Westlake Corporation · NYSE:WLK
Westlake — Q3 2021 Earnings Presentation
16 slides from Westlake's earnings presentation, Nov 2, 2021
Slide 1: Third Quarter 2021 Earnings Presentation
Third Quarter 2021 Earnings Presentation November 2, 2021
Slide 2: Westlake Chemical Third Quarter 2021 Highlights
Westlake Chemical Third Quarter 2021 Highlights 1 $607 MM $4.69 $3.6 B $1.1 B Business Business Highlights Highlights Westlake achieved record quarterly net income of $607 million and record EBITDA of $1.1 billion, anchored by strong margins across our product offerings and generated $755 million
Slide 3: Industry Outlook and Sustainability
Industry Outlook and Sustainability Industry Outlook Industry Outlook Globally strong demand for construction materials. Robust demand in U.S. housing and repairs and remodeling activities PVC supply/demand fundamentals remaining strong with the growth in demand higher than the limited supply in
Slide 4: Third Quarter 2021 Financial Highlights
Westlake Chemical Corporation Third Quarter 2021 Financial Highlights 3Q 2021 vs. YTD 2021 vs. ($ in millions) 3Q 2021 2Q 2021 2Q 2021 3Q 2020 YTD 2021 YTD 2020 YTD 2020 Sales $3,055 $2,859 7% $1,898 $8,271 $5,539 49% Operating Income $861 $720 20% $79 $1,927 $251 668% Vinyls EBITDA $777 $605 28% $2
Slide 5: Vinyls Segment Performance
Vinyls Segment Performance 3Q 2021 vs. YTD 2021 vs. ($ in millions) 3Q 2021 2Q 2021 2Q 2021 3Q 2020 YTD 2021 YTD 2020 YTD 2020 Sales $2,348 $2,188 7% $1,529 $6,356 $4,382 45% Operating Income $601 $435 38% $42 $1,236 $135 816% EBITDA $777 $605 28% $209 $1,749 $623 181% Third Quarter 2021 vs. Second
Slide 6: Olefins Segment Performance
Olefins Segment Performance 3Q 2021 vs. YTD 2021 vs. ($ in millions) 3Q 2021 2Q 2021 2Q 2021 3Q 2020 YTD 2021 YTD 2020 YTD 2020 Sales $707 $671 5% $369 $1,915 $1,157 66% Operating Income $281 $277 1% $51 $738 $138 435% EBITDA $317 $316 0% $86 $849 $244 248% Third Quarter 2021 vs. Second Quarter 2021
Slide 7: Commitment to Corporate Social Responsibility is Formed by Five Longstanding Core Values
Commitment to Corporate Social Responsibility is Formed by Five Longstanding Core Values Westlake’s sustainability report can be found at https://www.westlake.com/sustainability 7
Slide 8: Advancing Sustainability
Advancing Sustainability Protecting the Environment Westlake has numerous programs designed to promote safe, ethical, environmentally and socially responsible practices including: a worldwide recycling program, operating in an energy efficient manner and reducing water usage and emissions. As discus
Slide 9: Financial Reconciliations
Financial Reconciliations
Slide 10: Consolidated Statements of Operations
Consolidated Statements of Operations Three months Three months ended September 30, Nine months ended September 30, ended June 30, 2021 2021 2020 2021 2020 (In millions of dollars, except per share data) Net sales $ 2,859 $ 3,055 $ 1,898 $ 8,271 $ 5,539 Cost of sales 1,987 2,037 1,650 5,872 4,839 Gr
Slide 11: Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities
Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities Three months Three months ended September 30, Nine months ended September 30, ended June 30, 2021 2021 2020 2021 2020 (In millions of dollars) Net cash provided by operating activities $ 617
Slide 12: Reconciliation of Vinyls, Olefins and Corporate EBITDA to Applicable Operating Income (Loss)
Reconciliation of Vinyls, Olefins and Corporate EBITDA to Applicable Operating Income (Loss) Three months ended June 30, Three months ended September 30, Nine months ended September 30, 2021 2021 2020 2021 2020 (In millions of dollars) Vinyls EBITDA $ 605 $ 777 $ 209 $ 1,749 $ 623 Less: Depreciation
Slide 13: Quarterly Industry Pricing
\ | Quarterly Industry Pricing a
Slide 14: Average Quarterly Industry Prices
Average Quarterly Industry Prices (1) Quarter Ended September 30, December 31, March 31, June 30, September 30, 2020 2020 2021 2021 2021 Average domestic prices Natural gas ($/MMBtu) (2) 2.0 2.7 2.8 2.9 4.0 Ethane (cents/lb) (3) 7.4 7.1 8.1 8.7 11.7 Propane (cents/lb) (4) 11.9 13.5 21.2 20.7 27.6 Et
Slide 15: Safe Harbor Language
Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding PVC, polyethylene, building products and caustic soda pricing and demand, continued recovery in key end markets, our cost control and efficiency efforts, our ability to deliver end-use b
Slide 16: Westlake
W/ Westlake