Braskem (BRKM5) Q4 2024 earnings summary

Executive summary

• Recurring EBITDA for 2024 reached US$1.1 billion, up 46% year-over-year, driven by higher international spreads, increased sales in Brazil and Mexico, and improved operational performance, despite a challenging 4Q24 with a 76% sequential drop in quarterly EBITDA to US$102 million.

• Operating cash generation for 2024 was R$4.1 billion (US$788 million), with recurring cash consumption of R$499 million due to working capital and interest payments.

• The company ended 2024 with a strong liquidity position of US$2.4 billion in cash, covering debt maturities for the next 47 months.

• Safety performance improved, with a 16% reduction in the global accident frequency rate to 0.91 events per million hours worked, aligning with best market standards.

• Net loss for 2024 was US$2.2 billion (R$12.1 billion), mainly due to negative exchange rate variation and increased provisions related to the Alagoas geological event.

Financial highlights

• 4Q24 recurring EBITDA was US$102 million, down 76% sequentially and 52% year-over-year; annual recurring EBITDA rose 46% to US$1.1 billion.

• Operating cash generation for 2024 was R$4.1 billion, with recurring cash consumption of R$499 million due to higher interest payments and working capital variation.

• Net debt at year-end was US$6.3 billion, with leverage at 7.42x, a reduction of 0.7x from the previous year.

• Cash position at year-end was US$2.4 billion, with 47 months of debt coverage.

• 2024 net revenue grew 10% to R$77.4 billion.

Outlook and guidance

• All segments are expected to show higher utilization rates in Q1 2025 due to stable feedstock supply, absence of planned shutdowns, and increased demand.

• Resin sales in Brazil are projected to grow, supported by demand from consumer goods and retail sectors.

• International spreads are expected to remain challenged in 2025 due to new capacity and market oversupply, but may improve if global demand recovers and less competitive capacities are rationalized.

• 2025 investments are planned at US$484 million, focusing on maintenance, operational efficiency, and completion of the ethane import terminal in Mexico.

• Strategic focus remains on foundation, resilience, financial health, transformation, green business growth, and asset optimization.