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Braskem SA 6-K 2010
bakpr2q10_6ka.htm - Provided by MZ Technologies
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 6-K/A
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16
OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of August, 2010

(Commission File No. 1-14862 )

 

 
BRASKEM S.A.
(Exact Name as Specified in its Charter)
 
N/A
(Translation of registrant's name into English)
 


Rua Eteno, 1561, Polo Petroquimico de Camacari
Camacari, Bahia - CEP 42810-000 Brazil
(Address of principal executive offices)



Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___       Form 40-F ______

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1). _____

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7). _____

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ______       No ___X___

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _____.


 


EBITDA grows 17% to R$1.04 billion in 2Q10

Quattor EBITDA doubles and reaches R$214 million with a 15% margin

São Paulo, August 10, 2010 --- BRASKEM S.A. (BM&FBOVESPA: BRKM3, BRKM5 and BRKM6; NYSE: BAK; LATIBEX: XBRK), the leading thermoplastic resin producer in the Americas, announces today its results for the second quarter of 2010 (2Q10).

With the acquisition of the control of Quattor Participações SA (“Quattor”) and Sunoco Chemicals in April 2010, this release is based on pro-forma consolidated information that includes 100% of the results from these new assets for all periods stated. In accordance with CVM Instruction 247, these figures consider the proportional consolidation of the interest in Cetrel S.A. - Empresa de Proteção Ambiental. The quarterly information was reviewed by independent external auditors, with the exception of Braskem America (the former Sunoco Chemicals) in 2009 and 1Q10.

On June 30, 2010, the Brazilian real/U.S. dollar exchange rate was R$1.8015/US$1.00.

According to Braskem CEO Bernardo Gradin:

"With each passing quarter, Brazil has demonstrated the capacity to grow its economy, which has kept resin demand at high levels. This scenario helped Braskem’s strong performance, in particular the recovery in the Quattor operations, as a consequence of the company’s new administration initiatives, aiming always at better serving the Brazilian market. In this second quarter we began to reap the gains from the Quattor merger, which presents opportunities to capture synergies estimated at R$ 400 million in annual and recurring EBITDA as of 2012, confirming the acquisition's potential for value accretion. The scenario of the economy and international petrochemical industry require attention, whether due to the deterioration of the crisis in developed countries or the slight slowdown in the Chinese economy, which could cause downward pressure on demand for commodities in the international market, or due to the new resin or petrochemical production capacity coming online."

1. HIGHLIGHTS:

1.1 Braskem’s pro-forma consolidated EBITDA1, including Quattor and Braskem America (former Sunoco Chemicals), reaches R$3.8 billion in the last 12 months:

Braskem’s pro-forma consolidated EBITDA in the last 12 months grew to R$3.8 billion, up 9% from the prior period, for margin of 15.5%. This increase reflects the good performance of the domestic economy, the opportunities seized in the export market and the higher capacity operating rate at Quattor due to the better availability of raw material.

1.2 Quattor increases capacity operating rate in the quarter

The better stability of feedstock supply enabled crackers in São Paulo and Rio de Janeiro to operate at an average capacity utilization rate of 83% in 2Q10, increasing by 16% from the prior quarter. The higher reliability of the plants, with adjustment in feedstock supplies, should result in continuous operational improvement over the coming quarters.

1.3 Quattor recorded EBITDA of R$214 million in 2Q10, with EBITDA margin of 15.0%:

____________________
1
EBITDA may be defined as earnings before the net financial result, income and social contribution taxes, depreciation, amortization and non-operating income. EBITDA is used by the Company’s management as a measure of performance, but does not represent cash flow for the periods presented and should not be considered a substitute for net income or an indicator of liquidity. The Company believes that in addition to serving as a measure of operating performance, EBITDA allows for comparisons with other companies. Note however that EBITDA is not a measure established in accordance with Brazilian Corporation Law or U.S. Generally Accepted Accounting Principles (US GAAP), and may be defined and calculated differently by other companies.

For further information, visit our IR website at www.braskem.com.br/ir or contact our IR Team: 
 
Luciana Ferreira    Roberta Varella    Marina Dalben 
IRO    IR Manager    IR Analyst 
Phone: (55 11) 3576 9178    Phone: (55 11) 3576 9266    Phone: (55 11) 3576 9716 
luciana.ferreira@braskem.com.br    roberta.varella@braskem.com.br    marina.dalben@braskem.com.br 

 




The higher supply of products due to the increase in operating rates at Quattor's plants and the better sales mix (domestic market versus exports) supported EBITDA growth of nearly 100% to R$214 million, for EBITDA margin of 15.0%, up significantly from the margin of 8.8% in 1Q10.

1.4 Green ethylene plant:

The green ethylene plant located at the Triunfo petrochemical complex is in the commissioning and pre-operational phase, with operations for the global market expected to begin in September 2010. In July, the Rio Grande do Sul State Environmental Protection Foundation (FEPAM/RS) granted the plant's operating license, and Braskem has already finished contracting the ethanol required to guarantee feedstock supplies. The new plant will consume 460,000 m3 of ethanol per year. Braskem will be the first company in the world to produce polyethylene certified as made from renewable raw materials on an industrial scale.

1.5 Quattor transaction advances on schedule:

In line with the acquisition transaction phases disclosed in the material fact dated January 22, 2010, the merger by Braskem of stock in Quattor Participações S.A. was announced on June 18, making it a wholly owned subsidiary of the Company. Braskem maintains its focus on concluding the other phases involved in this transaction, and has already captured synergies in this consolidation process, always aiming at maximizing and creating value for its shareholders.

1.6 Braskem raises an additional US$350 million in long-term debt

Braskem announced the reopening of its bond maturing in May 2020 that initially was issued in the amount of US$ 400 million, placing a further US$ 350 million at a yield of 6.875% p.a., the Company's lowest yield ever. The bonds were assigned ratings of Ba1 from Moody's, BB+ from S&P and BB+ from Fitch.

1.7 Braskem prepays debt of R$4.1 billion in 2Q10

Soon after the conclusion of the Quattor acquisition in April, Braskem, consistent with its strategy to adjust the profile of its consolidated debt to what it considers ideal in terms of exposure to currencies, markets, costs and terms, prepaid a portion of its debt, most notably those originated at Quattor, in the amount of R$ 4.1 billion. The debt prepayment transactions generated nonrecurring financial expenses of R$ 44 million, but lengthened the profile of the Company's consolidated debt from 6.6 years to 8.2 years.

1.8 Synergies should amount to R$400 million in EBITDA

This integration process identified opportunities to capture synergies and create value, with expected gains of R$400 million in annual and recurring EBITDA as of 2012. The Company estimates to capture R$340 million in net present value from synergies on the financial front. The opportunities from industrial and logistic fronts represent over 50% of the EBITDA amount. Investments of approximately R$350 million will be required to realize these synergies. Braskem began to capture these gains in 2Q10.

1.9 Settlement of the outstanding balance from participation in the Tax Renegotiation Program (Refis) under the scope of Executive Order 470/09

Last June, Braskem settled the outstanding balance of tax debits renegotiated under the tax debt renegotiation program (Refis) offered by MP 470, making use of its tax credits balance under Law 12,249/10.

 Key Indicators 
CONSOLIDATED 
  Unit    2Q10 (A)    1Q10(B)    2Q09 (C)     Change % 
(A/B) 
   Change % 
(A/C) 
  1H10 (D)    1H09 (E)     Change % 
(D/E) 
Net Revenue    R$ million    6,539    6,272    4,996    4    31    12,810    9,573    34 
EBITDA    R$ million    1,042    909    735    15    42    1,951    1,293    51 
EBITDA Margin    %    15.9%    14.5%    14.7%    1.4 p.p.    1.2 p.p.    15.2%    13.5%    1.7 p.p. 

 

2. OPERATING PERFORMANCE:

2.1 Performance of the Polymers Unit

2



The international thermoplastic resin market was marked by price increases until late April, when the upward trend reversed, reflecting (i) the volatility in and lower prices for raw materials motivated by the crisis in Greece, which negatively influenced the consumer confidence and generated uncertainty in relation to the economic recovery in Europe and its impact on the world economy; (ii) the slowdown in Chinese demand due to the normalization of tax and monetary policies, after the expansion in credit to contain the impacts of the global financial crisis, and the paring back of government measures to stimulate the economy; and (iii) the beginning of the startup of new capacity in Asia and the Middle East.

This scenario led demand2 for thermoplastic resins in Brazil to remain stable at the end of 2Q10, since customers opted to consume inventories in June while they waited for an alignment in domestic prices in light of the downward move in international prices. As a result, demand totaled 1,158 ktons, virtually stable in relation to the previous quarter. Import volumes remained practically stable between the two quarters, at 293 kton, with a temporary increase in June. North America, Argentina and Colombia remain the country's main suppliers, accounting for 65% of total imports.

In relation to 2Q09, demand increased by 9.4%, reflecting the growth in the local economy and in sectors related to the thermoplastic resin industry. Prices in Brazilian Reais followed the movements in international prices in the quarter, remaining slightly above the 1Q10 levels, despite a decrease in June.

The continued strong performance of the infrastructure, construction and consumer goods sectors, as well as the higher demand from the automotive industry, remained positive drivers of the Company’s sales performance in the quarter. PE sales volume increased 2% compared to 1Q10, reflecting the recovery in operating rates and Quattor’s sales performance, while, at the same period, PP sales volume declined by 3%, due to the scheduled shutdowns at Braskem and Quattor sites.

According to the Brazilian Chemical Manufacturers’ Association (Abiquim), apparent consumption of PVC in the Brazilian market was 282 kton, up 3.8% from 1Q10. This is mainly due to the higher demand from segments related to shoe manufacturing and construction. Braskem’s sales volume remained virtually in line with the previous quarter, reflecting the lower production volume, which was impacted by a scheduled maintenance shutdown at the PVC site in Camaçari.

