Braskem, the Brazilian chemical company, experienced a 2.6% decrease in its shares following the announcement of a net loss and a drop in sales due to weakening demand. The company's preferred shares reached 23.24 reais ($4.74), reflecting a 0.4% increase from the end of last year until the market closed on Tuesday. However, Brazil's benchmark Ibovespa stocks index started the afternoon trading session with an 0.8% decline.
In its latest financial report released after the market's close on Tuesday, Braskem revealed a net loss of BRL771 million reais for the quarter, a significant improvement compared to a loss of BRL1.4 billion in the second quarter of 2022. Additionally, net revenue declined to BRL17.8 billion from BRL25.4 billion in the previous year.
Experts from BTG Pactual, Pedro Soares and Thiago Duarte, mentioned in a research note that the sector's profitability is currently challenged by reduced sales volumes and stagnant petrochemical spreads. The company's net debt ratio also rose significantly during the quarter, while the global demand for Braskem's products continues to remain weak.
Overall, these challenges have impacted Braskem's financial performance, leading to a decrease in both sales and profitability for the company.
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