SÃO PAULO, March 10, 2021 /PRNewswire/ -- BRASKEM S.A. (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) announces today its results for 4Q20 and 2020.


Braskem - Consolidated:

  • The Company's recurring Operating Result was US$833 million, 22% higher than in 3Q20, explained mainly by better spreads for resins and main chemicals in Brazil, for PP in the United States and for PE in Mexico. Compared to 4Q19, recurring Operating Result in U.S. dollar was 246% higher, due to: (i) the better spreads for resins and main chemicals in Brazil, for PP in the United States and Europe and for PE in Mexico; and (ii) the higher sales volume of resins and main chemicals in Brazil. In Brazilian real, the recurring Operational Result was R$4,522 million, 23% and 355% higher than in 3Q20 and 4Q19, respectively, due to the depreciation in the Brazilian real against the U.S. dollar.
  • In 2020, the Company recorded a net loss1 of R$6,692 million, explained mainly by the provisions related to the geological event in Alagoas in the amount of R$6,902 million and by the impact of the exchange variation on the financial result given the Brazilian real depreciation against the U.S. dollar on net exposure of US$3,400 million.
  • In the year, the Company registered positive net cash generation of R$1,276 million, mainly due to: (i) strong operating result; (ii) the monetization of PIS/COFINS credits of R$1,786 million; and (iii) the reduction of the Company's projected investments by 23%. These impacts were partially offset by the impact from working capital on cash flow in the first half of the year, given the cash consumption caused by the change in the feedstock profile, with lower volumes of imported naphtha.
  • Supported by the Company's cash generation and continued commitment to its financial health, corporate leverage measured by the ratio of Net Debt to recurring Operating Result2 in U.S. dollar was 2.94x.
  • In the year, the overall accident frequency rate with and without lost time (CAF + SAF) was 0.95 event per million hours worked, 71% below the industry average3. The rate is the lowest rate of the last three years and was achieved with the efforts and training under the Company's Human Reliability Program. Also, the Company achieved the best historical results in process safety with a Tier 1 accident frequency rate of 0.07 Tier 1/million hours.
  • In December 2020, the Company concluded an important advance relating to the geological event in Alagoas and its potential impacts by entering into agreements for Compensation of Residents and for Socio-Environmental Reparations (jointly referred to as "Agreements"). After approval of the Agreements by the competent authorities, the Public-Interest Civil Actions filed against Braskem relating to the compensation of residents and social and environmental reparations arising from the geological event in Alagoas were dismissed.
  • In December 2020, Braskem concluded the renewal of its feedstock supply agreements for its petrochemical plants with Petrobras by executing contracts for the supply of petrochemical naphtha to its industrial unit in São Paulo and for ethane and propane to its industrial unit in Rio de Janeiro. The purpose of the contracts, with duration of around 5 years after the end of the current contracts in December 2020, is to supply annual volumes of up to 2 million tons of petrochemical naphtha to São Paulo and of up to 580,000 tons of ethylene equivalent (ethylene volume for each ton of ethane and propane) to Rio de Janeiro, with prices based on international references.
  • In February 2021, the Company announced the resumption of chlor-alkali production and dichloroethane in its unit located in the Pontal da Barra district of Maceió, Alagoas, which had been shut down since May 2019. To restart the Chlor-Alkali Plant, Braskem concluded the project to produce brine as feedstock made from imported salt, which allowed it to resume production of PVC and caustic soda with an integrated model.
  • In the quarter, recycled products sales reached 5.7 kton, up 310% from 3Q20, reflecting the stronger demand in Mexico and the start of recycled resins commercialization in Europe.
  • In the year, the utilization rate of green ethylene was 87%, an increase of 9 p.p. in relation to 2019, and Green PE sales achieved 170 kton, higher 5% in relation to the previous year, being both amounts historical records since the beginning of Company's biopolymers operations in 2010.


