Braskem reports free cash flow of R$1.8 billion in 1Q18, advancing 317% on 1Q17
São Paulo, Brazil, May 9, 2018 - BRASKEM S.A. (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) announces today its results for 1Q18.
Braskem - Consolidated:
- EBITDA amounted to US$818 million, down 29 and 10% from 1Q17 and 4Q17, respectively, mainly due to the lower availability of products.
- Parent company net income came to R$1.1 billion, corresponding to R$1.32 per common share and class "A" preferred share, down 42% from 1Q17 and up 173% from 4Q17.
- Financial leverage in U.S. dollar stood at 1.98x.
- Free cash flow was R$1.8 billion, compared to R$423 million in 1Q17.
- In April, the Annual Shareholders' Meeting approved the distribution of additional dividends in the amount of R$1.5 billion, which added to the dividends of R$1 billion distributed in December 2017, bringing total dividends for fiscal year 2017 to R$2.5 billion, which corresponds to 61% of net income for the period.
- Standard & Poor's and Moody's upgraded the Company's credit outlook from negative to stable in March and April, respectively.
- Average cracker capacity utilization rate was 90%.
- Demand for resins (PE, PP and PVC) reached 1.3 million tons in 1Q18, growing 7% in relation to 1Q17.
- Resin sales in the Brazilian market amounted to 886 kton in 1Q18, increasing 5% compared to 1Q17, in line with the growth of the overall market
- Market share stood at 68%.
- Braskem exported 333 kton of resins, representing declines of 22% and 2% compared to 1Q17 and 4Q17, respectively, influenced by the stronger demand for resins in the Brazilian market and the lower availability of product.
- EBITDA of R$1,463 million, accounting for 57% of the Company's consolidated EBITDA from all segments.
United States and Europe:
- The average capacity utilization rate stood at 92%, down 9 p.p. and 7 p.p. from 1Q17 and 4Q17, respectively, due to the unscheduled shutdown in the United States caused by the severe winter.
- EBITDA of US$176 million in 1Q18, or 21% of the Company's consolidated EBITDA.
- Construction of the new PP plant in the United States reached 16% completion in 1Q18, with investments already realized of US$212 million.
- The PE plants operated at an average capacity utilization of 85%, down 12 p.p. and 1 p.p, from 1Q17 and 4Q17, respectively.
- PE sales to the Mexican market amounted to 146 kton, up 17% and 1% from 1Q17 and 4Q17, respectively, to account for 72% of total sales.
- EBITDA stood at US$165 million.
To download the full Earnings Release, click here
Braskem will host conference calls to discuss its Results TOMORROW, May 10, at 12:00 p.m. US ET.
For further information, contact Braskem's Investor Relations Area: firstname.lastname@example.org , (+55 11) 3576-9531.