BAK - Earnings call transcript Q1 2022

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Operator

Good morning, and thank you for waiting. Welcome to Braskem's Q1 2022 Earnings Conference. With us today, we have Mr. Roberto Simoes, CEO; Pedro Freitas, CFO; and Rosana Avolio, IRO of Braskem. We'd like to inform you that this event is being recorded. Instructions]. [Operator also www.braskem.com/i, via can where downloaded. is be and also streamed at available the being event webcast online will be This respective presentation slide by The be you. will deck controlled right this will of conclusion. audio The be available after event its to by Remember to its the those be IR Braskem be conclusion the and questions answered website, department. send after that the of will webcast will participants able via this conference

operating Braskem's as and the any proceed, targets statement clarify made business we'd prospects, to conference this company's information we on projections, Before based available that about financial of are company. beliefs well like during assumptions the currently to and as management

Forward-looking understand industry the said future which state expressed premises than general and rely may or materialize. affect circumstances performance, of economic seeing and that Investors those other on uncertainties are not lead and must as conditions, statements they Braskem's future no the may and results statements. therefore, to risks, different refer guarantee earnings and, and may factors of they are that analysts materially to involve events forward-looking operating in

Now Relations who begin the to presentation. conference I'd may the you Ms. Director, Please, Avolio, will Avolio, Rosana like proceed. to Mr. turn Investor over

Rosana Avolio

and and first ladies our results you quarter in for for of participating conference afternoon, Good gentlemen, the call thank Braskem's to present XXXX.

Let's start the dividends. the Slide X of presentation on distribution with

or representing a the the income XXXX. total applicable or policy guidelines X transparent distribution dividend in with that net combined see Remember dividends dividends, billion can billion with BRL distribution to that committed regulations. the on laws dividends exceeding X.XX to through determining remains of based billion, XX.X% adjusted of net has XXXX. the you income for Braskem of compliance for slide, December the On anticipated Therefore, payment dividend with of in in BRL with in value Braskem distribution shareholders for a was BRL XXXX, May returning X.XX

representing shows which Class the preferred the posted common go of quarter, next Braskem income Let's our X.XX XX%. slide, net share margin first billion, In and net to of now BRL X.X per income. net BRL and A around

on complementary the subsequent in in surpass proposal X of on XXXX consideration the ratio, based current dividend Braskem leverage which X.Xx fiscal presentation, time and best dollars the distributing the will for Braskem cannot the assumptions policy, transparent considering first in or mentioned I and decision. without at dividends take As year the has the slide into years, of Idesa year a the

slide. from resins recurring the the Now currency PE main million, volume quarter XX% against and expected EBITDA first quarter fourth dollar sales resins recurring down due international by XXXX, the in main and X.X%. PP In appreciation the Europe of down the decline Brazil for with Brazil XX% chemicals of the U.S. $XXX and Brazilian billion, explained to year, chemicals and In in EBITDA lower to let's and the respectively, first period. quarter real, next Mexico. mainly last BRL quarter The X.X in the normalization was from of and the of real for was lower XX% and in go in the spreads appreciation fourth the Brazilian

sales complexes highlights from to rose in In rate the capacity the the the fell In chain. the on by Brazil constraints X highlights $XXX on market the This a due at quarter, shipments. the recurring market, and first utilization XX%, due Brazil restocking operations. to serving quarter. resin the PP by on slide, covers in exports by demand EBITDA explained prior first strong XX% the line quarter million. quarter. export to a with go for In which next the local is the in of Brazilian X% or the of Let's petrochemical logistics PE the segment. in shows Brazilian operated fourth priority and Slide Meanwhile, was this trend context, the

to of remember the to the and the in the of provisioning differ the related related incurred in the the end from BRL short balance left be on estimates The the to first cannot term XX% the eliminate on costs is event the right It with Alagoas. Let's geological the the go The term. shows amount schedule and provisioned in long XX% possibility the next or geological chart future on quarter that to or registered to in billion. developments of total the of to their the could event expenses at Braskem slide topic of provisioned. the related important chart X.X Alagoas amounts around shows disbursement

