BAK - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. Thank you for waiting. Welcome to the conference call of Braskem, to discuss the results related to the Fourth Quarter of 2021.

Here with us are Mr. Roberto Simoes, CEO of Braskem, Pedro Freitas, and Rosana Avolio, Investor Relations Director. that will is during be call. inform that recorded the to participants all in like this being event and conference We'd listen-only mode on, when Q&A be Later start will provided. instructions then session will we further the Instructions] over Internet simultaneously accessed https://www.braskem.com/ri via being also can be the where can This you event and find [Operator also at broadcast is webcast the presentation. slides will you. be by the controlled of selection The soon of after be it's this audio The available event over. will record participants like questions via remind may that the We'd website the Braskem. of to to webcast you They IR answered after by will the be conference area over is company. the of the

on, that Braskem. perspectives beliefs as of the may call that like to and the moving well Before the regards and premises as as we'd operational, to are of any forward-looking conference goals management, during available made clarify company's company, statements currently business information the projections, be financial

in the may forward-looking now Investor have future performance expressed to results performance no not will I other understand these premises. conditions, future and of operating refer statements. the are Relations to call turn begin that guarantee statements over sector differ who affect to like from that, Director, that factors those Forward-looking or and they circumstances of to and uncertainties, analysts may conditions, involve should Same-state Investors and on would may And risks, events. materially general presentation. Braskem since to depend lead such [Indiscernible], occur. may the

ma'am. proceed, may You

Rosana Avolio

year for conference and fourth XXXX Good of to [Interpreted] quarter gentlemen. and results full you for in afternoon, ladies the XXXX. the also call participating Thank present our for Braskem's of

billion achievements agenda. its XXXX, net Braskem's record cash of the highlights highlights, Starting billion. financial recurring we of Braskem X R$XX.X generation situation Slide delivered the in to $X.X ESG result with year. operating go high financial and reported with and In in important Let's

the shareholders companies XXX amount in distributed anticipated third shareholder IBOVESPA delivering in value We highest dividends and billion. our the total S&P and also returned of for R$X return of

Another was upgraded investment-grade being by Fitch. to S&P development and important

maturity We continue in to maintain the long a comfortable debt leverage term. and profile concentrated the ratio

of highlight for Another environment, On advances priorities financial debt We Braskem agenda, priority three on strategic made for which was Idesa's of all was important social, and the refinancing our the a year. us. conclusion our one ESG plan governance. fronts,

the perform we plant X signing of plant on expansion in capacity, with Green of tons feasibility progress new production front, the jointly SCG in green of On environmental in with with And to ethylene achieved Thailand. advanced our Triunfo. to studies, in the understanding reaching invest goal a PE Chemicals million projects green the the of capacity ethylene at memorandum a

line an recycling technology commitments also our the mechanical with green the to ethylene joint operation with in and Valoren. started of We partnership for Lummus the technology, circular signed on We of economy. licensee MOU

safety since social front, Alagoas. results. value, a is progress On compensation social and in we financial XXXX, in globally, safety, us the projects program best benefited and we made process people further a the performance XXX in historical the for relocation that implemented support to achieved safety people non-negotiable over which best. On and XXX,XXX our

Novo of Lastly, requests & company's shareholders Compliance Audit ISO from statutory I highlight formation our would also advances of carry out and such studies to in on like as, for XXXXX to migration governance, to certification. the Committee, BX, example, achievement segment the of Mercado

year of the the $X.X and our of operating of mentioned XXXX, all-time my by consolidated explained results quarter the third next in XXXX Mexico. we're result historical distributed amount consolidated $X.X recurring in comment in chemicals. PP billion. year, X, Europe. net average the the due to of I on Slide And recurring going In year around the of in the XXXX, for the accumulated PP for on U.S. remain of above based international in billion. and lower was the and Braskem in Brazil, PE U.S. An to company. last In of make Europe the the losses in reported Brazil and volume billion, to operating R$XX And This States, fourth PP for better presentation, was in which an comment main we'll XXXX Into company quarter main the important year. the the lower result billion. to in on high. and the the for Europe. around Brazil, Mainly that spreads chemicals to the in The sales the beginning of also resins spreads mainly slide, United profit of on in reverse PP December dividends the result XX% the in results on the R$X and XX for the XXXX. billion profit PE as for years. international the net still R$X.X Moving Thus relation in lower anticipated due the and the and quarter year. But than

Let's next move to on the slide.

at higher On the main We of the in fourth In will resin utilization X, in operations market. start product was we Brazil recovering in XXXX operating about highlights Brazilians by present Brazilian quarter in higher quarter, Brazilian operating the $X.X Rio recurring fourth while the of demand highlights third in Brazil and mainly Slide of the XXXX. per in operating stable was crackers stronger in supply the market, petrochemical a context, Janeiro result third billion. segment. this to the of The by than were which in year the million availability. rate operated reflecting increased of relation sales points de practically explained in -- the the quarter, and XX%, $XXX exports Feedstock fourth the XXXX, quarter quarter percentage of the results PE higher six XX%, the In is the that

recorded and the liabilities. to Alagoas. balances under expenses total was predict in geological chart with the end of chart liabilities event under right the future on XXXX R$X.X the The currently on in non-current the the costs fourth XX% to geological cannot this be Around and amount or this by around important the disbursement was of at shows different shows in certainty Braskem respect It's left Alagoas or related remember estimated comment of event be related developments the provisioned. amount XX% current schedule the the incurred may that we'll to its quarter billion. of than provisioned. matter Next to the company provisioning the the slide, The of of