  • The recurring Operating Result in Brazil was US$680 million (R$3,684 million), 29% higher than 3Q20, mainly due to the higher spreads in the international market for PE, PP, PVC and main chemicals, accounting for 79% of the Company's consolidated recurring Operating Result.
  • In 4Q20, in line with its strategy of prioritizing serving the Brazilian market, the Company registered resin sales volume in the domestic market of over 1,0 million tons, which is approximately 17% higher than its historical average4.

United States and Europe:

  • The recurring Operating Result in the United States and Europe was US$117 million (R$626 million), 12% lower than in 3Q20, mainly due to the lower products supply in both regions, and accounting for 13% of the Company's consolidated recurring Operating Result. In relation to 4Q19, the 87% increase is basically explained by better PP spreads in the United States and Europe.
  • In the quarter, the ramp-up process of the new PP plant in the United States (Delta) improved significantly in terms of both production volume and quality of the material produced. The new plant's production was 101 ktons, representing approximately 90% of utilization rate, considering the quarterly production capacity of around 113 ktons.


  • The recurring Operating Result in Mexico was US$63 million (R$350 million), 20% lower than 3Q20 and 18% lower than 4Q19. Mexico's recurring Operating Result accounted for 8% of consolidated the Company's consolidated recurring Operating Result.
  • In the quarter, Braskem Idesa imported approximately 35,000 tons (average of 7,000 barrels per day) of ethane from the United States to complement the ethane supplied by Pemex, which represented 9% of the PE utilization rate of the Petrochemical Complex in Mexico, whose utilization rate stood at 48% in the quarter. In December 2020, Braskem Idesa completed an expansion of the Fast Track operation, which currently has an expected capacity of 20 thousand barrels per day of ethane, or about 30% of the total ethane requirement of the petrochemical complex.
  • In December 2020, the subsidiary Braskem Idesa was notified by the Centro Nacional de Control del Gas Natural ("Cenagas"), the Mexican government agency responsible for the natural gas pipeline and transportation system in the region, regarding the unilateral suspension of natural gas transportation, an energy input essential for the production of polyethylene at the Petrochemical Complex in Mexico. As a result, and respecting the safety protocols, Braskem Idesa immediately suspended its operations.
  • On January 7, 2021, the Company announced the partial resumption of polyethylene production by Braskem Idesa based on an experimental business model that follows all safety protocols and reduces the impacts on serving the demand from Mexico's plastics industry.
  • According to Notice to the Market of March 1, 2021, Braskem Idesa signed with PEMEX and Cenagas the following documents to enable BI continued operation:
      •   i.  a memorandum of understanding ("MoU") with PEMEX setting out respective understandings for the discussion of potential amendments to the Ethane Supply Contract and for the development of an ethane import terminal, subject to negotiation, entering into definitive documentation, approvals of BI's shareholders and creditors and with reservations of rights; and 
      •   ii.  an agreement for natural gas transport service with CENAGAS, with a term of 15 years, such term conditioned upon the execution of the definitive documentation referenced in item (i) above.
    • With the execution of these documents by BI, BI commenced to receive the service of natural gas transportation, which had been unilaterally terminated in December 2020, allowing the Company to use natural gas in its production process and electricity generation. Additionally, the existing Ethane Supply Contact between BI and PEMEX has not been modified. At the time, BI cannot predict the outcome of such discussions with PEMEX, its shareholders and creditors.

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 THURSDAY, March 11 at 09:00 a.m. US ET.

Additional information may be obtained from the Investor Relations Department at +55 11 3576-9531 or braskem-ri@braskem.com.br.

1Based on net loss attributable to the Company's shareholders.
2Excludes the Project Finance in Mexico and based on recurring EBITDA.
The industry average is 3.25 per million hours worked according to the American Chemistry Council. The most recent data refers to 2018.
4Considering the historical average since 1Q10.

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SOURCE Braskem S.A.

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