Latest news with #BraskemSA
Yahoo
13-05-2025
- Business
- Yahoo
Braskem SA (BAK) Q1 2025 Earnings Call Highlights: Surging EBITDA and Strategic Expansions Amid ...
Release Date: May 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Braskem SA (NYSE:BAK) reported a consolidated recurring EBITDA of $224 million, a 121% increase compared to the fourth quarter of 2024. The company maintained a high level of operational safety with an average global accident frequency rate of 0.92 events per million hours worked. Braskem SA (NYSE:BAK) ended the first quarter of 2025 with a cash position of $2 billion, sufficient to cover debt maturities over the next 33 months. The company celebrated 15 years of its green bio-based portfolio, emphasizing its leadership in biopolymers and sustainability. Braskem SA (NYSE:BAK) inaugurated the ethane import terminal in Mexico, enhancing its operational capacity and reducing logistics costs. The company experienced an operating cash consumption of approximately 936 million barrels due to negative variations in working capital. Braskem SA (NYSE:BAK) reported a corporate leverage of 7.92 times at the end of the first quarter of 2025. The petrochemical industry is facing a prolonged downturn, impacting Braskem SA (NYSE:BAK)'s financial performance. The company anticipates a challenging second quarter due to prolonged shutdowns in international markets and potential impacts from new tariff scenarios. Braskem SA (NYSE:BAK) is dealing with the financial implications of the Alagoas event, with a total provision balance of 5.1 billion reals. Warning! GuruFocus has detected 6 Warning Signs with BAK. Q: With the recent updates on the tariff war between China and the US, how do you see these developments affecting Braskem's operations across different geographies? A: (Rosanna Volo, Investor Relations Director) The recent agreement could lead to increased polypropylene spreads due to higher cash costs in China, benefiting Braskem. The company's diversification in geography and product portfolio provides resilience against such global uncertainties. The focus remains on serving the domestic market, which is a strength for Braskem. Q: Can you provide more details on the $600 million value capture initiative, especially regarding the shift to gas-based operations? A: (Rosanna Volo, Investor Relations Director) The initiative involves increasing flexibility in gas-based activities, particularly in Bahia, Brazil. The company aims to maximize resource use through fiscal credits, with no significant cash flow impact. The goal is to expand bioproduct production to 1 million tons by 2030, leveraging projects in Brazil, Thailand, and the US. Q: How is Braskem addressing the challenges of operating in a low cycle and mitigating cash burn? A: (Roberto Ramos, CEO) Braskem is optimizing production by running plants at reduced capacities, extending their operational life. The company prioritizes projects that generate immediate cash flow and is focusing on structural changes like feedstock flexibility to improve competitiveness. Q: What is the impact of the new ethane import terminal in Mexico on Braskem's operations? A: (Felipe Genz, CFO) The terminal allows Braskem to secure a stable ethane supply, enhancing operational capacity and reducing logistics costs. This strategic move supports long-term growth and ensures a diversified feedstock supply, enabling future capacity expansions. Q: How does Braskem plan to manage its leverage and liquidity given the current high debt levels? A: (Felipe Genz, CFO) The focus is on expanding EBITDA through competitive improvements and strategic transformations. The company continues to manage liabilities by extending debt maturities and exploring non-recourse funding options, ensuring liquidity to meet obligations. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
28-02-2025
- Business
- Yahoo
Braskem SA (BAK) Q4 2024 Earnings Call Highlights: Strong EBITDA Growth Amid Global Challenges
Release Date: February 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Braskem SA (NYSE:BAK) reported a 46% increase in consolidated EBITDA for 2024, reaching $1.1 billion, driven by higher polyethylene sales in Mexico and main chemicals in Brazil. The company's cash position at the end of 2024 was $2.4 billion, sufficient to cover debt maturities for the next 47 months. Braskem SA (NYSE:BAK) achieved a 5% increase in sales volume in 2024, with a record annual sales of bio-based resin in Mexico. The company reduced its leverage ratio to 7.42 times, a decrease of 0.7 times compared to the previous year. Braskem SA (NYSE:BAK) is focusing on strategic investments in green ethylene capacity and expanding its use of ethane as a feedstock to enhance competitiveness. The global geopolitical scenario, particularly conflicts in the Red Sea, impacted sea freight costs, affecting Braskem SA (NYSE:BAK)'s results. The average utilization rate of petrochemical plants in Brazil decreased by 3% in the fourth quarter due to seasonality and operational issues. Recurring EBITDA for the United States and Europe segment was 34% lower in 2024 compared to 2023, due to scheduled shutdowns and lower demand. Braskem SA (NYSE:BAK) faced a cash