February geological reallocated talk progress on of make the the location continues Alagoas high The XX,XXX, of about areas. slide, the to end risky districts estate was the X% risk onto and next event. Moving Braskem continue in we until will about reallocated compensation number it's of financial to to real in XXXX. of X% Maceio the families of

since of made financial the XX.X%. compensation number were the the value for XX,XXX. up the values proposals relation In R$X.X the disbursed program. payments under had XX. this end proposals about were the program, of that considers reached billion were that We of index submitted maintenance that beginning February Additionally, of the submitted the to first reaching been to this And acceptance high have of the

diagnosis quarter. in diagnosis. for demolition first the and scheduled some like filling of two plan: of closure Additionally, made mobility XX% Mutange to cavities well the the with regarding region share XXXX and of I actions the work other advanced the sand, plan environmental throughout fronts. Start significant works in with the conclusion area and Hill next the the progress social highlights would of completed urban on for the start Compliance

the in period the due the to production operated turn Slide of percentage rate the at United percentage presents the X third region. is Propylene XX the in Europe, by the utilization compared supplier reflecting decreasing period. the points to in of scheduled slowdown maintenance at accompany from the States and to utilization quarter, explained shutdown the shutdown our quarter, plant plants In in PP decreased lower maintenance the demand highlights the the fixed availability Europe. in stock United the rate the one of scheduled the In States the points which quarter, weaker in to let's at the This Now, third operations slide X. the and XX%, fourth by regions

in Europe, we In the to recurring United in The registered on performance. XXX,XXX result quarter. operating fourth States operating billion. million. recurring PP the XXX,XXX segment's the of sales year of quarter In tons, prior volume tons the the was result sales quarter Moving sowed $XXX on the X% The was R$X.X in quarter. down

availability explained the by this Mexico. next in the year quarter, given higher million. the of on by product for million on, the of the higher the shows feedstock segment's this percentage Moving results the $XXX a operating increased is the by both operated for Pemex by Fast was quarter increasing and explained Track quarter. in quarter was operating recurring And third and a recurring Mexico year-over-year, XX% utilization $XXX the Sales slide supply sale, highlights mainly result points the fourth XX rate rates solution. the in XX%, the higher in utilization at capacity

dynamics new fourth of on, day, supply XX.X Idesa. day. which details And which A Ethane thousand barrels the in quarter fixed Pamex next around per stocks supply Moving solution, represents Braskem quarterly imported with also a October Braskem of of of is solutions amendments the signed record in XXXX. XX% Track XX.X the those the line for XXXX Fast current barrels capacity. slide thousand Ethane per Idesa

believe continue Fast a fourth the the Looking is good maximum at the solution outlook for the further XXXX, import the has of last delivering of the Braskem potential working observed capacity to Idesa year. XX,XXX to ethane reach that industrial performance in day. expand quarter barrels Since to Track company we

the investment expectation with steps at As to In the that well The we're that process constructions terminal. And feedstock estimated The Braskem the construction working the likely import in terminal start so supply on partners ethane of selecting the terminal, potential continue to the with amendment. second Idesa the slide XXXX. $XXX Pemex covers will approval next going are of the the decision begin investment continue the quarter as to in operation for the line had XXXX. of around in million. expectation terminal December, additionally, the are import final starts in ethane volumes the next that

cash operating consolidated operating positive of billion. the The new monetization flow. and R$XX.X operating result of next generation The billion. In our a record Moving COFINS the were shows the the quarter, and slide generation Braskem in R$X.X positive cash cash impacts recorded Braskem of the set main the year, credits PIS In for around the quarter. tax on. recurring

indebtedness allocated remuneration strategy. creating Braskem shareholders debt to reduction to [Indiscernible] R$X allocation the dividends by operations return capital gross billion capital it's the efficient for by commitment Next allocation markets. on distributed of for amount In in with XXXX, billion. total year, shareholders, of fiscal slide capital shows for reduced in of On of the In the investments. year focusing majority relation and by to and maintained anticipated a its carrying out distributions, XXXX we various that's of our $X.X our debt dividend Braskem value

respectively. On the expansion line Paulo, of at the Triunfo shutdown the project recycling in recycled in such production, existing mechanical plant the investment green Sao capacity maintenance in Indaiatuba, the assets, maintenance and in as new included and ethylene front, and focused which projects and in ABC we petrochemical on investments biopolymers growth the complex Paolo, of scheduled resins, Sao general

Let's move to on please. slide, next the

can metrics its and highest TSR the TSR third you Braskem IBOVESPA the all of Braskem above that international On the listed in international peers S&P and slide, and peers its of the XXX. index delivered of significantly in On the with return, S&P companies those XXX. average IBOVESPA return see presented companies in above shareholders XXXX,

of free XXXX in of In that capital resulting in yield cash high shareholders, delivered of that a resulting yield flow returning flow above high billion dividends peers. above terms record flow free of cash its its a Braskem In R$X in free to of Braskem billion cash international peers. yield, dividend international record R$XX.X distributed

please. slide, next to on Moving

As to and the the billion in $X the remained year, current XXXX long of position coming maturities liquidity XX The average with maturity and term XX maintain sufficient all December stand-by liabilities hired December next with last long profile end a banks term. XXXX, Braskem replace due months. continued strong to debt maturity syndicate amount of position around a of credit is facility. XX the the over concentrated with in global Important very mostly that debt international company cover the mention to of to the current with in years, payment the in final facility liquidity of

at dividends and XX, even presenting the leverage Braskem year majority robust at times. to position cash solid $ has company metrics, after profile end Let's at objective very of metrics, low in We'd dollars we leverage Slide The the efficient the turn X.XX continued last R like as the to Braskem, distributing credit and to the anticipated of mention end allocation. are of the committed debt capital long a which corporate maintaining shows year. billion ratio, an credits, that X of ratio

on to Moving grade of the had September in now end an to XX, Fitch the is outlook. slide, upgrades a ESG Ratings. stable company by S&P risk please. With after to of this company, global with - recaptured on level going Fitch upgrade In Braskem by investment look XXXX, year, by a at At and we can next grade rating already last S&P an will have highlights. the upgraded investment Slide to risk BBB considered level a

section with renewable the start Let's ESG businesses. our with

a to million chart financial by ethanol. strategic that It's left, Green and production the that partially XXX,XXX are reaching gasoline we can of this of mention to PE see that and tons from importance by and one PE through improves ETBE additive tons the and XXXX, working assumed On have delivery XXX,XXX performance we goal year, the of production the sold on of a made of of capacity important of we partnerships. is -- the we last accelerate Green tons

operation right due see that to and Green XX% can by due to combined PE to net the of due we the availability to stabilization attractive the the the ETBE increased to in higher prices and from sale chart revenue On for ETBE also international product of market.

