OPIS notes that Braskem reports financial results in the Brazilian real. These figures are here converted to U.S. dollars at average exchange rates (USD/BRL) of 3.85 for 4Q15, 2.56 for 4Q14, 3.35 for full-year ’15 and 2.35 for full-year ’14. For 2014 and 2015, Braskem achieved a 17% gain in adjusted EBITDA, up from US$2,391 million to $2,800 million.

As noted in commentary on Braskem’s previous quarters, improved financial results were achieved in the face of what appears to be a revenue collapse. Net revenue for the 4thQtr dove from $4.54 billion to $3.2 billion, down 30%. But the plunge in feedstock costs, from $3.94 billion to $2.47 billion was even greater, 37%, so it netted out to a 10% gain in quarterly EBITDA.

For the full year, revenue plunged from $19.6 billion to $14.1 billion, down 28%, but cost of goods sold (COGS) went down 35%. In the end, earnings before interest and taxes (EBIT) jumped 2.7 times, from $502 million to $1,361 million. Net income rose 2.8 times, from $309 million to $865 million.

While Braskem’s overseas units in the U.S. and Europe were turning in strong results for the year, the main business in Brazil was struggling on account of the ongoing contraction of the nation’s economy. All the main industries that utilize Braskem’s plastics, from autos to textiles, manufacturing and construction, all areas were in recession.

Still, Brazil’s crackers were operating at average utilization of 89% of capacity because of strong export markets. The prominent exception was the Riopol cracker in Rio de Janeiro that runs on purity feedstocks of ethane and propane produced at Cabiunas, the national gas processing plant at Macae, RJ state.

Cabiunas was featured in yesterday’s OPIS article about completion of a major subsea gathering line designed to bring 460 MMcfd of rich offshore gas all the way from the Santos Basin subsalt fields to an expanded Cabiunas plant. The problem at Riopol in 2015 was a shortage of the light feed streams coming from Cabiunas. OPIS conjectures that this problem will disappear once Cabiunas has adjusted to a huge increase of inlet gas volumes and is taking a deep cut of liquids from them.

Braskem achieved two milestones during 2015 that received special emphasis in the earnings release. On Dec. 23, Braskem signed a new naphtha supply agreement with Petrobras, valid for five years. Even though the new contract does not reflect all the conditions to guarantee competitiveness of the petrochemical industry, Braskem considers the agreement important for reducing the severe uncertainties surrounding its operations during previous quarters.

The other highlight of 2015 was bringing the huge petrochemical project in Mexico almost to completion. The Braskem-Idesa ethylene-polyethylene complex at Coatzacoalcos, Veracruz, reached 99% completion at year-end.

The utilities area is already operational. The main and accessory feedstocks have already been delivered to the site to support the cracker’s startup and the launch of polyethylene production.

Capex in 2015 devoted to Braskem-Idesa, a $5.2 billion project, came to $323 million. Braskem expects to disburse $329 million in 2016, chiefly for working capital and contractual obligations under the project finance structure.