Brazilian chemical maker Braskem reported recurring operating results of $1,469 million for the third quarter of 2021, a 17% drop from the second quarter due to lower margins for resins in Brazil, polypropylene (PP) in Europe, and polyethylene (PE) in Mexico. However, third-quarter recurring operating results were higher than the historical average of the past ten years thanks to higher polypropylene (PP) sales volume in the US and Europe.
Braskem’s recurring operating results jumped 116% compared to a year earlier thanks to higher spreads for polyethylene (PE) and polyvinyl chloride (PVC) in Brazil, polyethylene (PE) in the US, Europe, and Mexico, as well as higher sales volume of main chemicals in Brazil, the US, and Europe due to the post-pandemic demand recovery.
Braskem’s net income stood at $645 million in the third quarter of 2021 and $2.45 billion in January-September, representing $3.084 per common share. The company generated a free cash flow of $713 million in July-September, the highest quarterly figure on its record. Braskem’s ratio of adjusted net debt to recurring operating result stood at 0.83x at the end of the third quarter, declining 24% from 1.10x at the end of the second quarter.