Performance (tons) 
Thermoplastic Resins 
CONSOLIDATED 
  2Q10 (A)    1Q10(B)    2Q09 (C)     Change% 
(A)/ (B) 
   Change% 
(A)/ (C) 
  1H10 (D)    1H09 (E)     Change% 
(D)/ (E) 
Sales - Domestic Market                                 
PE´s    390,365    384,464    387,034    2    1    774,829    713,545    9 
PP    288,344    296,668    282,908    (3)    2    585,012    510,249    15 
PVC    120,895    123,158    119,514    (2)    1    244,052    196,511    24 
Total Resins    799,603    804,290    789,456    (1)    1    1,603,894    1,420,305    13 
Sales - Export Market                                 
PE´s    177,232    186,982    261,762    (5)    (32)    364,214    506,570    (28) 
PP    261,276    267,055    322,543    (2)    (19)    528,331    644,572    (18) 
PVC    73    -    14,000    -    (99)    73    39,813    (100) 
Total Resins    438,580    454,037    598,305    (3)    (27)    892,617    1,190,954    (25) 
Total Sales                                 
PE´s    567,597    571,446    648,796    (1)    (13)    1,139,043    1,220,115    (7) 
PP    549,619    563,723    605,450    (3)    (9)    1,113,343    1,154,820    (4) 
PVC    120,968    123,158    133,514    (2)    (9)    244,125    236,324    3 
Total Resins    1,238,184    1,258,327    1,387,761    (2)    (11)    2,496,511    2,611,259    (4) 

 

Braskem’s resin sales in the export market in 2Q10, which includes Braskem America, totaled 439 kton in the quarter, down 3% from the previous quarter, mainly impacted by the contraction in the global market as of late May.

____________________
2
Demand was measured based on the Company’s estimates, since Abiquim did not publish 2Q10 data for apparent consumption in Brazil’s PE and PP market.

3



Resin sales totaled 1,238 kton, 2% lower than in 1Q10, while production volume increased 3%, supported by the higher capacity operating rates at the plants of Quattor and Braskem America.

Performance (tons) 
Thermoplastic Resins 
CONSOLIDATED 
  2Q10 (A)    1Q10(B)    2Q09 (C)     Change% 
(A)/ (B) 
   Change% 
(A)/ (C) 
  1H10 (D)    1H09 (E)     Change% 
(D)/ (E) 
Production                                 
PE´s    630,398    590,379    609,426    7    3    1,220,777    1,137,250    7 
PP    578,457    566,988    592,358    2    (2)    1,145,444    1,098,120    4 
PVC    110,466    122,614    120,260    (10)    (8)    233,080    219,363    6 
Total Resins    1,319,320    1,279,981    1,322,044    3    (0)    2,599,301    2,454,733    6 

 

The trajectories in capacity utilization rates for the main products of Braskem consolidated are presented below:

 

* Excludes the new 200,000 ton plant of Quattor

In 1H10, Brazil's thermoplastic resin market totaled 2,300 kton, 18% higher than in 1H09. Meanwhile, Braskem’s sales in the domestic market grew 13%.

2.2 - Basic Petrochemicals Performance

In line with the international scenario for thermoplastic resins, ethylene and propylene prices reversed the upward trend in May and June, reflecting (i) the increase in naphtha supply due to higher production at the refineries in Asia, which limited the exports opportunities from Europe and led to lower prices; (ii) decrease in oil prices, which were impacted by the more pessimistic outlook for the global economy; (iii) the weaker demand in 2nd generation operations.

On the other hand, the higher competitiveness of natural gas in relation to naphtha continued to benefit the use of lighter products, and some cracker byproducts, such as butadiene, maintained the upward trend in international prices during the second quarter.

The shutdowns in 2nd generation operations did not affect production at Braskem’s crackers, which continued to operate at high utilization rates. This solid performance and the recovery in the capacity operating rates at Quattor sites led to an average utilization rate of 89% in 2Q10.

Performance (tons) 
Basic Petrochemicals 
CONSOLIDATED 
  2Q10 (A)    1Q10(B)    2Q09 (C)     Change% 
(A)/ (B) 
   Change% 
(A)/ (C) 
  1H10 (D)    1H09 (E)     Change% 
(D)/ (E) 
Production                                 
Ethylene    832,218    791,358    793,628    5    5    1,623,575    1,453,702    12 
Propylene    389,790    377,468    373,212    3    4    767,258    655,445    17 
BTX*    338,212    333,208    320,029    2    6    671,420    585,604    15 
Cumene    70,896    70,409    58,924    1    20    141,305    112,234    26 
*BTX - Benzene, Toluene, Orthoxylene and Paraxylene                         

 

4



Total ethylene and propylene sales were 11% higher, reaching 258 kton, due to the better demand for ethylene, such as from the styrene market and the opportunity to direct a higher propylene volume to the export market given the 43% increase in international prices compared to the previous quarter.

Performance (tons) 
Basic Petrochemicals 
CONSOLIDATED 
  2Q10 (A)    1Q10(B)    2Q09 (C)     Change%
(A)/ (B)
 
   Change% 
(A)/ (C) 
  1H10 (D)    1H09 (E)     Change% 
(D)/ (E) 
 
Sales - Domestic Market                                 
Ethylene    142,144    127,399    131,148    12    8    269,543    231,186    17 
Propylene    62,468    67,549    54,870    (8)    14    130,017    103,091    26 
Cumene    72,217    69,347    53,980    4    34    141,564    106,489    33 
BTX*    155,588    165,545    167,368    (6)    (7)    321,132    296,430    8 
Sales - Export Market                                 
Ethylene    -    -    -    -    -    -    -    - 
Propylene    53,256    37,257    47,898    43    11    90,513    64,794    40 
Cumene    -    -    -    -    -    -    -    - 
BTX*    132,080    126,878    110,581    4    19    258,957    217,631    19 
Total Sales                                 
Ethylene    142,144    127,399    131,148    12    8    269,543    231,186    17 
Propylene    115,724    104,805    102,768    10    13    220,530    167,885    31 
Cumene    72,217    69,347    53,980    4    34    141,564    106,489    33 
BTX*    287,668    292,422    277,949    (2)    3    580,090    514,061    13 
*BTX - Benzene, Toluene, Orthoxylene and Paraxylene                         

 

In the case of aromatics, domestic and total sales of BTX declined by 6% and 2% in relation to 1Q10, respectively. Operational problems in the 2nd generation operations impacted sales volume in the domestic market, which was partially offset by exports.

Scheduled shutdown and operational problems following this maintenance shutdown led butadiene sales to decline by 10% in the quarter. On the other hand, international prices maintained their upward trend (+27%), which helped offset the lower volume.

3. FINANCIAL PERFORMANCE:

3.1 Net Revenue

Braskem posted net revenue in 2Q10 of US$ 3.6 billion, 5% higher than in the previous quarter. In Brazilian reais, revenue was R$6.5 billion, 4% higher than in the previous quarter. Excluding in both periods the effects from naphtha/condensate/oil resales for processing at Refap and Refinaria Riograndense, net revenue increased by US$3.5 billion, up by 4% in U.S. dollars and 3% in Reais.

The slight improvement in average resin prices and the increase from 1Q10 in international prices of basic petrochemicals, including propylene, butadiene and benzene, represented positive revenue drivers in the second quarter.

Export revenue in the quarter was US$1.2 billion (32% of net revenue), in line with 1Q10. The performance mainly reflects the better opportunities to export basic petrochemicals, especially propylene.

5



When compared to 2Q09, net revenue in U.S. dollar grew by 52%, or US$ 1.2 billion, explained by (i) the higher prices of resins and basic petrochemicals, which followed the recovery in international prices, especially for butadiene and cumene, for which prices rose by 219% and 65%, respectively; and (ii) the opportunities seized to export basic petrochemicals, such as propylene and benzene, which registered sales volume growth of 11% and 46%, respectively. In Reais, net revenue increased by 31%.

The variations in total net revenue between the two periods are shown below:

In 1H10, consolidated net revenue was US$7.1 billion, or R$12.8 billion, up 62% over the same period of 2009. This performance reflects the higher prices for resins and basic petrochemicals as well as the better sales mix, which registered a higher share of sales in the domestic market. Excluding the effects of naphtha/condensate/oil resales, net revenue amounted to US$6.8 billion, or R$12.2 billion.

3.2 Cost of Goods Sold (CoGS) 

Braskem's cost of goods sold (CoGS) was R$5.4 billion in 2Q10, up 2% from the previous quarter, basically reflecting the higher raw material prices.

In relation to 2Q09, CoGS in the quarter rose by 27%. The average ARA naphtha price increased by 41% between the periods and was partially offset by the higher operating efficiency in the period.

 


6



The average price of ARA naphtha in the quarter was US$691/ton, down 3% from 1Q10 (US$709/ton). However, based on the three-month moving average (which is the reference for the domestic market), the average naphtha price in 2Q10 increased by 5% to US$ 714/ton, from US$682/ton. Braskem acquires the bulk of its naphtha feedstock from Petrobras, with the remainder imported directly from suppliers in Argentina, Venezuela and countries from northern Africa.

In 1H10, CoGS came to R$11 billion, 27% higher than in 1H09. As previously mentioned, the higher CoGS is basically explained by the sharp increase in naphtha prices of 60% between the periods.

3.3 Selling, General and Administrative Expenses (SG&A)

In 2Q10, selling, general and administrative (SG&A) expenses were R$423 million, up R$19 million from 1Q10. In relation to 2Q09, these expenses were R$51 million higher.

Selling Expenses were R$189 million in 2Q10, R$4 million lower than in the previous quarter, mainly due to the reduction in the provision for doubtful accounts at Quattor, which was negatively impacted in 1Q10 by the discrepancies in the calculation criteria. In relation to 2Q09, selling expenses increased by 17%, or R$28 million, due to the postponement of payments involving export expenses at Quattor in 2Q09.

