bakitr3q18_6k.htm - Generated by SEC Publisher for SEC Filing
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16
OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934


For the month of November, 2018

(Commission File No. 1-14862 )

 
 
BRASKEM S.A.
(Exact Name as Specified in its Charter)
 
N/A
(Translation of registrant's name into English)
 

Rua Eteno, 1561, Polo Petroquimico de Camacari
Camacari, Bahia - CEP 42810-000 Brazil
(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___       Form 40-F ______

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1). _____

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7). _____

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ______       No ___X___

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _____.

 
 

 

Braskem S.A.

Quarterly Information (ITR) at

September 30, 2018

and Independent Auditors’ Report Review

 

 

 

 

 

1

 
 

Report on review of interim financial information

 

 

To Shareholders, Members of the Board and Management

Braskem S.A.

Camaçari - Bahia

 

 

 

Introduction

 

We have reviewed the accompanying individual and consolidated interim financial information of Braskem S.A. (the “Company”) included in the Quarterly Financial Information for the quarter ended September 30, 2018, which comprises the balance sheet as of September 30, 2018, the statements of profit or loss and comprehensive income for the three and nine-month period then ended, changes in equity and cash flows for the nine-month period then ended, and notes to the interim financial information.

 

Management is responsible for the preparation and presentation of this individual interim financial information in accordance with CPC 21(R1) Technical Pronouncement - Interim Financial Reporting and the consolidated interim financial information in accordance with CPC 21(R1) and international standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, as well as for the presentation of this quarterly information in accordance with the standards issued by CVM - Brazilian Securities and Exchange Commission, applicable to the preparation of interim financial information. Our responsibility is to express a conclusion on this interim financial information based on our review.

 

 

Scope of review

 

We conducted our review in accordance with Brazilian and international review standards applicable to interim financial information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

 

Conclusion on the individual interim financial information

 

Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual interim financial information referred to above is not prepared, in all material respects, in accordance with CPC 21(R1) applicable to the preparation of interim financial information and presented in accordance with the standards issued by CVM - Brazilian Securities and Exchange Commission.

 

 

Conclusion on the consolidated interim financial information

 

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information referred to above is not prepared, in all material respects, in accordance with CPC 21(R1) and IAS 34, issued by the IASB, applicable to the preparation of interim financial information and presented in accordance with the standards issued by CVM - Brazilian Securities and Exchange Commission.

 

 

2

 
 

Other matters

 

Statements of value added

 

The individual and consolidated interim financial information related to the Statements of added value (DVA) for the nine-month period ended September 30, 2018, prepared under the responsibility of the Company´s management, presented herein as supplementary information for IAS 34 purposes, have been subject to review procedures jointly performed with the review of the Company´s interim financial information - ITR. In order to form our conclusion, we assessed whether those statements are reconciled with the interim financial information and accounting records, as applicable, and whether their format and contents are in accordance with criteria determined in the Technical Pronouncement CPC 09 - Demonstração do Valor Adicionado. Based on our review, nothing has come to our attention that causes us to believe that the statements of added value referred to above were not prepared, in all material respects, consistently with the overall individual and consolidated interim financial information.

 

 

São Paulo, November 6, 2018

 

 

KPMG Auditores Independentes

CRC 2SP014428/O-6

Original report in Portuguese signed by

Anselmo Neves Macedo

Accountant CRC 1SP160482/O-6

 

3

 

 

Braskem S.A.

 

Balance sheet

at September 30, 2018

All amounts in thousands of reais

 
 
       

 Consolidated

 

 Parent company

Assets

Note

  

Sep/2018

  

Dec/2017

  

Sep/2018

  

Dec/2017

   

 

                

Current assets

 

                
 

Cash and cash equivalents

3

  

  4,891,141

 

3,775,093

 

  2,334,307

 

  1,953,056

 

Financial investments

4

  

  2,080,736

 

2,302,672

 

  2,023,334

 

  1,833,320

 

Trade accounts receivable

5

  

  4,496,252

 

3,281,196

 

