COPENE Petroquimica do Nordeste S.A. INCOME STATEMENTS FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2002 IN ACCORDANCE WITH BRAZILIAN CORPORATE LAW (thousands of Reais) 2002 R$ SALES OF PRODUCTS Domestic Market 726,666 External Market 35,441 Total 762,107 TAXES ON SALES (176,578) NET SALES 585,529 COST OF SALES (506,827) GROSS PROFIT 78,702 OPERATING (EXPENSES) INCOME Selling (14,585) General and administrative (19,003) Depreciation and amortization (9,928) Other operating income - net 48,600 Total 5,084 OPERATING INCOME BEFORE FINANCIAL RESULTS AND EQUITY IN SUBSIDIARIES AND AFFILIATES 83,786 FINANCIAL EXPENSES (89,303) FINANCIAL INCOME 15,438 (73,865) EQUITY IN SUBSIDIARIES AND AFFILIATES 5,078 OPERATING INCOME 14,999 NON-OPERATING INCOME (EXPENSES) (30,084) AMORTIZATION OF GOODWILL, NET (47,230) PROVISION FOR PROBABLE LOSSES WITH INVESTMENTS 31 (77,283) INCOME (LOSS) BEFORE INCOME TAX (62,284) PROVISION FOR CURRENT INCOME TAX-EXEMPT (5,538) PROVISION FOR DEFERRED INCOME TAX 22,192 NET INCOME (45,630) BALANCE SHEET AS OF MARCH 31, 2002 IN ACCORDANCE WITH BRAZILIAN CORPORATE LAW (thousands of Reais) ASSETS 2002 R$ CURRENT ASSETS Cash and banks 43,199 Time Deposits 18,928 Notes and Marketable securities 199,568 Trade accounts receivables 179,602 Inventories 210,424 Subsidiary 4,658 Notes receivable 15,187 Withholding Tax 161,841 Other receivables 22,386 Total current assets 855,793 LONG-TERM ASSETS Notes and Marketable securities 90,835 Recoverable taxes 120,325 Judicial deposits 9,537 Related parties 45,827 Deferred Income Taxes 100,873 Advance for capital increase 4,920 Other 1,034 373,351 Total long-term assets PERMANENT ASSETS Investments: Subsidiaries 1,508,721 Jointly controlled entities 128,372 Associated companies 16,214 1,653,307 Other investments 64,336 Total 1,717,643 Property, Plant and Equipment 2,106,740 Deferred Charges 311,897 Total permanent assets 4,136,280 TOTAL 5,365,424 =========== LIABILITIES 2002 R$ CURRENT LIABILITIES Suppliers 126,984 Bank Loans 594,094 Debentures 13,253 Taxes payable 46,951 Dividends 12,219 Other payables 19,882 Total current liabilities 813,383 LONG-TERM LIABILITIES Suppliers 35,575 Bank Loans 1,282,865 Debentures 631,498 Foreign notes payable 348,540 Related parties 97,243 Pension Plan 53,753 2,449,474 Total long-term liabilities SHAREHOLDERS' EQUITY Updated capital 1,203,921 Capital reserves 715,086 Income reserves 97,684 Shares held in treasury (17,291) Retained earnings 103,167 Total shareholders' equity 2,102,567 TOTAL 5,365,424 ============ Highlights from the last four quarters 1Q02 4Q01 3Q01 2Q01 -------------------------------------------------------------------------------- Balance Sheet Data (thousands of R$ ASSETS: 5,365,425 5,452,104 6,002,921 3,901,342 - Cash and cash equivalents 261,694 336,974 653,446 538,792 - Property, plant and equipment 2,106,740 2,085,323 2,040,879 1,790,584 LIABILITIES: 5,365,425 5,452,104 6,022,921 3,901,342 - Short-term financing 599,197 425,360 1,856,114 440,016 - Long-term financing 2,262,904 2,324,340 1,322,719 961,966 - Shareholders' equity 2,102,567 2,159,545 2,279,736 2,276,247 Income Statement Data NET SALES 585,529 808,102 736,663 823,051 COST OF SALES AND SERVICES (506,827) (673,993) (652,663) (683,957) GROSS PROFIT 78,702 134,109 84,000 139,094 FINANCIAL EXPENSES (89,303) (208,763) (40,791) (115,649) - interest expense (72,442) (129,262) (58,653) (36,147) - Exchange rate variation (16,861) (79,501) 17,862 (79,501) FINANCIAL INCOME 15,438 (8,514) 79,112 