Brazil's Braskem Q4 loss narrows on forex gains

Braskem, Latin America's largest petrochemical company, said on Wednesday its fourth-quarter loss narrowed as a strong Brazilian currency slashed foreign exchange-denominated debt servicing costs.

Braskem's net loss narrowed to 893 million reais ($501 million) from 2.14 billion reais a year earlier, the company said in a regulatory filing.

Net sales were slightly down to 4.25 billion reais from 4.27 billion reais in the fourth-quarter of 2008 as an average gain of 22 percent in Brazil's currency, the real, from the previous year offset a jump in revenue that is mainly linked to U.S. dollars.

The company had net financial expenses of 655 million reais in the fourth quarter, compared with 2.25 billion reais a year earlier. Braskem, whose $5.61 billion of debt is 64 percent linked to the U.S. dollar, had foreign exchange gains of 177 million reais in the quarter, reversing currency losses of 1.93 billion reais in the fourth-quarter of 2008.

Earnings before interest, taxes, depreciation and amortization, a measure of operational profitability and cash generation known as EBITDA, climbed to 614 million reais from 577 million reais ($1=1.783 reais)

Related links:
Braskem - www.braskem.com.br