SÃO PAULO — Braskem’s shares fell after the Brazilian petrochemical company’s production and sales report disappointed investors.
The stock fell 4% to 16.84 reais (U.S. $3.34) and the shares are down 31% from the end of last year through Friday’s close. Brazil’s benchmark Ibovespa stocks index was down 0.4% in afternoon trading.
Braskem’s third-quarter production and sales report came in below expectations due to a difficult environment for petrochemical companies globally, unexpected shutdowns by customers, and electric failures in Brazil and Mexico that pushed utilization rates lower, Citi Research analyst Gabriel Barra said in a research note.
Sales in Mexico jumped 19% from a year earlier, from higher demand after inventory replenishment, but the figure was still below Citi’s estimate, Barra said.