52,484 OPERATING INCOME 14,999 (92,055) 65,885 44,928 NET INCOME (45,630) (96,008) 33,858 34,918 Other Financial Information (thousands of R$ EBITDA 123,349 162,359 81,169 134,220 NET DEBT (last day of the quarter) 2,701,141 2,613,006 2,668,587 776,782 CAPEX 76,515 72,275 1,746,397 70,269 Other operating information (1,000 t) PRODUCTION 555.4 686.5 615.2 708.1 PETROCHEMICALS' SALES IN THE DOMESTIC MARKET 493.2 567.3 538.7 595.1 EXPORTS 51.9 90.5 67.4 99.7 -------------------------------------------------------------------------------- RELEASE -1st. Quarter 2002 1st Quarter Acumulated -------------------------------------------------------------------------------- HIGHLIGHTS 2,002 2,001 Change(%) 2002 2001 Change(%) -------------------------------------------------------------------------------- Dep. & Amort. - CGS (millions of R$) (29.6) (26.0) 14.1 (29.6) (26.0) 14.1 Net Earnings per 1,000 Pref. Class "A" Shares (R$) (26.26) 2.42 (1185.1) (26.26) 2.42 (1185.1) Net Earnings per ADR (R$) (1.31) 0.12 (1191.7) (1.31) 0.12 (1191.7) Net Debt (millions of R$) - as of December 31 2701.1 654.6 312.7 2,701.1 654.6 312.7 Gross Margin (% of Net Sales) 13.44 13.88 (3.2) 13.44 13.88 (3.2) Current Ratio 1.05 2.24 (53.0) 1.05 2.24 (53.0) Sales Volume (1,000 t) 563 738 (23.7) 563 738 (23.7) Production Volume (1,000 t) 587 754 (22.1) 587 754 (22.1) Installed Ethylene Prod. Cap. Utilized (%) 75.96 96.48 (21.3) 75.96 96.48 (21.3) Exports - t 51,868 102,734 (49.5) 51,868 102,734 (49.5) Exports (thousands of US$) 14,948 35,963 (58.4) 14,948 35,963 (58.4) -------------------------------------------------------------------------------- PETROCHEMICALS' AND POLYESTER'S SALES (1000-t) -------------------------------------------------------------------------------- .Ethylene 228 281 (19.0) 228 281 (19.0) .Propylene 105 128 (18.0) 105 128 (18.0) .Butadiene 32 37 (12.8) 32 37 (12.8) .Para Xylene 4 40 (89.4) 4 40 (89.4) .Benzene 52 75 (30.3) 52 75 (30.3) .M. T. B. E. 19 31 (40.2) 19 31 (40.2) .Others 105 146 (27.9) 105 146 (27.9) -------------------------------------------------------------------------------- Subtotal 545 738 (26.1) 545 738 (26.1) -------------------------------------------------------------------------------- .Polyesteres 18 0 0.0 18 0 0.0 .PET 14 0 0.0 14 0 0.0 .DMT 4 0 0.0 4 0 0.0 TOTAL 563 738 (23.7) 563 738 (23.7) -------------------------------------------------------------------------------- PETROCHEMICALS' PRODUCTION (1000-t) -------------------------------------------------------------------------------- .Ethylene 225 285 (21.3) 225 285 (21.3) .Propylene 103 134 (23.2) 103 134 (23.2) .Butadiene 27 39 (32.5) 27 39 (32.5) .Para Xylene 13 31 (59.5) 13 31 (59.5) .Benzene 59 77 (23.5) 59 77 (23.5) .M. T. B. E. 20 24 (15.3) 20 24 (15.3) .Others 110 164 (32.8) 110 164 (32.8) -------------------------------------------------------------------------------- Subtotal 555 754 (26.3) 555 754 (26.3) -------------------------------------------------------------------------------- .Polyesteres 32 0 0.0 32 0 0.0 .PET 14 0 0.0 14 0 0.0 .DMT 18 0 0.0 18 0 0.0 TOTAL 587 754 (22.1) 587 754 (22.1) FUELS -------------------------------------------------------------------------------- SALES Automotive Gasoline - m3 69,892 59,637 17.2 69,892 59,637 17.2 LPG (thousand tons) 7,079 0 0.0 7,079 0 0.0 -------------------------------------------------------------------------------- PRODUCTION Automotive Gasoline - m3 68,422 63,433 7.9 68,422 63,433 7.9 LPG (thousand tons) 7,022 0 0.0 7,022 0 0.0