Braskem Idesa breaks record in ethane imports to Mexico
In August, Braskem Idesa concluded the project to expand Fast Track’s import capacity in Mexico, which currently stands at 25,000 barrels per day.
As a result, in September, the import volume reached a record 22,400 barrels per day.
In the third quarter, to complement Pemex‘s ethane supply, Braskem Idesa imported from the United States 18,600 barrels of ethane on average per day, which represents around 74% of Fast Track’s current capacity.
Additionally, the company is working to further expand the capacity of the Fast Track solution, which implies the incorporation of additional unloading stations, which could allow Braskem Idesa to reach a maximum ethane import capacity of up to 35,000 barrels per day, and Project completion is expected during 2Q22.
Braskem’s Adjusted Recurring Operating Income in Mexico was 182 million dollars (R $ 946 million), 3% lower than the second quarter of 2021, mainly due to the narrowing of polyethylene (PE) spreads in the international market in the period, but above the historical average of the last 10 years.
Thus, compared to the third quarter of 2020, the increase was 130%, reflecting the increase in PE spreads in the international market in the period.
In depth: in the third quarter of 2021, after the applicable corporate approvals, including the final approval of the shareholders and creditors of Braskem Idesa, regarding the modification of the ethane supply contract by Pemex, the formula was retroactively adjusted of the price of ethane as of the signing date of the Memorandum of Understanding between Braskem Idesa and Pemex, resulting in a provision of 27.6 million dollars in the quarter.
Although the accounting of this cost from previous months was made in the third quarter of 2021, for better comparability, we are diluting this impact between the quarters of 2021 in the Adjusted Recurring Operating Results, being 2.2 million dollars related to the first quarter, 13.3 million related to the second quarter of 2021 and 12.1 million related to the third quarter of 2021.