Braskem (BRKM5) Q3 2024 earnings summary

Executive summary

• Recurring EBITDA reached $432 million (R$2.4 billion) in Q3 2024, up 35–44% sequentially and 130% year-over-year, the highest since Q2 2022, driven by improved spreads and operational recovery, especially in Brazil.

• Net loss was R$593 million in Q3 2024, a significant reduction from prior quarters, mainly due to negative exchange rate effects.

• Cash position stood at $2.4 billion, covering debt maturities for the next 52 months, excluding a $1 billion revolving credit line.

• CEO Roberto Bischoff announced his departure as part of a structured succession plan.

• Strategic advances included the launch of a leased ethane ship, progress on the Mexico ethane terminal, and the opening of a new Renewable Innovation Center in the US.

Financial highlights

• Net revenue for 9M24 was R$58.3 billion, up from R$53.9 billion year-over-year.

• Recurring EBITDA margin improved to 11% in Q3 2024, with gross profit rising 62% sequentially to R$2.2 billion.

• Adjusted net debt/Recurring EBITDA improved to 5.76x, down from 6.79x in Q2 2024 and 12.21x in Q3 2023.

• Operating cash generation was $75 million (R$416 million), with recurring cash consumption of $199 million due to higher interest payments, partially offset by proceeds from the Cetrel sale.

• Net loss attributable to shareholders for 9M24 was R$5.7 billion, mainly due to currency effects and legal provisions.

Outlook and guidance

• Q4 2024 is expected to see lower utilization rates and sales volumes in Brazil due to scheduled maintenance and seasonality, while U.S. and Europe utilization rates should remain stable.

• International spreads for PE and PP are projected to decline in Q4 2024 due to seasonality and increased supply, with recovery expected in Q1 2025.

• Ethane import terminal in Mexico reached 87% completion, with operations expected to start in Q1 2025.

• Braskem expects continued focus on operational reliability, innovation, and sustainability projects.