General and administrative expenses were R$234 million in the quarter, R$23 million higher than in 1Q10, basically reflecting the extraordinary expenses with technical consulting services and other advisory services related to the Quattor transaction and the salary adjustments in June. In relation to 2Q09, general and administrative expenses increased by R$23 million, as explained earlier. In 1H10, nonrecurring expenses related to the Quattor transaction totaled R$ 27 million.

3.4 EBITDA

Braskem recorded consolidated EBITDA in 2Q10 of R$1,042 million, 15% higher than in 1Q10, due to revenue growth outpacing the increase in costs and the higher stability of raw material supply at Quattor, as mentioned earlier. In U.S. dollar, EBITDA in the quarter was US$581 million. EBITDA margin in 2Q10 reached 15.9%, expanding 1.4 p.p. from 1Q10.

In relation to 2Q09, EBITDA grew by 42%, reflecting the higher international prices, the better sales mix and the lower volatility of raw material supply at Quattor. In U.S. dollar, EBITDA grew by 64% in relation to 2Q09.

7



In 1H10, EBITDA was R$1,951 million, 51% higher than in the first six months of 2009, driven by the better scenario for demand and prices, as explained earlier.

3.5 Net Financial Result

The net financial result in 2Q10 was a financial expense of R$575 million, which was R$305 million lower than in 1Q10, which basically reflected the lower tax debits, due to the inclusion of additional debits in the tax renegotiation program (Refis) in February this year.

Since Braskem holds net exposure to the U.S. dollar (more dollar-pegged liabilities than dollar-pegged assets), any shift in the path of the exchange rate has an impact on the accounting financial result. On June 30, 2010, this exposure was composed of: 64% of debt and approximately 74% of suppliers, which was partially offset by 40% of accounts receivable and 34% of cash. Given its heavily dollarized operational cash flow, the Company considers this exposure adequate. Practically 100% of the Company’s revenue is directly or indirectly pegged to the variation in the U.S. dollar exchange rate, and most of its costs are also pegged to this currency.

It is important to note that foreign exchange variation has no direct effects on the Company's cash position in the short term. This amount represents foreign exchange accounting impacts, especially those on the Company’s debt, with any expenditure occurring when the debt matures, which has an average term of 8.2 years.

Excluding the effects from foreign exchange variation and monetary restatement on its balance-sheet accounts exposed to foreign currencies, the net financial result in 2Q10 was a net financial expense of R$359 million, down R$147 million from 1Q10, basically due to (i) the lower tax charges, as mentioned earlier; which were offset by (ii) the higher interest and banking expenses resulting from the prepayment of a portion of debt, in the amount of R$ 44 million.

Considering the base described above, the net financial result in 1H10 was a financial expense of R$865 million, an increase of R$268 million from the same period a year earlier, given the impact from the participation in the Refis in 1Q10.

The following table details the composition of Braskem's net financial result on a quarterly and semiannual basis.

8



Million of R$    2Q10    1Q10    2Q09    1H10    1H09 
 
Financial Expenses    (771)    (1,012)    1,505    (1,784)    1,140 
Interest Expenses    (258)    (179)    (215)    (437)    (478) 
Monetary Variation (MV)    (138)    (159)    (125)    (296)    (210) 
Foreign Exchange Variation (FX)    (171)    (284)    1,993    (455)    2,121 
IOF/Income Tax/Banking Expenses    (10)    (4)    (10)    (14)    (22) 
Net Interest on Fiscal Provisions    (42)    (288)    (31)    (331)    (49) 
Others    (152)    (99)    (108)    (251)    (222) 
Financial Revenue    196    132    (126)    328    (90) 
Interest    93    50    61    144    147 
Monetary Variation (MV)    25    20    9    46    47 
Foreign Exchange Variation (FX)    67    48    (211)    115    (311) 
Net Interest on Fiscal Credits    3    1    1    4    1 
Others    7    13    13    20    26 
Net Financial Result    (575)    (880)    1,379    (1,455)    1,050 
 
Million of R$    2Q10    1Q10    2Q09    1H10    1H09 
 
Net Financial Result    (575)    (880)    1,379    (1,455)    1,050 
Foreign Exchange Variation (FX)    (104)    (236)    1,782    (339)    1,810 
Monetary Variation (MV)    (113)    (138)    (115)    (251)    (164) 
Financial Result excluding F/X and MV    (359)    (506)    (287)    (865)    (597) 

 

3.6 Net Income

In 2Q10, Braskem recorded real net income of R$45 million driven by the strong operating performance combined with the better net financial result in the period.

In relation to 2Q09, net income was R$ 1,120 million lower, reflecting the U.S. dollar depreciation against the Real in the comparison period, which had a positive impact on the financial result in that period.

3.7 Free Cash Flow

Operating cash flow of Braskem in 2Q10 was R$771 million, compared to R$1.1 billion in the previous quarter, corresponding to a reduction of R$285 million. In 2Q10, working capital contributed with R$288 million. The key drivers of this increase were (i) the increase of R$755 million in the Suppliers line, (ii) the positive variation of R$294 million in the Marketable Securities line, related to the shortening of transactions maturities, which were reclassified as cash equivalents; partially offset by (iii) the negative variation of R$328 million in the Accounts Receivable line, due to Quattor s increased sales and the booking of PP America s sales (which had no balance sheet in 1Q10) and (iv) the increase of R$461 million in our Inventories, due to the increased volume of resins in our inventories, as previously explained.

Million of R$  2Q10  1Q10  2Q09  1H10  1H09 
Operating Cash Flow  771  1,056  1,396  1,827  1,629 

Interest Paid 

(266)  (179)  (231)  (445)  (426) 

Income Tax and Social Contribution 

(17)  (5)  (21)  (22)  (31) 

Investment Activities 

(1,702)  (327)  (189)  (2,029)  (539) 
Free Cash Flow  (1,214)  545  955  (670)  633 

 

9


As a result of the prepayment of debt, there was an increase in Interest Paid in the non recurring amount of R$ 44 million. This line was also impacted by the debt extension.

In 1H10, Free Cash Flow was negative R$670 million, compared with positive R$633 million in the same six-month period of 2009. The decrease basically reflects the acquisitions of Quattor, Polibutenos, Unipar Comercial and Sunoco Chemicals for R$1.4 billion in 2010.

3.8 - Capital Structure and Liquidity

On June 30, 2010, Braskem's gross debt stood at US$7,984 million, down 17% from the balance on March 31, 2010. This reduction is part of the strategy to balance the debt profile resulting from the prepayment of a portion of debt through the placement of R$3.74 billion in the private share offering. Meanwhile, the cash balance and investments in U.S. dollar declined by 11%, reflecting the joint management of the cash balances at Braskem and Quattor, of US$ 1,929 million.

As a result, on June 30, 2010, Braskem’s consolidated net debt stood at US$6,055 million, down 19% from the level on March 31, 2010.

The reduction in net debt in BRL, combined with the EBITDA growth of 9% (R$3.8 billion) in the last 12 months, led to a decline in financial leverage as measured by the net debt/EBITDA ratio from 3.12 times in the first quarter3 (last 12 months) to 2.84 times in 2Q10, up slightly from 2.67x, which represented Braskem's pre-acquisition leverage level.

10



On June 30, 2010, the average debt term was 8.2 years, lengthening from 6.6 years at the close of March 2010. The percentage of debt pegged to the U.S. dollar already reflects the operations to adjust the debt profile and stood at 64%.

The following charts show Braskem’s gross debt by category and indexer.

The chart below presents the Company’s consolidated amortization schedule as of June 30, 2010. The Company’s high liquidity ensures that its cash and cash equivalents cover the payment of obligations maturing over the next 24 months.

____________________
3
After capital increase of R$3.74 billion.

11



As mentioned earlier, Braskem issued another US$ 350 million in bonds maturing in May 2020 that initially were issued in the amount of US$ 400 million, with a yield of 6.875% p.a., the lowest yield ever obtained by the Company.

In addition to this issue, in May 2010, Braskem raised R$300 million through a receivables-backed investment fund (FIDC) composed of R$272.4 million in senior shares and R$27.6 million in subordinated shares. The process was concluded at the end of June. The senior shares (AA+ rating) had a final yield of the CDI overnight rate + 1.25% p.a., while the subordinated Mezzanine shares (BB+ rating), reflecting their higher exposure to potential non-performance in the fund, had a final yield of CDI + 5.80% p.a., both in line with the underwriting agreement. The weighted cost of the transaction was CDI + 1.58% p.a. This financial transaction helped boost the Company’s working capital and maintain credit to customers, while underscoring Braskem’s continued capacity to tap a wide variety of credit markets under various different liquidity situations.

4. CAPITAL EXPENDITURE:

In line with its commitment to capital discipline and making investments with returns above their cost of capital, Braskem made investments totaling R$621 million (excluding capitalized interest) in 1H10, of which R$119 million represents investments made in Quattor, R$7 million in Braskem America and R$7 million in the Ethylene XXI Project in Mexico.

Of this total, the bulk was allocated to capacity expansions, with the Green Ethylene plant requiring R$251 million in investment in the first six months of the year. The plant's investments remain within budget and the project should become operational in September. At Quattor, these investments totaled R$76 million.

 


12



Braskem also spent R$101 million on scheduled maintenance shutdowns, in keeping with its objective of maintaining its plants operating at high levels of operating reliability. The Company invested in general maintenance shutdowns at the Camaçari PVC plant in Bahia and at one of the PE plants in the Triunfo complex, which lasted nearly 10 days, and in small shutdowns at other units. As previously mentioned, a maintenance shutdown at the ethylene cracker in Camaçari, Bahia is also scheduled. The maintenance is scheduled for November and should last 40 days.

