Braskem Posts Third-Quarter Loss of 1.05 Billion Reais
Braskem SA (BRKM5), Latin America’s largest petrochemicals maker, posted a larger-than-expected third quarter loss after a weaker Brazilian currency increased the value of its dollar-denominated debt.
The loss of 1.05 billion reais ($600 million) compares with a 532 million-real profit in the same period a year earlier, Braskem said in a regulatory filing today. The loss per share of 1.32 reais was more than the 81-centavo loss estimated in a Bloomberg survey of three analysts.
Brazil’s real slumped 17 percent in the third quarter, the second-worst emerging market performer after Poland in the period. About 70 percent of Braskem’s 10.8 billion reais of total debt is denominated in dollars, the company said.
Braskem rose 1.2 percent, or 17 centavos, to 14.97 reais at 12:07 p.m. in Sao Paulo. The stock is down about 26 percent this year, more than the 16 percent drop in the Bovespa stock index.
To contact the reporter on this story: Peter Millard in Rio de Janeiro at Pmillard1@bloomberg.net