Braskem records net profit of R$ 3.9 billion and sales revenue of R$ 26.7 billion in the first quarter
Braskem recorded a net profit of R$ 3.9 billion in the first quarter of 2022, 56% higher than in the first three months of 2021 and 632% higher than in the previous quarter. Net sales revenue reached R$26.7 billion in the quarter, 18% higher than in the same period last year, and recurring Ebitda was R$4.9 billion, 30% lower than the first quarter last year. Corporate leverage, measured as net debt/recurring EBITDA in dollars, ended the quarter at 1.0x, while the cash position stood at R$1.8 billion, a level that guarantees coverage of debt maturities for the next 69 months, not considering the international revolving credit line available until 2026.
“Despite the volatility of the scenario in the period because of geopolitical tensions, Braskem presented a good result in the quarter due to the raw material and geographic diversification strategy it has implemented in the last decade. With this, the Company has become more resilient to these market variations,” says Roberto Simões, president of Braskem.
In may, a dividend payment of R$ 1,35 billion was made, based on the result for the 2021 fiscal year. Added to the R$ 6 billion paid in advance in december, total dividends were 7,35 billion, or, 77,5% of last years adjusted net income.
The beginning of the year was marked by successive socio-environmental highlights. One of them was the implementation of the Sustainable Development Advisory Council, which will support climate change strategies. The Council is made up of four independent experts selected on the basis of their experience and diversity of profiles. This external board is intended to assist the Global Sustainable Development Committee, composed of the Company’s executives, in directing its strategies for 2030 and 2050.
The Company’s main “growth avenues” are the expansion of the renewable and recycling businesses and improving the productivity of existing assets. Following this strategy, the year has already registered important milestones on the renewable and recycling business expansion front.
Today, Braskem announces the signature of a joint venture agreement in the Netherlands with Terra Circular. The joint venture will use an innovative technology to convert low-grade plastic waste into finished articles. The enterprise’s recycling capacity is 23 thousand tons per year of mixed plastic waste in compression molded parts -boards for use in construction and pallets. Once the preceding conditions are met, Braskem will become the controller of the joint venture, with the possibility of extending the use of the technology to other regions.
In March, the first mechanical recycling line in Brazil was inaugurated in Indaiatuba -SP. The project is the result of a partnership with Valoren, a company that develops technology and manages waste for transformation into recycled products. It is expected that 14,000 tons of high quality resin will be produced from the recycling of 250 million post-consumer packages made from polyethylene and polypropylene. This resin will be reused as a raw material in the processing industry.
In the same month, Braskem announced the signature of a cooperation contract with Sojitz Corporation for the constitution of a joint venture for the production and commercialization of bio-MEG -monoethylene glycol- and bio-MPG -monopropylene glycol, conditioned to the conclusion of the technology development. The joint venture’s business plan foresees in the first phase investments for the implementation of three industrial plants, conditioned to the conclusion of the technology development, which will count with the support and expertise of the Danish company Haldor Topsoe.
In April, Braskem announced the signing of the second contract with EDF Renewables América Latina for the purchase of wind power, which will enable the construction of a new complex located in the southwest of Bahia. Expected to start operations in 2024, the new wind complex will supply Braskem’s operations with renewable energy for 20 years.
Furthermore, Braskem acquired a minority shareholding in the wind energy generators Ventos de Santa Amélia and Ventos de Santo Abelardo, both controlled by FIP Salus of the Casa dos Ventos group, inserting the Company in the renewable energy self-production regime.
In the United States, Braskem acquired a minority shareholding in Nexus Circular, a company that operates in advanced recycling that converts plastics destined for landfills into circular raw materials used in the production of sustainable virgin plastics.
In Alagoas, Braskem continues advancing in the implementation of the Financial Compensation and Relocation Support Program, which is the result of an agreement between Braskem and authorities in Alagoas to assist the population affected by the geological phenomenon in Maceió.
By May, more than 14,000 properties had been cleared, exceeding 97% of the area defined by the Civil Defense. More than 13,000 compensation proposals were submitted, with a 99.5% acceptance rate. Of these, 10.2 thousand indemnities have already been paid, for a total of R$2.18 billion in indemnities and financial aid. More than 3.4 thousand compensation proposals were presented to traders and businessmen.
The company has been acting proactively in all dimensions related to Alagoas and fully complying with the commitments it has taken on, also highlighting: the conclusion of the environmental diagnosis of the area and significant progress in the social diagnosis; the conclusion of the Urban Mobility Plan and the start of actions planned for the next quarter; the start of demolition work on the Mutange hillside; and the continuation of the plan to close the salt wells.