UPDATE 1-Braskem posts jump in profit on strong exports, cheap oil

jueves 5 de noviembre de 2015 08:34 GYT
 

(Adds share performance, comments on costs, foreign exchange impact)

SAO PAULO Nov 5 (Reuters) - Brazil's Braskem SA, Latin America's biggest petrochemical producer, reported a more than six-fold increase in quarterly profit on Thursday due to surging exports, a stronger dollar and cheaper crude prices.

Net income jumped 545 percent from a year earlier to 1.482 billion reais ($391 million), according to a securities filing.

A more favorable exchange rate helped Braskem increase net revenue 12 percent, while its cost of goods edged 1 percent lower due mainly to falling oil prices, resulting in a 93 percent jump in gross profit.

Braskem said it is also making progress on efforts to cut operating costs by 400 million reais by 2017. The company aims to generate recurring savings of 80 million reais this year and 320 million reais in 2016.

Braskem shares rose around 1 percent early on Thursday.

Earnings before interest, taxes, depreciation and amortization doubled from a year earlier to 3.044 billion reais.

The nearly 30 percent plunge this year of Brazil's currency, the real, also boosted Braskem's financial results by 500 million reais due to hedge accounting practices based on its long-term exposure to the U.S. dollar through exports.

($1 = 3.79 Brazilian reais) (Reporting by Brad Haynes and Alberto Alerigi Jr.; Editing by W Simon)