Braskem S.A. (NYSE:BAK) Q4 2019 Earnings Conference Call - Final Transcript

Apr 08, 2020 • 02:00 pm ET

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Braskem S.A. (NYSE:BAK) Q4 2019 Earnings Conference Call - Final Transcript

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Executive
Pedro van Langendonck Teixeira de Freitas

than need or building inventories that we shouldn't build. So it's a careful exercise of market intelligence, demand planning and then production planning that is being reviewed weekly now because the situation is changing dramatically from week to week.

There are examples here in Brazil where, let's say, last week one product was -- had very low demand and now this week it's in high demand. So the value chains are still adjusting adapting to the new situation. So this needs to be revised very, very frequently and we are doing that.

Another aspect still on the operational side which I also think is important is our financial situation. As you know and Rosana presented that, we did a large refinancing of our debt at the end of last year. That was in anticipation of the downturn of the petrochemical cycle which we were already going into, I would say, end of last year, beginning of this year. So we didn't do this, of course, because of the crisis, but it put us on a very comfortable financial situation looking forward to the next, I would say, three to four years. Until 2023 at least most of our debt has been refinanced. So again looking at the cycle this was our reason and it's now proving to be good for us because we don't face any significant cash constraints or crunch going forward.

And finally on the third bucket in terms of our support to clients and society as a whole, I mean as I said our products are very useful in fighting the crisis. So for example, we just announced last Friday we are donating the plastic resins to make up to 60 million face masks in Brazil. We have other initiatives going on in Mexico, in Europe and in the US, but that's one example.

We are also working with our clients in Brazil, especially the small and mid-size clients supporting them with, I would say, a very competitive credit line for the next couple of months. We're also looking at doing the same or similar programs in Europe again and in the U.S. focused again on small and mid-sized companies helping support them through the crisis.

So I'll stop here and open for questions. But I just wanted to highlight what we're doing in the current environment.