consumption of $91 million for the year, despite positive operating cash generation. The company increased its provision by $1.3 billion for salt cavity closure measures, impacting financial resources. Warning! GuruFocus has detected 6 Warning Signs with BAK. Q: It's been roughly 4 months since the implementation of higher import taxes. How do you see the competitive scenario with regard to imports, and have you been able to recover market share and margins? Also, what are your expectations for prices and margins in the midterm? A: The increase in import taxes from 2.6% to 20% has helped improve the competitive scenario. The depreciation of the exchange rate also aids profitability and cash flow. However, demand in the fourth quarter was generally low. We expect the competitive landscape to improve in 2025 as the market adjusts. The global market is experiencing a prolonged down cycle, but rationalization of capacity could help balance the market. We are focusing on resilience and cash generation to strengthen our position. Q: Regarding logistics optimizations and the company fleet, what gains do you see from the new ship added to your fleet, and how many vessels do you plan to add? Also, any updates on due diligence processes related to M&As or shareholder changes? A: The new vessel will enhance our competitiveness by improving ethane transport. We plan to add another vessel mid-year, which will ensure operational balance and cost benefits. Regarding shareholder processes, we are not directly involved, but we provide necessary due diligence support when required. Currently, there are no new developments to report. Q: Your 2025 CapEx is similar to 2024's. What is included in that, and do you expect maintenance CapEx to remain the same? Also, how do you see the switch to gas progressing, and what improvements do you expect in Mexican operations with the new terminal? A: The 2025 CapEx includes $484 million for expansion and $400 million for maintenance, in line with historical levels. We are optimizing CapEx without compromising safety. The new terminal in Mexico is expected to start in the second half of 2025, leading to improved operational rates. By 2026, we aim to run at full capacity and consider further expansion. Q: Can you elaborate on the strategic direction regarding the switch to gas and the company's transformation? A: The switch to gas is part of our transformation strategy to enhance competitiveness. We are focusing on increasing the use of ethane and propane in our operations, which offers cost advantages over naphtha. This shift is crucial for our long-term strategy to become a greener company, leveraging our competitive advantage in bio-based products. Q: What are the expected benefits of owning ethane transport ships, and how does it impact your operations? A: Owning ethane transport ships reduces dependency on external logistics and enhances efficiency. There are only 12 ethane-loading ships globally, so having our own vessel ensures reliable supply and supports our operations in Brazil and other regions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
06-02-2025
- Business
- Yahoo
Ethylene Market to Grow by USD 63.3 Billion (2025-2029) with Rising Demand for Polyethylene Products Boosting the Market, Report on AI Impact on Market Trends
NEW YORK, Feb. 6, 2025 /PRNewswire/ -- Report on how AI is redefining market landscape - The global ethylene market size is estimated to grow by USD 63.3 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 6.5% during the forecast period. Increasing demand for polyethylene products from various industries is driving market growth, with a trend towards emergence of bio-ethylene. However, volatility in raw material prices poses a challenge. Key market players include BASF SE, Braskem SA, Chevron Phillips Chemical Co. LLC, China National Petroleum Corp., Eastman Chemical Co., Exxon Mobil Corp., Formosa Plastics Corp., Huntsman Corp., Koch Industries Inc., LyondellBasell Industries NV, Merck KGaA, Mitsubishi Chemical Group Corp., Mitsui Chemicals Inc., NOVA Chemicals Corp., Reliance Industries Ltd., Saudi Basic Industries Corp., Shell plc, Sumitomo Chemical Co. Ltd., The Dow Chemical Co., and TotalEnergies SE. Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF Ethylene Market Scope Report Coverage Details Base year 2024 Historic period 2019 - 2023 Forecast period 2025-2029 Growth momentum & CAGR Accelerate at a CAGR of 6.5% Market growth 2025-2029 USD 63.3 billion Market structure Fragmented YoY growth 2022-2023 (%) 5.9 Regional analysis APAC, North America, Middle East and Africa, Europe, and South America Performing market contribution APAC at 42% Key countries China, US, Japan, Canada, India, UAE, Germany, UK, France, and Brazil Key companies profiled BASF SE, Braskem SA, Chevron Phillips Chemical Co. LLC, China National Petroleum Corp., Eastman Chemical Co., Exxon Mobil Corp., Formosa Plastics Corp., Huntsman Corp., Koch Industries Inc., LyondellBasell Industries NV, Merck KGaA, Mitsubishi Chemical Group Corp., Mitsui Chemicals Inc., NOVA Chemicals Corp., Reliance Industries Ltd., Saudi Basic Industries Corp., Shell plc, Sumitomo Chemical Co. Ltd., The Dow Chemical Co., and TotalEnergies SE