Moving geological on, made event, the slide progress the fronts. but next still shows the work the on on

urban in measures. with urban actions on In topics. social XX. the are and of in Mutange number X progress Slope. April front the we are XX detailing relocated First, end index make its X of activities compensation defining progress XX of of focus working on the Until relocated we in areas, mobility, were group in of The XXXX, demolition to and with development And closing urban approved to of relocation work of social regarding the compensation, of continue and and wells. government and wells, of sand X XX,XXX progress proposal and mobility, the of monitoring the at we families reached with backfilling submitted of actions And discuss making financial which belonged for activities of by XX.X% and related of the XX.X% actions, progress last financial the and areas. acceptance on closing to them In on XX front mobility the compensation, cavities priority cavity municipality is XX.X% of districts proposals municipal on Braskem compensation to Maceió. submitted on on The Maceió relocation in high-risk of meetings Maceió. for and social compensation this on held

normalization next quarter, United plants to driven the points to in scheduled XX%, This points previous In States operations by increased X United slide normalization XX after a a presents operated percentage of a quarter, the our the operations operations the at shutdown. the local the due rate the of PP Europe, Let's scheduled the after the in slide, States the increasing of please. restarting utilization utilization In maintenance percentage of from Europe. quarter. supplier of rate the and following highlights the of maintenance shutdown turn fourth first production the

we of PP first quarter. quarter volume the In quarter segment first quarter. terms of recurring in XXX,XXX the sales was EBITDA tons, on was In up sold in The tons the Europe, the registered sales X% U.S. XXX,XXX million. the performance, in $XXX prior

in by sales, Mexico, Mexico. quarter the the next utilization there relation was recurring was the XX% in with line In quarter, fourth first production EBITDA at driven on, first levels on the in slide in rate was of the stable increase the healthy $XXX consumption Moving quarter. million. an quarter The highlights to the the XX%, the and In remaining shows inventory. fourth segment's of

and monetization company from on, the cash related tax Alagoas, presented continued Braskem million, the XXX consolidated the generation. million. impact geological XXX event quarter the the In coming a BRL EBITDA around consumption recurring next cash recurring of the of cash Moving to Including slide PIS/COFINS credits. of the with in in our BRL generated the first main quarter, the shows payments

the in onwards. on the XX maturing amount average coming around debt move and and months. X international slide, years, without Let's X first a facility liquidity position The maturing current of very position the next XXXX due This, next credit in and all debt the to maintaining in long covers to debt liquidity rotating Braskem please. in $X strong its billion, quarter, the profile the XXXX. most liabilities maturity of was term considering with

In talk the go Let's ending slide, Braskem quarter, credit in we line the quarters, will where in company's the the with remaining with to dynamics at ratio prior leverage next U.S. continued solid period about observed X.Xx. first metrics with the low in metrics. the to corporate present dollar credit

capital efficient committed We a are allocation. maintaining to very

discuss on slide, criteria. our policy adoption next agenda. the our have ESG the we one with Recently, ESG main we'll changes, of based On classification of the investment updated project

and sustainable ESG conducted the to will As support goals criteria globally seek the be assessment development selection involving and in the a company. of by investments our respective long-term and result, undertaken commitments

development will the impact income team. or periodically the evaluation consider updated costs relative benefit COX carbon potential by the be applicable, with any sustainable when with our pricing from will associated expense Additionally, additional emissions obtained

supply enables to new On a in Renewables EDF with a wind guarantees The the wind the of commitment in close Bahia reaching signed Braskem leader renewable energy. the of renewable of or of avoided together power the fifth duration XX over complex energy purchase slide, long-term the another southeastern in Braskem signed align contract and positioned contracts. state is has the construction combat years, climate with to X.X and following agreement megawatts X of Brazil, XXXX. the a for power Braskem COX XXX which period average tons agreement last Braskem million as years energy emissions to for of wind surpassed that This change, solar those

for reinforcing raw X circular Braskem of partnership the solutions of March a in emissions, for JVs the for as plan form sector goals to the and leadership and phase is essential producing provides industrial diversification, the X with packaging. In in MEG the global of on Corporation agreement is textiles in and the net between subject The first to the joint slide. technology. the XXXX, with plants. The Moving a PET, and of of implementation development biopolymers signed Sojitz next industrial carbon bio-MEG Braskem and cooperation making venture material investment, economy. geographic development to aligned in business together sustainable is such Sojitz in

