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Braskem earnings up on cost-cutting, higher-value sales
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Braskem SA (Sao Paulo) has reported a third-quarter net loss of $1 million, up sequentially from a loss of $45 million and up year over year from a loss of $106 million, as per Chemweek.
Adjusted net income came to $1.7 million, up sequentially from a loss of $89 million, up year over year from a loss of $97 million, and ahead of the analysts’ consensus estimate of $0.8 million as compiled by S&P Capital IQ. Revenue totaled $3.175 billion, up 1% sequentially and down 17% year over year. Cost-cutting and a focus on higher-value sales drove the improved profitability, said the company.“In the third quarter of 2025, the global macroeconomic scenario was marked by moderate growth, accelerated inflation, high interest rates and strong geopolitical and trade tensions,” said Rosana Avolio, investor relations manager, during the company’s earnings call on Nov. 11. “And considering the still volatile scenario, we have seen a significant impact in the regions where we operate, resulting in lower industrial activity in resin processing and a typical downturn in demand for the period, reflecting the challenges faced by the industry on a global scale, especially in Brazil and Europe. In addition, most international petrochemical spreads fell in the period, remaining at historically low levels due to excess installed capacity, which together with weakened demand continue to put negative pressure on the sector's profitability at the global level.”Recurring EBITDA totaled $150 million, up from $74 million in the second quarter and down from $432 million in the year-ago quarter. Avolio attributed the sequential increase to the prioritization of higher value-added sales and of supply to the Brazilian market, lower inventory effects in the US, and cost-cutting measures, partially offset by higher idling costs and the appreciation of the Brazilian real against the dollar.CEO Roberto Prisco Paraiso Ramos said that Braskem had revised its five-year outlook for petrochemicals, noting that “China will continue to make significant expansions in its ethylene, propylene, propylene and polypropylene chains using different feedstocks and solutions,” and similar developments are underway in the Middle East. “This movement by the Chinese government will have a significant impact on the global scenario, with over 40 new crackers increasing production by 70 million or 100 million [metric tons], respectively…. This, combined with the very timid rationalization in the petrochemical industry updates our idle projections. We project a significant gap between supply and demand up until at least the turning of the decade.”Ramos said the more pessimistic outlook drove the company’s decision in September to hire external advisors to help plan “a healthier capital structure.”The Brazil/South America segment turned in recurring EBITDA of $205 million, up 35% sequentially and down 39% year over year. Revenue totaled $2.4 billion, up 1% sequentially and down 11% year over year. The average resin spread in the international market in dollars declined 8% sequentially as the continuing imbalance between global supply and demand weighed on international price references, said Braskem. Resin sales volume declined 5% sequentially owing mainly to higher polyethylene imports and lower polypropylene demand.The United States and Europe segment turned in a recurring EBITDA loss of $15 million, up sequentially from a loss of $19 million and down year over year from profit of $71 million. Revenue totaled $699 million, down 5% sequentially and down 24% year over year. Polypropylene sales volume totaled 495,000 metric tons, down 2% sequentially. Demand declined in the US owing to high inventory levels, while demand declined in Europe mainly because of seasonality following the summer vacation period, said Braskem. However, lower feedstock propylene costs increased gross margin by 200 basis points to 3%.The Mexico segment turned in a recurring EBITDA loss of $37 million, down sequentially from a loss of $9 million and down year over year from profit of $80 million. Revenue totaled $151 million, down 9% sequentially and down 40% year over year. Polyethylene sales volume declined 6% sequentially as a maintenance outage during the second quarter reduced the availability of product for sale.
mrchub.com
Adjusted net income came to $1.7 million, up sequentially from a loss of $89 million, up year over year from a loss of $97 million, and ahead of the analysts’ consensus estimate of $0.8 million as compiled by S&P Capital IQ. Revenue totaled $3.175 billion, up 1% sequentially and down 17% year over year. Cost-cutting and a focus on higher-value sales drove the improved profitability, said the company.“In the third quarter of 2025, the global macroeconomic scenario was marked by moderate growth, accelerated inflation, high interest rates and strong geopolitical and trade tensions,” said Rosana Avolio, investor relations manager, during the company’s earnings call on Nov. 11. “And considering the still volatile scenario, we have seen a significant impact in the regions where we operate, resulting in lower industrial activity in resin processing and a typical downturn in demand for the period, reflecting the challenges faced by the industry on a global scale, especially in Brazil and Europe. In addition, most international petrochemical spreads fell in the period, remaining at historically low levels due to excess installed capacity, which together with weakened demand continue to put negative pressure on the sector's profitability at the global level.”Recurring EBITDA totaled $150 million, up from $74 million in the second quarter and down from $432 million in the year-ago quarter. Avolio attributed the sequential increase to the prioritization of higher value-added sales and of supply to the Brazilian market, lower inventory effects in the US, and cost-cutting measures, partially offset by higher idling costs and the appreciation of the Brazilian real against the dollar.CEO Roberto Prisco Paraiso Ramos said that Braskem had revised its five-year outlook for petrochemicals, noting that “China will continue to make significant expansions in its ethylene, propylene, propylene and polypropylene chains using different feedstocks and solutions,” and similar developments are underway in the Middle East. “This movement by the Chinese government will have a significant impact on the global scenario, with over 40 new crackers increasing production by 70 million or 100 million [metric tons], respectively…. This, combined with the very timid rationalization in the petrochemical industry updates our idle projections. We project a significant gap between supply and demand up until at least the turning of the decade.”Ramos said the more pessimistic outlook drove the company’s decision in September to hire external advisors to help plan “a healthier capital structure.”The Brazil/South America segment turned in recurring EBITDA of $205 million, up 35% sequentially and down 39% year over year. Revenue totaled $2.4 billion, up 1% sequentially and down 11% year over year. The average resin spread in the international market in dollars declined 8% sequentially as the continuing imbalance between global supply and demand weighed on international price references, said Braskem. Resin sales volume declined 5% sequentially owing mainly to higher polyethylene imports and lower polypropylene demand.The United States and Europe segment turned in a recurring EBITDA loss of $15 million, up sequentially from a loss of $19 million and down year over year from profit of $71 million. Revenue totaled $699 million, down 5% sequentially and down 24% year over year. Polypropylene sales volume totaled 495,000 metric tons, down 2% sequentially. Demand declined in the US owing to high inventory levels, while demand declined in Europe mainly because of seasonality following the summer vacation period, said Braskem. However, lower feedstock propylene costs increased gross margin by 200 basis points to 3%.The Mexico segment turned in a recurring EBITDA loss of $37 million, down sequentially from a loss of $9 million and down year over year from profit of $80 million. Revenue totaled $151 million, down 9% sequentially and down 40% year over year. Polyethylene sales volume declined 6% sequentially as a maintenance outage during the second quarter reduced the availability of product for sale.
mrchub.com
