Braskem SA (NYSE:BAK), a $1.62 billion market cap chemical company currently trading near its 52-week low, announced today a reshuffle in its Statutory Compliance and Audit Committee following the resignation of a key member. According to InvestingPro data, the company faces significant financial challenges, with 12 key investment signals available for subscribers.
The company's Board of Directors, during a meeting on December 13, 2024, accepted the resignation of Mr. José Écio Pereira da Costa Júnior and appointed Mr. Gustavo Raldi Tancini as an independent external member and financial specialist. Mr. Tancini's term will extend until the first Board meeting post the 2026 Annual General Meeting.
The reconstituted committee now includes Gesner José de Oliveira Filho, Carlos Plachta, Roberto Faldini, Maria Helena Pettersson, and Gustavo Raldi Tancini, all bringing a wealth of experience and financial expertise to the table. The committee's role is particularly critical given Braskem's current financial position, with InvestingPro analysis showing a weak financial health score of 1.64 and a concerning debt-to-capital ratio of 0.88.
Mr. Tancini's qualifications are extensive, with a Ph.D., Master's, and bachelor's degree in accounting, as well as postgraduate credentials in Corporate Law and executive education in Valuation of Private Assets. He is also certified in IFRS and has significant experience as a consultant, financial/accounting advisor, and educator.
Braskem has made this information public in accordance with CVM Resolution 80, Article 33, XXIX, aiming to maintain transparency with shareholders and the market. The company's Investor Relations Department is available for further queries.
The announcement comes as Braskem continues to navigate the aftermath of a geological event in Alagoas and associated legal proceedings, while also facing broader financial challenges. The company's stock has declined over 54% year-to-date, and analysts expect negative earnings for the current fiscal year, according to InvestingPro research reports, which provide comprehensive analysis of 1,400+ US equities.
The company has emphasized that forward-looking statements in the notice are based on current management views and subject to risks, uncertainties, and changes in circumstances.
This news is based on a press release statement and reflects the company's efforts to maintain strong governance and oversight.
In other recent news, Braskem S.A., a major player in the petrochemical industry, has reported significant developments.
Notably, a São Paulo court has ruled on an appeal concerning material damages, partially favoring Novonor's appeal and overturning a previous ruling that had awarded damages to Braskem. This legal development adds another layer to the company's significant debt burden, as noted by InvestingPro.
On the financial front, Braskem has announced a robust Q3 performance despite market challenges. The company reported a substantial 130% year-over-year increase in recurring EBITDA, reaching $432 million, and a 35% increase from Q2. Sales volume in Brazil grew by 6%, demonstrating resilience in its operations.
In addition, Braskem has made progress on its Alagoas initiatives and advancements in its renewable strategy. However, the company also noted a consumption of $199 million in recurring cash flow and potential impacts from upcoming maintenance shutdowns on utilization rates in Brazil.
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