  2,419,405

 

  1,824,740

 

Inventories

6

  

  8,944,894

 

6,846,923

 

  6,577,653

 

  4,800,860

 

Taxes recoverable

8

  

  1,147,427

 

1,349,064

 

  645,070

 

  830,152

 

Dividends and interest on capital

7

  

 

  

   10,859

 

 

  

10,859

 

Prepaid expenses

 

  

  111,649

 

134,337

 

87,277

 

  105,255

 

Related parties

7(b)

  

 

  

 

  

22,629

 

30,478

 

Derivatives operations

16.2

  

21,885

 

  3,793

 

 

  

   3,793

 

Other receivables

 

  

  254,201

 

288,391

 

  159,082

 

  232,532

   

 

  

 

  

 

  

 

  

 

   

 

  

   21,948,185

 

   17,992,328

 

   14,268,757

 

   11,625,045

   

 

                

Non-current assets

 

                
 

Financial investments

4

 

10,191

 

   10,336

 

 

  

 

 

Trade accounts receivable

5

  

29,252

 

   37,496

 

  439,213

 

  1,336,229

 

Advances to suppliers

6

  

35,162

 

   46,464

 

35,162

 

46,464

 

Taxes recoverable

8

  

  973,444

 

1,023,633

 

  973,375

 

  1,023,245

 

Deferred income tax and social contribution 

18(b)

  

  1,605,639

 

1,165,726

 

  389,053

 

  -  

 

Judicial deposits

 

  

  253,883

 

289,737

 

  243,012

 

  278,006

 

Related parties

7(b)

  

 

  

 

  

19,954

 

16,053

 

Insurance claims

 

  

57,526

 

   39,802

 

57,526

 

39,802

 

Derivatives operations

16.2

  

  107,265

 

   32,666

 

 

  

 

 

Other receivables

 

  

  206,165

 

112,997

 

  143,475

 

  109,129

 

Investments

9

  

69,393

 

101,258

 

  9,054,030

 

  4,915,609

 

Property, plant and equipment

10

  

   32,746,822

 

  29,761,610

 

   15,883,404

 

   16,326,216

 

Intangible assets

11

  

  2,748,203

 

2,727,497

 

  2,495,974

 

  2,501,503

   

 

  

 

  

 

  

 

  

 

   

 

  

   38,842,945

 

   35,349,222

 

   29,734,178

 

   26,592,256

   

 

                

Total assets

 

  

   60,791,130

 

   53,341,550

 

   44,002,935

 

   38,217,301

 

 

 

 

 

The Management notes are an integral part of the financial statements.

4

 
 

 

Braskem S.A.

 

Balance sheet

at September 30, 2018

All amounts in thousands of reais

Continued

 
       

 Consolidated

 

 Parent company

Liabilities and shareholders' equity

Note

  

Sep/2018

  

Dec/2017

  

Sep/2018

  

Dec/2017

   

 

                

Current liabilities

 

                
 

Trade payables

 

  

9,383,368

 

  5,265,670

 

1,169,433

 

  1,198,842

 

Borrowings

12

  

945,096

 

  1,184,781

 

529,847

 

  382,304

 

Braskem Idesa borrowings

13

  

  11,110,657

 

  9,691,450

 

 

  

 

 

Debentures

14

  

   27,691

 

27,183

 

 

  

 

 

Derivatives operations

16.2

  

158,158

 

   6,875

 

158,158

 

 

 

Payroll and related charges

 

  

605,380

 

  630,517

 

472,339

 

  493,098

 

Taxes payable

17

  

943,146

 

  1,261,204

 

534,212

 

  774,391

 

Dividends

 

  

  4,986

 

   3,850

 

  4,885

 

   3,709

 

Advances from customers

 

  

186,523

 

  353,222

 

105,032

 

  187,304

 

Leniency agreement

20.3

  

285,861

 

  257,347

 

225,680

 

  202,892

 

Sundry provisions

19

  

116,052

 

  178,676

 

   72,170

 

  125,130

 

Accounts payable to related parties

7(b)