lot beginning was by to volatility the we petrochemical In go slide, this brought XXXX scenario. the about please. slide, scenario. tensions, which The will to of geopolitical Let's the next of a petrochemical talk marked

a I see, Despite the that Ukraine. February. between can since the XXXX the Russia the of external is the like of would XXXX spreads beginning a to Ukraine level PE you form above for pre-war expectation war expectations for have and for volatility, naphtha the spreads of the already changed recurring the highlight at end external and on As consultants PE consultants naphtha-based Russia the the of at

feedstock of global to the has mention Braskem we important addition between Today, and to to these oil in profile the company due geographic addition, more natural gas. resilient In to market have feedstock and that sources decade, a become a implemented balance in it's strategy the has operation deposition last variations. that company a

next slide. the to Going

Braskem's Let's talk that for spreads profitability. impact the the expectations most about

quarters slide, at the also of XXXX. gas-based quarters $X,XXX are expected average, and spreads forecasts the pre-naphtha this at ton I PP the to previous current remain recent the As political other on above recent during for historical suffer, to slightly and remaining average year, only levels quarters consultants of context levels impact of External per mentioned to the in forecast remaining above above all spreads from spreads pointing historical such year. healthy this continue the

United in average, right we as to Regarding less observed the can that last consultants, historical slide. PP not the the close in than XXXX above States, in spread see relatively year. According remain on despite of should graph recent the but this also to spreads the just the external

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

is maintenance Sul the year. in the ethylene to scheduled in complex for decline production the For expectation do of Brazil, petrochemical due to second Grande at this quarter Rio shutdown the

better to expected demand is grow mainly volume sales in to Brazil. due resin However,

For better consultants and spreads. for and calling spreads, PVC external PP PE spreads lower are

the average. should However, United be last with historical volume in at recent lower line PVC quarter and States, spreads sales of previous levels remain production line with in should PE despite the and recent at above historical the expectation the should quarter the U.S. above propylene PP the and levels spreads In average. remain

production For then historical imports volume, recent supported of U.S., higher remaining should higher Mexico, spreads the from the average. this the should from widen the volume expectation but by above year, is PE sales ethane remain stable. for quarter first

industry. opportunity to in Braskem This shows investment global go an petrochemical how please. the the next remains Let's slide, slide interesting

First, on the compared consensus. market to at recent PX looking stock the growth

like see denominated world is of with be in renewables its Braskem this to for appreciation XXXX and of multiple, EBITDA makes we growth. price Braskem company, leader diversification, and construction the America. of also leader program million value studies $XXX of United import main terminal only in event the a annual in would the to feasibility its Based and We to of on new sustainable global potential on in the Braskem's serving each the SCG focus recurring all of capital geographic value fronts disciplined with like in increases States, ethane has Latin Thailand. remains geological reach and in our it all to Alagoas. have footprint. In for position discounted from our but would reinforce intensifying in Starting standpoint projects with advancing risks. On recycling, but share. is green our transform we jointly the Chemicals profiles, and continents, robust of its reducing a in in peers on goals on people, divided carbon not financial for governance sustainability, we to in Braskem's partner feedstocks reputation, goals is concrete risk clients our ethylene peers is Starting also accordance pillar strategy investing over and work important of highly remind biopolymers. We In a year. On focus strategic to of In expanding Braskem will the is will plant the the competitiveness, generation, gains for I'll Mexico a its large the and Slide a advancing part contributions development in on market, focused operating that in is part a relation main actions management not pegged remain and slide, only you strategy a by consistent also cost dollar. productivity go to revenues allocation. pillars. X and initiatives XX, healthy capturing will the in mitigate dollarized its profitability which Braskem also XXXX. with through related for I cash And this financial and diversification the with diversifying defining in or

BX. our for listing the will We to studies Novo advance in migration segment Mercado also potential of

which investment-grade Braskem talk as pillar with well actions Braskem's be performance. where to also would website, dividends and our visit first close of our share, information I of we distributing Invest, actions as episode other an today's invitation I was all created Lastly, allocation, like to such to to listen everyone conveniently to indicators, will the invite financial created Relations highlights as on recently and ESG maintaining about podcast, our we credit capital reliably of to in market. for returning perspectives value will for and our the the the by and pillars shareholders strategic in investors about Investor and today's presentations 'XX. Thanks, important conclude present new clearly, presentation analysis focused of to presentation first results of financial your company quarter Braskem's and We everyone, attention. rating.

