Low demand and market pressures contribute to Braskem’s loss

  • Braskem’s net loss widened to BRL 2.4 billion in 3Q
  • Net revenue dropped to BRL 16.7 billion
  • Low demand on global markets and weaker dollar contributed to the decline
  • High interest rates, inflationary pressures, and weak economies affected demand
  • New production capacity and petrochemical spreads also put pressure on sales
  • Braskem’s utilization rate in Brazil fell to 68% in 3Q
  • Sales volumes of main chemicals in Brazil and exports declined

Braskem, the Sao Paulo-based chemical company, reported a net loss of BRL 2.4 billion in the third quarter, compared to a loss of BRL 1.1 billion in the same period last year. The decline in net revenue to BRL 16.7 billion was attributed to low demand on global markets and a weaker dollar. The company cited high interest rates, inflationary pressures, and weak economies in major markets as factors affecting demand. Additionally, new production capacity and petrochemical spreads added pressure on sales. Braskem’s utilization rate in Brazil fell to 68% in the third quarter, reflecting the decline in sales volumes of main chemicals both in Brazil and exports.

Factuality Level: 8
Factuality Justification: The article provides specific financial figures and quotes from Braskem, which adds credibility to the information. The reasons for the company’s loss are explained, including low demand on global markets, high interest rates, inflationary pressures, and weak economies in major markets. The article does not contain any obvious bias or opinion masquerading as fact. However, it could have provided more context on the industry and market conditions to further support the information presented.
Noise Level: 7
Noise Justification: The article provides relevant information about Braskem’s financial performance in the third quarter, including the widening loss and the factors that contributed to it, such as low demand on global markets, high interest rates, inflationary pressures, and weak economies. However, the article lacks in-depth analysis or insights into the long-term trends or possibilities for the company. It also does not provide any information on systems that can withstand or benefit from shocks and unexpected events. Overall, the article is focused on reporting the financial results without providing much context or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Braskem, a Sao Paulo-based chemical company, reported a widened net loss in the third quarter due to low demand on global markets. The company cited high interest rates, inflationary pressures, and weak economies in major markets as factors contributing to the low demand. Additionally, new production capacity for polypropylene and polyethylene has been putting pressure on petrochemical spreads.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article does not mention any extreme events. The financial impact is primarily due to market conditions and industry factors.
Public Companies: Braskem (null)
Key People:

Reported publicly: www.marketwatch.com