Braskem sees a fall in profits in Q2-2010

16-Aug-10

Braskem has witnessed halving of its profits in Q2-2010 due to the positive impact the Brazilian real's appreciation had against the US dollar on last year's results. The Brazilian petrochemical company’s Q2-2010 profit fell from R$1.1 bln in Q2-2009 to R$45 mln, while Q2 net revenue rose to R$6.5 bln from R$3.6 bln. Ebitda rose 43%, to R$1.040 bln from R$566 mln, while the Ebitda margin rose to 16% from 15.3%. The company posted a R$78 mln loss in H1-2010 against a R$1.1 bln profit in H1-2009. Neet income tumbled 96% in Q2 because of a surge in financial expenses. Despite a surge of 77 percent in net revenue fueled by higher resin prices, Braskem's debt-servicing swelled after the company paid off some tax and other liabilities.The difference between income from financial operations and financial expenses including debt servicing yielded a shortfall of R$575 mln, compared with a surplus of R$1.2 billion a year earlier. Results included the acquisition of the control of Quattor and of Sunoco’s chemicals business.