5. OUTLOOK:

5.1 World and Brazilian Scenario

The world economy, which had been presenting a slow recovery, once again returned to be a reason for caution at the end of the first half of the year, with the release of below-expectation economic indicators in developed countries and signs of slower growth in China. The consensus expectation for Brazil's GDP growth in 2010 is 7%.

In this scenario, Braskem continues to expect growth of some 10% in Brazil's resins market, led by the PVC segment. World economic growth, though slower, does not alter expectations for the supply and demand balance for ethylene, which is the reference used to evaluate the economic cycle of the petrochemical industry.

The slowdown in demand and the new capacity coming online began to pressure spreads in the petrochemical industry, and the trend for the second half of this year and for 2011 should be a scenario marked by profitability (measured as the difference between the international prices for PE and naphtha) similar to that in 2Q10, which suffered since end-May from a downturn in demand that is believed to be temporary. Despite the beginning of capacity startups in the first half of the year, the factors mitigating the industry's downcycle still remain in place: (i) continued operational problems in Iran – learning curve in the start-up of new plants and structural operational problems; (ii) delays in the startup of new capacities in the Middle East and Asia; and (iii) the expectations of permanent capacity shutdowns, especially in Europe, given the un-sustainability of operations that are less competitive than the current level of industry profitability. For basic petrochemicals, the good profitability trend remains in place for butadiene, but the level of profitability has fallen and should remain at current levels for aromatics - BTX.

In Brazil, the market reacted in late 2Q10 to the lower international prices by consuming inventories. However, this trend should reverse in 3Q10, which is seasonally the strongest in the year, since the sectors related to consumer goods and construction, which account for over 70% of demand at Braskem, continue to post strong growth rates.

5.2 Quattor Transaction 

5.2.1 Estimated Synergies

For the near term, Braskem is focused on capturing synergies from its recent acquisitions and continually increasing its operational efficiency and translating these gains into better results and profitability to reduce its level of leverage in order to maintain its financial health and mitigate the impacts from the low cycle in the petrochemical industry.

Synergies will be monitored in four categories: industrial, logistics, supply and financial. Most of the annual and recurring synergies, which amount to R$400 million In EBITDA, is concentrated in initiatives on the industrial and logistics fronts. The financial synergies, which do not have an EBITDA impact, total R$340 million in net present value and basically include tax gains and lower debt carrying costs.

 


13



Over the next 2 years, Braskem will invest R$ 350 million to support the capture of these synergies, which should be concluded by the end of 2012, with virtually the total amount captured in 2011.

5.2.2 Acquisition and Merger of Rio Polímeros SA (“RioPol”) Shares

On August 9, Braskem’s Board of Directors approved the immediate acquisition by Braskem of the 190,784,674 common shares and the 30 preferred shares issued by RioPol which are held by BNDES Participações S.A. – BNDESPAR, deriving from the assumption of a liability in favor of BNDESPAR accepted in occasion of the Quattor acquisition. The original value of the liability accepted by Braskem, which corresponds to 60% of the total, is R$174.6 million, restated according to the TJLP (Long Term Interest Rate) + 2.5% since June 2008. The payment of the option, whose original maturity was 2013, was postponed to 15% in 2015, 35% in 2016 and remaining 50% in 2017, with no change in the restatement rate.

On the same date, the Company’s Board of Directors also approved the submission to the Shareholders’ Meetings of Braskem and RioPol, to be held on August 30, 2010, of the Merger of RioPol’s shares by Braskem.

5.3 Strategic Investments

Disbursements for operational investments scheduled for 2010, including Quattor and Braskem America, should reach some R$1.6 billion, which includes investments in maintenance, capacity expansion, transfers to joint ventures and scheduled shutdowns. Braskem also remains committed to reducing its costs and fixed expenses in order to boost its competitiveness.

As part of its medium and long term growth plan to become one of the world's five-largest petrochemical companies in terms of enterprise value, Braskem is working to diversify its energy matrix, with a higher share of natural gas and a stronger presence in the Americas.

Projects maturing over the medium and long terms include:

     1) The project to expand PVC capacity by 200 kton/year, with investments of US$ 470 million. Scheduled to start operations in the first half of 2012, Braskem expects to begin investments and ordering new equipment before the end of this year, with some R$50 million in investments expected to be disbursed in 2010.

     2) The integrated project in Mexico, between Braskem and IDESA with 65% and 35% shares, respectively, has an annual production capacity of 1 million tons per year of polyethylene resins using ethane as feedstock and is based on a supply agreement signed with PEMEX-Gás for the supply of 66,000 barrels/day of ethane for a period of 20 years. Fixed investment is estimated at some US$ 2.5 billion, adopting a project finance model for the debt portion, with conclusion of construction and operational startup of the units expected for January 2015. Since Mexico is a net importer and depends on foreign polyethylene suppliers, this project is extremely attractive and of major importance to the development of the local petrochemical industry.

Braskem also has similar projects in less advanced phases in Peru and Venezuela.

Braskem's management remains confident and committed to Braskem’s strategy. Given Brazil’s favorable economic situation and financial solidity, it remains one of the best-positioned countries in the current economic scenario. Braskem maintains its commitment to sustainable growth and development, and will continue to act proactively in pursuit of the best opportunities, seeking to create value for shareholders and increase competitiveness throughout the entire petrochemical and plastics production chain.

14



6. EXHIBITS LIST

         Page 
EXHIBIT I:    Consolidated Income Statement – Pro Forma    16 
EXHIBIT II:    Consolidated Income Statement - Real    16 
EXHIBIT III:    Braskem, Quattor and Braskem America Income Statement    17 
EXHIBIT IV:    Consolidated Balance Sheet    18 
EXHIBIT V:    Braskem Balance Sheet    19 
EXHIBIT VI:    Quattor Balance Sheet    20 
EXHIBIT VII:    Braskem America Balance Sheet    21 
EXHIBIT VIII:    Cash Flow Statement    22 
EXHIBIT IX:    Consolidated Production Volume    23 
EXHIBIT X:    Braskem Production Volume and Operating Rate    24 
EXHIBIT XI:    Quattor and Braskem America Production Volume and Operating Rate    25 
EXHIBIT XII:    Consolidated Sales Volume – Domestic Market    26 
EXHIBIT XIII:    Braskem Sales Volume – Domestic Market    27 
EXHIBIT XIV:    Quattor Sales Volume – Domestic Market    28 
EXHIBIT XV:    Consolidated Sales Volume – Export Market    29 
EXHIBIT XVI:    Braskem Sales Volume – Export Market    30 
EXHIBIT XVII:    Quattor and Braskem America Sales Volume – Export Market    31 
EXHIBIT XVIII:    Consolidated Net Revenue    32 
EXHIBIT XIX:    Braskem Net Revenue    33 
EXHIBIT XX:    Quattor and Braskem America Net Revenue    34 

 

Braskem, a world-class Brazilian petrochemical company, is the leader in the thermoplastic resins segment in the Americas and the third-largest Brazilian industrial company owned by the private sector. The Company operates 29 industrial plants across Brazil and has annual production capacity of 6 million tons of chemical and petrochemical products.

 

DISCLAIMER

This press release contains forward-looking statements. These forward-looking statements are not historical data, but rather reflect the targets and expectations of Braskem’s management. Words such as "anticipate", "wish", "expect", "foresee", "intend", "plan", "predict", "project", "aim" and similar terms seek to identify statements that necessarily involve known and unknown risks. Braskem does not undertake any responsibility for transactions or investment decisions based on the information contained in this document.

15



EXHIBIT I
Consolidated Income Statement – Pro Forma
(R$ million)

Income Statement    2Q10    1Q10    2Q09    Change (%) Change (%)     1H10    1H09    Change (%) 
CONSOLIDATED - Pro Forma    (A)    (B)    (C)    (A)/(B)    (A)/(C)    (D)    (E)    (D)/(E) 
Gross Revenue    8,469    8,069    6,471    5    31    16,538    12,496    32 
Net Revenue    6,539    6,272    4,996    4    31    12,810    9,573    34 
Cost of Good Sold    (5,376)    (5,269)    (4,222)    2    27    (10,645)    (8,355)    27 
Gross Profit    1,163    1,002    774    16    50    2,165    1,218    78 
Selling Expenses    (189)    (193)    (161)    (2)    17    (382)    (334)    14 
General and Administrative Expenses    (234)    (211)    (210)    11    11    (444)    (378)    17 
Depreciation and Amortization    (37)    (32)    (33)    15    14    (70)    (61)    14 
Other operating income (expenses)    (21)    (22)    18    (1)    -    (43)    179    - 
Operating profit before financial result    676    (125)    417    -    62    551    642    (14) 
EBITDA    1,042    909    735    15    42    1,951    1,293    51 
EBITDA Margin    15.9%    14.5%    14.7%    1.4 p.p.    1.2 p.p.    15.2%    13.5%    1.7 p.p. 
Depreciacion and Amortization    360    365    347    (1)    4    725    670    8 

Cost 

  323    332    314    (3)    3    655    609    8 

Expense 

  37    32    33    15    14    70    61    14 

 

     EXHIBIT II
Consolidated Income Statement – Real
(R$ million)