the the development a construction to economy universities please. designers, of to a of recycling slide R$XXX with processes. of the and on investing Braskem This an R$XX circular hub innovation better million. Braskem is the capital owners, and slide, project clients, brand to Brazil shows into circular in packaging which Moving next ups contributing suited in jointly related is start for million

waste we Development transforming two Company partnership specializing addition, Waste in Valoren have into in Management and product. projects with Technology recycled In

recycled construction XX,XXX The first packaging recycling project resin. of of its tons of a to is the to in a December And million Mexico XXX related and to operation units into line post-consumer PE transform PP high-quality started XXXX.

of first a project development will Brazil site In recycling and transform same construction that plastic projects recycling which addition, the synergies advanced and includes we with the unit pyrolysis raw will packaging, line certified in into recycling. have use chemically micro These be material. goal mechanical on technological mechanical process of and capture waste recycling, mechanically are for plastic circular to is aligned develop a integrate the to high with recycled eliminating which the to Braskem's investments advanced circular waste difficult

XXXX carbon-neutral for agroforestry to the XXXX. will another is which is with We'd like with start by its a Veolia supply Brazil. its expected equivalent supply construction XXX and and R$XXX by compared the steam project XXXX. year, operational Braskem Let's in in tons agreement to of mention agreement is purchase this to emission industrial reduce project adjustments slide, important emissions go to estimated COX an a and its from into renewable by the XX gas produced at by agreement the In in contribute considering will Braskem to of steam Investments for reduce energy, the become relation next to by please. will entered park XXXX. company that million around greenhouse of emissions Braskem's and that Braskem ensure years, XX% Veolia The to that units. XX% for at estimates the biomass industrial Alagoas to

mainly year period. next Moving Brazilian year. than were with show estimate of the will against real dollar on last is of postponement CapEx for affected the in by slide, investments. the Expenditures $XXX depreciation XX% $XXX our less the million, to projects we the a and the which of Braskem closed million

$XXX building efficiency. scheduled combating For postponed import recycled macro at the concentrated climate of in the amount and plant expanding ethane Rio goals of XXXX, at Sul which the XXXX, objectives, sustainable shutdowns of macro is of for $X.X plants, resin for projects catch-up change XX% shutdown of as this million, capacity, be production going Preparation to this scheduled potential around will with to projects terminal due Braskem's such strategic part to COVID in Bahia partner a Grande Know the billion, and development of the that biopolymers in CapEx operating in maintenance and maintenance the is business, which is the Mexico. estimated CapEx at year related do and expanding

Moving slide our on, presents term the next short outlook.

and propylene lower remain For the consultancies Brazil remain PP States amendment volume Pemex from should should above the production In base the is spreads, external recent the line to their with with regarding average. above in expect PE increase above we In recent the ethane higher average. availability, supplying historical levels at should Mexico, States, and signed for spreads. to after volumes due ethane October U.S. higher and historical the in relation United at remain sales ethylene volumes production United increased PE, imports operation, volumes stability of sales expectation with a and recent spread and average. the feedstocks spreads should price the PE the PVC sales to expect and product

that next global petrochemical Braskem opportunity industry. On investment the remains can in see slide, the we interesting an

to comparison operating as the average ratio. margin Last credit the operating multiples the Braskem case international and of its multiple company U.S its and from profitability leverage peers, in the recurring the indicators of of results, in the discounted EC to delivered recurring view analyzing year, be above of First, continues of peers.

Lastly, price also at appreciation Braskem we consensus, the market in to stock. when of a there's for potential look possible BX to compared strength price it's that see the

an Moving position on left in volumes and the With index, it's to the trading improvement the as trade how ability on once company. the in its and relevant chart based IBOVESPA, participated Braskem IVRXXX again BX Slide increase improving the VRKMX of that tracks VRKMX in such the was on shows highest increase. of indicators which outstanding BX. improvement XX, we're number the of in index the talking in It's such the may an IVRXXX, The of traceability XX weight calculated others, liquidity in about on MS our the stocks among [Indiscernible] index included index, shares with and is because the performance liquidity is as with indexes interesting corporate governance, trades. other

Next slide, we'll the talk about strategy.

I to productivity recycling, have we improvement. strategy renewables, that slide. our based main our on the Starting avenues. implementing reinforce would with strategy. On on focused Today, and growth like we growth three remain

renewables, to the terminal resin, Build is XXXX. for import project. progress expand Mexico our a by new to chemicals needs commitment to to competitiveness ambition existing tons and to to PE the and Recycling first the And of production transform million with by X in on resins with recycled productivity of the in Braskem tons program ethane The continue Green million efficiency in meet XXXX. of support making lastly, initiatives. all value implimentation global growth thermoplastic feedstock Idesa with content X capacity reach

have We innovation. three

the several innovation and pipeline projects business, contributing our of with growth have culture. extensive to an We people

our with the technical mindset. BX, team the a includes strong with entrepreneurial of share classes. to management the consolidation teams And migration PAD We on segment continue which have working of [Indiscernible] we an experienced

committed efficient remain In to the its Braskem financial financial solidity will capital allocation. and terms of firmly health to

attention. will value of XXXX quarter I non-negotiable like always concludes results we operation. the to like for Braskem fiscal of the XXXX, presentation reinforce our be Remaining Lastly, the to focus Braskem permanent of of key That as safety everyone thank strategy. the for would that for and year their of would fourth

begin We session. Q&A the will now

Operator

start we're to now Q&A going Instructions]. the Ladies session. and gentlemen, [Operator

Pactual. with first BTG Pedro Soares question The from comes

Pedro Soares

Good morning, guys me can Roberto. morning, Good hear you Rosana, everyone, well?

