Braskem’s operational and financial performance showed strong positive evolution in the third quarter against the previous period, signaling the return of the levels of demand for petrochemical products in the domestic market before the onset of the global financial crisis. As main evidence of this evolution, the company’s Ebitda (earnings before interests, taxes, depreciation and amortization) grew by 48% compared to the previous quarter, totaling R$ 838 million. The Ebitda margin reached 20.7%, representing an extraordinary result for the quarter and a challenge to be beaten in the coming periods.

The demand of the Brazilian resin market increased by 9% in the third quarter in relation to the 2nd quarter of 2009. Braskem, in turn, showed increase of 10% in the domestic sales, with highlight on the volumes sold of polypropylene and PVC, which rose by 15% and 17% respectively. With a PP sales volume in the domestic market of 202 thousand tons, the company beat the sales record for this resin in one quarter. The growth of the demand was sustained by high occupancy rates of capacity, which remained at about 97% in average in the ethene crackers and reached 98% in the polypropylene units, surpassing historical records in several of its plants. The profitability of aromatics was higher than expected.

"Braskem showed agility in the adjustment of production and stocks during the crisis period, and also responded to opportunities for quick recovery of the domestic and international market, supporting its Customers and the Value Chain. In a year that began full of challenges, the company's accrued Ebitda already reaches almost US$ 1 billion", says Bernardo Gradin, president of Braskem. "The excellent recovery of domestic demand contributed toward this overcoming, including a scenario of international prices of basic resins and petrochemicals higher than expected and the personal investment of the entire team in approaching the Customer and optimization of productivity and operational efficiency", adds Gradin.

Due to the acceleration of the domestic demand, Braskem prioritized its sales efforts to supply the domestic market and reduced the volume of resins destined
for exportation. Even thus, the rise in the prices of basic resins and petrochemicals in the international market, followed by higher volumes in the second case, led to an income of US$ 579 million with exports in the third quarter, 7% greater than in the previous quarter. In the amount accrued over nine months, the exports totaled US$ 1.5 billion, 20% less than in an equal period in 2008.

Braskem’s net income in the 3rd quarter of 2009 was R$ 4.0 billion, 10% higher than the income recorded in the previous quarter, or US$ 2.2 billion, with growth of 22% in North-American currency. It was the third consecutive quarter with increase in this indicator. From January to September 2009, the net income reached R$ 11 billion, or US$ 5.4 billion.

Braskem recorded a net profit of R$ 645 million in the 3rd quarter and R$ 1.8 billion in the accrued total of the first nine months of the year, R$ 2.1 billion above that recorded in the first nine months of 2008, positively impacted by the exchange variation on the balance of the debt in dollar. The best operational results, reflected especially on the growth of the Ebitda
margin, and the positive impact of the exchange variation, with appreciation of the real [Brazilian currency] by 9% in the third quarter, contributed toward this important improvement in the net result.

In the closing of the 3rd quarter of 2009, Braskem maintained R$ 3.2 billion in cash balance and applications, which is compatible with the company’s goal of maintaining its strategic and financial flexibility. The net debt was reduced by 9% compared to the 30th of June, to R$ 6.7 billion, as result of the loss in value of the dollar in the period, and had an average term of 9.8 years. The financial leverage, measured by the net debt/Ebitda indicator of the last 12 months, also reduced from 3.16 times to 2.74 times, when measured in reais.

"The moment of the industry continues to demand caution and austerity to overcome the challenges of the low cycle that is announced for 2010 and 2011. In this wise, Braskem remains committed to sustainable generation of results for its Stockholders, with satisfaction of its Customers and competitiveness of the chain, and determined in its strategy to seek growth opportunities that enable increasing profitability through access to competitive raw material and the more attractive consumer market", Gradin concludes.