Braskem (BAK) said Monday it signed an agreement with the state of Alagoas, agreeing to pay 1.2 billion reais ($227.5 million) for damages caused by a geological event that occurred in the northeastern Brazilian state.

The petrochemical company said it has already paid out 139 million reais and will pay the rest in 10 annual installments, mainly after 2030.

The company said it had already earmarked about 467 million reais in previous years for potential compensation to be paid for property damage reportedly caused by its salt mines in Alagoas.

Shares of Braskem were up over 18% in recent Tuesday trading.

Price: 2.95, Change: +0.45, Percent Change: +18.00