Braskem S.A. (NYSE:BAK) Q4 2019 Earnings Conference Call - Final Transcript
Apr 08, 2020 • 02:00 pm ET
Good afternoon, ladies and gentlemen. At this time, we would like to welcome everyone to Braskem's Fourth Quarter of 2019 Earnings Conference Call. Today, first we have Pedro Freitas, Vice President of Finance, Procurement and Corporate Affairs and Rosana Avolio, Head of Investor Relations. We would like to inform you that this event is being recorded and all participants will be in a listen-only mode during this company's presentation. After Braskem remarks are completed, there will be a question-and-answer section. At that time, further instructions will be given. [Operator Instructions] We have simultaneous webcasts that maybe accessed through Braskem's IR website at www.braskem-ri.com.br and the MZiQ platform where the slide presentation is available for download. Please feel free to flip through the slides during the conference call. There will be a replay facility for this call on this website. We remind you that the questions which will be answered during the Q&A session may be posted in advance on the website.
Before proceeding, let me mention that forward-looking statements are being made under the safe harbor of Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of the Braskem management and on information currently available to the company. They involve risks, uncertainties, and assumptions because they relate to the future events and, therefore, depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of Braskem and could cause results to differ materially from those expressed in such forward-looking statements. Now, I'll turn the conference over to Rosana Avolio, Head of Investors Relations. Mrs. Avolio, you may begin your conference.
Good afternoon all. We would like to thank you for joining Braskem earnings results conference. Today we will present fourth quarter and 2019 results. So please let's move to Slide number 3. In this slide, we will present the company's strategic pillars and its achievements. Regarding competitiveness and productivity, the company presented a total injury rate 58% lower than the industry average. Also, the company has continued the modernization project in the electric system of our plant in Sao Paulo and the electric infrastructure upgrade project of our plant in United States. Regarding feedstock and supplies diversification, the main achievements were the important increase in the consumption of imported naphtha and the start up of the fast track project in our petrochemical complex in Mexico. Regarding people, the company has implemented its new career philosophy and Braskem was also acknowledged as A List company CDP Water and Climate index. Regarding financial strategy, in 2019, Braskem kept the focus on capital allocation discipline with a reduction of 21% in operating and strategic investments and now for the company, debt liability management exercised prepaying most of its debts until 2023.
Moving to the next slide. On Slide 4, we present the main highlights of Brazil's operations. In 2019, the Brazilian market demand grew 2% in comparison with