Now to let's session. on Q&A the move

Operator

[Operator Instructions].

Levy comes Stanley. first Morgan Guilherme from question from Our Mr.

Guilherme Levy

also, working what's the question migration basis, My line second And changed Mercado. raw your that at Novo first question it The expectations point? ago. and to few between your this company materials. how is. has it is to I about would versus to naphtha stage ethane what relative potential wanted line today understand spread process very is year? the the time time and the at is this do the of than beginning a different months understand was My I your that the has your be at with with

your So that's spreads any wanted I increase of your investment? that potential a flexibility that point? this I if the cost what there's that? to what working in is study you're be your you're would -- looking understand wanted the understand Or of incentive at with Brazil. whether to And into to if possibility

Pedro Freitas

be potential studies themselves have something with our adjusted currently introduced to regard has they and we are Novo they in, that new moving accordance take not to currently also proposal its is and are that appropriate agreement about all, Novo are do of of These first rules. that meetings the new bylaws believe We that's a Mercado's Guilherme. we shareholders a because well, Mercado, Well, would part we set talking understand in discussing. what not about but Mercado. feasibility amongst to to Novo or with shareholders Braskem

that and Now shares much Novo then the our we to line. communicated time market to year sell about replicated can't was and which PN plan Mercado say last late The sell shares. those to they've our we to migrate

So of the the has of state within that PN concluded. market, not offering considering shares plan, the those been

So offering this we not at underway an have do point.

of regard half by we about the is running Also still Bahia that we in So prospect as of the fast-tracking my sort our strategy the have decade on and ethane our picked We to situation capacity availability of the up, have well. bylaws is of and would also that, like, ethane competitiveness and has that realm moved within of for ethane from look the prices did of a operations. of the diversifying raw forward, year increasing. Because and one our materials, share understanding of we and important June, the quarter with within the operate. its of strategy that expect also but ethane have of the this not a the over end where to time to stepping more Mexico, capture the export first I can of draft remember is it's for is With be of XX% diversification, naphtha had raw to XXX% we that have operate at very is where to blurry. need increase come the our Mexico in now what second say of scenario final clear We current to And thing say a only are already line. we studies our materials. shareholders. set stones operations higher, for competitive, the strategy In our those

strategy very ultimately our operations. to for end our the ultimately of profitabilities on flexibility the day, different that's raw where situations level adjustable where, with oil interesting us we a -- puts at a prices go, of regardless and have portfolio So diversification interesting market

topic be the spreads, of giving I'll on Now who to will turn you more Rosana over details.

Rosana Avolio

This it's you, to you, diversification. and suppliers. it Thank is not the geography involves question, pillar even address broader for feedstock, Pedro. the Yes. Thank Guilherme, strategic but only also

a at is profile, the of we is and higher gas PP can see our market, a the American we propane naphtha United when having feedstock When which the at look who's there's portion, quite look the producer in in important. So profitability we States.

when So broader, feedstock we expanding thinking plant something not are also the at green about we the look looking at but only diversification, of polyethylene.

important broader at a to it's always the with So prices products. in to look feedstock, important look It's way. also of combined our

we the expectation spreads external of As see expectation recent with presentation, above aligned sector consulting mentioned the averages. the that the firms of the is of should in company we historical

So weeks, last we we But an is prices. the the saw of increase international that the saw at in X price level. covered feedstock

towards the for the So dynamics for confident we very spread, the terms always the of 'XX in company. result but are confident fact, in we are results of of