Market Driver Ethylene is a colorless, flammable organic compound widely used as a raw material in the production of plastics and petrochemical derivatives. The Ethylene market is significant due to its versatility in creating various products, including Polyethylene (PE), Ethyl oxide, Ethylene glycol, High-density polyethylene (HDPE), and Low-density polyethylene (LDPE). Ethylene is essential in agriculture, consumer goods, construction, and various industries like textiles, agrochemicals, and chemicals. Ethylene's applications span from lightweight plastics and packaging solutions to bio-based products and ethylene-based derivatives. Ethylene is sourced from natural gas, naphtha, and shale oil output. With increasing environmental concerns, bio-ethanol is emerging as a potential raw material source. Ethylene's carbon footprint is a critical consideration, with efforts to develop green polyethylene and bio-polyethylene. Ethylene is used in various sectors, including food and beverages, healthcare products, luxury automobiles, and e-commerce. Ethylene's chemical resistance and barrier qualities make it suitable for pipe applications, PVC production, and ethylene vinyl acetate. Ethylene derivatives find applications in flexible packaging, textiles, and agrochemicals. Ethylene's role as a petrochemical feedstock and chemical intermediary further expands its market reach. Ethylene's applications extend to plastic bags, bottles, containers, films, and various industrial uses. Ethylene's impact on climate change and carbon emissions is a concern, with efforts to reduce its carbon footprint through the use of bio-based ethylene and alternative feedstocks like ethane, propane, and butane. Ethylene's versatility and wide range of applications make it an essential component in various industries. Ethylene is a significant organic commodity chemical, serving as a feedstock for various downstream products, particularly plastics, making it the largest volume chemical in this sector globally. However, the ethylene industry faces challenges due to fluctuating crude oil prices and depleting fossil fuel resources. To address these concerns, bio-ethylene production from alternative feedstocks like bio-ethanol has emerged as a promising solution. The US and Brazil, producing 87% of the global bio-ethanol from corn and sugarcane, respectively, are key players in this field. Additionally, lignocellulosic biomass from wood and straw can also be utilized to produce bio-ethanol, contributing to ethylene production through a more sustainable route. Request Sample of our comprehensive report now to stay ahead in the AI-driven market evolution! Market Challenges The Ethylene market faces several challenges as an essential organic compound used in various industries. As a colorless and flammable substance, its handling requires careful attention. Ethylene is the primary building block for polyethylene, ethyl oxide, ethylene glycol, and other Ethylene-based derivatives. These include high-density polyethylene (HDPE) and low-density polyethylene (LDPE), used in agriculture, consumer goods, construction, and packaging solutions. Raw material sources, such as natural gas, naphtha, and ethane, impact Ethylene production costs. Shale oil output and bio-ethanol are emerging alternatives, contributing to environmental protection and reducing carbon footprint. Ethylene derivatives are used in plastic, textiles, agrochemicals, and petrochemical feedstocks. Market growth is driven by sectors like e-commerce, healthcare, and luxury automobiles, which demand high chemical resistance and barrier qualities. Ethylene derivatives are used in plastics like PVC, polyvinyl acetate, and LLDPE for pipe applications, films, bottles, containers, and flexible packaging. However, concerns over carbon emissions and climate change call for more sustainable solutions, such as bio-based ethylene and green polyethylene. Ethylene production costs are significantly influenced by the price fluctuations of raw materials, such as ethane, naphtha, and LPG. These compounds are derived from natural gas and crude oil. The volatility of crude oil prices, influenced by factors like demand-supply imbalance and geopolitical instability in major oil-producing regions, directly impacts the cost of raw materials for ethylene manufacturers. Similarly, global natural gas prices in overseas markets are determined by production levels, economic conditions of producing countries, and import/export prices. These variables create uncertainty and volatility in the ethylene market. Discover how AI is revolutionizing market trends- Get your access now! Segment Overview This ethylene market report extensively covers market segmentation by Feedstock Application Geography Packaging 1.1 Naphtha- The naphtha segment held the largest share in the ethylene market in 2024, but its dominance is expected to decline due to the energy-intensive nature of producing ethylene from naphtha. This process results in significant coke and nitrogen oxide production and high carbon dioxide emissions, with each kilogram of ethylene producing 1.8-2 kilograms of CO2. Europe and APAC are the major consumers of naphtha for ethylene production, similar to