Brazilian petrochemical giant Braskem is restructuring approximately $10.9 billion in financial obligations, highlighting an uncomfortable reality of today’s petrochemical industry: a company can make money and still have too much debt.
Braskem reported $664 million in net profit and $1.04 billion in EBITDA in Q2 2026, helped by improved international petrochemical spreads. Yet adjusted net debt still stood at approximately $9.5 billion, while corporate leverage reached 6.74 times net debt to EBITDA.
The problem is therefore not simply that Braskem’s factories are losing money. Its Brazilian and international businesses have recently shown improving operating performance. In Q1, its US and European operations returned to positive recurring EBITDA after recording a loss in the previous quarter.
Braskem is now pursuing an extrajudicial restructuring in Brazil, designed to provide a protected framework for negotiations with financial creditors. Importantly, the procedure does not cover ordinary obligations to suppliers, customers and other stakeholders, which Braskem says continue to be paid normally.
The paradox is striking: Braskem can still generate profits, but years of weak petrochemical conditions and a massive debt burden have left its balance sheet in need of restructuring.