Income Statement 
CONSOLIDATED - Real 
  2Q10 
(A) 
  1Q10 
(B) 
  2Q09 
(C) 
  Change
(%)
(A)/(B) 
  Change
(%)
(A)/(C) 
  1H10 
(D) 
  1H09 
(E) 
  Change 
(%) 
(D)/(E)  
Gross Revenue    8,437    5,630    4,753    50    78    14,067    8,912    58 
Net Revenue    6,516    4,466    3,688    46    77    10,982    6,948    58 
Cost of Good Sold    (5,357)    (3,673)    (3,047)    46    76    (9,030)    (5,909)    53 
Gross Profit    1,160    793    641    46    81    1,953    1,039    88 
Selling Expenses    (188)    (116)    (134)    63    41    (304)    (260)    17 
General and Administrative Expenses    (233)    (159)    (153)    47    52    (392)    (268)    46 
Depreciation and Amortization    (37)    (28)    (27)    31    38    (65)    (49)    33 
Result with Fixed Assets write off and Others    (13)    (4)    (0)    190    -    (17)    (1)    1,636 
Other operating income (expenses)    (21)    (8)    18    161    -    (30)    131    - 
Investment in Subsidiary and Associated Companies    7    7    (2)    6    -    14    (10)    (234) 
Operating profit before financial result    674    484    342    39    97    1,158    583    99 
Net financial result    (575)    (645)    1,192    (11)    -    (1,220)    984    - 
Profit (loss) before tax and social contribution    99    (161)    1,535    -    (94)    (62)    1,567    - 
Income tax / social contribution    (65)    37    (379)    -    (83)    (27)    (401)    (93) 
Profit (loss) before minority interest    34    (123)    1,156    -    (97)    (89)    1,166    - 
Minority Interest    11    -    -    -    -    11    -    - 
Net profit / Loss    45    (123)    1,156    -    (96)    (78)    1,166    - 
Earnings (loss) per share (EPS)    0.06    (0.24)    2.22    -    (97)    (0.10)    2.24    - 
EBITDA    1,040    729    566    43    84    1,768    1,023    73 
EBITDA Margin    16.0%    16.3%    15.3%    -0.4 p.p. 0.6 p.p.     16.1%    14.7%    1.4 p.p. 
Depreciacion and Amortization    360    247    221    46    63    607    429    41 

Cost 

  323    218    194    48    67    541    380    42 

Expense 

  37    28    27    31    38    65    49    33 

 

Quattor, in the period from January to March, Unipar Comercial and Polibutenos, in the period from January to April, are not considered in the Braskem’s Consolidated Result once they were acquired in April and May, respectively.

16



EXHIBIT III
Braskem, Quattor and Braskem America Income Statement
(R$ million)

Income Statement    2Q10    1Q10    2Q09    Change (%) Change (%)     1H10    1H09    Change (%) 
BRASKEM    (A)    (B)    (C)    (A)/(B)    (A)/(C)    (D)    (E)    (D)/(E) 
Gross Revenue    5,864    5,630    4,753    4    23    11,494    8,912    29 
Net Revenue    4,663    4,466    3,688    4    26    9,129    6,948    31 

Cost of Good Sold 

  (3,774)    (3,673)    (3,047)    3    24    (7,447)    (5,909)    26 
Gross Profit    889    793    641    12    39    1,682    1,039    62 

Selling Expenses 

  (124)    (116)    (134)    7    (7)    (240)    (260)    (8) 

General and Administrative Expenses 

  (170)    (159)    (153)    7    11    (328)    (268)    22 

Depreciation and Amortization 

  (29)    (28)    (27)    4    10    (58)    (49)    18 

Other operating income (expenses) 

  (20)    (8)    18    138    -    (28)    131    - 
Operating profit    468    480    342    (3)    37    948    583    63 
EBITDA    791    729    566    9    40    1,520    1,023    49 
EBITDA Margin    17.0%    16.3%    15.3%    0.7 p.p.    1.6 p.p.    16.7%    14.7%    1.9 p.p. 
Depreciacion and Amortization    246    247    221    (0)    11    492    429    15 

Cost 

  216    218    194    (1)    11    434    380    14 

Expense 

  29    28    27    4    10    58    49    18 
 
Income Statement    2Q10    1Q10    2Q09    Change (%)  Change (%)    1H10    1H09    Change (%) 
QUATTOR    (A)    (B)    (C)    (A)/(B)    (A)/(C)    (D)    (E)    (D)/(E) 
Net Revenue    1,425    1,220    885    17    61    2,645    1,829    45 

Cost of Good Sold 

  (1,190)    (1,086)    (800)    10    49    (2,276)    (1,766)    29 
Gross Profit    234    134    85    75    176    368    63    485 

SG&A 

  (108)    (112)    (62)    (3)    74    (220)    (135)    63 

Others 

  (7)    (16)    28    (55)    (127)    (24)    70    - 
Operating Profit    119    6    50    -    137    124    (2)    - 
EBITDA    214    107    126    99    70    321    168    92 
EBITDA Margin    15.0%    8.8%    14.2%    6.2 p.p.    0.8 p.p.    12.1%    9.2%    3.0 p.p. 
Depreciacion and Amortization    96    101    107    (5)    (10)    197    200    (2) 

Cost 

  90    99    103    (9)    (13)    189    192    (2) 

Expense 

  6    2    4    202    57    8    7    9 
 
 
Income Statement    2Q10    1Q10    2Q09    Change (%) Change (%)     1H10    1H09    Change (%) 
BRASKEM AMERICA    (A)    (B)    (C)    (A)/(B)    (A)/(C)    (D)    (E)    (D)/(E) 
Net Revenue    557    552    408    1    37    1,109    764    45 

Cost of Good Sold 

  (514)    (487)    (371)    6    39    (1,001)    (671)    49 
Gross Profit    43    65    37    (34)    17    108    94    15 

SG&A 

  (18)    (14)    (18)    29    (3)    (31)    (41)    (25) 

Others 

  (11)    (1)    (2)    664    641    (13)    (3)    - 
Operating Profit    14    50    17    -    (16)    64    49    30 
EBITDA    40    66    36    (40)    10    106    88    20 
EBITDA Margin    7.1%    12.0%    8.8%    -4.9 p.p.    -1.7 p.p.    9.5%    11.5%    -2.0 p.p. 
Depreciacion and Amortization    15    16    19    (4)    (18)    32    39    (19) 

Cost 

  14    15    17    (5)    (19)    29    36    (20) 

Expense 

  2    1    2    2    (3)    3    3    (9) 

 

17



     EXHIBIT IV
Consolidated Balance Sheet
(R$ million)

 ASSETS   06/30/2010    03/31/2009    Change (%) 
  (A)    (B)    (A)/(B) 
Current    10,220    10,208    0 

Cash and Cash Equivalents 

  3,014    3,498    (14) 

Marketable Securities 

  441    730    (40) 

Accounts Receivable 

  2,469    2,229    11 

Inventories 

  3,265    2,760    18 

Recoverable Taxes 

  671    721    (7) 

Prepaid Expenses 

  83    23    - 

Others 

  277    246    258 
Non Current    22,816    23,178    (2) 

Long-Term Assets 

           

Marketable Securities 

  20    19    0 

Compulsory Deposits and Escrow accounts 

  165    157    8 

Deferred income tax and social contribution 

  368    1,020    5 

Recoverable Taxes 

  1,831    1,811    (64) 

Associated Companies 

  130    133    1 

Others 

  219    301    (2) 

Investments 

  51    37    (27) 

Fixed Assets 

  16,210    16,251    36 

Intagible 

  3,542    3,154    (0) 

Deferred 

  279    295    12 
Total Assets    33,037    33,386    (1) 
 
LIABILITIES AND SHAREHOLDERS' EQUITY   06/30/2010    03/31/2009    Change (%) 
  (A)    (B)    (A)/(B) 
Current    8,312    9,868    (16) 

Suppliers 

  5,964    5,209    (16) 

Financing 

  1,302    2,959    14 

Hedge Operations 

  53    61    (56) 

Salaries and payroll charges 

  269    341    (13) 

Dividends and Interest on Equity 

  5    12    (21) 

Taxes payable 

  457    1,000    (55) 

Advances from Customers 

  40    77    0 

Others 

  221    209    (54) 
Non Current    15,994    14,821    8 

Long-Term Liabilities 

           

Financing 

  13,082    11,943    10 

Hedge Operations 

  60    52    15 

Deferred income tax and social contribution 

  1,007    1,055    (5) 

Taxes Payable 

  1,396    1,379    1 

Others 

  449    392    15 
Minority Interest    130    340    (62) 
Shareholders' Equity    8,601    8,356    3 

Capital 

  8,017    7,852    2 

Capital Reserves 

  765    1,792    (57) 

Currency Translation Adjustment 

  12    0    - 

Treasury Shares 

  (12)    (12)    - 

Adjustment of Asset Evaluation (Law 11638/07) 

  (91)    (79)    - 

Retained Earnings (Losses) 

  (90)    (1,197)    (92) 
Total Liabilities and Shareholders' Equity    33,037    33,386    (1) 

 

18



EXHIBIT V
Braskem Balance Sheet
(R$ million)

 ASSETS   06/30/2010    03/31/2009    Change (%) 
  (A)    (B)    (A)/(B) 
Current    7,984    7,550    6 

Cash and Cash Equivalents 

  2,980    2,692    11 

Marketable Securities 

  309    600    (48) 

Accounts Receivable 

  1,724    1,722    0 

Inventories 

  2,289    1,908    20 

Recoverable Taxes 

  380    431    (12) 

Prepaid Expenses 

  48    9    437 

Others 

  253    188    35 
Non Current    20,869    15,199    37 

Long-Term Assets 

           

Marketable Securities 

  20    19    8 

Compulsory Deposits and Escrow accounts 

  150    145    4 

Deferred income tax and social contribution 

  226    856    (74) 

Recoverable Taxes 

  1,367    1,343    2 

Associated Companies 

  2,244    109    1,953 

Others 

  179    263    (32) 

Investments 

  3,565    35    - 

Fixed Assets 

  10,085    10,028    1 

Intagible 

  2,972    2,334    27 

Deferred 

  62    67    (7) 
Total Assets    28,853    22,749    27 
 
LIABILITIES AND SHAREHOLDERS' EQUITY    06/30/2010    03/31/2009    Change (%) 
    (A)    (B)    (A)/(B) 
Current    7,141    7,421    (4) 

Suppliers 

  5,440    4,576    19 

Financing 

  931    1,361    (32) 

Hedge Operations 

  53    57    (8) 

Salaries and payroll charges 

  204    298    (32) 

