Braskem's EBITDA reached R$1.3 billion (US$294 million) in the first quarter of 2020, growing 32% on the same quarter last year. The operation in Brazil posted EBITDA of R$1.05 billion, which was 214% higher than in 4Q19. Braskem's net revenue was R$12.6 billion, virtually stable sequentially. The results in the period are basically explained by the higher sales volume of resins in the Brazilian market, polypropylene (PP) in the U.S. and European markets and polyethylene (PE) in Mexico, and by the reduction in selling, general and administrative expenses.
"Braskem continues to focus on disciplined capital allocation to preserve its robust cash position for weathering the global crisis. And we are implementing these measures while still prioritizing the health and safety of our people, which is a nonnegotiable value for us," said CEO Roberto Simões.
The overall reportable and lost-time injury frequency rate in the quarter was 0.81 (events/million hours worked), which is 74% below the industry average.
In the quarter, the Company reported a net loss of R$3.65 billion, which mainly reflects the effects from exchange variation on the net financial result given the depreciation in the Brazilian real and Mexican peso against the U.S. dollar over the quarter.
In May, the U.S. Department of Justice (DoJ) and the U.S. Securities and Exchange Commission (SEC) confirmed the conclusion of the independent monitorship at Braskem established in the agreements signed in 2016. The decision of the DoJ and SEC was based on a final report by the independent monitors that attested to the implementation, by the Company, of all recommendations for structuring and executing its compliance program, concluding that the standards established in the agreements were met. With the conclusion of the independent monitorship and the certification by Brazil's Federal Prosecution Office (MPF), Braskem has effectively fulfilled its obligations under the agreements.
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