the ethane cracking process. However, the energy-intensive nature of naphtha cracking and the availability of less energy-intensive alternatives like ethane and LPG may hinder the growth of the naphtha segment in the ethylene market during the forecast period. Download a Sample of our comprehensive report today to discover how AI-driven innovations are reshaping competitive dynamics Research Analysis Ethylene is a colorless, flammable organic compound used extensively in the production of various petrochemical derivatives and ethylene-based derivatives. It is the building block for Polyethylene (PE), including High-density polyethylene (HDPE) and Low-density polyethylene (LDPE), which are widely used in construction, flexible packaging, and various consumer goods. Ethylene's versatility extends to ethyl oxide and ethylene glycol, used in the production of antifreeze and other industrial chemicals. The ethylene market is driven by the demand for lightweight plastics, bio-based products, and ethylene derivatives, such as Bio-polyethylene, used in plastic bags, bottles, containers, films, and various consumer goods. The increasing shale oil output and the need for ethylene derivatives in food, beverages, medications, and other industries continue to fuel market growth. Despite its widespread use, ethylene production contributes significantly to carbon footprint, and efforts are underway to reduce its environmental impact through improved production processes and the development of more sustainable alternatives. Ethylene's barrier qualities make it an essential component in various industries, from construction to healthcare, and its demand is expected to remain strong in the coming years. Market Research Overview Ethylene is a colorless, flammable organic compound that is the foundation of the global petrochemical industry. It is primarily derived from natural gas and crude oil, and is used to produce a wide range of products, including Polyethylene (PE), Ethyl oxide, Ethylene glycol, High-density polyethylene (HDPE), and Low-density polyethylene (LDPE). Ethylene is also used in the production of Vinyl acetate, plastics, and various petrochemical derivatives and ethylene-based derivatives. The Ethylene Market is diverse and expansive, with applications in agriculture, consumer goods, construction, lightweight plastics, packaging solutions, and more. Ethylene is used in the production of bio-ethanol, contributing to environmental protection and reducing carbon footprint. It is also used in hygiene products, luxury automobiles, and healthcare products, among others. Ethylene is a key petrochemical feedstock and chemical intermediary, with applications in various industries such as textiles, agrochemicals, rubber and plastics, soaps and detergents, and chemicals. Ethylene is used to produce plastic bags, bottles, containers, films, and various other packaging solutions for food, beverages, medications, and other products. Ethylene is also used in the production of PVC, ethylene vinyl acetate, and other pipe applications. With the increasing focus on reducing carbon emissions and addressing climate change, bio-based ethylene and other bio-based plastics are gaining popularity. Natural gas, naphtha, ethylene oxide, and other sources are also used in the production of ethylene. Ethylene is used in the production of various petrochemical derivatives, including ethylene oxide, which is used to produce various chemicals, including plastics, solvents, and detergents. Ethylene is also used in the production of textiles, agrochemicals, and various other industries. Ethylene is used in the production of e-commerce packaging, contributing to the growth of the e-commerce industry. It is also used in the production of various ethylene derivatives, including bio-polyethylene, green polyethylene, and various other bio-based plastics. Ethylene is used in the production of various ethylene-based derivatives, including ethylene oxide, ethylene glycol, and various other chemicals. Ethylene is also used in the production of ethylene-based polymers, such as HDPE and LDPE, which are used in various applications, including pipe applications, packaging solutions, and other industries. Ethylene is used in the production of various plastics, including PE, PVC, and ethylene vinyl acetate. Ethylene is also used in the production of various polymers, including bio-based ethylene, which is used to produce bio-based plastics. Ethylene is also used in the production of various additives, including antioxidants, stabilizers, and other additives, which are used to improve the properties of various plastics. Table of Contents: 1 Executive Summary2 Market Landscape3 Market Sizing4 Historic Market Size5 Five Forces Analysis6 Market Segmentation Feedstock Application Geography Packaging 7 Customer Landscape8 Geographic Landscape9 Drivers, Challenges, and Trends10 Company Landscape11 Company Analysis12 Appendix About Technavio Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios. Contacts Technavio ResearchJesse MaidaMedia & Marketing ExecutiveUS: +1 844 364 1100UK: +44 203 893 3200Email: media@ View original content to download multimedia: SOURCE Technavio Sign in to access your portfolio
