Braskem SA

07/23/2021 | Press release | Distributed by Public on 07/23/2021 04:02

PRODUCTION & SALES REPORT SECOND QUARTER 2021 (Form 6-K)

PRODUCTION & SALES REPORT

SECOND QUARTER 2021

São Paulo, July 22, 2021 - Braskem S.A. ('Braskem' or 'Company') discloses to its shareholders and the market its Production & Sales Report for the second quarter of 2021. Note that the information herein is based on preliminary estimates and that the data has not been audited by the independent auditor.

For more information, contact Braskem's Investor Relations Department by calling +55 (11) 3576-9531 or emailing [email protected].

Contents

1.INDUSTRIAL PERFORMANCE IN 2Q21 2
1.1BRAZIL 2
1.2UNITED STATES & EUROPE 2
1.3MEXICO 3
2.SALES PERFORMANCE IN 2Q21 3
2.1BRAZIL 3
2.2UNITED STATES & EUROPE 4
2.3MEXICO 4
1. INDUSTRIAL PERFORMANCE IN 2Q21
1.1 BRAZIL

Average utilization rate of petrochemical crackers:reduction in relation to 1Q21 (-6 p.p.), mainly due to the scheduled general maintenance shutdown carried out over 63 days at the petrochemical complex in ABC, São Paulo. Compared to 2Q20, the utilization rate increased (+6 p.p.) given the normalization of operations after the need to temporarily reduce production at the petrochemical crackers in Brazil in 2Q20 due to weaker demand and the destocking trend in the petrochemical and plastics production chains caused by COVID.

1.2 UNITED STATES & EUROPE

Average utilization rate of PP plants:in the United States, the utilization rate increased in relation to 1Q21 (+20 p.p.), reflecting the normalization of production after the impacts from winter storm Uri on the U.S. Gulf Coast in 1Q21. Compared to 2Q20, the rate increased (+8 p.p.) given the normalization of operations after the need to reduce temporarily production at the PP plants in the United States in 2Q20, due to weaker demand and the destocking trend in the petrochemical and plastics production chains caused by COVID.

In Europe, the utilization rate increased in relation to 1Q21 (+3 p.p.) explained by the inventory rebuilding effect and meeting demand in the region. Compared to 2Q20, the utilization rate increased (+14 p.p.), reflecting the normalization of operations after the weaker demand from the automotive industry in the region in 2Q20 caused by COVID.

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1.3 MEXICO

Average utilization rate of PE plants:the utilization rate was in line compared to 1Q21, explained by the higher ethane supply by Pemex in June, which has partially compensated the non-scheduled shutdown in May at the petrochemical complex in Mexico due to a specific instability in power electricity supply at Braskem Idesa. Compared to 2Q20, the utilization rate decreased (-23 p.p.), explained by lower imported ethane due to a specific instability in power electricity supply at Braskem Idesa and the impact of the process of returning to operations after winter storm Uri.

2. SALES PERFORMANCE IN 2Q21
2.1 BRAZIL

Resin sales volume:in the Brazilian market, decreased compared to 1Q21 (-17%), explained by: (i) the normalization of demand in the region, but still remaining at healthy levels; and (ii) the reduction in market share mainly due to the scheduled general maintenance shutdown of the petrochemical complex in ABC, São Paulo and the increase in imports volume. Compared to 2Q20, sales volume increased (+10%), mainly due to the normalization of demand in the Brazilian market, which in 2Q20 was affected by the economic slowdown caused by COVID.

Export volume increased in relation to 1Q21 (+4%), mainly due to the higher volume of PE available for sale in the international market, given the weaker demand and lower sales volume in the domestic market. Compared to 2Q20, export volume decreased (-46%), explained by the lower volume of resins available for export due to the normalization of demand in the Brazilian market, which in 2Q20 was affected by the economic slowdown caused by COVID.

Main chemicals sales volume:in the Brazilian market, sales volume decreased in relation to 1Q21 (-10%), due to the lower product availability, given the lower utilization rates of the petrochemical crackers. Compared to 2Q20, sales volume in the Brazilian market increased (+51%), reflecting the higher product availability and stronger demand.

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Exports volume increased in relation to 1Q21 (+18%), explained by higher export volumes of benzene due to opportunities in the external market. Compared to 2Q20, exports volume decreased (-37%), due to lower availability explained by the greater allocation of sales in the domestic market.

2.2 UNITED STATES & EUROPE

PP sales volume: in the United States, the increase in relation to 1Q21 (+14%) is explained by the higher product availability in the period. Compared to 2Q20, the increase (+26%) is mainly due to the increase in production capacity after the commercial startup of the new PP plant (Delta) in the region in September 2020.

In Europe, sales volume remained practically in line with 1Q21 (-1%). Compared to 2Q20, the increase (+14%) is due to the higher product availability in the period.

2.3 MEXICO

PE sales volume:increased in relation to 1Q21 (+15%) due to the limited product availability for sale in the previous quarter after the interruption of natural gas supply at the end of 2020 and after the impacts from winter storm Uri on the U.S. Gulf Coast. Compared to 2Q20, sales volume decreased (-32%) due to the higher product availability in the prior-year quarter.

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