; and
(ii) an agreement signed with PEMEX and other government entities
that establishes the support measures to build an ethane import
terminal with the capacity to meet all of Braskem Idesa's
requirements. In October, Braskem Idesa has secured the applicable
corporate approvals, including final approval by its shareholders
and creditors regarding the Documents signed.
- In October, Braskem Idesa concluded its debt refinancing plan,
which involved substituting the remaining balance of US$1.35 billion of the Project Finance with new
debt, namely: (i) the bond issue in the amount of US$1.2 billion; and (ii) term loan in the amount
of US$150 million. The new funding
operations have long debt terms that lengthened the average debt
term to 9 years and a weighted average debt cost of exchange
variation + 7.1%. With the settlement of the Project Finance debt,
the guarantees pledged by Braskem to Braskem Idesa, in the total
amount of US$358 million, will be
extinguished. The new capital structure of Braskem Idesa includes
the issue of debt securities that include a commitment to and
interest rates linked to targets for reducing carbon emissions, in
line with the Company's long-term sustainable development
strategy.
- The Company's class "A" preferred shares (BRKM5) registered a
price gain of 131% in the year to October.
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
WEDNESDAY, November 10 at
09:00 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.
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