MOSCOW (MRC) -- Braskem swung to a second-quarter net loss of USD281m after earnings were weighed partly by lower sales volumes of main chemicals in Brazil and polypropylene (PP) in Europe, said the company.
Q2 recurring earnings before interest, tax, depreciation and amortisation (EBITDA) also weighed by the "the normalization of international spreads for PE (polyethylene), PP (polypropylene) and PVC (polyvinyl chloride) in Brazil, PP in the US and Europe and PE in Mexico," the company said in a statement.
The company's Brazil business reported a 60% year-on-year decline in recurring EBITDA on the back of the lower international spreads for resins, lower sales volumes of main chemicals and the appreciation of the Brazilian Real against the US dollar.
As per MRC, Braskem, the market leader and a pioneer in the production of biopolymers, entered into an agreement for the acquisition of shares and the subscription of new shares in Wise Plasticos S.A., a company engaged in mechanical recycling. Braskem will acquire an equity interest of 61.1% in the share capital of Wise for an estimated amount of RD121 million, part of which will be used to expand its current production capacity by two-fold to around 50,000 tons/year of recycling by 2026.