Investor Presentaiton
2016 Braskem | Annual Report
38
RAW MATERIALS AND SOUND
PETROCHEMICAL SPREAD LEVELS
The average international spread
of thermoplastic resins produced
by Braskem in Brazil remained at
a sound level, reaching US$ 677
per ton in 2016, down 3% from
the previous year's average
spread.⁹
Polypropylene (PP) spreads in
the United States were US$
702/t, which was 24% higher
than the previous year, due
to a combination of a larger
propylene supply and greater
PP demand in the US market.
For the year, the average price
of propylene in the American
Gulf (USG) was 12% lower
compared to 2015, reaching
US$ 759 per ton due to the
greater availability of the input
in the region.10
Also in 2016, the average oil
price was US$ 43 per barrel,
17% lower than the average
price in the previous year.
This drop was reflected in
the average price of naphtha
in the international market in
2016, of US$ 385/t, a drop
in line with the drop in oil
prices when compared to the
previous year.
NET REVENUE 2016
Braskem's consolidated net
revenue reached US$ 13.7
billion, which was 3% lower
than in the previous year. The
decline was explained by the
8% drop in the prices of resins
and basic petrochemicals in
the international market, due to
lower oil prices and the new resin
capacities, especially polypropylene,
that began operating in China
during the year. Another factor
contributing to the decline was the
decrease in sales volume in the
domestic market, which dropped
1% compared to 2015.
In Brazilian reais, consolidated net
revenue was BRL 47.7 billion, which
was 2% higher than in the previous
year due to the depreciation of the
Brazilian real from one period to the
next. Excluding from the analysis
the resale of naphtha/condensate,
revenue increased by 1% in dollars
and 6% in Brazilian reais.
C-0152
9 Difference between the price of petrochemicals and the price of naphtha, ethane, and propane for the raw material mix used in the Brazilian units.
10 Difference between the price of US PP and US propylene.View entire presentation