Operator

with next Our BTG Pedro from question Pactual. Soares comes

Pedro Soares

question saw quarter. sharply only one working up consumption during quick this your about We very very go have your really I capital.

the at little the seen that quarter, a chart prices of and we've looking you second ultimately over especially stabilizing. So naphtha bit brought better the prices that shows development behaving

sense sense us what bit color you if to the about a guys for a rest imagine could would year of in guys as to level. healthier as that you I add to on And So little any in you consumption the QX like starting for it a decreased well? expect whether talk makes

Pedro Freitas

explained our least working trends. can different Well, at performance be X Pedro. capital by

up QX. trend, would sales be of in first The volume them went which our

level, higher So higher suggests consumption. in with profitability a you level a hike see a price which

be is preparation is which despite in trend shutdowns price We capital raise in sense. a in our that shutdown the the would levels led increase decrease investments always in Triunfo, in market, production. our to those our working before underway. second went which already the up, our operational in maintenance level ultimately And the levels higher for which the inventory in trend the third inventories, feedstock with international maintain The especially to

opposite directions. have Now we effects on with what's X going in currently,

In March, and a $XXX now all, barrel oil First at prices are barrel. a $XXX to March, prices with of came lower compared bit a now. it's

if So inventories our perspective levels, at now, is prices least are adjusted. receivable both right our at accounts for our expected be remain to and its current

above Foreign this exchange point. currently a X at reals It's to is higher. USD bit Brazilian

very So will reversed. forecast levels precise to working difficult capital as our it's for whether to us have be a

remain is year levels, With our do the not inventories levels. level stay more believe way. in Brazil probably the the maintenance the But considering current substantial Rosana the rates, more difficult go need the there foreign regular reversal in current any exchange the level, to international inject believe to if should to are capital. predict. because for If reference, inventories any they over But which has of after and know I don't prices with to working I with in anything their back shutdown, that that capital could reals at the we we same come us of decrease course add.

Rosana Avolio

this think Pedro. I it, is

Operator

Our comes from BBI. from question Falanga next Bradesco Vicente

Vicente Falanga

two questions. had I also Well,

You mechanical policy And is would you announced that in my to question I by And as believe one cash that at on much make second what anything that considering depend tons to believe billion on a of sharing I to front? your were And chemical do maybe of your that point, guys believe the guys how much do target dividend was, share reach recycling. this you change How flow. X allow -- would connection have recycling? guys XXXX? the clearer you you

If great. you be to that add sense, in anything guys have that would

Pedro Freitas

great Well, X to targets. you. from in we hear recycling, Vicente, have

have brings the by of capacity the target X million. Braskem's tons, the plastic Currently, all is AV X.X of recycling then reducing tons, considering from XX our XXXX and not of without recyclable anti-AV, about products, reducing that product We recycling Braskem's target XXXX plastic recycling and and by or environment XX another million have tons sales XXX by necessarily by by billion we XXXX the million.

XXXX target. halfway toward the So it sort would be of

are it's we we they or -- capacity to technology, the at that is in we announcement this how believe may And speed can a different which be proprietary areas be we this or different planet. look market. technology bring grow and a in countries we this when to used our believe, which company, fast scalable up Now joining of what

years, So expect plants new In if something it or few pass, which have produce resin, comes civil next does construction to that recycling adopting this product very we growth also ready-to-use to actually transportation. not in it. deploying over and that, about the technology, a both has but a interesting in pellets for

used So these can that are specific. products be not that globally. They're

we will adopt this technology only we we platform believe use as grow. in this and but grow Braskem another places a not several others, growth So have, to to in for that can it is Among platform obviously, become recycling. platform different the

a model a specific with scalable different So technology. business completely it's

of all will interesting, -- So into which play. very come these are elements,

You In also technologies. that chemical about is recycling. asked sense, still at Braskem different looking

enough to few that's mature a point at but underway, disclose. nothing have this We projects

a plan development a we them and Some feasible others, works. and business are technological for still of at that's stage are looking that

a us number that's enough So at at tests, a running stage -- this advanced but that's enough nothing for point, to of announce.

Vicente Falanga

Pedro. Perfect, Okay.

