Braskem, demonstrating its resilience to the downcycle in the global petrochemical industry, closed fiscal year 2019 with recurring EBITDA of R$5.9 billion and net cash generation of R$3 billion. The results represent declines on the prior year of 46% and 56%, respectively, which primarily reflect the narrowing of resin spreads in the international market and the global economic slowdown. The Company posted a net loss of R$2.79 billion. Two factors contributed to the result: the negative effect from the depreciation in the Brazilian real against the U.S. dollar on the company's net exposure not designated for hedge accounting; and the accounting effect from the accrual of a provision of R$3.38 billion for implementing the financial compensation programs to support relocation and offer vocational programs and for the shutdown of the salt mines in Maceió, Alagoas. The programs were the result of agreements reached with the authorities of the state of Alagoas.

"The Company's results were noteworthy, given the highly challenging scenario in the global petrochemical industry. Regarding the situation in Alagoas, we are working to ensure the safety of the public, while at the same time making progress in fulfilling the agreement signed with the local authorities, and continuing to conduct technical studies for restarting chlor-alkali production at our plant," said Roberto Simões, Braskem's CEO.

For the fourth quarter, Braskem reported recurring EBITDA of R993 million and free cash flow of R$292 million, representing declines on the prior-year period of 32% and 33%, respectively. Net revenue in the quarter was R$12.6 billion.

In 2019, Braskem made aggregate investments in its operations (US$470 million) and strategic projects (US$229 million) of US$700 million, which was 21% lower than the amount estimated at the start of the year and surpassed the reduction target of US$100 million set at midyear, reflecting the Company's commitment to its financial solidity. 

Financial leverage measured by the ratio of net debt to EBITDA in U.S. dollar ended the quarter at 4.71x.

In Brazil, the petrochemical complexes operated at an average capacity utilization rate of 85%, down 6 p.p. from 2018. In the United States, the PP plants operated at an average capacity utilization rate of 89%, up 2 p.p. from 2018. In Mexico, the PE plants operated at an average capacity utilization rate of 76%, down 1 p.p. from 2018, reflecting the low supply of ethane.

Safety, people, environment and social responsibility
The recordable and lost-time injury frequency rate, considering both team members and partners per million hours worked, stood at 1.31 in 2019, 58% below the industry average. Safety is a nonnegotiable value at Braskem, whose goal is to further improve this indicator.

Braskem continued to garner accolades in the area of people management, which in 2019 included being named one of the Best Companies to Start a Career by Você S/A and one of the Best Places to Work by Glassdoor. The company also received an award in the Bronze category in the WEP Awards from UN Women, which recognizes good practices to promote gender equality. 

For its efforts in environmental initiatives, Braskem was recognized by the Triple A List for Water and Climate of the Carbon Disclosure Program (CDP) for fiscal year 2018, consolidating its position as a reference in management of climate risks and water resources. It also was recognized, for the sixth straight year, as a leader in Sustainable Development by the UN Global Compact, figuring as the only Brazilian company among the 10,000 member companies.

As part of its efforts to foster the Circular Economy,  Braskem expanded its brand I'm greenT, which resulted in the sale of 1,651 tons of post-consumer resins (PCR) and 699 tons of recycled hexane in 2019.

Braskem and Made in Space, a U.S. company contracted by NASA to develop new technologies for operation in zero gravity, created a plastic recycler that was launched into space in November on the 12th commercial resupply mission of Northrop Grumman (NG12) to the International Space Station, which will transform waste plastic into new feedstock for the station's 3D printer.

Health and safety of team members and initiatives to combat COVID-19
Braskem also has adopted a series of preventive measures to ensure the health and safety of all its team members. The company adopted working remotely (flex office) for employees who are part of vulnerable groups or work in office spaces. On its production lines, Braskem is working with scaled down teams to ensure the safe continuity of its operations and has reinforced practices in line with the recommendations of the local health authorities.

International travel and domestic business travel was suspended, as well as the participation in person of team members in meetings and events. Furthermore, all employees who present symptoms similar to those of COVID-19 are instructed to immediately notify Braskem's Health team. 

The Company also joined with partners in the chemical and plastic chain to donate essential materials for combating the latest strain of the coronavirus in hospitals in the public healthcare system. The thermoplastic resin donated is sufficient to make 60 million masks or more than one million gowns. 

Braskem also is donating material to make packaging for 750,000 liters of alcohol in liquid and gel and to make over 500,000 squeeze wash bottles (used in hospitals for alcohol gel), as well as 10,000 boxes of hypochlorite for dilution or use as bleach and over 150,000 plastic trash bags for medical waste. The donations will benefit hospitals in the states of Alagoas, Bahia, Ceará, Pernambuco, Rio de Janeiro, Rio Grande do Sul, Santa Catarina and São Paulo. The joint effort, which involves clients and trade associations, already is engaged in 32 initiatives.

The donation of raw materials for making protective equipment and packaging already has surpassed 370 tons. The value of the materials will be further leveraged by the petrochemical producer's partners.

Braskem also already had announced an additional credit facility of R$1 billion for helping primarily small and midsized businesses in the chain to weather the coming months of the crisis caused by the coronavirus.