Braskem profit soars as US$5.2bn Mexico project nears completion
Brazilian petrochemical producer Braskem reported a 545% year-on-year rise in third-quarter earnings, boosted by a strong dollar and lower crude oil prices, the company said on Thursday.
Net income reached 1.48bn reais (US$391mn) in July-September and 2.74bn reais in the first three quarters of the year, the São Paulo-based firm said in an earnings release.
Braskem cited rising global demand and the adoption of hedge accounting to limit the impact of dollar-denominated liabilities for the improved performance.
"The dynamics of the international market and the new foreign exchange level were favorable in 3Q15 and once again supported stronger sales in the overseas market," the company said.
MEXICO'S ETILENO XXI
Braskem said it is on track to invest US$2bn this year, having already outlaid 1.358mn reais in January-September.
Around 1.12bn reais will be poured into its flagship North American project – the US$5.2bn Etileno XXI complex in Mexico, which is due to be completed next month.
The joint venture with Mexican industrial conglomerate Idesa will produce up to 1.05Mt of polyethylene a year.
Braskem said it already has around 340 clients for chemicals produced at the facility.
The consortium is finalizing "negotiations with export channels and logistics service providers to start sales of local production in 1Q16," the company said.
LAVA JATO
Braskem is voluntarily communicating with securities regulators about the progress of Brazil's Lava Jato probe into alleged corruption, according to the release.
Investigators have accused Braskem of making illicit payments to obtain cheaper raw materials from state-run oil firm Petrobras.
"To the best of its knowledge, Braskem is not a defendant in any criminal or civil lawsuit in Brazil with regard to such claims," the company said.
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