Brazilian petrochemicals firm Braskem (NYSE: BAK) made a net loss of 849mn reais (US$399mn) in the third quarter of 2008 compared with net income of 132mn reais a year earlier, the company said in a statement.
The losses were caused by the 20.3% depreciation of the real against the dollar, which negatively impacted results by 1.35bn reais in the period, Braskem said.
Revenues in the third quarter totaled 5bn reais, 14% higher than Q2 due to price and sales volume increases, especially for basic petrochemicals.
Ebitda in Q3 fell to 683mn from 755mn reais a year earlier because of higher naphtha prices in the period. The Ebitda margin was 13.6%, according to the statement.
"Braskem focused on operational profitability maximization and competitive maintenance in the petrochemical chain during the period. Even with high naphtha prices we were able to improve our margins and increase the use of the installed capacity in our industrial units," Braskem CEO Bernardo Gradin said.
RESINS
According to the company, the domestic resin market grew 9% in the first nine months of 2008, stimulated by PVC growth of 20% and a general improvement in the Brazilian economy.
Braskem exported 151,000t of resins in 3Q08, up 38% compared to the previous quarter but 13% less than in 3Q07.
Given the decline in international resin prices and slowing export demand, the company expects to reduce production of polypropylene (PP) and polyethylene (PE) by 15-20% in the fourth quarter to adjust stock levels, the report said.
Resins production reached 775,000t in July-September, up 24% compared to the previous three months.
BASIC PETROCHEMICALS
In the third quarter this year, Braskem's Camaçari and Triunfo petrochemicals units were operating at 95% of installed capacity, resulting in total sales of 212,000t of ethylene and propylene, up 21% compared to 2Q08.
In the comparison with the prior-year period, sales dropped 10% because of higher internal consumption of resins.
In the first nine months, ethylene and propylene sales were down 19% year-on-year due to maintenance stoppages in the petrochemicals centers.
Sales of benzene, toluene and xylenes in July-September amounted to 220,000t, 24% more than the previous three months but 12% less year-on-year, due to higher benzene and naphtha prices on the international market since mid-2007, which slowed production.
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