Dividends and Interest on Equity 

  2    2    2 

Taxes payable 

  289    900    (68) 

Advances from Customers 

  35    55    (37) 

Others 

  186    172    8 
Non Current    13,111    10,714    22 

Long-Term Liabilities 

           

Financing 

  10,749    8,449    27 

Hedge Operations 

  60    52    15 

Deferred income tax and social contribution 

  696    743    (6) 

Taxes Payable 

  1,258    1,234    2 

Others 

  347    236    47 
Shareholder's Equity    8,601    4,614    86 

Capital 

  8,017    5,473    46 

Capital Reserves 

  765    429    79 

Currency Translation Adjustment 

  12    0    - 

Treasury Shares 

  (12)    (12)    - 

Adjustment of Asset Evaluation (Law 11638/07) 

  (91)    (79)    15 

Retained Earnings (Losses) 

  (90)    (1,197)    (92) 
Total Liabilities and Shareholders' Equity    28,853    22,749    27 

 

19



EXHIBIT VI
Quattor Balance Sheet
(R$ million)

ASSETS   06/30/2010    03/31/2009    Change (%) 
  (A)    (B)    (A)/(B) 
Current    1,972    2,029    (3) 

Cash and Cash Equivalents 

  131    414    (68) 

Marketable Securities 

  -    130    - 

Accounts Receivable 

  681    463    47 

Inventories 

  777    665    17 

Recoverable Taxes 

  284    285    (0) 

Prepaid Expenses 

  35    14    153 

Others 

  64    57    13 
Non Current    5,700    7,086    (20) 

Long-Term Assets 

           

Compulsory Deposits and Escrow accounts 

  15    12    25 

Deferred income tax and social contribution 

  142    164    (13) 

Recoverable Taxes 

  460    464    (1) 

Associated Companies 

  24    24    - 

Others 

  32    29    9 

Investments 

  (1,001)    2    - 

Fixed Assets 

  5,419    5,523    (2) 

Intagible 

  392    640    (39) 

Deferred 

  218    229    (5) 
Total Assets    7,673    9,115    (16) 
 
 LIABILITIES AND SHAREHOLDERS' EQUITY   06/30/2010    03/31/2009    Change (%) 
  (A)    (B)    (A)/(B) 
Current    1,307    3,186    (59) 

Suppliers 

  175    623    (72) 

Financing 

  571    2,366    (76) 

Hedge Operations 

  0    4    - 

Salaries and payroll charges 

  56    34    62 

Dividends and Interest on Equity 

  3    3    - 

Taxes payable 

  155    99    56 

Advances from Customers 

  5    21    (75) 

Others 

  342    34    913 
Non Current    4,393    5,290    (17) 

Long-Term Liabilities 

           

Financing 

  2,101    4,995    (58) 

Deferred income tax and social contribution 

  11    12    (8) 

Taxes Payable 

  138    145    (5) 

Others 

  2,142    138    1,448 
Minority Interest    130    141    (8) 
Shareholders' Equity    1,843    498    270 

Capital 

  3,638    2,202    65 

Retained Earnings (Losses) 

  (1,795)    (1,704)    - 
Total Liabilities and Shareholders' Equity    7,673    9,115    (16) 

 

20



EXHIBIT VII
Braskem America Balance Sheet
(R$ million)

ASSETS   06/30/2010    03/31/2009    Change (%) 
  (A)    (B)    (A)/(B) 
Current    486    172    183 

Cash and Cash Equivalents 

  35    0    - 

Accounts Receivable 

  254    0    - 

Inventories 

  197    172    14 
Non Current    835    836    (0) 

Long-Term Assets 

           

Others 

  8    9    (1) 

Fixed Assets 

  649    647    0 
Intagible    178    180    (1) 
Total Assets    1,321    1,007    31 
 
 LIABILITIES AND SHAREHOLDERS' EQUITY   06/30/2010    03/31/2009    Change (%) 
  (A)    (B)    (A)/(B) 
Current    301    7    4,460 

Suppliers 

  168    0    - 

Salaries and payroll charges 

  9    5    70 

Recoverable Taxes 

  11    0    - 

Others 

  112    1    - 
Non Current    317    318    (0) 

Long-Term Liabilities 

           

Deferred income tax and social contribution 

  300    301    (0) 

Others 

  17    17    0 
Shareholders' Equity    704    683    3 

Capital 

  683    598    14 

Currency Translation Adjustment 

  12    0    - 

Retained Earnings (Losses) 

  8    84    (90) 
Total Liabilities and Shareholders' Equity    1,321    1,007    31 

 

21



EXHIBIT VIII
Cash Flow
(R$ million)

Cash Flow  2Q10  1Q10  2Q09  1H10  1H09 
CONSOLIDATED           
 
Profit (loss) before income tax and social contribution  101  (1,005)  1,795  (904)  1,692 
Expenses (Revenues) not affecting Cash  382  1,975  (846)  2,357  (306) 

Depreciation and amortization 

360  365  347  725  670 

Equity Result 

(7)  (6)  12  (13)  20 

Interest, Monetary and Exchange Restatement, Net 

23  781  (1,151)  804  (918) 

Minority Interest 

11  204  0  215  0 
Others  (5)  631  (54)  626  (77) 
Adjusted Profit (loss) before cash financial effects  483  970  950  1,453  1,386 
Asset and Liabilities Variation, Current and Long Term  288  86  447  373  243 
Asset Reductions (Additions)  (177)  (569)  675  (746)  878 

Marketable Securities 

294  (190)  198  104  36 

Account Receivable 

(328)  (66)  58  (394)  (188) 

Recoverable Taxes 

236  (11)  131  225  82 

Inventories 

(461)  (145)  320  (606)  1,136 

Advances Expenses 

(60)  13  26  (47)  14 

Other Account Receivables 

141  (169)  (58)  (28)  (202) 
Increase (Decrease) in Liabilities  465  655  (229)  1,120  (635) 

Suppliers 

755  866  (85)  1,621  (542) 

Advances from Customers 

(36)  25  (33)  (11)  8 

Fiscal Incentives 

0  4  1  5  (5) 

Taxes Payable 

(180)  (292)  (4)  (472)  0 

Others 

(73)  51  (108)  (23)  (96) 
Operating Cash flow  771  1,056  1,396  1,827  1,629 
Interest Paid  (266)  (179)  (231)  (445)  (426) 
Income Tax and Social Contribution  (17)  (5)  (21)  (22)  (31) 
Accounting Cash Generation  488  872  1,144  1,359  1,172 
Investment Activities  (1,702)  (327)  (189)  (2,029)  (539) 

Fixed Assets Sale 

0  1  0  1  2 

Investment 

(1,360)  0  9  (1,360)  (1) 

Fixed Assets 

(318)  (319)  (142)  (637)  (482) 

Intangible Assets 

(24)  (9)  (56)  (33)  (58) 
Subsidiaries and Affiliated Companies, Net  0  0  5  0  0 
Financing Activities  1,118  (709)  (522)  409  (356) 

Inflows 

2,706  1,016  795  3,722  2,178 

Amortization 

(5,324)  (1,723)  (1,306)  (7,046)  (2,519) 

Share Buy-Back 

0  0  0  0  (8) 

Dividends and Interest on Equity 

(8)  (2)  (11)  (9)  (12) 

Capital Adjustment 

3,743  0  0  3,743  0 

Others 

0  0  0  0  5 
Cash and Cash Equivalents Increase (Reduction)  (97)  (164)  439  (261)  277 
Cash and Cash Equivalents at the beginning of the period  3,111  3,275  3,049  3,275  3,211 
Cash and Cash Equivalents at the end of the period  3,014  3,111  3,488  3,014  3,488 
 

 

22



EXHIBIT IX

Consolidated Production Volume

PRODUCTION
CONSOLIDATED
tons    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
Polymers Unit                         

PE´s - Polyethylene 

  527,824    609,426    635,100    597,376    590,379    630,398 

PP - Polypropylene 

  505,762    592,358    621,450    586,293    566,988    578,457 

PVC - Polyvinyl Chloride 

  99,103    120,260    127,963    131,751    122,614    110,466 

Caustic Soda 

  116,374    110,430    108,367    100,738    114,955    124,611 

EDC 

  40,103    30,687    11,276    9,128    26,889    20,930 

Chlorine 

  12,810    12,583    10,292    14,508    14,610    13,665 
Basic Petrochemicals                         

Ethylene 

  660,074    793,628    847,183    785,218    791,358    832,218 

Propylene 

  282,234    373,212    398,761    375,606    377,468    389,790 

Benzene 

  181,627    224,244    249,324    232,489    232,408    234,155 

Butadiene 

  43,761    80,737    89,652    80,453    83,044    83,524 

Toluene 

  29,755    31,495    31,798    37,908    31,608    37,283 

Fuel (m3) 

  172,892    274,542    288,356    207,302    258,000    273,495 

Paraxylene 

  37,349    41,699    41,579    27,756    45,647    41,838 

Orthoxylene 

  16,845    22,591    23,916    18,737    23,545    24,937 

Isoprene 

  2,743    4,757    5,630    5,033    4,993    4,854 

Butene 1 

  15,201    20,227    19,118    17,823    19,141    21,983 

MTBE 

  23,794    23,861    -    -    -    - 

ETBE 

  23,855    49,335    83,142    79,480    77,031    82,723 

Mixed Xylene 

  21,309    21,459    26,781    26,251    18,243    23,205 

Caprolactam 

  1,247    -    -    1,125    -    - 

Cumene 

  53,310    58,924    68,324    63,382    70,409    70,896 

Isobutylene 

  3,430    4,074    4,297    4,130    5,155    7,316 

Alkylbenzene 

  4,284    2,262    6,016    5,864    3,951    3,762 

LPG 

  16,040    16,552    13,958    13,177    7,721    6,665 

Fuel Oil 

  3,664    5,845    7,427    10,223    7,408    7,504 

Aromatic Residue 

  13,717    14,995    14,098    10,233    14,557    15,319 

Crude Oil Resins 

  3,288    3,696    3,569    3,274    3,559    3,226 

 