  

 

  

 

  

324,823

 

  783,181

 

Other payables

 

  

521,272

 

  276,957

 

144,086

 

  104,181

   

 

  

 

  

 

  

 

  

 

   

 

  

     24,288,190

 

19,137,732

 

  3,740,665

 

   4,255,032

   

 

                

Non-current liabilities

 

                
 

Trade payables

 

  

244,946

 

  259,737

 

8,088,916

 

   13,845,472

 

Borrowings

12

  

  23,987,872

 

   22,176,640

 

2,228,662

 

  2,823,692

 

Debentures

14

  

272,235

 

  286,141

 

 

  

 

 

Derivatives operations

16.2

  

256,633

 

 

  

256,633

 

 

 

Taxes payable

17

  

   78,595

 

52,802

 

   77,511

 

50,815

 

Accounts payable to related parties

7(b)

  

 

  

 

  

  19,894,450

 

  7,197,573

 

Loan to non-controlling shareholders of Braskem Idesa

 

  

2,231,401

 

  1,756,600

 

 

  

 

 

Deferred income tax and social contribution

18(b)

  

292,852

 

  940,079

 

 

  

  715,938

 

Post-employment benefits

 

  

197,866

 

  193,775

 

   83,233

 

83,233

 

Provision for losses on subsidiaries

 

  

 

  

 

  

122,355

 

  102,750

 

Contingencies

20

  

987,992

 

  1,092,645

 

977,440

 

  1,084,528

 

Leniency agreement

20.3

  

1,140,810

 

  1,371,767

 

1,140,810

 

  1,322,051

 

Sundry provisions

19

  

238,688

 

  234,996

 

212,450

 

  213,318

 

Other payables

 

  

161,388

 

  148,286

 

  6,655

 

   5,048

   

 

  

 

  

 

  

 

  

 

   

 

  

     30,091,278

 

28,513,468

 

  33,089,115

 

27,444,418

   

 

                

Shareholders' equity

22

                
 

Capital

  

8,043,222

 

  8,043,222

 

8,043,222

 

  8,043,222

 

Capital reserve

  

232,430

 

  232,430

 

232,430

 

  232,430

 

Revenue reserves

  

2,445,769

 

  3,945,898

 

2,445,769

 

  3,945,898

 

Other comprehensive income

  

  (6,464,836)

  

(5,653,880)

  

  (6,464,836)

  

(5,653,880)

 

Treasury shares

  

(49,819)

  

   (49,819)

  

(49,819)

  

   (49,819)

 

Retained earnings

  

2,966,389

 

 

  

2,966,389

 

 

     

 

  

 

  

 

  

 

 

Total attributable to the  Company's shareholders

  

7,173,155

 

  6,517,851

 

7,173,155

 

  6,517,851

                   
 

Non-controlling interest in subsidiaries

  

  (761,493)

  

(827,501)

  

 

  

 

                   
     

6,411,662

 

   5,690,350

 

  7,173,155

 

   6,517,851

                   

Total liabilities and shareholders' equity

  

  60,791,130

 

53,341,550

 

  44,002,935

 

38,217,301

 

 

The Management notes are an integral part of the financial statements.

5

 
 

Braskem S.A.

 

Statement of operations and statement of comprehensive income

at September 30, 2018

All amounts in thousands of reais                                        

 

         

Consolidated

Continued operations

  

Note

  

3Q2018

  

YTD2018

  

3Q2017

  

YTD2017

     

 

                

Net sales revenue

  

24

  

   16,348,157

 

   43,163,185

 

   12,162,048

 

   36,632,206

 

Cost of products sold

  

27

  

(12,714,281)

  

(33,544,950)

  

   (9,162,442)

  

(27,143,777)

                     
       

  3,633,876

 

  9,618,235

 

  2,999,606

 

  9,488,429

                     

Income (expenses)

                 
 

Selling and distribution

  

27

  

   (433,480)

  

   (1,099,792)

  

   (380,879)

  

   (1,085,465)

 

General and administrative

 

