Braskem — Cyborg Score 3/10

Challenged
Petrochemicals & Industrial Chemicals

Strategic Profile

Braskem is the world's leading biopolymers producer with its 200,000 tons Green PE plant that produces polyethylene from sugarcane-based ethanol. Braskem is Brazil's main producer of polyethylene, polypropylene and polyvinyl chloride – PVC, and is the leader in the US polypropylene market.

Cyborg Score Rationale

Net debt/EBITDA of 14.9x and ongoing Alagoas liabilities present severe financial stress. EPS for 12 months was -$1.17, indicating earnings challenges. Governance concerns remain despite recent shareholder agreements.

Top Insights

  • Highest-cost producer challenged by weak global petrochemical spreads despite operational scale
  • Potential ownership change underway: Petrobras waived rights allowing Novonor's stake transfer to Shine I FIDC, potentially easing shareholder structure and governance changes in Feb 2026
  • Brazil's new PRESIQ incentive program for chemical industry runs 2027-2031 with REIQ rate maintained at 0.73% for 2026
  • Ongoing Alagoas geological liability: company responsible for city sinking since 2018 affecting ~60,000 people

Named Competitors

  • SABIC — Saudi petrochemical giant with cost advantage from integrated oil & gas
  • LyondellBasell — Global chemical & plastic resins producer with diversified capacity
  • Huntsman — Specialty chemicals and petrochemicals manufacturer

Recent Developments

  • (February 2026) Petrobras waives preemptive rights allowing potential Novonor Braskem stake transfer
  • (January 2026) Braskem announces exclusivity agreement for potential change in control
  • (December 2025) Fitch downgrades Braskem to CC amid prolonged petrochemical downturn

Open the full interactive Braskem report

Strategic research, analyst-debate audio, full Cyborg Score breakdown across 11 dimensions, and saved-company audio playlists.

Open report →