Braskem posts Recurring EBITDA of US$211 million in the quarter, up 13% from 3Q23

Rhea-AI Summary

Braskem S.A. reports its 4Q23 Earnings Release with a recurring EBITDA of US$211 million, higher than the previous quarters. The company also highlights a cash position of US$3.6 billion and significant cost reductions.

Positive

• Recurring EBITDA of US$211 million, up 13% from 3Q23
• Cash position of US$3.6 billion ensuring debt coverage for the next 72 months
• 23% reduction in general and administrative expenses compared to 4Q22
• PE Production in Mexico with a utilization rate of 84%

Negative

• None.

Financial Analyst

The reported increase in recurring EBITDA by Braskem S.A. is a significant indicator of the company's operational profitability and efficiency. An uptick of $23 million from the previous quarter and a substantial $243 million from the same quarter last year suggests a strong operational performance. This could be attributed to improved pricing, volume growth, or cost management strategies. Investors often scrutinize EBITDA as it excludes non-cash expenses like depreciation and amortization and gives a clearer picture of operational cash flow and earnings potential.

Braskem's cash position of $3.6 billion, covering debt maturities for the next 72 months, indicates a robust liquidity status and financial health. This level of liquidity could provide the company with a buffer against market volatility and enable strategic investments or debt reduction. For investors, this can be a reassuring sign of financial stability and potential for sustained dividend payments or share buybacks.

The 23% reduction in general and administrative expenses reflects effective cost reduction initiatives. This could improve the company's competitive edge by allowing it to offer products at more competitive prices or invest savings into other areas of the business, such as research and development or marketing.

Market Research Analyst

Braskem's performance in the polyethylene (PE) production sector, specifically in Mexico, is noteworthy with an utilization rate of 84%, which is an increase from both the previous quarter and year. High utilization rates typically indicate strong demand for a company's products and efficient use of its assets. This could also reflect well on the company's supply chain management, particularly in securing consistent feedstock supplies in a market that can be susceptible to fluctuations.

The company's leading position in the biopolymers market is particularly relevant given the increasing global focus on sustainability. As the world's leading biopolymers producer, Braskem is well-positioned to capitalize on the growing demand for eco-friendly materials. This could open up new markets and customer segments for the company, further driving growth and potentially creating a positive impact on its stock valuation in the long term.

SÃO PAULO, March 19, 2024 /PRNewswire/ -- BRASKEM S.A. (B3: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK) the largest resin producer in the Americas and the world's leading biopolymers producer, presents its 4Q23 Earnings Release.

4Q23 HIGHLIGHTS 

CONSOLIDATED

• Recurring EBITDA of US$ 211 MM, around R$1,049 million. Higher than 3Q23 (+US$23 million) and 4Q22 (+US$243 million).
• Cash position of US$ 3.6 billion, ensuring coverage of debt maturities over the next 72 months.
• Cost reduction: Reduction of ~23% in general and administrative expenses, compared to 4Q22. Approximately R$186 MM as a result of fixed cost reduction initiatives.
• PE Production – Mexico: Utilization Rate of 84%, +18 p.p. vs. 3Q23 and +15 p.p. vs. 4Q22. Consistent feedstock supply.

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

Braskem will host conference calls to discuss its Results Tuesday, March 19 at 11:00 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.

 

View original content:https://www.prnewswire.com/news-releases/braskem-posts-recurring-ebitda-of-us211-million-in-the-quarter-up-13-from-3q23-302093002.html

SOURCE Braskem S.A.

What was Braskem's recurring EBITDA in 4Q23?

Braskem reported a recurring EBITDA of US$211 million in 4Q23.

What is Braskem's cash position mentioned in the PR?

Braskem has a cash position of US$3.6 billion.

How much reduction was seen in general and administrative expenses compared to 4Q22?

There was a reduction of approximately 23% in general and administrative expenses compared to 4Q22.

What was the utilization rate of PE Production in Mexico in 4Q23?

The utilization rate of PE Production in Mexico was 84% in 4Q23.