Braskem records EBITDA of BRL 3.9 billion and cash generation of BRL 2.4 billion in the 2nd quarter of 2022

The Company keeps with a low corporate leverage (1.2x) and with a cash position that guarantees the maturity of debts in the next 66 months

Braskem recorded recurring EBITDA of BRL 3.9 billion in the second quarter of 2022, with recurring cash generation of BRL 2.4 billion, thus maintaining the corporate leverage at a comfortable level, 1.2x. The Company’s cash position was USD 1.9 billion, which guarantees coverage of debt maturities for the next 66 months, even without considering the international revolving credit line available in the amount of USD 1 billion, maturing until 2026. The net revenue for the quarter was BRL 25.4 billion.

“Despite the volatility of the international scenario, the Company continues to have good results due to the geographic and raw material diversification strategy we have initiated in the last ten years,” says Roberto Simões, CEO of Braskem.

With the impact of the exchange rate variation on the financial result, given the depreciation of the real against the dollar on the net exposure in the amount of USD 3.6 billion, and with updating of the provision relating to the geological event in Alagoas, Braskem recorded net loss of BRL 1.4 billion in the quarter. In the year to date, the Company recorded net profit of BRL 2.5 billion.

Additionally, the Company reached important milestones. In June, Braskem Idesa entered into agreements with Advario, a leading global storage company headquartered in the Netherlands, to dispose of a 50% interest in Terminal Química Puerto México, a subsidiary of Braskem Idesa responsible for developing and operating the ethane import terminal project in Mexico. TQPM’s ethane import terminal will have a capacity of 80 thousand barrels of ethane per day, providing conditions for Braskem Idesa to import all its raw material needs.

Throughout the quarter, Braskem remained focused on the development and implementation of the various projects of its main growth avenues, which are concentrated in the renewables, recycling and existing businesses with a focus on productivity and competitiveness.

The company has a commitment to reach 1 million tons of biopolymer production capacity by 2030 and, in this context, has been announcing potential strategic and financial partnerships. In addition, the Company continues to implement the project to expand its annual green ethylene production capacity from 200,000 tons to 260,000 tons with physical progress of this investment of 50%.

Concerning our commitment to increase production capacity with recycled content, Braskem remains focused on implementing the project for construction of the first advanced recycling unit in Brazil, in partnership with Valoren, with a view to chemically transforming plastic waste into circular raw material through the pyrolysis process.

And, at the beginning of the month, the Company announced that it will hold a 61.1% equity interest in Wise Plásticos, a company in the mechanical recycling sector, and that it will disburse the estimated amount of R$121 million, of which a significant part will be invested in the duplication of the current production capacity to around 50 thousand tons of recycled products by 2026. Wise is a relevant player in polyolefin recycling for consumer goods companies. Headquartered in the city of Itatiba (SP), she has been operating in the industry for more than 15 years.

Also at the beginning of the month, Braskem inaugurated Cazoolo, Brazil’s first packaging development center for circular economy. Located in the west zone of São Paulo, the space, the result of a BRL 20 million investment, will be an innovation hub that will promote improvements in the entire packaging journey, from conception to post-consumption. The 450m² space was planned to stimulate interactivity and creativity with modular rooms, shelves that simulate supermarket shelves, and a mini auditorium for project presentations. Cazoolo has six state-of-the-art 3D printers, as well as printing, laser cutting, welding, and thermoforming equipment for the production of prototypes in a short period of time, accelerating the development of projects for brands interested in establishing partnerships.

Braskem was also listed among the 20 most innovative companies in Brazil in the ranking made by Technology Review, a content platform of the Massachusetts Institute of Technology (MIT, one of the most renowned universities in the world). The Innovative Workplaces list was the first one carried out with Brazilian companies by MIT.