Pedro Freitas

can [Interpreted] Yes, you. we hear

Pedro Soares

I Well, have two questions. quick guys,

the spreads. have very the spreads we've responded which about the obvious all, After on of most the still the that oil really can company prices that, volatility industry, especially in Brazil. stock in and naphtha the to explained much of to not passing aggressively prices, by First widened I you're resin that be understand that on potential reflecting the consumers. which seen, of that

compared if new I wonder this is the year. I last -- this believe So to

So the spot if work, still that us Seeing will front. line? will could the are how current inventories below company's company's once. you the explain consumer especially bottom when as the And affect to on really that

Now, question the CapEx about is guidance. the second

about us operating if wrong that view longer-term CapEx after give could especially years. a and on underscored we next the me CapEx few more extraordinary million, pipeline, was also ago, XXXX. but there's an you about correct A If $XXX talked a of than not that, an while for maintenance it I'm

guys is, So make CapEx delays does of my understand operating course, back That's increase closer do XXXX million in investments, but to levels imagine operating the Thank the CapEx $XXX sense this for moment? to reflects it for largely in be structural should this more us something question now. the you that it moving for now in you. some or it of to

Pedro Freitas

pleasure being about all we of results say that. Well, be I'd you for to to XXXX you Thank here happy to your in [Interpreted] thank here. speaking questions. you. for are had it's extraordinary Pedro, like a and We've

of to XXXX, prices for we the expected last to terms we new which supply last decrease which not started had the freight on that issue of had the year, not had structural we the in Now in -- in pledges. year, but to in since at a only last year, had barrier average. that we end two climate COVID demand us COVID investments expected of We may because a or seeing for because like year as new return back the point bouts not series industry by affected already events above carbon of no in some or beginning market. at helped have in XXXX the macro I'd And to decrease perspective companies we year what moving you level. more have XXXX, considering And staying reduction regular would industry, which three of this lead the call large changes above we we On that onto had those that yes, of investments we normal, the by increase widely this all within or considering XXXX, at expect normal, the taken to invest historical points see XXXX more because a back from we be we structure been to of order also because of forward spreads expected XXXX. And now, of in But events, announced was and was Either which neutrality. commitments to the still of non-recurring in see had international which recovery yet. this number there already from a that fulfill what raise of clarify. spreads, to come spreads of moving seen have to led carbon a supply what on next a this

we naphtha and saw how we of impacted spreads adjusting yet. coming and in fuel Last coming spreads likely to not are down about the oil This prices war spike not we a term curve, week, saw up. week it the the see both and So widen. prices spreads near-term and oil has because return, longer much this -- do but are

some the So to still volatility longer increased we in expect but the run, in near-term, see

Pedro Soares

of the had It been seem this is we have something that about and a efficient Ukraine, share market. to landscape as change expecting. international both Russia doesn't small with the entire countries

Now, same. passing to the about pass prices. is along logic still the of the prices, international along We want

a terms, logic. for in basic most the to that We of want the same have resins, we terms follow and structure international

our we still -- Our pass policy along pricing the to is according those same, change. as international prices changes policy continue and

knows early, but experiencing sign everyone round -- now is early still one new that Now, of it's a lockdowns. China

China. we are products in freight seeing of So prices from a rise coming

could to that And it's bit as say to you hard will what more persist. extent results say are year. last for the for was raised complicated case a them, that structured. and difficult Braskem's now. point the But So long make That's of how how to things ultimately, still

Pedro Freitas

a [Interpreted] moving Braskem's using CPV is average. calculated

So of last Naphtha the the prices prices months. few the Feedstock and recapturing March from average in cost now is

our down. as go levels So prices up, go price inventory

the considering near-term. inventory also revised being is market procurement management I of shifts. very a do carryover may part is policy and -- production something that, for based and especially adjust we should, This management the lowering our sales. on our cost our And volatility, this annually don't But well bottom a inventory for I inventories understand more intervals So levels and allow on our than to considering carryover operating our our because we management inventory. to in spoken but our have our provide is effect logic with the landscape. see line and significant change of production short those on uncertainty of really on positive current that the to we impact of

Now, on mentioned only something And CapEx. I'd to mention to $XXX would we like like a CapEx. that. shed to because you going operating back more million light

Our operating maintenance. is competitiveness between whenever I'm in calls, includes includes CapEx, I CapEx maintenance CapEx only $XXX of it innovation includes the It and previous CapEx. million, maintenance but in $XXX technology that say CapEx. And thinking and million productivity our also our

in to plus innovation CapEx, operating $XXX and need I million an have oh, you figures, a plus those reconcile to think, technology competitiveness innovation CapEx recurring So CapEx.

So positive EPL. that requires thinking of which those need a projects

also higher. $XXX operating less because two that's maintenance CapEx pandemic. our in continuity the last looks XXXX $XXX million, this million the invested plus competitiveness, So the year, is around XXXX, we because innovation it of and higher why in which years, And is

Pedro Soares

that a postpone. was there's of lot higher or that with things that forward but you mandatory could risks, everything We carried implied

if have things So your there's for those you but car, problem, unless you car you over have if a later, can you to time, want, maintenance are do. leave a in

baseline And CapEx we XXX, innovation, XX% postponed. from, that numbers, when this with -- have in remained about for XXXX, to running year That's XXX the and what the operating higher unchanged. we've in is within extra and which you an the So $XXX see catching up additional but the those even we failed another which with come years competitiveness. plus over these maintenance look and are we've XXXX, continuity, last within where XXX our that CapEx you an maintenance to do is the figures maybe about competitiveness, are which we program must understand we million logic, for programmed things or are at but few there's maintenance in

I just I volatility naphtha-based in only the wanted diversifying baseline, material there's raw to base. that to Peter's stress add the to done Now, wanted our work in all but point, something some we've CapEx,

Pedro Freitas

the has States, United We same important even in have base Mexico we an the remain with dynamic baseline. the and In business a nature.

also So here we that. wanted petrochemicals I which as is -- second in basic wanted prices also to help And stress go oil are wanted the Brazil. going us up to that that up only point see I make

into material commented Pedro sales your raw So that plus play point. everything else

Pedro Soares

for you Yeah, that guys. answers. was Thank clear your very

Operator

next Bahas Our comes from Gabriel question from Citibank.