27

  

   (425,683)

  

   (1,116,092)

  

   (372,133)

  

   (994,517)

 

Research and development

  

27

  

  (53,075)

  

   (138,751)

  

  (38,839)

  

   (110,984)

 

Results from equity investments

  

9(c)

  

   1,057

 

(414)

  

   6,474

 

29,325

 

Other income (expenses), net

 

25 e 27

  

67,639

 

   (122,266)

  

   (282,603)

  

   (175,451)

                     
       

  2,790,334

 

  7,140,920

 

  1,931,626

 

  7,151,337

                     

Financial results

  

26

                
 

Financial expenses

   

   (802,711)

  

   (2,230,786)

  

   (808,402)

  

   (2,464,489)

 

Financial income

    

  210,002

 

  465,789

 

  155,935

 

  472,465

 

Exchange rate variations, net

    

   (338,560)

  

   (1,794,954)

  

   (287,693)

  

  (11,089)

                     
       

(931,269)

  

(3,559,951)

  

(940,160)

  

(2,003,113)

                     

Profit before income tax and social contribution

   

  1,859,065

 

  3,580,969

 

   991,466

 

  5,148,224

                     
 

Current and deferred income tax and social contribution

  

18(a)

  

   (416,953)

  

   (495,189)

  

   (227,689)

  

   (1,336,652)

                     

Profit for the period of continued operations

    

  1,442,112

 

  3,085,780

 

   763,777

 

  3,811,572

                     

Discontinued operations results

                  
 

Profit from discontinued operations

    

 

  

 

  

 

  

13,499

 

Current and deferred income tax and social contribution

    

 

  

 

  

 

  

(4,623)

       

 

  

 

  

 

  

   8,876

                     

Profit for the period

    

  1,442,112

 

  3,085,780

 

   763,777

 

  3,820,448

                     

Attributable to:

                  
 

Company's shareholders

    

  1,344,270

 

  2,945,114

 

  799,370

 

  3,696,770

 

Non-controlling interest in Braskem Idesa

    

97,842

 

  140,666

 

  (35,593)

  

  123,678

                     

Profit for the period

    

  1,442,112

 

  3,085,780

 

   763,777

 

  3,820,448

 

 

  

 

                The Management notes are an integral part of the financial statements.

6

 
 

Braskem S.A.

 

Statement of operations and statement of comprehensive income

at September 30, 2018

All amounts in thousands of reais, except earnings or loss per share

Continued

 

         

Parent company

Continued operations

  

Note

  

3Q2018

  

YTD2018

  

3Q2017

  

YTD2017

     

 

                

Net sales revenue

  

24

  

      11,985,590

 

      30,745,496

 

        8,917,381

 

      27,238,880

 

Cost of products sold

  

27

  

         (9,930,318)

  

       (25,679,478)

  

         (7,140,165)

  

       (21,509,527)

                     
       

        2,055,272

 

        5,066,018

 

        1,777,216

 

        5,729,353

                     

Income (expenses)

                 
 

Selling and distribution

  

27

  

            (270,294)

  

            (633,765)

  

            (237,675)

  

            (686,805)

 

General and administrative

 

27

  

            (305,668)

  

            (802,770)

  

            (248,037)

  

            (675,912)

 

Research and development

  

27

  

              (32,823)

  

              (88,143)

  

              (25,413)

  

              (75,374)

 

Results from equity investments

  

9(c)

  

           1,175,685

 

           2,630,022

 

              409,468

 

           1,982,829

 

Other income (expenses), net

 

27

  

              (34,033)

  

            (226,527)

  

            (264,977)

  

            (170,090)

                     
       

        2,588,139

 

        5,944,835

 

        1,410,582

 

        6,104,001

                     

Financial results

  

26

                
 

Financial expenses

   

            (586,252)

  

         (1,369,738)

  

            (524,437)

  

         (1,632,151)

 

Financial income

    

              177,391

 

              363,315

 

              136,320

 

              424,342

 

Exchange rate variations, net

    

            (616,252)

  

