Braskem records net revenue of R$41bn in 2013

ERJ staff report (TP)

Sao Paulo, Brazil − Brazilian petrochemical company Braskem announced its 2013 results this week and a net revenue of R$41bn (€12.5bn) in 2013.

The company set new records for the production of ethylene (3.4m tonnes) and polyethylene (2.6m tonnes), while resin sales volume grew by 6 percent in the Brazilian market to reach 3.7m tonnes.

Braskem's net revenue came to R$41bn (€12.5bn), representing growth of 13 percent on the prior year. Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to R$4.8bn (€1.46bn), increasing 22 percent in the period.

Some of the factors influencing this performance were the growth in domestic sales volume; the recovery in international resin and petrochemical spreads; the tax relief for raw material purchases; and the depreciation in the Brazilian real.

Net income amounted to R$15m (€4.57m) in the fourth quarter and R$507m (€154.6m) in 2013, reflecting the better operating performance in the period and the adoption, as of 10 May of hedge accounting, which better translates the effects of exchange variation on the company's debt and on its profit and loss. Based on this result, the firm’s management is proposing the distribution of R$483m (€147.2) in dividends.

In terms of expansion, Braskem's investments in the year amounted to R$2.7bn (€823.3m), or 58 percent more than in 2012. The investments went mainly to maintaining assets, which consumed 50 percent of the total, and to the construction of the integrated petrochemical complex in Mexico developed through a joint venture with Idesa, which received 40 percent. The project reached physical completion of 58 percent by year-end and is scheduled to start operations in 2015.

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Full details in the press release at Braskem's website