Gabriel Barra

I Thank question. wanted my over Rosana. Pedro, for go Hello, points. [Interpreted] two you to taking

First the of dividend all, issue.

would the expected behind this wanted the for to may hear the that it looking was how of I additional we dividend you of have this and what and announced and the this be to quickly the points three scenario sharing point as I at from Alagoas higher increase figure. that cash-generation, the was chemicals affects first the an prospect And ratio on second would weighed And sharing in from your extra to figure? You issue, perspective, over if a year. rationale there uncertainty considering higher your go What in looking next potential And I and you dividends an what your war maybe be number company's over mentioned a sense? year? go them. leverage wanted could

the how still open what and XX front. you us And have if many already the next XX wells XXXX from First in cavities being the to of you. could are just points there That's cash for those that we for of opinion, it. should all, expect have you by the need and Alagoas and a the what a about from hear years second, how been XXXX your wanted what then XX well, cash provision figure or your for you cavities, is question still are on you risk in I mentioned and any still so give of sense? much that or spread Thank potential we few analyzed. has to And sense XX provisioned

Pedro Freitas

about questions your lower we to interesting for a at highest for into the the program repurchase of of you Thank million. lower just roadshow of and dividends. for the have suggest Braskem Gabriel. year sales had that so it in morning, also point part And sales number, share is future be to The Petrobras a some program what program, the figure. our is cash decided a program believe But option feedback one to which provide that a was to considering slightly have that slightly R$X that that would what's Good some feedbacks low, potential a was the round route company. the we company. be the would last look aside was figure [Interpreted] requires we about because some we that to had the would for the repurchase we set potential shows

X.X. not the in about The consider current ideal So that's take And level leverage we proposition continue a rationale. of ratio, to the looking of will even XXXX. that X.X to at us baseline

something for room year But with the along along we have we dismiss same don't of another the if see how share go by, but will will be as where year maybe we we the there'd be idea extra, plan. goes it dividends. could the additional will So moment

regular So that investors, the I'd that we conceptual point. standpoint, we payments the company's best, And that that then in very had with leverage the say of considering at dividend X.X more healthy. highest the we cash from ratio is feedback should have this generation keep roadshow

return So program, within room for our next the and for dividends unfold. allowing provide large then to it company allows for investors a month on and via a a depending CapEx some how repurchase

million. everything R$XX was in Alagoas, overall done our we the the in calculate with if Now, be to would provision, about regard past, that it program

takes spending the the the comes are add We that that X.X billion already billion that X.X invested overall. billion R$X.X to so billion. to $XX you that If you we've

another are X.XXX, and in is four stayed that our spent the XXXX considering onwards. our spent, our the about then say well parameters looked about I'd be be that Now, been provisioned is would we've this then provisioning, is how well. so of and last X/X. And year uncertainty, And X/X, at that and will and the really doing is even most from within year, far. how X/X, circulating -- the of from what's allocation rest perhaps We've

So no that at this changed. see of risk significant we point,

monitoring the there is shows the because last a scenarios the and geo-mechanical was but wells modeling. with where quarter, That of progress that future change in in Now, the stabilizing. was area closing a

made wells had even we robust the that and area's already geology. future a to scenarios for So potential those program we robust close for more

a it's right say safe I'd So program very now.

the and for the had, remains a same programs continue. city a positive from As and we've green we sign, had the social now to the figure light urban

place environmental -- our one. that environmental change And very considering signed significant some now make and having, there that, we'll our lastly, assessment measures situation. that we're provisions moved or other not also as that discussions well. be our we've have We in includes that has not any progress included to forward put we with and taken, a but start remediating steps to the but measures yet we that were may the deal the considering steps also in in the take But need a

last can we August uncertainty points at to have since was agreement below we mentioned this a takeaway more on lower. based we We this the uncertainty I'd really and it see in So especially we disbursement in year, won't exclusive and we very what as in signed delivering an end made, have of and taking diminished. concrete And the that has figures I XXXX. that plan provisioned which considered. change only presentation Peter a deal but been wanted if that those can change steps. solid messages, think was today, point lot And we've Peter about widely focus within $X the something to done I figure is provisions we've at say the the look of the say I a million, mitigated. be had last We deals, we think have main a we goes is material that the see the $X.X lot which our now, just add risks And included point, as the think had, didn't trend, year's stress have you should million, just as that in any lastly, I

Gabriel Barra

clear, guys. for be just more that? have one Thank each well closed? you Would about an much it There's to thing. Extremely How you. guys [Interpreted] cost would estimate

Pedro Freitas

[Interpreted] Well, Gabriel, depend because on different you that have each would dimensions. well,

internal What So average that measure the not and an have, are that wells sonar have you devices we do monitored, being per cavity. have said, we was well. as we

filled have with we nine and to wells, within sand. four program So the be

that figures that have We presentation. and -- here we the have in have the volume metrics we those

are have maybe We you something, we that bring monitored being but look we figures. those that not for yet, those do not into could maybe don't and really. Now,

figure with must We there not here because wells need right that to now close. what us within we that do do, are have we

being better I them lid technique of sand it's where and only. closed close with think some different them that's a are common them with with to the not a actually filling And more you're

Gabriel Barra

That was Thank great. you. [Interpreted]

Operator

next Our UBS. from Carvalho comes question Luiz with

Luiz Carvalho

taking you, Pedro, my Rosana, Thank for questions. [Interpreted]

discussion look even the little I Alagoas made about don't XXXX, this the amount If if with will know Alagoas year. you CapEx bit guys and the we and disbursement in the at and be a dividends, talk the spent go spread back and within program, if

Your CapEx the And I'm hand, on over year. XXXX. above XX, seeing at levels of other looking the the increased spreads Slide here of the considerably has last XXXX, level

impact that I have So believe generation. in an cash will

to to how factors try these of So all I your just and could year. exactly that impact wanted understand this dividend to how payments reconcile --

consequently, and now round how we if payments and maybe in all could of tell generation out right you numbers So dividend see cash XXXX. your your those us

to side. today investment the that XX the -- that Now, my and strategy peers Is more or not stock strategy can a had that essentially for see guys company do going especially see seen if timing strategic/structural forecasts there has share of to expect from including strategy minds. move? your is your even by don't shareholders way, with potential on about know metrics to Slide potential in the sort at see of the a a in you a second preferred guys we in market. And do here you, The where you the question in this North is peers going I this market, you process? from investment? rejection sense have How a which the emerging in have heard your other few your as of do market point the from important shares, guys the perhaps a issue terms you how in of is shareholders of for setback in the what presentation you shift any company's at compare markets. you with American do And that a by what a sell and us Again, -- support