         (1,906,148)

  

            (219,220)

  

            (630,623)

                     
       

       (1,025,113)

  

       (2,912,571)

  

          (607,337)

  

       (1,838,432)

                     

Profit before income tax and social contribution

   

        1,563,026

 

        3,032,264

 

            803,245

 

        4,265,569

     

 

                
 

Current and deferred income tax and social contribution

  

18(a)

  

            (218,756)

  

              (87,150)

  

                (3,875)

  

            (577,675)

                     

Profit for the period of continued operations

    

        1,344,270

 

        2,945,114

 

            799,370

 

        3,687,894

                     

Discontinued operations results

        

 

  

 

  

 

 

Profit from discontinued operations

    

 

  

 

  

 

  

                  8,876

                     

Profit for the period

    

        1,344,270

 

        2,945,114

 

            799,370

 

        3,696,770

 

 

 

 

The Management notes are an integral part of the financial statements.

 

7

 
 

Braskem S.A.

 

Statement of operations and statement of comprehensive income

at September 30, 2018

All amounts in thousands of reais, except earnings or loss per share

Continued

 

         

Consolidated

     

Note

  

3Q2018

  

YTD2018

  

3Q2017

  

YTD2017

     

 

                

Profit for the period

    

        1,442,112

 

        3,085,780

 

            763,777

 

        3,820,448

                     

Other comprehensive income or loss:

                  

Items that will be reclassified subsequently to profit or loss

                  
 

Fair value of cash flow hedge

    

              (67,061)

  

            (298,966)

  

                80,378

 

              131,545

 

Income tax and social contribution

    

                24,261

 

              106,508

 

              (26,985)

  

              (42,635)

 

Fair value of cash flow hedge - Braskem Idesa

    
 

Income tax and social contribution

    
 

Fair value of cash flow hedge from jointly-controlled

    

                (4,187)

  

                (1,640)

  

                (2,847)

  

                     915

       

              (46,987)

  

            (194,098)

  

                50,546

 

                89,825

                     
 

Exchange variation of foreign sales hedge

  

16.3(a.i)

  

            (821,985)

  

         (3,862,388)

  

              686,808

 

              456,301

 

Sales Hedge - transfer to profit or loss

  

16.3(a.i)

  

              252,364

 

              765,476

 

              275,362

 

              774,324

 

Income tax and social contribution on exchange variation

  

 

  

              193,671

 

           1,052,950

 

            (327,137)

  

            (418,412)

 

Exchange variation of foreign sales hedge - Braskem Idesa

  

16.3(a.ii)

  

              598,098

 

              485,132

 

            (155,426)

  

           1,248,177

 

Sales Hedge - transfer to profit or loss - Braskem Idesa

  

16.3(a.ii)

  

                60,810

 

              167,115

 

                38,918

 

              112,828

 

Income tax on exchange variation - Braskem Idesa

    

            (197,672)

  

            (195,674)

  

                34,953

 

            (408,301)

       

                85,286

 

         (1,587,389)

  

              553,478

 

           1,764,917

                     
 

Foreign subsidiaries currency translation adjustment

    

                80,347

 

              914,636

 

            (105,377)

  

            (393,942)

       

 

  

 

  

 

  

 

 

Total

    

            118,646

 

          (866,851)

  

            498,647

 

        1,460,800

                     

Total comprehensive income for the period

    

        1,560,758

 

        2,218,929

 

        1,262,424

 

        5,281,248

                     

Attributable to:

                  
 

Company's shareholders

    

           1,421,274

 

           2,151,616

 

           1,284,594

 

           4,991,386

 

Non-controlling interest in Braskem Idesa

    

              139,484

 

                67,313

 

              (22,170)

  

              289,862

       

 

  

 

  

 

  

 

Total comprehensive income for the period

    

        1,560,758

 

        2,218,929

 

        1,262,424

 

        5,281,248

 

 

The Management notes are an integral part of the financial statements.

 

8

 
 

Braskem S.A.

