Braskem reports Recurring EBITDA of R$2.4 billion in 3Q24, 44% higher compared to 2Q24

Rhea-AI Summary

Braskem (NYSE: BAK), the Americas' largest resin producer and global biopolymers leader, reported strong financial results for Q3 2024. The company achieved a Recurring EBITDA of US$432 million, marking a 35% increase from Q2 2024 and a 130% rise from Q3 2023. The company maintained a robust cash position of US$2.4 billion, providing coverage for debt maturities over the next 52 months. Operating Cash Generation improved to US$75 million (R$416 million), showing an increase from the previous quarter.

Positive

• Recurring EBITDA increased 35% QoQ and 130% YoY to US$432 million
• Strong cash position of US$2.4 billion covering 52 months of debt maturities
• Positive Operating Cash Generation of US$75 million

Negative

• None.

Insights

Financial Analyst

Braskem's Q3 performance shows remarkable financial improvement with $432 million in Recurring EBITDA, marking a 35% quarter-over-quarter increase and an impressive 130% year-over-year growth. The strong liquidity position of $2.4 billion provides substantial financial flexibility, covering debt obligations for over 4 years.

The positive operating cash generation of $75 million indicates improving operational efficiency and working capital management. This represents the highest quarterly Recurring EBITDA since Q2 2022, suggesting a robust recovery in the petrochemical cycle and potentially improved spreads between feedstock costs and product prices.

The substantial improvement in financial metrics points to strengthening market conditions and effective cost management, though investors should monitor sustainability of these gains given the cyclical nature of the petrochemical industry.

Highest quarterly Recurring EBITDA since 2Q22

SÃO PAULO, Nov. 7, 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 3Q24 Earnings Release.

3Q24 HIGHLIGHTS 

CONSOLIDATED

• Recurring EBITDA of US$432 million, about 35% higher than in 2Q24 and 130% higher than in 3Q23.
• Cash position of US$2.4 billion, ensuring coverage of debt maturities over the next 52 months.
• Operating Cash Generation of US$75 million, around R$416 million, higher than 2Q24.

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 Thursday, November 7 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.

 

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SOURCE Braskem S.A.

FAQ

What was Braskem's (BAK) Recurring EBITDA in Q3 2024?

Braskem's Recurring EBITDA in Q3 2024 was US$432 million, representing a 35% increase from Q2 2024 and a 130% increase from Q3 2023.

How much cash does Braskem (BAK) have on hand as of Q3 2024?

Braskem maintained a cash position of US$2.4 billion, which covers debt maturities for the next 52 months.

What was Braskem's (BAK) Operating Cash Generation in Q3 2024?

Braskem's Operating Cash Generation in Q3 2024 was US$75 million (approximately R$416 million), showing an improvement from Q2 2024.