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| Statement |
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| As you said, Luiz, what do we see in the short term? We saw that the spreads have been improving better than the industry was expecting |
| What we're going to see is better spreads in 2024, better than 2023 directing to normalization after a low cycle and for the future, better spreads back again based on fewer offers because we understand that the world is going to continue growing |
| Measures to reduce costs and increase productivity will continue to be part of the company's day-to-day operations with a potential positive contribution of approximately $80 million through new initiatives |
| For green polyethylene, the expectation is also positive, both in the operation rate and in sales volume due to the resumption of supply of the raw materials and the consolidation of the increase in production after the expansion project, reflecting a higher sales volume |
| So, we see opportunities for the company to have higher sales volume |
| It's worth noting that this is the highest annual utilization rate in Mexico in the last five years |
| in the next quarter and in 2024, the outlook for Brazil segment is positive, with an increase in utilization rate due to the resumption of operating levels after scheduled shutdowns in 2023 and the expectation of an increase in sales volume, especially in the Brazilian market |
| In 2023, on the resilience and financial health front, the implementation of the MAP to corporate initiatives positively impacted EBITDA by $290 million and cash generation by $525 million |
| For the year 2024, the outlook is positive in all indicators |
| That means that we are confident with the industry |
| For the year '24, we are confident that the petrochemical cycle is starting to normalize |
| Therefore, in 2023, the implementation of resilience initiatives positively impacted EBITDA by about $319 million and cash generation by about $525 million |
| And in relation to 2021, the main effects that we saw in our results and we reached the record results for our company |
| And lastly, we've been walking the spreads using the CNA and in fact, there was an improvement now in Q1, but the outlook is still for a drop so the recovery is looking to be improved by 2025 |
| In the year, the performance of the industrial decarbonization program was positive totaling 80 initiatives predicted in the road map for 2030 |
| We are confident that we are going to normalize the cycle |
| The company continues to have a robust liquidity position, ending the year with $3.6 billion in cash, an amount sufficient to cover debt maturities over the next seven years |
| So, in the first quarter in relation to petrochemical spreads, we saw better spreads than expected |
| I hope you're doing well |
| On the other hand, greater commercial opportunities for polyethylene and polypropylene in South America increased the volume of the company's export |
| Throughout 2024, we will reinforce this performance with initiatives such as strengthening the commercial strategy with the prioritization of higher value-added sales |
| Finally, based on our pillars, avenues and foundations, we continue to balance capital allocation with the creation of shareholder value and the generation of positive impact for all stakeholders |
| The company's robust liquidity level is sufficient to cover its obligation for the next seven years |
| In Mexico, Q4 2023 was marked by the recovery of production levels after the unscheduled shutdown in the third quarter of 2023, with an increase in the utilization rate by 18 percentage points when compared to the third quarter of 2023 |
| As a result, the segment recurring EBITDA in Q4 was $123 million, an increase of 7% from the prior quarter, representing 52% of the company's consolidated EBITDA for the quarter |
| Finally, it's important to note that Braskem is committed to the company's resilience and financial health |
| Let's say, it gives us that place of comfort |
| In the fourth quarter, recurring EBITDA was $87 million, 45% higher than the third quarter of 2023 and representing 37% of the company's consolidated recurring EBITDA in dollars in the quarter |
| It was a year with a strong imbalance between supply and demand |
| With regard to sales in the last quarter, volume increased by 17%, mainly due to higher seasonal demand supported by the availability of inventory built after the capacity expansion |
| Statement |
|---|
| In the Brazilian market, the sales volume of resins was 11% lower than that in the previous quarter, mainly explained by the strategy of prioritizing higher value-added sales and the seasonality of the period |
| In 2023, the imbalance between global supply and demand caused by the addition of new polyethylene and polypropylene capacity, in the United States and China associated with the lower global consumption resulted in international spreads reaching their historic lows throughout the year, pressuring the profitability of the global chemical and petrochemical industry |
| On the other hand, sales volume decreased by 6% compared to the third quarter |
| This is a combination of a lot of focus, discipline and resiliency in our operations, but also our concern with maintaining our growth strategy |
| Regarding operational highlights, the global accident frequency rate decreased by 2% when compared to the previous quarter ended the year with a rate of 1.08 events per million hours worked, a result below the industry average |
| First, I want to say that the year 2023, as you've seen, was -- you were all there with us was a difficult year |
| The utilization rate of Brazilian petrochemical plants in the fourth quarter was 66%, 2 percentage points lower than the third quarter, mainly due to the scheduled shutdown at the Brazilian petrochemical plant |
| And starting in April or May, we saw a worsening of that situation |
| It's a year where global consumption did not recover at the speed that it could have |
| And considering the scenario, we saw that the spreads had been suppressed in a very important way, reaching historic lows |
| it has grown less than expected when all the capacities were put into play |
| Regarding consolidated cash flow, Braskem presented the recurring cash consumption of approximately BRL1.9 billion, mainly explained by the 64% reduction in recurring EBITDA compared to 2022 due to the global industry's downturn |
| in relation to the agencies, Fitch rating and S&P rating downgraded Braskem's rating to BB+ |
| And as a result, there was a drop-in spread |
| What we have seen that there has been some deviation |
| Furthermore, in spite of those challenges that we faced, we did not falter and we continue to implement our growth strategy |
| The production of green ethylene was impacted by restrictions in the supply of ethanol in December due to the weather conditions in the region of the petrochemical complex of Rio Grande do Sul |
| And since we are in a low cycle, and we are operating under low rates |
| The company recorded a loss of approximately $935 million in 2023 with a recurring cash consumption, excluding payments related to Alagoas of $375 million in the year |
| What we saw last year was something lower than the average cycle |
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