Braskem S.A. (BAK): history, ownership, mission, how it works & makes money

A Brief History of Braskem S.A. (BAK)

Foundation and Early Years

Braskem S.A. was founded in 2002, emerging from the merger of several companies, primarily the petrochemical businesses of the Brazilian firms, Copene, and the other companies of the Odebrecht Group. The goal was to create a leading petrochemical company in Latin America.

Key Milestones

• 2002: Formation of Braskem from the merger of Copene, Trikem, and OPP.
• 2006: Braskem became the first Brazilian petrochemical company to have its shares traded on the New York Stock Exchange (NYSE) under the ticker symbol BAK.
• 2010: Acquired the petrochemical assets of the Brazilian company, Quattor, consolidating its market position.
• 2012: Braskem established the first green polyethylene plant in the world, which uses sugarcane as a feedstock.
• 2016: Braskem announced a joint venture with the U.S. company, Ineos, for the production of polypropylene.

Financial Performance

Braskem has shown significant financial growth since its inception. In 2022, the company's net revenue was approximately R$ 67.7 billion (around USD 12.8 billion). The EBITDA for 2022 reached R$ 13.4 billion (approximately USD 2.5 billion), indicating a considerable operational profitability.

Global Expansion

Braskem has expanded its operations beyond Brazil, establishing a presence in the United States and Germany through acquisitions and joint ventures. In 2017, Braskem acquired the petrochemical complex in La Porte, Texas, enhancing its operational capacity in North America.

Innovations and Sustainability

• Braskem produces the world's first green polyethylene made from renewable resources.
• The company is invested heavily in sustainable practices and aims to reduce its greenhouse gas emissions by 15% by 2030.
• Braskem's innovation strategy focuses on developing new materials and technologies that promote circular economy principles.

Recent Developments

As of October 2023, Braskem continues to pursue growth opportunities in the green chemistry sector and has announced plans for expansion in biopolymers. The company reported a market capitalization of approximately USD 5 billion and is actively involved in various projects aimed at reducing carbon footprints.

A Who Owns Braskem S.A. (BAK)

Shareholder Composition

As of the latest reports, the ownership structure of Braskem S.A. (BAK) is composed of various stakeholders, including minority shareholders, institutional investors, and significant corporate stakeholders.

Recent Stock Performance

Braskem's stock performance reflects the company's market standing and investor sentiment.

Institutional Ownership

Institutional investors play a critical role in Braskem's ownership structure.

Voting Rights

Braskem's voting rights are predominantly held by its controlling shareholders.

Financial Overview

Braskem's financial situation reflects its operational efficiency and market competitiveness.

Braskem S.A. (BAK) Mission Statement

Overview

Braskem S.A., a leading petrochemical company, emphasizes its commitment to sustainable development through its mission statement. The company seeks to provide innovative solutions, contributing to the quality of life while fostering sustainable practices.

Mission Statement

The mission of Braskem is to be the leading company in the petrochemical sector, dedicated to sustainable development and the creation of value for its stakeholders. Braskem aims to produce and supply high-quality petrochemical products that contribute to technological advancements and environmental sustainability.

Core Values

• Sustainability: Actively promoting environmentally friendly practices.
• Innovation: Creating solutions that advance technology and productivity.
• Integrity: Conducting business ethically and responsibly.
• Excellence: Striving for high-quality and efficient operations.
• Collaboration: Building strong partnerships with stakeholders.

Financial Overview

As of 2022, Braskem reported the following key financial figures:

Market Position

Braskem is recognized as the largest producer of polypropylene and a significant player in the Brazilian polyethylene market. The company's production capacity includes:

Commitment to Sustainability

Braskem's mission reflects a strong commitment to sustainability, including goals such as:

• Achieving a reduction of 15% in greenhouse gas emissions by 2030.
• Increasing the production of renewable feedstocks to 1 million tons by 2025.
• Investing over BRL 1 billion in sustainable projects by 2025.

Innovation and Research

Braskem places strong emphasis on innovation, investing approximately 2% of its total revenue into research and development. Key initiatives include:

• Development of bio-based products.
• Enhanced recycling technologies.
• Collaboration with universities for advanced materials research.

Conclusion

The mission statement of Braskem S.A. encapsulates its vision and commitment to sustainable development, innovation, and excellence in the petrochemical industry. The company continues to advance its goals and adapt to market demands while prioritizing environmental and social responsibilities.

How Braskem S.A. (BAK) Works

Company Overview

Braskem S.A. is a Brazilian petrochemical company, headquartered in São Paulo. It operates in the production of thermoplastic resins and has a significant presence in the global market. As of 2023, Braskem is recognized as the largest producer of thermoplastic resins in the Americas.

Key Financials

Braskem's financial performance showcases its position in the petrochemical sector. Here are some key financial metrics from the latest fiscal year (2022):

Production Facilities

Braskem operates a network of production facilities across various locations. The company has a total of 40 industrial units that produce a variety of petrochemical products. The following table outlines the key facilities and their respective production capacities:

Product Portfolio

Braskem's product portfolio includes a wide range of chemicals and polymers, such as:

• Polyethylene
• Polypropylene
• Vinyls
• Butadiene
• Acrylics

Sustainability Initiatives

Braskem emphasizes sustainability in its operations. As part of its sustainability strategy, the company launched the "I’m Green" initiative, which focuses on the production of bioplastics. In 2022, Braskem produced approximately:

Market Position and Competitors

Braskem holds a leading position within the petrochemical industry in Latin America and is a key player globally. Its main competitors include:

• Dow Chemical Company
• BASF
• ExxonMobil
• INEOS
• Sabic

Recent Developments

In recent years, Braskem has also focused on strategic partnerships and investments. Some of the notable investments include:

• Partnership with the U.S. Department of Energy for clean energy initiatives
• Investment of $1.5 billion in the construction of a new ethylene plant in Texas
• Acquisition of a Brazilian firm specializing in sustainable packaging

Financial Health and Stock Performance

As of October 2023, Braskem's stock, listed on the New York Stock Exchange as BAK, has shown the following performance metrics:

How Braskem S.A. (BAK) Makes Money

Revenue Streams

Braskem S.A. generates revenue primarily through the production and sale of petrochemical products. The company's segments include:

• Polyethylene (PE)
• Polypropylene (PP)
• Vinyls
• Basic Petrochemicals

Production Capacity

As of 2022, Braskem's production capacity and volumes are as follows:

Geographic Markets

Braskem operates in numerous regions, enhancing its market reach. The revenue distribution by geographic area for 2022 is as follows:

Cost Structure

The cost structure significantly impacts Braskem’s profitability. The major costs include:

• Raw materials (ethylene, propane, butane)
• Operating expenses
• Logistics and distribution expenses
• Depreciation and amortization

Financial Performance

For the fiscal year 2022, Braskem reported the following financial highlights:

Strategic Initiatives

Braskem focuses on sustainability and innovation to drive revenue growth, including:

• Expanding bio-based and recycled products
• Investments in research and development
• Partnerships for technological advancements

Market Trends

The company is influenced by global market trends, such as:

• Demand for sustainable materials
• Regulatory changes in environmental policies
• Fluctuations in crude oil prices

Conclusion

Braskem’s diversified product portfolio and geographic presence facilitate its competitive advantage in the petrochemical sector. The ongoing focus on sustainability and innovation further positions the company for growth in a changing market landscape.