-- could comment about another on? question other dividends, guys you Now there anything your is my

Pedro Freitas

Yes, of course. Rosana?

Rosana Avolio

a level of And to the value to creates XX% a policy, the the that amount dividend lot one investment of our to cap, that of keep legislation, cyclic. also very we company. important income. established net company is minimum relation a Yes. established according our have our in to defines we It's applicable

and the cash X level, to but have studying also Maybe for have establish, come are discussions we're still And -- have policy we the that and the should model impact are announced consensus to to that close linked based cash the of we well-equated avenues try dividend market. company competitive minimal cap reinforcing, also dollarized that we corporate are advantage an are considering capital in want considers debt a established to we to we in metric we already investments And We in a we the a and distribution the to that will considering have growth we on we allocation. have recycling incipient. efficient that understand we to the generation, have in the cyclic. make difficult considering been of last the are and the in What So we of where discussing fronts, and medium term. it. going net a according and are income leverage generation or your it's a terms value more to The And company we question going a have value company the good renewables to that to return -- was year especially the we are yes, shareholders. we sector, going we a return example to shareholders. to balance to

Operator

Our Carvalho comes Luiz with UBS from Investment next question Bank.

Luiz Carvalho

shares how the represent in if believe longer the that partnership? of answering maybe tag trend I go that partnership you have it does to -- were in you exist, that your case. three back will that question. the price the questions. We no And understand to of production does what could mentioned the first terms if along I wanted just

that you about year lot of sense? If And spread could discussing a the been the the add issue. we in have color the since beginning more second,

rates. how As prices there have obviously, like petrochemical of understand might both significantly prices. Brazil adjustments you heard could a passing prices and on looking mentioned, or are tax Mexico. lot be those in that guys question, products because enter rise changes, the you gone you list end regulatory I'd potential -- going for of the We feedstock you could And up lower at also in seeing along challenges in increased China, And of are prices talk comment third to week. guys as guys if with transportation. the in what oil your the a consumers? could ticket We products see to on this And

you in ways. We the from hear several wanted that in import what that also I on guys you could heard sensing are that be affected issue to front.

Pedro Freitas

And for whether their know supply, you shareholders. our to think of don't do Novo us share with decision to terms our Mercado, be something should should regard question thank in affect them we we prices of I regard to I Luiz, your question. with that to moving have you asked you because with What that's how works. decision-making think We be was Look, something saw really but Mercado, that that process not asked Mercado. Novo Novo information. asking that

policies to we performed of prices trend. continue how the our international costs, oil Now the to along price as passing in have base on

industry resins follow with following commodities the would the prices seeing chemical are have, and basic the marginal producers. be Asian And we price that of producer we with the prices. ultimately considering we the today, the and And benchmark So trend products sell international the still trends. with margins as deal

could always the record or final do at weeks have were So the prices. if consequence. ultimately the that that span for that a could our at place producer several we not see it prices the past from that or X at feedstock affect prices, not in along that We will so example historical looking X of could to occurs. the years, a passed looking historical but months will transfer come or increase, trend as to And be prices very it any transfer prices that a about, take few take marginally looking records to quickly the

adjustment will passed -- take that the Maybe product, So those we that transferred. place the transfer those we us We've to way is tells mostly, to structural expect that of or prices industry occur, be some the some along. prices across products. most our still another we expect seen but already structured be of believe one

discussed. the and you Now with regard rates REIQ import still mentioned to are that being

a Brazilian I think about to made Congress year, important remember that already REIQ. it's decision last had

in of at had adjustments those a but adjustment IT people in heard but Congress to tariffs. those that the make a as of term is -- wouldn't recent map some that from ultimately, far few those the products contact staple adjustments general sense, tariffs, Congress we the import few out. in with, over in as will but products, prices weeks. maybe changes with and goods not There something assembly. And what work expect in on did some we were products that's least change very for decision capital new and short goods next been that's none has So days, hear course -- There staple and could senators to the a in we've some people Braskem's a products make the affect we

take Of country time did place But not the all any course, the business our case, globe. way. in every around major in in this changes regulatory those changes affect

