BAK - Braskem expects to spend 9B reais to address Alagoas geological damage

Braskem (BAK) estimates it will need to spend another 1.2B reais to address geological damage in the state of Alagoas, which would take the company's total provisions related to taking care of Alagoas to 9.1B reais.The increase was announced after Braskem reached agreements with Brazilian authorities aiming to end two public interest civil actions.The company says it added 900M reais to provisions that would implement measures to address damages resulting from salt-extraction activities in Maceio, including stabilizing the cavities and monitoring the soil, and another 300M to relocate 5,500 additional properties, totaling ~15K.Braskem is making the right moves internally, but external risks especially in Mexico remain the major overhang, Opal Investment Research writes in an analysis posted recently on Seeking Alpha.

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Braskem expects to spend 9B reais to address Alagoas geological damage