Braskem announces unaudited preliminary 2016 Results

Brazil - Português

News provided by

Feb 22, 2017, 00:48 ET

SAO PAULO, Feb. 22, 2017 /PRNewswire/ -- BRASKEM S.A. (BM&FBOVESPA: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) announces today its non-audited preliminary results for 2016.

HIGHLIGHTS:

Brazil:

Demand for resins (PE, PP and PVC) in 4Q16 was 1.2 million tons, up 13% on 4Q15. In the year, the demand was 4.9 million tons, contracting 1% in relation to 2015.
The Company's crackers operated at an average capacity utilization rate in 2016 of 92%, increasing 3 p.p. from 2015 and setting a new record for the Company.
Resin production stood at 4.9 million tons, up 4% compared to 2015.
Braskem's exports in the year amounted to 1.7 million tons, expanding 24% from 2015, and setting a new record for the Company.
In 4Q16, the units in Brazil, including exports, posted EBITDA of R$1,821 million and R$8,485 million in the year, which corresponds to 74% of consolidated EBITDA.

United States and Europe:

In 2016, the PP plants in the United States and Europe operated at an average capacity utilization rate of 100%, up 2 p.p. from 2015, reflecting the units' good operating efficiency. Resin production in the year reached 2 million tons, up 2% on 2015, setting a new record.
The units in the United States and Europe posted EBITDA of US$103 million (R$338 million) in 4Q16. In the year, EBITDA was US$696 million (R$2,463 million), or 21% of the Company's consolidated EBITDA.

Mexico:

The polyethylene plants operated at an average capacity utilization rate of 73% in 4Q16, up 10 p.p. from 4Q15. In the year, the average capacity was 42%, which is in line with the Company's expectation for the complex's ramp-up.
In 4Q16, EBITDA was US$104 million (R$343 million). In 2016, EBITDA was US$165 million (R$537 million), or 5% of the Company's consolidated EBITDA.

Braskem - Consolidated:

In 2016, Braskem set new records for EBITDA in both Brazilian real and U.S. dollar, of R$11,508 million and US$3,312 million. In 4Q16, EBITDA in both Brazilian real and U.S. dollar, was R$2,385 million and US$729 million, respectively.
In 4Q16, Braskem posted a net loss of R$2,637 million in the Consolidated and R$2,552 million in the Parent Company. In 2016, Braskem posted a net loss of R$768 million in the Consolidated and R$452 million in the Parent Company.
Corporate leverage stood at 1.67, down 13% from 2015.
In December 2016, the Company concluded the global settlement with the Brazilian Federal Prosecution Office, the U.S. Department of Justice, the U.S. Securities and Exchange Commission and the Swiss Office of the Attorney General to resolve the wrongdoings involving the Company in connection with Operation Car Wash. Under the global agreement, the Company will pay the applicable authorities in Brazil and abroad approximately US$957 million, equivalent to approximately R$3.1 billion.

The full earnings release is available on the Company's IR website: www.braskem.com.br/ir

Braskem will host conference calls to discuss its Results TODAY, February 22, at 01:30 p.m. US ET. See connecting details on the Company's IR website.

SOURCE BRASKEM S.A.