 

Statement of operations and statement of comprehensive income

at September 30, 2018

All amounts in thousands of reais, except earnings or loss per share

Continued

 

         

Parent company

     

Note

  

3Q2018

  

YTD2018

  

3Q2017

  

YTD2017

     

 

                

Profit for the period

    

        1,344,270

 

            2,945,114

 

                799,370

 

             3,696,770

                     

Other comprehensive income or loss:

                  

Items that will be reclassified subsequently to profit or loss

                  
 

Fair value of cash flow hedge

    

            (103,567)

  

                (420,447)

  

                    71,800

 

                    79,294

 

Income tax and social contribution

    

                35,213

 

                  142,952

 

                  (24,412)

  

                   (26,960)

 

Fair value of cash flow hedge - Braskem Idesa

    

                27,379

 

                    91,110

 

                      6,435

 

                    39,189

 

Income tax and social contribution

    

                (8,214)

  

                  (27,333)

  

                    (1,931)

  

                   (11,757)

 

Fair value of cash flow hedge from jointly-controlled

    

                (4,187)

  

                    (1,640)

  

                    (2,847)

  

                         915

       

              (53,376)

  

                (215,358)

  

                    49,045

 

                    80,681

                     
 

Exchange variation of foreign sales hedge

  

16.3(a.i)

  

            (821,985)

  

             (3,862,388)

  

                  686,808

 

                  456,301

 

Sales Hedge - transfer to profit or loss

  

16.3(a.i)

  

              252,364

 

                  765,476

 

                  275,362

 

                  774,324

 

Income tax and social contribution on exchange variation

  

 

  

              193,672

 

               1,052,951

 

                (327,137)

  

                 (418,412)

 

Exchange variation of foreign sales hedge - Braskem Idesa

  

16.3(a.ii)

  

              448,574

 

                  363,849

 

                (116,569)

  

                  936,133

 

Sales Hedge - transfer to profit or loss - Braskem Idesa

  

16.3(a.ii)

  

                45,607

 

                  125,336

 

                    29,189

 

                    84,621

 

Income tax on exchange variation - Braskem Idesa

    

            (148,255)

  

                (146,756)

  

                    26,214

 

                 (306,226)

       

              (30,023)

  

             (1,701,532)

  

                  573,867

 

               1,526,741

                     
 

Foreign subsidiaries currency translation adjustment

    

              160,403

 

               1,123,392

 

                (137,688)

  

                 (312,806)

       

 

  

 

  

 

  

 

 

Total

    

              77,004

 

              (793,498)

  

                485,224

 

             1,294,616

                     

Total comprehensive income for the period

    

        1,421,274

 

            2,151,616

 

            1,284,594

 

             4,991,386

                     

Attributable to:

                  
 

Company's shareholders

                  
 

Non-controlling interest in Braskem Idesa

                  
                     

Total comprehensive income for the period

                  
                     
                     
                     
               

 

 

Parent company

               

 YTD2018

 

YTD2017

     

Note

          

Basic and diluted

  

Basic and diluted

Profit per share attributable to the shareholders of the Company

  

 

                

of continued operations at the end of the period

  

23

                

(expressed in reais)

                  
 

Earnings per share - common

            

                    3.7019

 

                    4.6358

 

Earnings per share - preferred shares class "A"

            

                    3.7020

 

                    4.6358

 

Earnings per share - preferred shares class "B"

            

                    0.5862

 

                    0.6069

 

The Management notes are an integral part of the financial statements.

9

 
 

Braskem S.A.

