Braskem's Q1 2025: Navigating Contradictions in Trade War Impact, Financial Liabilities, and Investment Strategy

U.S.-China trade war impact, feedstock diversification and cost management, Alagoas liabilities and debt management, dividend strategy and cash generation, CapEx and investment strategy are the key contradictions discussed in Braskem's latest 2025Q1 earnings call.



Financial Performance Enhancement:
- Braskem reported a recurring EBITDA of $224 million for Q1 2025, 121% higher compared to the previous quarter.
- The improvement was driven by increased spreads of polyethylene and chemicals on the international market and greater sales in foreign markets.

Production and Inventory Management:
- The petrochemical plants in Brazil showed an increased average utilization rate, with a 101% increase in segment recurring EBITDA compared to the previous quarter.
- This was due to effective inventory management and reduced fixed costs, specific to the gas-based plant in Rio De Janeiro.

Green Initiatives and Capacity Expansion:
- The company increased its green ethylene capacity by 15,000 tons per year, exceeding initial forecasts, and achieved 10% higher utilization rates.
- This was possible due to operational normalization and enhanced production efficiency in the green ethylene segment.

Ethane Supply and Terminal Expansion:
- The introduction of the ethane import terminal in Mexico increased supply, contributing to a 5% lower volume of polyethylene sold compared to the previous quarter.
- The terminal's capacity ensures full operational stability and supports future production expansion.