Pedro Freitas

your to for question, relating so and you Well, you. Thank good it's speak question cash to and your our forth. to first [Interpreted] so on generation about

a in view which consensual a remind I it to a wanted just that but year A bit have follows Mexico, speak. to different step, we so $X lower, of EBITDA for Braskem some seems about bit this We see you few a as have our billion. Idesa -- higher,

So aside. set to need we can't them we --

So showed which Braskem, billion includes billion for $X.X R$XX if billion. about that you, CapEx we is we our Brazil a consider year, $X the that is

that. excluding X.XX here consider we So

considering that $X.X billion and a historically to $X.X billion a year. even have interest we So taxes, we have

already So perhaps really branding investments. numbers, historically about is those But company its billion. all that all a on $X.X own costs speaking, Braskem those even its bearing is without of

from room strategic So do it's a And that's that And paying it's some space important, a we all figure. investments in with another see even cash our that, company and a see the domestic But have we standpoint. profit even its I our that debt accounting do negatively. net its say accounting ultimately positive figure In Braskem, have generates portfolio. we to which and about the have value, the value, is net affected gains at effect. is currency one a positive currency whenever whenever our significant something we a profit cash, that. loses net

value, EBITDA ratio may a even So year. is prospect net if end two, that. of and this the of we which below even all the And we continues standpoint, leverage Brazilian with gain the profit payments dividend should reduced considering the see to from year, Real our through higher still mention for

have see again, short-term pay to volatility. So we dividends. some Obviously, we room

We have as develop, have future. to repurchase see how we even the the but said a in may previous year will program in near question, I the

room I we back and some to continue and return the to have investors. So give do our also ambition capital think to

LuizCarvalho

we consensus, this to have year. question maybe With just more figure, closer respect $X reality. to closer X.X one the all for something I billion or to this [Interpreted] X.X, about your more fear

X.X. As closer three believe to or your it's you do visibility improves,

Pedro Freitas

can't give you what you're a you answer what see you're offering will X.X, not to as guidance, asking, give we're [Interpreted] a X.X positive precise Well, allowed result. even but I so

are important Regardless here generating The of is point happening, cash. still we creating Braskem that is positive cash. positive that's everything

good We we good debt position, a cash situation. a have have

space, accounting cash So dividends overtime. that into will the in turn

that's takeaway here. message I main the think

to your to Novo on Now, question moving to work. with other relationship what have Mercado. working our on We're still we

main we're the now. them in need shareholders our something discussion shareholders with agreement or to bylaws amongst there the think also I in now they aspect, discussion that's to else changes close

shareholders, other working sell and then still us with would and communicated that the they are following we strategy Novonor to the shares shares two that they as Petrobras guidance So well. preferential that

of was state working the of is January even of in strategy there market still same. because not market. obviously the we're So the expected. line demand, in There's level with the was though operation was window. with canceled the And prices The the

in timing roadblock to the going specific alternatives, we We offering looking that's with the still still the the market. the not with there the According to to snag. mentioned, have believe would half regard idea to to in are depend you with do that issues But a migrating shareholders company working of and those circumvent. the Novo shareholders was become already But obviously, back slashed. naturally, from true, market. to no on the working state is And at those on was but So alternatives the this we're we of there's the approval that agreement impossible bylaws, that's will but numbers overcome and first Mercado. that

Luiz Carvalho

[Interpreted] That's perfect.

Okay. Thank you.

Operator

comes Bruno Morgan next question Stanley. with Montanari Our from

Bruno Montanari

Thank the speak. so negligible is for P&D's. questions. you to to wanted a two know [Interpreted] questions. are very I this It's These issue, I wanted taking Good shares, afternoon, guys. small on my I but up to more a talk about follow of curiosity.

alternatives prospects led being about over also you those about R$XX to you question whether second XXXX, in Mercado are because your I reduce cash-generation how for in you to Europe States, And spike is just considering And accumulated the fuel So another costs working capital. prices that? question and capital, in improving in is, of know into to the And versus high you wanted your is in high need for the conversion and Novo in there in migration to do United we energy being your area. mentioned, the any considering about in what looking governance the and costs Mercado Europe. -- working XXXX believe what saw my rejected profitability Novo forced them curious I'm million

sum of in way to large firepower maybe to a contributing a Thank you. fund dividend back expect more the even evident sharing? your robust to that company more we year, should coming this So slightly

Pedro Freitas

was we it's in to sense exchange not the Well, the more we or only be approving not in them. our That's for Thank change during not your the P&A to share. deal that [Interpreted] well, the our saw that. approve P&B something And you made one P&B P&Bs the see reading general that let -- didn't on type shares for that of approving ultimately the question. But believe the The we clear they have rationale that, ballots me about to understanding didn't two there plan. shareholders the how here, straightforward. assembly, vote our what's make bylaws. sense follow was And that. The was

conversion don't possibility. But of the forceful us allow think I to our actually would that. would a is migrate don't see Novo Now, law shares. we think Mercado I a allow alternatives that to

we see. we is have we could few something possible. that again, make this that already And turn once devices to So can

as Europe slightly Europe first uncertainty as have profitability now capacity in Europe our and our our yes, material. being cost terms all, about not of impacted is use Now but you U.S. our prospect of and in costs; more said, in is and the longer-term position a of granted we in

over of Germany to slightly We in amount in maybe and metric tons. X.X about more sales just have European polypropylene our million, tons XXX

