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Braskem S.A. (NYSE:BAK), a major player in the petrochemical industry, announced a significant 121% increase in its Recurring EBITDA, reaching US$224 million in the first quarter of 2025, compared to the previous quarter. This financial metric, which reflects earnings before interest, taxes, depreciation, and amortization, is a key indicator of the company’s operational profitability.
The increase was attributed to higher international spreads for resins and main chemicals, as well as an 11% increase in polypropylene (PP) sales volume in the United States and Europe. Additionally, Braskem Idesa, the company’s Mexican subsidiary, reported a 6% increase in its EBITDA, primarily due to a 4% rise in the North American polyethylene (PE) spread.
The company’s net income attributable to shareholders stood at US$113 million (R$698 million) for the quarter. This result was driven by positive exchange variations in the financial result and an improved gross margin of 6.73%, up by 0.7 percentage points from the last quarter.
Braskem’s gross corporate debt remained stable at US$8.6 billion, with 91% of the debt in foreign currency. The average debt term was around 9 years, and the weighted average cost of debt was exchange variation plus 6.19% per annum. The company ended the quarter with a net debt balance of US$6.6 billion and a cash position of US$2.0 billion, providing coverage for debt maturities over the next 33 months.
The company’s shares were quoted at R$11.00/share (BRKM5) and US$3.85/share (BAK) as of March 31, 2025. Braskem’s shares are part of Level 1 corporate governance of B3 - Brasil, Bolsa e Balcão and are traded on the New York Stock Exchange (NYSE) and the Latibex Stock Exchange in Madrid.
Braskem’s management, based on current assessments, has updated the provision for the geological event in Alagoas, which now stands at R$5.1 billion, a decrease from the previous quarter’s balance. The company continues to work on understanding the geological event and its impacts, collaborating with authorities and implementing precautionary measures.
The report is based on a press release statement and reflects the information available as of the end of the first quarter of 2025.
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