Mexico, a is deficit this to as market. Now

So us or in affect way. rates will in any change import some tariffs

changes regulations, direct be prices, there but change Mexico's for not which us, what in might way. us case in were any gas if that we affect are So saw in really any in did positive they even

Operator

Our question next with comes Barra Citibank. from Gabriel

Gabriel Barra

just I issue. the wanted touch investment to on

back import looked strategy value And I look partner your those talk What investment partner value, to to terms little would little recycling since were what to a your for in my for. How let's idea the strategic there? your question some exist. that invest a I think say, answer Give been a And would a terminal. to be terminal. in return returns do guys in of made in of JV? Mexico, expect it's add sort decision investments? of like? that understand looking That's going a as wanted is much to work while you've lot that how bit if for And be you by Braskem itself? mind, if Would With would bit about us no we're the could within there on partner doesn't the think terms I your you -- considering it any you changed structures. that side Mexico

Pedro Freitas

have of Braskem's historically, with in terms is investments of tools even what robust most using least analysis. we and sometimes at especially ones, of scenario a ultimately process rate range and our larger that. record that to have, Gabriel. investments, make investment, higher when analysis It where very different that of Well, a than XX%. are The over rates the return larger a we

investment. about that's we the a to see decision-making that lower level level return It's growth So lead these domestic ethane projects process than with in bit ultimately also our that and in, little in for renewables recycling. and green still of

I looking models all returns. will business think that still but generate only in for not are higher the players business us

at projects even and partnership not investment first, recycling will have we the But the returns the renewables bring Netherlands business, in I to expect and capital We on reach this investment. that our not mentioned. all interesting all mean, level develop I

So of this not in necessarily out a ultimately generate paying are that but characteristic enjoyed, we is that a turns. feature investments ours, the beginning, high rate

ultimately Bear dollars. are So in mind investments the regular to rates. always our in U.S. the made interesting lead process company return that very for

at denominated about So XX% least U.S. we dollars. in talking are

our Now about Mexico. in partner

stage decision-making. be. We our was even our advanced yesterday Board who will partner our of a are of Directors in informed at very And

process should have our Mexican selection I to say the can the essentially is It in think be So determined that, approval Braskem I Mexico. to the stamp coming weeks and that the the of partnership announced over we needs still market concluded. approve essentially side is once ultimate but

Rosana Avolio

Bradesco new and to messages some is the read within could questions the what in if to There there's in Eduardo on And webcast. a scenario? leverage color if available important we debt term? are received net from cyclic the provide additional I'm global options the in our the phases we in Pedro, Security. question targets, changes the Portuguese. the going keep with on any long here some the He asks

Pedro Freitas

remind you. that thank investment grade Thank just a as you, And I to wanted keeping to Braskem. Eduardo. its priority everyone

so in leverage focus determined that are our with -- well, investment We our to seek Moody's us. that's maintain even mind, guidance. And working with major within levels want as to grade we for receiving in what's a

an declining little that's cycles of a we So the even average higher. X.Xx. bit ratio leverage leverage understand may we And that have

de-leveraging that's we before. a plan, credit yes, As a not -- to agreed seat But long have downgraded. we agreement situation entered clear have we an focus found rating be we And us. with those as agencies for our main

under Our is leverage this control at point.

our EBITDA it's last maintain results, extraordinary net last a It if or result as we likely compared below as ratio. capital. what year. had X.Xx and that is view look and within of potential remain Xx to consensus to at year. because debt-to-EBITDA go We comfortably this the level little that is and had Braskem's and be same would a to year. how our terms leverage performed still up our net bit Our do not expect in decrease, But our that Despite you even we market prospects we'll have of we

adjustment So in we that's think there's And concern about for are that or when no that it. an adjustment. any that expect shape to we have, and we cycle form about prepared

to deteriorates I'd we remind a exposure place that policy than Braskem -- have near scenario in so very even even you has in more expect, the if be So, to little like the -- to very term.

about X So X or $XXX $XXX million. is our years in maturing of to next debt million the

So And its we is net XXXX. reducing the de-leveraged that of debt. have company, really most since long-term debt

have an or years for XX average our maturity We gross debt of our debt.