North costs will in larger lead rise would prices to So not what Europe comes from to is production. -- or in otherwise, produce. production rising those from a producers South local enable offset than America even naturally the America the costs local fuel to our And or

supply. hand, their in affect we what very a prices imports, specific are at operating of reduced more not there's have to if, then the impact. for as room markets. it's see we perhaps one on prices production the so adjusting exposed to We're ours, we is the even and not Braskem domestic but really because looking at that But look well, large, So material at

remain Europe. go has prices our we other results the it this the and if So same, see And is is better even imports with do conditions we up, because production costs? still areas, remain small, to than may local Braskem our Now, because local costs very expected that. and sink with other in of with

United even spreads we are saw than is unchanged better early doing, this have the sales doing well. And in we what year also our States, always expected. Now, remained are

and have prices. And are sense. we also So energy have competitive positive prospects in that we -- competitive prices

the obviously, United the considering with our we are is import States. So encouraging turmoil always But in work distressing. profits parity, ultimately

the all, at you cost higher factor that we XXX. working now, main the And large has that months, had of And years five of an it you about barrel over understand ton X, at investment was look it's why average oil the of capital. $XX. Now, of X X, increased. if for And crude think oil If important our ago, of every prices. was first working there a increase see is we in to our X, inventory Naphtha, it's capital,

Another our Brazil. especially purchases, with did that, we to the thing adjust imported was Naphtha. for for And that raw we material policy increase of ultimately share

Now, that includes factors. two

moving on our of First spot one still our has considered, to that has reduced with past, thing Naphtha of to that has and to all, commercial long-term And be Naphtha And that longer ships we've the inventory another, in we more for higher, increased. resources that in of position, possibility, is we used place a inventory traffic that another that that. We more buy so for delivery. spend which or is the of are in Naphtha with we have impact, cash but our to our inventories. ultimately that, because decided purchases go terms

forward, already inventory changed, moving commercial have do will will not adjusted, considering terms we right is policy our that the now, prices, Now, but change. have either that on stock that see we we've or so transit movements in won't depend

it been material will goes a impact it's recalculate a oil clear. prices. of say, Now investments really If well, make other was That such position in increase has working our will can't But consumed decrease. such -- may more very we're to something scenario any we have impacted. a our If that be need extreme investments. seeing We up, even capital that those not doesn't, because anymore. our our cash spending about prevent capital may to would yes, that's so every we it working our year. But way

Rosana Avolio

had and we In second you than to year XXXX, much the because expected. the was stock, back XXXX, half demand of go Bruno, relation higher its if to

at closed lower we XXXX So the with level. stock the

the of a was be the because at stock XXXX. end of record would the of level company demand there position high average of the So

effect the So on also we of result of the but re-composition as a the price, an stock. had

Bruno Montanari

[Interpreted] you, Thank you, Rosana. Thank Pedro.

Operator

Our Barbara comes JPMorgan. next [Indiscernible] question from

Unidentified Analyst

very for our Pedro, Rosana. Thank [Interpreted] you much Good taking morning, questions.

in are of imports to second build year an liability to terminal to year My the the the heard in to Mexico. relation I in have two It's management structure. the and the be within minimum the expectation well? minimum I this relation that next question you questions. to in that to to as is the according the there's half the cash second release. that like you you clarify looking to maintain maintain We company you? It's -- to the relation are how and partners is purpose medium of maintain the with funding progress, see the I considering expectation how cash, you. in to clear in the long be licenses be this what would that Thank how the so levels going onboard level order would and and One would is the rating. every producers know to like leverage company have the capital proper in in would at for can how some the level comfortable and terms you

Pedro Freitas

Well, for you, [Interpreted] question. thank Barbara, your

position. position debt cash our about our and Now,

this a the revolving wide very goal. on is we of billion our XX facility, plus cushion. investment-grade our recover to one a that sustain our can renewed which actually for last as $X.X liquidity clear credit We presentation, that's -- slide want year, us very targets position year. our of And Moody's, have see We cash gives you with

XXXX. even -- in inefficiency, maturity what closest have can cash we efficiently. to need Now, than cash months. position. fiscal essentially one is less we operate That's to we do and our any we the next and not some need few is we what $XXX If The that operating operate improve is million for consider

monitoring our our cash market is that keep we in and policy, have few year. the been are position it than a our -- we've larger $X.X stands -- at the first the which is very the of actually monitor cash always So And with keeping But attitude, in billion. markets. we is that conservative months to to

for go figure. will a will has we to what there plan continue company. be currently, prospect always into we're that reliability, to idea There's and not to do. idea that And go the maturity. again, do a our no that's no is Braskem of considering is have is XXXX the positive our are longer access manage but short-term rush. You transaction to when the that, whenever ability market We debt But to the debt in we we liquidity profile more if for pressure keep do a or that

the the select partner which company have the is We're so partner. will Chemico about be Mexico total own Now, the Porto now the subsidiary the for final and last that we investment financial issue, subsidiary Idesa to in and stages with that to created a which the we why the approved has for capacity investment of year, in looking terminal. Braskem that partner the be And precisely have at a itself, first $XXX end would Mexico, will themselves. all we now the of a Board independently, all, been million had which fully its space

the to corridor, few We in pieces have choose partners of in Idesa start now. may earlier, that interest seeing we're the of terms parts already construction. supporting is have take -- largest may Mexico's to And realm government program. is and. plans construction. this see project started place a go construction in the other second the call with that -- and inner it's into meanwhile, a support the a to But be And underway within very later advanced Mexican final that within between But structure Atlantic positive in a the say have half with that support very of government of has peer few construction the well they stance the the the for year. they falls of by their Mexico investment that investment, program investment between that what be that plan government for to private oceanic on you likely we're from already Mexican to details Braskem in our investment. construction to selection we natural We and And in that next choices, Pacific I'd -- more the we're this be right our few ambition And discussing within and ocean. decision a to the right adopt with to logistics months. start now,

And working So a you debt everything's debt. have a very in XX% that's well. probably our idea project is like have Within XX%, structure this, to strong.

equity an XX%. XX%, of So

start a take three-year CapEx maybe $XXX a you So a million if $XXX by $XXX. running the Braskem around even of itself, Braskem CapEx, with with an that equity with With Idesa debt perhaps less will partner, outlay numbers, million. on the half Idesa or the

all. can XX with Braskem they if support problem those can have at no XXX, So those

Rosana Avolio

as allows we margins because the have, to just what terminal context addition capacity as in strategic to competitive higher in very can Pedro. expand [Interpreted] plan importation terminal, than This It's the plans. by have everything. is is but and that's all we of the that the the a capture project for There this quite and best to Idesa,

agenda the have the that expansion will this we nation in have cash We an have for to generated.

