Braskem reports record-high free cash flow generation of approximately R$3.9 billion on 3Q21

USA - English

• Brazil - Português

SÃO PAULO, Nov. 9, 2021 /PRNewswire/ -- BRASKEM S.A. (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) announces today its results for 3Q21.

3Q21 HIGHLIGHTS:

Braskem - Consolidated:

• In 3Q21, the Company's recurring Operating Result was US$1,469 million, 17% lower than 2Q21, mainly due to: (i) lower spreads for resins in Brazil, PP in Europe and PE in Mexico, but above the historical average of the past ten years; and (ii) higher PP sales volume in the United States and Europe. Compared to 3Q20, recurring Operating Result in U.S. dollar increased 116%, due to: (i) better spreads for main chemicals, PE and PVC in Brazil, for PP in the United States and Europe and for PE in Mexico; and (ii) higher sales volume of main chemicals in Brazil and of PP in the United States and Europe due to the recovery in demand after COVID impact. In Brazilian real, recurring Operating Result was R$7,670 million, 18% lower than 2Q21, reflecting the Brazilian real appreciation against the U.S. dollar of 1%, and 109% higher than 3Q20.
• In the quarter, the Company reported Net Income of R$3,537 million. Additionally, year-to-date through September, Braskem reported net income of R$13,455 million, representing R$16.91  per common share and class "A" preferred share.
• The Company's free cash flow generation in 3Q21 was R$3,911 million, representing a historic quarterly record, with return  on cash flow in the period of 21%.
• In line with its continuous commitment to financial health and to be reassigned as an investment grade company, Braskem continued to reduce its corporate leverage, measured by the ratio of adjusted net debt to recurring Operating Result in USD, which ended 3Q21 at 0.83x, declining 24% in relation to 2Q21(1.10x).
• In September, the risk rating agency S&P Global Ratings upgraded the Company's risk rating on the global scale to BBB-, with a stable outlook. The agency noted that the upgrade to an investment grade rating reflects the considerable improvement in indicators of profitability and cash generation, Braskem's commitment to deleveraging and the agency's expectation that the Company will continue to benefit from high petrochemical spreads over the coming quarters.
• In September, Braskem Idesa signed the following documents: (i) an amendment to the ethane supply agreement signed with PEMEX with settlement of previously existing contractual pending issues; and (ii) an agreement signed with PEMEX and other government entities that establishes the support measures to build an ethane import terminal with the capacity to meet all of Braskem Idesa's requirements. In October, Braskem Idesa has secured the applicable corporate approvals, including final approval by its shareholders and creditors regarding the Documents signed.
• In October, Braskem Idesa concluded its debt refinancing plan, which involved substituting the remaining balance of US$1.35 billion of the Project Finance with new debt, namely: (i) the bond issue in the amount of US$1.2 billion; and (ii) term loan in the amount of US$150 million. The new funding operations have long debt terms that lengthened the average debt term to 9 years and a weighted average debt cost of exchange variation + 7.1%. With the settlement of the Project Finance debt, the guarantees pledged by Braskem to Braskem Idesa, in the total amount of US$358 million, will be extinguished. The new capital structure of Braskem Idesa includes the issue of debt securities that include a commitment to and interest rates linked to targets for reducing carbon emissions, in line with the Company's long-term sustainable development strategy.
• The Company's class "A" preferred shares (BRKM5) registered a price gain of 131% in the year to October.

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

Braskem will host conference calls to discuss its Results WEDNESDAY, November 10 at 09:00 a.m. US ET.

Additional information may be obtained from the Investor Relations Department at +55 11 3576-9531 or [email protected].

SOURCE Braskem S.A.

Related Links

http://www.braskem.com/usa