23



EXHIBIT X

Braskem Production and Operating Rate

PRODUCTION
BRASKEM
tons    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
Polymers Unit                         

PE´s - Polyethylene 

  357,694    459,500    471,434    451,843    417,100    433,245 

PP - Polypropylene 

  178,877    227,733    257,904    235,455    224,544    217,331 

PVC - Polyvinyl Chloride 

  99,103    120,260    127,963    131,751    122,614    110,466 

Caustic Soda 

  116,374    110,430    108,367    100,738    114,955    124,611 

EDC 

  40,103    30,687    11,276    9,128    26,889    20,930 

Chlorine 

  12,810    12,583    10,292    14,508    14,610    13,665 
Basic Petrochemicals                         

Ethylene 

  454,369    588,998    620,193    592,402    566,800    580,439 

Propylene 

  216,137    297,865    315,866    303,611    293,062    298,372 

Benzene 

  129,037    165,770    187,051    177,424    173,228    171,614 

Butadiene 

  36,311    66,375    70,294    63,561    63,906    64,059 

Toluene 

  25,335    25,191    26,870    34,526    27,268    24,385 

Fuel (m3) 

  116,052    200,734    214,156    150,784    194,667    206,245 

Paraxylene 

  37,349    41,699    41,579    27,756    45,647    41,838 

Orthoxylene 

  12,053    14,896    15,022    11,303    17,569    15,594 

Isoprene 

  2,743    4,757    5,630    5,033    4,993    4,854 

Butene 1 

  15,201    20,227    19,118    17,823    19,141    21,983 

MTBE 

  23,794    23,861    -    -    -    - 

ETBE 

  23,855    49,335    83,142    79,480    77,031    82,723 

Mixed Xylene 

  16,270    14,237    19,182    18,121    11,832    14,851 

Caprolactam 

  1,247    -    -    1,125    -    - 

 

Utilization Rate (%)    2Q10    1Q10    2Q09    Change (%)    Change (%) 
BRASKEM    (A)    (B)    (C)    (A)/(B)    (A)/(C) 
Ethylene    92%    91%    93%    1.2 p.p.    -1.4 p.p. 
PE    87%    85%    92%    2.3 p.p.    -5.3 p.p. 
PP    84%    88%    88%    -3.7 p.p.    -4.0 p.p. 
PVC    87%    97%    92%    -10.2 p.p.    -4.7 p.p. 

 

The reduction in Polypropylene’s operating rate in the 2Q10 was due to a temporary decrease in exports competitiveness.

24



EXHIBIT XI

Quattor and Braskem America Production and Operating Rate

PRODUCTION
QUATTOR
tons    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
Polymers Unit                         

PE´s - Polyethylene 

  170,131    149,926    163,666    145,533    173,279    197,153 

PP - Polypropylene 

  134,533    148,645    170,838    131,547    164,007    142,291 
Basic Petrochemicals                         

Ethylene 

  205,704    204,630    226,991    192,815    224,557    251,778 

Propylene 

  66,097    75,347    82,895    71,995    84,406    91,418 

Benzene 

  52,590    58,474    62,273    55,065    59,180    62,540 

Cumene 

  53,310    58,924    68,324    63,382    70,409    70,896 

Butadiene 

  7,450    14,362    19,358    16,892    19,139    19,465 

Isobutylene 

  3,430    4,074    4,297    4,130    5,155    7,316 

Toluene 

  4,420    6,304    4,928    3,382    4,340    12,899 

Fuel (m³) 

  56,840    73,808    74,200    56,517    63,332    67,250 

Alkylbenzene 

  4,284    2,262    6,016    5,864    3,951    3,762 

Mixed Xylene 

  5,039    7,222    7,599    8,130    6,411    8,354 

Orthoxylene 

  4,792    7,695    8,894    7,434    5,976    9,342 

LPG 

  16,040    16,552    13,958    13,177    7,721    6,665 

Fuel Oil 

  3,664    5,845    7,427    10,223    7,408    7,504 

Aromatic Residue 

  13,717    14,995    14,098    10,233    14,557    15,319 

Crude Oil Resins 

  3,288    3,696    3,569    3,274    3,559    3,226 

 

Utilization Rate (%)    2Q10    1Q10    2Q09    Change (%)    Change (%) 
QUATTOR    (A)    (B)    (C)    (A)/(B)    (A)/(C) 

Ethylene 

  83%    71%    90%    11.5 p.p.    -7.0 p.p. 

PE 

  76%    61%    58%    15.1 p.p.    18.1 p.p. 

PP 

  65%    74%    68%    -9.0 p.p.    -3.6 p.p. 

 

The reduction in Polypropylene’s operating rate in the 2Q10 was due to a temporary decrease in exports competitiveness.

PRODUCTION
BRASKEM AMERICA
tons    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
Polymers Unit                         

PP - Polypropylene 

  192,352    215,979    192,708    219,291    178,437    218,834 

 

Utilization Rate (%)    2Q10    1Q10    2Q09    Change (%)    Change (%) 
BRASKEM AMERICA    (A)    (B)    (C)    (A)/(B)    (A)/(C) 

 PP

  92%    76%    91%    16.2 p.p.    1.2 p.p. 

 

25



EXHIBIT XII
Consolidated Sales Volume Domestic Market

DOMESTIC MARKET - Sales Volume
CONSOLIDATED
 
tons    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
Polymers Unit                         

PE´s - Polyethylene 

  326,511    387,034    390,442    387,195    384,464    390,365 

PP - Polypropylene 

  227,341    282,908    326,425    286,915    296,668    288,344 

PVC - Polyvinyl Chloride 

  76,997    119,514    139,826    121,092    123,158    120,895 

PET 

  11,745    6,280    13    (1)    -    - 

Caustic Soda 

  96,027    91,914    91,902    113,691    100,859    114,242 

Chlorine 

  12,636    12,145    10,547    14,654    14,628    13,442 
 
Basic Petrochemicals Unit                         

Ethylene 

  100,038    131,148    138,029    129,516    127,399    142,144 

Propylene 

  48,221    54,870    63,002    65,467    67,549    62,468 

Benzene 

  91,238    123,833    97,162    115,130    118,852    108,661 

Butadiene 

  20,976    59,635    70,017    55,163    73,778    54,899 

Toluene 

  18,506    20,275    25,154    27,985    24,783    21,715 

Fuel (m3) 

  167,080    218,448    199,860    140,575    204,787    193,383 

Orthoxylene 

  19,317    23,260    23,199    19,648    21,910    25,211 

Isoprene 

  1,611    2,200    2,160    2,700    2,501    3,203 

Butene 1 

  40    42    46    -    -    - 

MTBE 

  -    80    -    -    -    - 

ETBE 

  -    -    -    -    8    22 

Mixed Xylene 

  15,416    14,646    16,198    20,920    19,466    18,324 

Caprolactam 

  2,788    3,139    3,090    3,041    2    - 

Cumene 

  52,509    53,980    69,596    63,721    69,347    72,217 

Isobutylene 

  3,430    4,074    4,297    4,130    5,155    7,316 

Alkylbenzene 

  3,233    2,473    5,608    5,276    3,804    4,053 

LPG 

  16,084    16,309    14,093    12,985    7,956    5,981 

Fuel Oil 

  3,665    5,845    7,427    10,223    7,408    7,504 

Aromatic Residue 

  16,327    16,934    15,549    9,718    14,995    14,618 

Crude Oil Resins 

  1,677    2,023    2,057    2,105    2,154    2,356 

 

26



EXHIBIT XIII
Braskem Sales Volume Domestic Market

DOMESTIC MARKET - Sales Volume
BRASKEM
 
tons    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
Polymers Unit                         

PE´s - Polyethylene 

  231,520    267,724    275,205    282,492    278,000    264,837 

PP - Polypropylene 

  135,002    174,618    201,607    187,267    182,454    180,836 

PVC - Polyvinyl Chloride 

  76,997    119,514    139,826    121,092    123,158    120,895 

PET 

  11,745    6,280    13    (1)    -    - 

Caustic Soda 

  96,027    91,914    91,902    113,691    100,859    114,242 

Chlorine 

  12,636    12,145    10,547    14,654    14,628    13,442 
 
Basic Petrochemicals Unit                         

Ethylene 

  56,081    72,677    78,437    79,774    77,862    84,633 

Propylene 

  78,650    92,068    101,566    93,404    94,066    79,779 

Benzene 

  74,780    105,316    81,963    101,631    104,887    93,530 

Butadiene 

  13,583    45,543    51,003    37,863    54,519    36,177 

Toluene 

  16,092    16,512    21,614    23,861    20,835    16,271 

Fuel (m3) 

  105,435    145,619    128,937    85,084    139,061    126,554 

Orthoxylene 

  13,913    15,899    14,215    11,956    16,493    15,766 

Isoprene 

  1,611    2,200    2,160    2,700    2,501    3,203 

Butene 1 

  2,208    1,456    909    964    1,445    1,002 

MTBE 

  -    80    -    -    -    - 

ETBE 

  -    -    -    -    8    22 

Mixed Xylene 

  10,422    8,730    9,427    12,285    13,214    10,549 

Caprolactam 

  2,788    3,139    3,090    3,041    2    - 

 

