Petrobras to Set Stage for Braskem Exit this Year
The arrangement foresees converting preferred shares to a single class of common shares, which would allow Braskem to be listed in premium listing segment of the São Paolo Stock Exchange’s Novo Mercado. This in turn would facilitate a sale, Petrobras CEO Roberto Castello Branco is quoted as saying during a webinar earlier this week.
Following the share conversion, Petrobras could launch a capital market offer to shed its shareholding, similar to the one it used to sell its stake in fuels distribution unit BR Distribuidora in 2019, analysts said.
A change in Braskem’s ownership has been a topic for some time, with both major shareholders talking to potential buyers. Petrobras has reversed its position at least once, but has now confirmed its intent to sell its 36.1% stake in the petrochemicals producer under its $20 -$30 billion divestment program for 2020-2024.
Odebrecht talked to LyondellBasell about taking its stake, before the Netherlands-headquartered, Texas-managed olefins and polyolefins giant backed away last year.
In a move observers thought indicated that Petrobras is still interested in retaining at least some ties to Braskem, it last month signed a five-year naphtha supply deal with the subsidiary, replacing existing contracts due to expire this coming December.
The arrangement calls for Petrobras to deliver at least 650,000 t/y, with an additional maximum volume of 2.8 t/y possible. The naphtha is to be routed to Braskem facilities in Brazil’s Bahia and Rio Grande do Sul states.
-
Brazilian oil giant Petrobras is reportedly close to agreeing a new shareholding structure for Braskem this year with other major owner Odebrecht. Plans call for converting preferred shares to common shares followed by a listing on São Paolo Stock Exchange’s Novo Mercado. (c) Braskem
Braskem strengthens PP position in US
The company that bills itself as largest polyolefins producer in the Americas has now completed construction of its newest PP production facility, at La Porte, Texas, USA. Braskem’s new plant has a nameplate capacity of more than 450,000 t/y covering its entire portfolio of grades. Commercial production at La Porte is expected to start in this year’s third quarter.
Following the completion of a new global export hub in Charleston, South Carolina, USA, being realized in partnership with Frontier Logistics, Braskem will be able to ship to clients throughout North America, South America, Europe and Asia.
The Charleston hub designed to support export shipments of around 204,000 t/y complements Braskem’s existing network of global export hubs in the Americas and Europe. The Brazilian company has five PP plants in the US, located in the states of Texas, West Virginia and Pennsylvania, with a reported combined capacity of some 1.6 million t/y.
From Charleston, the PP producer plans to export to South America and central Europe and potentially to Asia, Braskem America’s CEO, Mark Nickolich, said last month.
