Braskem registers Ebitda of R$ 1.3 billion in the first quarter and net sales revenue of R$ 12.6 billion

Braskem registered an Ebitda of R$ 1.3 billion (US$ 294 million) in the first quarter of 2020, a growth of 32% when compared to the same period of the previous year. The operation in Brazil had an Ebitda of R$ 1.05 billion, an increase of 214% compared to the last quarter of 2019. The company’s net revenue remained stable in relation to the last quarter of last year, totaling R$ 12.6 billion. This result was specially due to the higher volume of resins sold in the Brazilian market, polypropylene (PP) in the USA and Europe and of polyethylene (PE) in Mexico, in addition to lower sales, general, and administrative expenses.

“Braskem continues to focus on the discipline of capital allocation as a way to maintain its robust cash position so we can face this moment of global crisis. We’re doing this without neglecting the safety and the health of our teams, a non-negotiable value for the company,” said Roberto Simões, president of Braskem.

The overall frequency of accidents rate with and without leave (CAF + SAF) was 0.81 (events/million hours worked), 74% below the industry average.

In the quarter, the company recorded a net loss of R$ 3.65 billion, mainly due to the impact of the exchange rate variation on the financial result, given the depreciation of the Real and the Mexican peso against the Dollar over the quarter.

In May, the U.S. Department of Justice (DoJ) and the SEC confirmed the end of independent monitoring at Braskem provided in the agreements signed in 2016. The DoJ and SEC decision was based on the final report of the independent monitors which attested the implementation by the company of all recommendations concerning the structuring and operation of its compliance program, concluding the compliance with the standards set out in those agreements. With the end of the independent monitoring and certification by the Brazilian Public Prosecutor’s Office, the DoJ, and the SEC, Braskem fulfilled its obligations established in the agreements.