Brazilian petrochemical company Braskem has disclosed its financial results for Q2 2024. Braskem's revenue for April—June 2024 amounted to $3.7 billion compared to $3.6 billion in Q2 2023, representing a 3% growth. Consolidated Recurring EBITDA for Q2 2024 was $320 million (BRL 1.7 billion), reflecting an increase from Q1 2024 (+39%) and Q2 2023 (+128%).

In Q2 2024, recurring EBITDA for Brazil/South America was $231 million (BRL 1.2 billion), marking a 185% increase compared to Q2 2023. The robust rise is attributed to a 35,000 t, or 4%, increase in resin sales in the Brazilian market. The average utilisation rate of petrochemical crackers decreased by 1% compared to Q2 2023, standing at 71%. Resin sales increased by 4% compared to Q2 2023, reaching 824,000 t, with exports rising by 2% to 174,000 t. The sales of main chemicals in the Brazilian market rose by 3% to 627,000 t compared to Q2 2023, while exports fell by 33% to 71,000 t. The utilisation rate of Green Ethylene decreased by 49% compared to Q2 2023, bottoming out at 35%.

In the United States and Europe, recurring EBITDA was $46 million (BRL 247 million), 108% higher than in Q2 2023. The average utilisation rate of petrochemical crackers decreased by 2% compared to Q2 2023. PP sales were down by 7% compared to Q2 2023, totalling 500,000 t in Q2 2024.

In Mexico, recurring EBITDA was $56 million (BRL 292 million). Compared to Q2 2023, recurring EBITDA in US dollars increased by 39%, mainly due to a 16% increase in the PE spread in the international market and a 20,000 t, or 9%, increase in PE sales. The average utilisation rate of PE plants decreased by 8% to 78% in Q2 2024. PE sales were up by 9% compared to Q2 2023.

The balance of corporate gross debt at the end of the quarter was $8.4 billion, down by 2% from the previous quarter, with 96% of maturities concentrated in the long term and 4% in the short term. The balance of net debt at the end of Q2 2024 was $5.6 billion, an increase of 6% compared to the previous quarter. According to the report, Braskem's current facilities usage remains suboptimal, hovering around 70—75%, well below the ideal range of 85—90%.

’Industry experts are evaluating the long-term viability of capacity recovery,’ CEO Roberto Bischoff has said. ’If optimisation proves unfeasible, alternative strategies must be explored.’ He added, ‘Sometimes, operational constraints leave no room for alternatives.’

The company's Chief Financial Officer, Pedro Freitas, noted last summer that Brazil's petrochemical industry was under significant pressure due to production costs much higher than those of other major chemical manufacturers. In his view, government policy to support the chemical industry has become indispensable.

Braskem expects resin prices to recover from 2026. Global prices for some of Braskem's key products, such as PE, PP and PVC, remain low. Despite some positive price signals at the start of 2024, the company anticipates another challenging year.

 

The BASF Group has published its results for Q2 2024. During this period, the group's sales amounted to €16.1 billion, which is €1.2 billion less than the previous year. This decline was primarily due to lower prices across all segments, especially in the Surface Technologies, as well as the negative impact of exchange rates. The company's EBITDA before special items remained unchanged at €2 billion, supported by strong performance in the Industrial Solutions, Chemicals and Nutrition and Care areas. However, the decrease in volumes and prices in the Agricultural Solutions segment and other areas limited overall profitability.

The report notes that special expenses are mainly related to the settlement of a lawsuit concerning aqueous film-forming foam (AFFF) in the US and restructuring expenses.

Earnings per share for the group were €0,48, compared to €0,56, while adjusted earnings per share increased to €0,93.

Cash flow from operating activities fell to €2 billion and free cash flow decreased to €471 million, influenced by significant investments in new projects, particularly in China.

BASF continues to implement its expense-saving measures, which aim to achieve annual savings of €2.1 billion by 2026. Current measures are expected to save €800 million per year by the end of the year.

INEOS Group Holdings S. A.* has published its Q2 2024 trading performance, reporting that EBITDA reached €576 million versus €387 million in Q1 2024 and €516 million in Q2 2023. The rise resulted from healthier demand, better sales and higher margins. North American markets were relatively robust and are taking full benefit of their current cost advantage. European ones showed improvement due to a sustained increase in demand, while those in Asia remained soft in the second quarter.

The EBITDA of the Olefins & Polymers (O&P) North America segment slightly decreased by €13 million, or 6%, year on year to €189 million in April—June 2024. Ethylene markets were generally stable that quarter with a combination of steady domestic demand, limited supply and reduced export opportunities. Polymer demand was steady and downstream pipe markets stayed solid on firm demand, particularly from the oil and gas sector. One of the crackers on the Chocolate Bayou site had a scheduled turnaround during the quarter.

   The EBITDA of the O&P Europe segment surged by €105 million, or 146%, on an annualised basis to €177 million in April—June 2024. The olefin business was improving even though most crackers are still operating at reduced rates. Butadiene markets were firm that quarter with higher demand and some supply constraints. The polymer business benefited from reasonable demand and reduced imports from the Middle East and Asia. The group completed the acquisition of the Naphtachimie cracker and derivative assets in Lavera, France, in April 2024.

   Phenol sales were higher in the USA and Europe but lower in Asia. Most sectors of the oxides market saw modest improvement in demand, but European glycol markets remained weak. LyondellBasell's US ethylene oxide and derivatives business was acquired in May 2024 and integrated into INEOS’s oxide business.

   * - The group’s statement covers three business segments: O&P North America, O&P Europe and Chemical Intermediates.