Pedro Freitas

$XXX Braskem to and to December, I to the Braskem point. pay Idesa over Braskem it's to return expect next [Interpreted] reinforce another -- continue dividend investments Idesa wanted continue paid we to years. few nearly million In just those

Unidentified Analyst

clear. Thank [Interpreted] Okay. you. very It's

Operator

Milne English Anne question comes next Our an of America. will Bank be and from

Anne Milne

for and afternoon. I but the results future for addition just have just about that new the know have and know I that XXXX, R$X.XX I just a I related estimated box your for question. XXXX item is which much don't scope at R$XX One billion. congratulations wanted Is you in your two. amount a or provisions to in first second very this an greenhouse you on question provision you previously you the have question this X, Thank and was the your will about your is will PE not questions figures at really of Algoas I moment. something currently or Green was billion. gas the this going the or in X regarding my call one your same expansion in you morning and you it's emissions Good of to if for that ones see just items that the answered, know good investment-grade. total new targets that additional [Interpreted] have one, explained just if XXXX. That's production. have I add which is is the know one expected? It's complement earlier see 'XX about, and back reduction ESG you Several have small that the of and to been very to is it and you return is

on I'm guess the PE traditional I how will PE Production? that substitute that be will use the Green or mechanisms -- to one the And So you wondering of you for that's production, now many Thank will reducing reduction. mechanism main or for a you're our at you. it that know projects emissions, I of XX% to be lead other measures right that will series looking that

Pedro Freitas

questions. R$X.XX December highest of there That amount, program. changes we R$X.X your within were million how [Interpreted] highest have for and of sum, the we agreement. six About from been which year several that It's last adjustments XXXX. number well in from And thank And modeling lines those also for, that geomechanically that it because you were the advanced to within in so from December the late lines happens -- had amounts the this hear the we our was every closing and occurred of in a more came other earth. that adjustments but the the provision months. material billion the that provision, mentioned, Alagoas, of provisioned was you great is Hello, for largest in our you. And has already

So be there smaller was an will smaller. and inflation-related adjustment adjustments invest those and as those we sums,

confident studies over more about in So had really. in values we've disbursements figures the months. we case And and received another has are I about also answer, our our lot of provision. a progress and that as we've clarity supplementary past the more in It's just of about evolved how the few the nothing because there's the solidity those mentioned the new

our not mentioned, item this are lead done just And is a we So XXX%, to you what no deal, billion. adjustment I a $X.X material stress that here is a said, but obviously, to could that in seeing provision. as yes, within those

figure remained have that provision within expect for Alagoas. our to fall we has that We no undisclosed other

ESG Now, about question. your

our X.X scope polyethylene. XXXX, That's this green number for greenhouse of three. does not First to XX% include advanced forecast all, gases decrease in

include that emissions. does or our or energy from. purchase XXXX taking toward PE not current the The the reducing steps precisely actions we So reducing an are Green alternative in as action sources an in emissions the for target we're our

years. renewable done signing end the power different four past the power as as wind with or purchase last seeking now at sources, over of sun been we contracts, year. are We've such and we've We agreements three had contracts, what energy

So within internal what goals our we have reducing emissions energy purchases and falls mostly as part of our as XX-XX also well.

Anne Milne

Thank [Interpreted] you much. Very helpful. very

Operator

over conclude the [Operator like considerations. now We turn call the to to final Instructions] would Q&A the We session.

proceed. may You

Roberto Simoes

it's figures. with had challenges, Simoes, to of there company, share earnings to our here were also This call. there pleasure Roberto thank our is we're was opportunities happy and would very a year also this all Hello, with be you. all was but important fantastic the for and you. of I We've -- accomplishments a for like to joining everyone

consolidate recurrent I'd our we've and talk important we to that, headwind to operations our allocation committed investments only the the for been for about opportunity carbon reducing levels. gross widely why share very in and our is to the like important to set and the generation dividends mostly steps -- to first issues about some in-depth, prospects were our important that opportunity in on efforts. all our With have Further, to We strategic goals very more that are had today our leadership still our healthiest which discuss a also very continue capital we capital steps recurrent we're has level talking of position Our results this, our we investments sharing. allocation now, the to punctuate discussed, addressed focusing had economy and dividend dividends which And lot shareholders. say XXXX. right we on were have low positive scenario of year challenging within not of now took to very value those that be very made. And about Braskem's then in necessary capital then important and the maintain boosting the that it's the a the but our or will also this to in

company solid said, The really underway. huge XX% ability always case As debt the Pedro for About provide And to of is that to be degrees. Pemex, completely is commitments, used redesigned ESG we we payment have were just a say which with the It to terminal complex. reverse essentially estate plant our able a significant And plant very to Paulo that's and mechanical or with which I we've in Green this in the a of profile real XXXX to And and think we only in study. the made still and and widely XXX now company not the third prospects and in to dividends recycling we the materialize of recycling same volatility the Brazil, disclosed point, which well. Ukraine, that provide reached our new be properties a the been to relocated. Mexico, situation the ESG in Sao commitments Brazil. and -- despite on focus have the plans currently international importantly. to also company PE as in see also many the in in the by focus new especially the scenario, will is virtue the most but conflict Mexico

that assembly. We R$X.XX investment the taken also we've to took general already the million

disclosing again, from be us XXXX. Thank to in -- and I'd you joining hope I thank to earnings So few will see once like results weeks you. a for we XX when you QX for the

Operator

much come very call for you for at Call. thank I to We thank would like using taking in an Chorus it. has Conference end. And everybody Braskem part to

Braskem (BAK) 17 Mar 222021 Q4 Earnings call transcript