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Brazilian-Mexican JV Braskem Idesa’s (Bakide) utilization rate in Q3 25 dropped to 47%, far below the company’s 60% estimate for the period made in late August, which could result in a cash shortfall by year-end.

Controlling shareholder Braskem’s Q3 sales and production report attributed the low utilization rate to Bakide’s scheduled major maintenance shut down — which lasted 60 days instead of the planned 45 and ended on 31 July — and a lower volume of ethane supplied by Pemex, of around 11,300 barrels per day or 61% lower compared to Q3 24.

Bakide’s Fast Track solution also supplied 17,200 barrels of ethane per day in the quarter. The JV’s new import terminal TQPM, which is still in the commissioning phase, began supplying around 11,300 barrels per day in September, said Braskem.

The import terminal launched operations in May, shortly before Bakide’s scheduled shutdown began, and was expected to be operating at full capacity by the time the shutdown ended in July. Ramp up of operations at the terminal was slower than expected, but it’s “operating continuously” as of today, said a 9fin source.

Bakide was already facing tight liquidity in H2 25 even with the estimated 60% utilization rate for Q3, per 9fin’s H1 25 results overview: it had a $100m cash position as of 30 June, and $162m due in the second semester including a $41.9m coupon payment on 20 October on the $1.2bn 6.99% senior secured bond due 2032, a $33.5m coupon payment in November on the $900m 7.45% senior secured notes due 2029 and lease payments of at least $16m.

As reported by 9fin on Q2 25

With utilization in Q3 at 47%, theoretically impacting EBITDA and cash generation, Bakide would either need to increase its utilization to 90% in Q4 25 — a level it has never reached in its nine years of operation — defer expenses or capex, or obtain fresh sources of financing.

As of 30 June, the company already had accumulated an extraordinary high figure ($124m) of unpaid lease liabilities to related parties, while account payables to related parties totaled $844m. Further, the company’s inventory levels would have dipped with the 60-day maintenance shutdown.

In September, the company disclosed it hired Lazard, Cleary Gottlieb Steen & Hamilton, and Sainz Abogados to evaluate its capital structure. Bondholders are working with Davis Polk and Houlihan Lokey, as reported.

Braskem and Grupo Idesa, the company’s controlling shareholders, signed an MoU to evaluate their respective stakes. Idesa, indirectly controlled by businessman Carlos Slim through Grupo Financiero Inbursa, wants to increase its 25% stake in the JV.

Bakide didn’t respond to a request for comment.