 

Statement of changes in shareholder’s equity

All amounts in thousands of reais

 

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

     

Attributed to shareholders' interest

          
             

Revenue reserves

              

Total

        
                         

Additional

  

Other

      

Retained

  

Braskem

  

Non-controlling

  

Total

         

Capital

  

Legal

 

Tax

  

Retention

  

dividends

  

comprehensive

  

Treasury

  

Retained

  

shareholders'

  

interest in

  

shareholders'

 

Note

  

Capital

  

reserve

  

reserve

  

incentive

  

of profits

  

proposed

  

income

  

shares

  

earnings

  

interest

  

subsidiaries

  

equity

                                                   

At December 31, 2016

  

   8,043,222

 

   232,430

 

   229,992

 

 

  

604,624

 

 

 

  (6,321,859)

 

   (49,819)

 

 

 

2,738,590

 

   (1,017,880)

 

   1,720,710

                                                 
                     

Comprehensive income for the period:

                    

Profit for the period

      

   3,696,770

 

3,696,770

 

123,678

 

  3,820,448

Exchange variation of foreign sales hedge, net of taxes

    

   1,526,741

   

1,526,741

 

238,176

 

  1,764,917

Fair value of cash flow hedge, net of taxes

    

  80,681

   

   80,681

 

  9,144

 

89,825

Foreign subsidiaries currency translation adjustment

    

(312,806)

  

 

  

 

  

  (312,806)

  

(81,136)

  

   (393,942)

     

   1,294,616

 

 

  

   3,696,770

 

4,991,386

 

289,862

 

  5,281,248

                           

Equity valuation adjustments:

                          

Realization of additional property, plant and equipment price-level restatement, net of taxes

    

   (20,167)

  

 

  

  20,167

 

Realization of deemed cost of jointly-controlled investment, net of taxes

  

 

  

 

  

 

  

 

  

 

  

 

  

  (723)

  

 

  

723

 

 

  

 

  

 

   

 

  

 

  

 

  

 

  

 

  

 

  

   (20,890)

  

 

  

  20,890

 

 

  

 

  

 

Contributions to shareholders:

                                                

Lapsed dividends

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

482

 

  482

 

 

  

   482

   

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

482

 

  482

 

 

  

   482

                                                 

At September 30, 2017

  

   8,043,222

 

   232,430

 

   229,992

 

 

  

604,624

 

 

  

  (5,048,133)

  

   (49,819)

  

   3,718,142

 

7,730,458

 

   (728,018)

  

   7,002,440

                                                 

At December 31, 2017

  

   8,043,222

 

   232,430

 

   434,142

 

  71,745

 

   1,940,011

 

  1,500,000

 

  (5,653,880)

  

   (49,819)

  

 

  

6,517,851

 

   (827,501)

  

   5,690,350

                                                 

Comprehensive income for the period:

                                                

Profit for the period

      

   2,945,114

 

2,945,114

 

140,666

 

  3,085,780

Exchange variation of foreign sales hedge, net of taxes

    

(1,701,532)

    

 

  

  (1,701,532)

  

114,143

 

   (1,587,389)

Fair value of cash flow hedge, net of taxes

    

(215,358)

    

 

  

  (215,358)

  

   21,260

 

   (194,098)

Foreign currency translation adjustment

  

 

  

 

  

 

  

 

  

 

  

 

  

   1,123,392

 

 

  

 

  

1,123,392

 

  (208,756)

  

  914,636

   

 

  

 

  

 

  

 

  

 

  

 

  

(793,498)

  

 

  

   2,945,114

 

2,151,616

 

   67,313

 

  2,218,929

                                               

Equity valuation adjustments:

  

Realization of additional property, plant and equipment price-level restatement, net of taxes

    

   (20,037)

    

  20,037

 

Realization of deemed cost of jointly-controlled investment, net of taxes

    

  (722)

    

722

 

Actuarial gains from post-employment benefits of subsidiaries, net of taxes

    

111

     

  111

 

 

  

   111

Long-term incentive plan, net of taxes

21(a)

    

4,229

     

  4,229

 

91

 

   4,320

Fair value adjustments of trade accounts receivable

 

  

 

  

 

  

 

  

 

  

 

  

 

  

  (1,039)

  

 

  

 

  

   (1,039)

  

 

  

(1,039)

   

 

  

 

  

 

  

 

  

 

  

 

  

   (17,458)

  

 

  

  20,759

 

  3,301

 

91

 

   3,392

                                                 

Contributions to shareholders:

                                                

Lapsed dividends

  

 

    

460

 

  460

 

