Investor Presentaiton
2016 Braskem | Annual Report
35
92%
all time record
in the use
of Brazilian
petrochemical
plants.
BRASKEM OPERATIONS: SOUNDNESS
AND RECORD RESULTS IN 2016
G4-EC1
The maturing of Braskem's
global presence, coupled with
greater gains in productivity
from the improvement and
synergy between operating and
commercial units, ensured the
Company's positive results in
2016.
In 2016, Braskem registered
a record EBITDA in reais (BRL
11.5 billion) and in dollars (US$
3.3 billion), which represented
growth of 23% and 18%,
respectively, compared to the
previous year. This improvement
is mainly explained by good
operating performance, a
healthy level of resin spreads
in the international market,
a higher volume of Brazilian
exports, the performance of US
and European operations, and
the beginning of the contribution
of the Petrochemical Complex in
Mexico.
In Brazil, the Company took
advantage of the synergy with
its commercial offices around the
world and prioritized operational
efficiency initiatives to increase
the average utilization rate of
the domestic petrochemical
plants, whose index reached
a record 92% in the year, 3
p.p. over the previous year.
The result was achieved even
after a planned shutdown of
the Bahia power station for
approximately 40 days during
the fourth quarter of the year,
as well as the poor performance
of national economic activity.
Due to good operating
performance, resin production
in Brazil was 4.9 million tons
in 2016, 4% higher than 2015.
In the year, Braskem's strategy
remained in service of the
Brazilian market, guaranteeing
exports of volume not sold
in the Brazilian market due
to weaker demand. In this
scenario, Brazilian exports
reached a historical record,
totaling 1.7 million tons, a 24%
expansion compared to 2015.
The EBITDA of Brazilian units
in 2016, including exports, was
BRL 8.5 billion, representing
74% of the consolidated result
of the Company's segments.
In the United States and
Europe, Braskem's production
and sales volume reached 2
million tons in the year, a 2%
growth over the previous year,
reflecting an average operating
rate of 100%, which was 2 p.p.
higher than 2015, both historical
records for the units. The result
was achieved due to the units'
good operating performance,
together with a stronger demand
for polypropylene in the regions,
especially in the American
market, and also due to better
spreads in these regions.
The highlight of the year was
the scheduled shutdown at the
Marcus Hook polypropylene
plant in Pennsylvania, USA,
where improvements were
made to increase nominal
production capacity by 64 kton
per year.View entire presentation