27



EXHIBIT XIV
Quattor Sales Volume Domestic Market

DOMESTIC MARKET - Sales Volume
QUATTOR
 
tons    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
Polymers Unit                         

PE´s - Polyethylene 

  94,991    119,310    115,237    104,703    106,465    130,321 

PP - Polypropylene 

  92,339    108,289    124,818    99,649    114,214    108,693 
 
Basic Petrochemicals Unit                         

Ethylene 

  43,957    58,471    59,592    49,742    49,537    57,510 

Benzene 

  16,458    18,517    15,199    18,015    15,465    17,632 

Cumene 

  52,509    53,980    69,596    63,721    69,347    72,217 

Butadiene 

  7,393    14,092    19,014    17,300    19,259    18,722 

Isobutylene 

  3,430    4,074    4,297    4,130    5,155    7,316 

Toluene 

  2,414    3,763    3,540    4,124    3,949    5,444 

Fuel (m³) 

  61,645    72,829    70,923    55,491    65,726    66,829 

Alkylbenzene 

  3,233    2,473    5,608    5,276    3,804    4,053 

Mixed Xylene 

  4,994    5,916    6,771    8,635    6,252    7,775 

Orthoxylene 

  5,404    7,361    8,984    7,692    5,417    9,445 

LPG 

  16,084    16,309    14,093    12,985    7,956    5,981 

Fuel Oil 

  3,665    5,845    7,427    10,223    7,408    7,504 

Aromatic Residue 

  16,327    16,934    15,549    9,718    14,995    14,618 

Crude Oil Resins 

  1,677    2,023    2,057    2,105    2,154    2,356 

 

28



EXHIBIT XV
Consolidated Sales Volume Export Market

EXPORT MARKET - Sales Volume
CONSOLIDATED
 
tons    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
Polymers Unit                         

PE´s - Polyethylene 

  244,808    261,762    204,104    229,040    186,982    177,232 

PP - Polypropylene 

  322,029    322,543    294,898    320,697    267,055    261,276 

PVC - Polyvinyl Chloride 

  25,813    14,000    300    149    -    73 

PET 

  275    14,549    -    -    -    - 

Caustic Soda 

  -    7,480    -    -    1,003    4,898 

EDC 

  38,601    39,697    13,000    -    26,026    24,302 
 
Basic Petrochemicals Unit                         

Ethylene 

  -    -    -    -    -    - 

Propylene 

  16,895    47,898    33,577    53,118    37,257    53,256 

Benzene 

  57,585    51,440    100,306    66,365    75,566    75,193 

Butadiene 

  20,292    22,946    21,618    22,939    13,617    23,742 

Toluene 

  13,364    12,193    9,533    9,659    3,324    9,649 

Fuel (m3) 

  9,318    27,954    35,083    16,151    9,246    28,992 

Paraxylene 

  36,101    46,948    36,439    25,732    47,988    47,238 

Isoprene 

  840    2,518    3,355    1,683    2,359    1,681 

Butene 1 

  5,920    7,858    9,520    9,524    6,732    14,413 

MTBE 

  18,691    31,949    764    -    -    - 

ETBE 

  23,223    46,139    70,793    95,464    62,749    80,302 

Mixed Xylene 

  4,883    4,226    17,461    2,469    318    4,067 

Caprolactam 

  72    1,056    -    -    -    - 

Crude Oil Resins 

  716    1,138    1,522    1,902    1,998    1,639 

 

29



EXHIBIT XVI
Braskem Sales Volume Export Market

EXPORT MARKET - Sales Volume
BRASKEM
 
tons    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
Polymers Unit                         

PE´s - Polyethylene 

  167,666    207,424    170,270    175,022    166,152    134,906 

PP - Polypropylene 

  67,924    49,912    56,509    54,018    42,429    28,338 

PVC - Polyvinyl Chloride 

  25,813    14,000    300    149    -    73 

PET 

  275    14,549    -    -    -    - 

Caustic Soda 

  -    7,480    -    -    1,003    4,898 

EDC 

  38,601    39,697    13,000    -    26,026    24,302 
 
Basic Petrochemicals Unit                         

Ethylene 

  -    -    -    -    -    - 

Propylene 

  16,895    47,898    33,577    53,118    37,257    53,256 

Benzene 

  57,585    51,440    97,434    66,365    75,566    75,193 

Butadiene 

  20,292    22,946    21,618    22,939    13,617    23,742 

Toluene 

  13,364    9,064    7,568    9,659    3,324    9,649 

Fuel (m3) 

  9,318    26,738    33,972    16,151    9,246    28,992 

Paraxylene 

  36,101    46,948    36,439    25,732    47,988    47,238 

Isoprene 

  840    2,518    3,355    1,683    2,359    1,681 

Butene 1 

  5,920    7,858    9,520    9,524    6,732    14,413 

MTBE 

  18,691    31,949    764    -    -    - 

ETBE 

  23,223    46,139    70,793    95,464    62,749    80,302 

Mixed Xylene 

  4,883    4,226    14,713    2,469    318    4,067 

Caprolactam 

  72    1,056    -    -    -    - 

 

30



EXHIBIT XVII

Quattor and Braskem America Sales Volume Export Market

EXPORT MARKET - Sales Volume
QUATTOR
 
tons    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
Polymers Unit                         

PE´s - Polyethylene 

  77,141    54,338    33,834    54,018    20,830    42,326 

PP - Polypropylene 

  49,758    54,423    43,508    45,440    24,379    30,497 
 
Basic Petrochemicals Unit                         

Benzene 

  -    -    2,872    -    -    - 

Toluene 

  -    3,129    1,965    -    -    - 

Fuel (m³) 

  -    1,216    1,111    -    -    - 

Mixed Xylene 

  -    -    2,748    -    -    - 

Crude Oil Resins 

  716    1,138    1,522    1,902    1,998    1,639 

 

EXPORT MARKET - Sales Volume
BRASKEM AMERICA
tons    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
Polymers Unit                         

PP - Polypropylene 

  204,348    218,208    194,882    221,239    200,247    202,441 

 

31



EXHIBIT XVIII
Consolidated Net Revenue Domestic Market

DOMESTIC MARKET - Net Revenue
CONSOLIDATED
Million of R$    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
 
Polymers Unit                         

PE / PP / PVC 

  1,794    2,097    2,413    2,255    2,394    2,558 

Others 

  207    120    57    78    72    86 
 
Basic Petrochemical Unit                         

Ethylene / Propylene 

  247    328    385    395    407    462 

Cumene 

  73    71    113    116    137    162 

BTX 

  134    205    243    240    294    287 

Others 

  450    324    739    865    677    639 
 

Resale* 

  206    61    49    286    52    73 

Quantiq 

  100    90    105    95    115    152 
Total    3,211    3,295    4,104    4,328    4,147    4,419 
*Naphtha, condensate and crude oil

 

Export Market

EXPORT MARKET - Net Revenue
CONSOLIDATED
Million of R$    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
 
Polymers Unit                         

PE / PP / PVC 

  1,071    1,135    1,085    1,149    1,174    1,182 

Others 

  9    54    10    -    21    24 
 
Basic Petrochemical Unit                         

Ethylene / Propylene 

  16    55    58    88    88    116 

BTX 

  112    167    236    146    228    220 

Others 

  90    258    252    359    406    315 
 

Resale* 

  67    32    46    95    207    262 
Total    1,366    1,701    1,686    1,837    2,125    2,119 
*Naphtha, condensate and crude oil

 

32



EXHIBIT XIX
Braskem Net Revenue Domestic Market

DOMESTIC MARKET - Net Revenue
BRASKEM
Million of R$    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
 
Polymers Unit                         

PE / PP / PVC 

  1,259    1,475    1,728    1,663    1,718    1,781 

Others 

  207    120    57    78    72    86 
 
Basic Petrochemical Unit                         

Ethylene / Propylene 

  205    264    328    346    355    379 

BTX 

  109    166    194    201    251    231 

Others 

  373    387    505    476    467    576 
 

Resale* 

  206    61    49    286    52    73 

Quantiq 

  100    90    105    95    115    152 
Total    2,459    2,563    2,967    3,144    3,030    3,277 
*Naphtha, condensate and crude oil

 

Export Market

EXPORT MARKET - Net Revenue
BRASKEM
Million of R$    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
 
Polymers Unit                         

PE / PP / PVC 

  512    532    499    486    514    443 

Others 

  9    54    10    -    21    24 
 
Basic Petrochemical Unit                         

Ethylene / Propylene 

  16    55    58    88    88    116 

BTX 

  112    163    228    146    228    220 

Others 

  84    289    239    294    377    321 
 

Resale* 

  67    32    46    95    207    262 
Total    801    1,125    1,080    1,109    1,435    1,386 
*Naphtha, condensate and crude oil

 

33



EXHIBIT XX

Quattor and Braskem America Net Revenue Domestic Market

DOMESTIC MARKET - Net Revenue
QUATTOR
Million of R$    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
 
Polymers Unit                         

PE / PP 

  536    622    685    592    676    790 
 
Basic Petrochemical Unit                         

Ethylene 

  78    116    125    109    111    129 

Cumene 

  73    71    113    116    137    162 

BTX* 

  25    39    48    46    45    61 

Others 

  24    (131)    151    315    114    106 
Total    736    717    1,123    1,178    1,083    1,248 
*Naphtha, condensate and crude oil

 

Export Market

EXPORT MARKET - Net Revenue
QUATTOR
Million of R$    1Q09    2Q09    3Q09    4Q09    1Q10    2Q10 
 
Polymers Unit                         

PE / PP 

  203    196    152    195    108    182 
 
Basic Petrochemical Unit                         

BTX* 

  -    4    8    -    -    - 

Others 

  6    (32)    11    65    30    (6) 
Total    209    168    171    260    137    177 
*Naphtha, condensate and crude oil
 
EXPORT MARKET - Net Revenue
BRASKEM AMERICA
tons    1T09    2T09    3T09    4T09    1T10    2T10 
Polymers Unit                         

PP 

  356    407    434    467    552    557 

 

34

 

SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 13, 2010
  BRASKEM S.A.
 
 
  By:      /s/      Marcela Aparecida Drehmer Andrade
 
    Name: Marcela Aparecida Drehmer Andrade
    Title: Chief Financial Officer

 

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.


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