MOSCOW (MRC) -- Braskem, the largest petrochemical producer in the Americas and the world's leading biopolymers producer, closed 2018 with record-high cash flow of RD7.1 billion, which is 187% higher than in the previous year, said Marketscreener.
The result was supported by the positive variation in operating working capital, the depreciation in the Brazilian real against the U.S. dollar, the lower tax expenses abroad and the lower interest expenses. Net sales revenue also grew in the period, by 18% on the prior-year period, from R$49.3 billion in 2017 to RD58 billion in 2018. Braskem's EBITDA fell 8%, from RD12.3 billion to RD11.3 billion in 2018. The company posted net income of RD2.87 billion in the year, down 30% on the net income reported in 2017, of RD4.1 billion. The Company's Management is proposing to the Annual Shareholders' Meeting to be held on April 16th, 2019 the distribution of dividends in the amount of RD2.670 million for fiscal year 2018, equivalent to 100% of the net income attributable to shareholders.
'We demonstrated solidity and resilience and delivered consistent results in a year marked by narrowing international spreads in our industry and in which we had to deal with various non-recurring events that adversely affected our operations around the world: the truck drivers' strike in Brazil, the severe winter in the United States, the instability in feedstock supply in certain markets caused, for example, by the low level of the Rhine River in Europe and the incident at the chlor-alkali plant in Alagoas,' explained Fernando Musa, Braskem CEO. 'We are ready to surmount the challenges of the world economy,' he added.
The operating and commercial highlights of 2018 include the higher resin demand (polyethylene, polypropylene and PVC) in Brazil of 5.2 million tons, up 2.4% from 2017, which is explained by stronger economic growth spurred by demand from the agrochemical, cosmetics, pharmaceutical and food packaging industries. In this scenario, the highlight was the PVC market, which grew 1.4% after four straight years of contraction.
Braskem's crackers in Brazil operated at a capacity utilization rate of 91% in 2018, down 3 p.p. from 2017, mainly due to the truck drivers' strike and the plant outages in the Northeast at the start of the year. In this scenario, resin sales came to 3.4 million tons, down 2% from 2017, while sales of key chemicals increased 1% to 2.9 million tons. In 2018, resin exports were 1.3 million tons and exports of key chemicals were 571,000 tons, down 14% and 31% from 2017, respectively. In the year, the units in Brazil and exports posted EBITDA of USD1.96 billion (RD6.98 billion), which represents 61% of the Company's consolidated EBITDA from all segments.
In the United States, PP demand grew 3.1% compared to 2017, with the highlight the caps and oriented films segments, which are widely used in food packaging. In the European market, PP demand decreased compared to 2017, accompanying the region's weak economic performance, especially in countries such as Germany and Italy. Braskem's plants in the United States and Europe operated at a capacity utilization rate of 87%, down 11 p.p. from 2017, mainly due to the plant outages in the United States, the scheduled shutdown of the unit in Oyster Creek, Texas for 50 days and the inbound logistics constraints on propylene supply to the plants in Europe explained by low river levels. Polypropylene sales decreased 9% compared to 2017, to 1.9 million tons. In the year, the units in the United States and Europe posted EBITDA of USD608 million (R$2.208 billion), representing 19% of the Company's consolidated EBITDA.
In Mexico, the polyethylene (PE) plants operated at an average capacity utilization rate of 77%, down 11 p.p. from 2017, due to the lower supply of ethane in the period and the scheduled shutdown conducted in May. As a result, PE sales decreased 18% from 2017, to 799,000 tons, 67% of which was sold in Mexico's domestic market. In the year, the Mexico unit posted EBITDA of USD617 million (RD2.251 billion), representing 20% of the Company's consolidated EBITDA.
MRC