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Investor Presentaiton

2016 Braskem | Annual Report 2. POLYOLEFINS The production of the Polyolefins segment in 2016 was 4,301 kton, a record production of polyethylene. The result was obtained due to the better utilization rate of the polyethylene (PE) and polypropylene (PP) plants, which also includes the production of Green Polyethylene made from renewable raw material. The average utilization rate of PE plants was 89% for the year, a growth of 2 p.p. compared to 2015, mainly influenced by the better performance of plants located in the states of São Paulo and Rio de Janeiro. In PP plants, the average utilization rate for the year was 86%, which was 10% higher than in 2015, influenced by the better performance of the plants located in the state of São Paulo and in the complex in Rio de Janeiro (both in Brazil), as a result of the improvement in the propylene supply from the Basic Petrochemical segment. The net sales revenue of the Polyolefins segment totaled BRL 20.3 billion, a growth of 2% compared to 2015. In the Brazilian market, the result was driven by a greater volume of exports and better prices in the international market. STRUCTURE OF THE POLYOLEFINS SEGMENT The Polyolefins segment consists of 18 polyethylene (PE) and polypropylene (PP) plants in Brazil, including the production of Green Polyethylene made from renewable raw material (sugar cane). The industrial operations include PE and PP plants located in the petrochemical complexes in Triunfo, Camaçari, São Paulo, Paulínia, and Rio de Janeiro, with a total production capacity of 3,055 kton of PE, with 200 kton of Green PE, and 1,850 kton of PP. FINANCIAL OVERVIEW (BRL MILLION) POLYOLEFINS Net Sales Revenue 4T16 3T16 4T15 (A) (B) (C) VAR. (A)/(B) VAR. (A)/(C) 2016 (D) 2015 (E) VAR. (D)/(E) 4,730 5,170 4,785 (8%) (1%) 20,307 19,986 2% Cost of Goods Sold (3,731) (4,090) (3,659) (9%) 2% (16,041) (15,461) 4% Gross Income Gross Margin 999 1,079 1,126 (7%) (11%) 4,266 4,525 (6%) 21% 21% 24% 0 p.p. (2 p.p.) 21% 23% (2 p.p.) SG&A (348) (327) (348) 7% 0% 980 (1,304) (1,225) 6% Other Operating Income (Expenses) (64) (22) (63) 193% 3% (120) (131) (8%) EBITDA for the Segment 694 849 829 (18%) (16%) 3,291 3,647 (10%) EBITDA Margin for the Segment 15% 16% 17% (2 p.p.) (3 p.p.) 16% 18% (2p.p.) 40
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