Roberto Bischoff : Alright. Actually, those 6 additional cavities have already been included in those BRL3.8 billion. So that is a total number. And remember that our plan — our provision for those BRL3.8 billion that does not pertain only to sand filling, that it also includes probing it sometimes includes auxiliary wells for plugging and pressurization. There was the whole monitoring system that was installed in the region. That is also included in that number. The whole monitoring system. There are environmental actions and other technical topics, the consultants we hired, all of that falls under that number. The cost of closing is actually part of that overall number. And just to give you an order of greatness, approximately half of that EUR1 billion that was provisioned in the last quarter, approximately BRL500 million is because of the 6 new cavities that were included, but 2 cavities were removed from that list.
So — if we look at the net variance of 4 additional cavities in the order of $500 million, you’ll see that the average cost of filling per cavity is something like BRL130 million, BRL150 million on average. The rest of that cost pertains to all of those other actions. So, if we look at that provision, that is not exclusively for backfilling. Just to add, Pedro, there is also a component of the cavity that is the size of each cavity. And that group has a group — on average, those cavities are smaller in size. So that tends to contribute to a lower per cavity cost.
Unidentified Company Representative: Pedro, there are no further questions, so I’m going to turn the call to the operator.
Operator: Thank you, everyone. The Q&A session has come to an end. I would like to turn the call over to the company for the final remarks. You may proceed.
Roberto Bischoff : All right. Good morning, everyone. This is Roberto Bischoff. Firstly, I’d like to thank all of you for taking part in our earnings call. I would also like to make a few final remarks. First, I want to say that the year 2023, as you’ve seen, was — you were all there with us was a difficult year. It was a year with a strong imbalance between supply and demand. It’s a year where global consumption did not recover at the speed that it could have. And as a result, there was a drop-in spread. We reached some historic lows over the past of the year. If you recall, we began the year with a spread level that was a little bit higher. And starting in April or May, we saw a worsening of that situation. which actually had an impact on the whole petrochemical industry around the world.
In this challenging scenario, we upheld our constant commitment with resiliency and financial strength. We implemented various fixed cost initiatives of all sizes of all types in various different fronts. We optimized global sales and operating cash and that had a relevant impact, both in terms of our results and also an important impact in our cash flow. Furthermore, in spite of those challenges that we faced, we did not falter and we continue to implement our growth strategy. We completed the year, as Pedro has mentioned, and also Rosana during the presentation. We completed the green ethane expansion increased process in Brazil. It’s a relevant landmark with the 30% increase in capacity. We reached important landmarks in constructing the ethane terminal in Mexico to over 50% of that construction is completed.
And at the same time, we consolidated partnerships around the world pertaining to our growth channel. Now that includes both our traditional business and in bioproducts and recycling. This is a combination of a lot of focus, discipline and resiliency in our operations, but also our concern with maintaining our growth strategy. We’re very focused on that. For the year ’24, we are confident that the petrochemical cycle is starting to normalize. We’ve had lots of opportunities to explain our opinion about speed and how likely that is to occur. But especially, we are expecting, we are forecasting a lower increase around the world. especially compared to what was perceived in the past. In any case, I would like to highlight our continuous commitment to resiliency and to allocation of our capital.
We always strive for more financial initiatives as well, and we implement our growth strategy. In conclusion, I would like to thank all of you once again for the trust you invest in us and for being with us on our call, and we will see each other once again in May when we provide our results for the first quarter of ’24. Thank you all.
Operator: The conference of Braskem has come to an end. We’d like to thank you for attending this call, and have a good afternoon, everyone.