do And situations not of risk past our plans terms in the were see flow done in some to market. liquidity. any So we facing international deterioration when and preserve cash in our major preserve what we we've were the in crisis

investments not cancel revise were, but do the value the that So to that's would add sense, for examples we that had in or to our we past ultimately investment in want to you do because portfolio, company. example, of initiatives something review

be in selling as to we receivables. alternative that an Now such have markets some operations the would

are in So these things we've the past. done

would to way, have could take extreme more change capital sell some some working our measure. in management a we or we potentially So asset

in a company we very that of a at to any unexpected number an comfortable situation So place comfortable initiatives is type even there's take at of a a the -- in look face very I such of could nature. deterioration. if we believe scenario

Rosana Avolio

for has questions going Thomas with. relation I'm Mexico's He There's another read the to question in says question. that it here, Thomas, to he some operation.

of this the Thomas especially considering it And share, be for of will the strategy considering in to he the The Mexico finished will is? also received? asks guidance we context is going feedstock. be be additional reducing by first naphtha received us expansion relation in that an mentions the those plant, importation to to provide since dividends dividends diversifying is, in XXXX when to terminal have are capacity the given our And ethane? And Braskem corporate that

Pedro Freitas

of possibility think is mind. Well, internationally. our Thomas, diversify Mexico feedstock that I expansion questions. built yes, strategy one to and for in the grow in thank is our for already with which ready plays It is you expansion. expanding Mexican plant really your something The was and into

availability. So feedstock once terminal we is the open, have that

seek invest have After the as do so. in to would try the expansion. would expand competitive performance a we enable there So do we expansion in very to for but that already prepared this there, seeing is At sense to will proved, such point, make not is approval expansion. it to an probably way, terminal's we asset perfect

$XX million in million dividends to its year, were -- within Last structure. allowed considering shareholders. those there's there's Idesa its pay paying bonds that paying issued December. financial in a about dividends, were plus bonus year year to and of already structure already commitments in paid the Now and Mexico. it Idesa, Idesa, to dividends $XX million about Braskem within to the -- $XX the capital by pay especially has its a That's end of already Braskem some the Braskem room at

this And difficult So pay Idesa when that Braskem to those we for will us month on cash Idesa's specific we a at Braskem to it's year, situation. look expect depend do set dividends.

But is dividends payments been announced. to to be think plan dividend to partner that once announced. -- can we announced engineering I those the Idesa. value terminal outline I also that we the the and focus primarily to those expect terms the terms can think terminal, the have Braskem dividends the we for outlined, after to and bring probably with financing conclude And financing the expect be the

Operator

I'd are our we to Roberto his time, remarks. to like this conference Instructions].At final over [Operator turn the Q&A session. concluding for

Roberto Simoes

important considering We've billion, add talked with with results. our a scenario company's implemented about XXXX. average Good committed remarks healthy healthy of share historical us morning, scenario expecting. only our areas. in very year, other with very adjusted I'd BRL And tensions In this strategy ethane. feedstock the like that XXXX, earnings everything diversification with BRL despite of everyone keeping I'd a and was before, you that clearly, to conference offset May profit reduced that everyone. And America, much you. X net line shareholders. million confident that to also that by in stress was flow year Germany about that's recent X.XX cash to the Mexico to this capital than feedstock, results possible those in the to the year's be the shared a some expecting or external that added like I can naphtha to have early higher quarter we was spreads in distinguished those show think we we healthy. reliance also higher strategy make can was in even years were also BRL ago. the the also, much very in XXX we being the good with our because use paid And see in that also very States, joining to remain thank -- with United paid And challenges of diversification much over December operations our XXXX our which able results, for spreads what that Brazil, to on XX allocation, prioritizing are by stress returns we're industry X.XX political another we of in And South of mitigate It's the our very that's we still could up company's have and with is the the that of consultants billion dividends This XX.X% markets. always may operations

very us, see announce you will joining again results. and in be when earnings Thank August So for then. and much, we again, thank once QX should we you you our together

Operator

day. everyone, great Thank has Braskem's a earnings have you, and now joining for conference concluded. us,

Braskem (BAK) 12 May 222022 Q1 Earnings call transcript