 

  

   460

Additional dividends approved in the board meeting

22(b)

  

 

    

   (1,500,000)

    

(73)

  

  (1,500,073)

  

   (1,396)

  

   (1,501,469)

Reversal of fiscal incentive reserve

  

 

  

 

  

 

  

 

  

  (129)

  

 

  

 

  

 

  

129

 

 

  

 

  

 

   

 

  

 

  

 

  

 

  

  (129)

  

   (1,500,000)

  

 

  

 

  

516

 

  (1,499,613)

  

   (1,396)

  

   (1,501,009)

                                                 

At September 30, 2018

  

   8,043,222

 

   232,430

 

   434,142

 

  71,745

 

   1,939,882

 

 

  

  (6,464,836)

  

   (49,819)

  

   2,966,389

 

7,173,155

 

   (761,493)

  

   6,411,662

 

The Management notes are an integral part of the financial statements.

10

 
 

Braskem S.A.

 

Statement of changes in shareholder’s equity

All amounts in thousands of reais

 

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Parent Company

             

Revenue reserves

 

              
                         

Additional

  

Other

          

Total

         

Capital

  

Legal

 

Tax

  

Retention

  

dividends

  

comprehensive

  

Treasury

  

Retained

  

shareholders'

 

Note

  

Capital

  

reserve

  

reserve

  

incentive

  

of profits

  

proposed

  

income

  

shares

  

earnings

  

equity

                                           

At December 31, 2016

    

   8,043,222

 

   232,430

 

   229,992

 

 

   604,624

 

 

   (6,321,859)

  

  (927)

  

 

   2,787,482

                                           

Comprehensive income for the period:

                                          

Profit for the period

                                    

3,696,770

 

   3,696,770

Exchange variation of foreign sales hedge, net of taxes

                            

1,526,741

         

   1,526,741

Fair value of cash flow hedge, net of taxes

                            

   80,681

         

  80,681

Foreign subsidiaries currency translation adjustment

                            

   (312,806)

          

(312,806)

                             

1,294,616

     

3,696,770

 

   4,991,386

                                           

Equity valuation adjustments:

                                          

Realization of additional property, plant and equipment price-level restatement, net of taxes

                            

  (20,167)

      

   20,167

   

Realization of deemed cost of jointly-controlled investment, net of taxes

                            

(723)

      

  723

   
                             

  (20,890)

      

   20,890

   

Contributions to shareholders:

                                          

Lapsed dividends

                                    

  482

 

    482

                                     

  482

 

482

                                           

At September 30, 2017

    

   8,043,222

 

   232,430

 

   229,992

 

  

 

   604,624

 

  

 

   (5,048,133)

  

  (927)

  

3,718,142

 

   7,779,350

                                           

At December 31, 2017

    

   8,043,222

 

   232,430

 

   434,142

 

  71,745

 

  1,940,011

 

1,500,000

 

   (5,653,880)

  

  (49,819)

  

  

 

   6,517,851

                                           

Comprehensive income for the period:

                                          

Profit for the period

                                    

2,945,114

 

   2,945,114

Exchange variation of foreign sales hedge, net of taxes

                            

   (1,701,532)

          

(1,701,532)

Fair value of cash flow hedge, net of taxes

                            

   (215,358)

          

(215,358)

Foreign currency translation adjustment

                            

1,123,392

         

   1,123,392

                             

   (793,498)

  

  

 

2,945,114

 

   2,151,616

                                           

Equity valuation adjustments:

                                          

Realization of deemed cost of jointly-controlled investment, net of taxes

                            

  (20,037)

      

   20,037

   

Realization of additional property, plant and equipment price-level restatement, net of taxes

                            

(722)

      

  722

   

Actuarial gains from post-employment benefits of subsidiaries, net of taxes

                            

  111

         

111

Long-term incentive plan, net of taxes

21(a)

                          

  4,229

         

4,229

Fair value adjustments of trade accounts receivable

                            

(1,039)

          

 (1,039)

                             

  (17,458)

      

   20,759