Westlake Corporation · NYSE:WLK
Westlake — Westlake Chemical — Q4 2020 Earnings Presentation
15 slides from Westlake's earnings presentation, Feb 23, 2021
Slide 1: Fourth Quarter and Full Year 2020 Earnings Presentation
Fourth Quarter and Full Year 2020 Earnings Presentation February 23, 2021
Slide 2: Commitment to Social Responsibility and Advancing Sustainability
Westlake’s commitment to social responsibility and advancing sustainability is formed by the company’s longstanding core values: Health, Safety & Environmental - The vigilant stewardship of the environment and sustainability are of utmost importance and at the forefront of everything we do. Our
Slide 3: Westlake Chemical 2020 Highlights
Westlake Chemical 2020 Highlights Business Highlights Restored operations to all Lakes Charles, Louisiana facilities after two hurricanes struck the area in August and October of 2020 Strong sales volumes in PVC, Polyethylene and downstream building products began in the second half of 2020 and
Slide 4: Industry Outlook and Westlake Outlook
Industry Outlook Robust PVC and Polyethylene demand driven by building products, packaging, and automotive Supply/demand outlook remains tight in PVC Outlook for Polyethylene chain margins remains strong Continued strength in housing starts and remodeling Durable goods demand is rebounding
Slide 5: Fourth Quarter 2020 Financial Highlights
Westlake Chemical Corporation Fourth Quarter 2020 Financial Highlights (1) Reconciliations of EBITDA, Vinyls EBITDA, Olefins EBITDA and Other EBITDA to the applicable GAAP measures can be found on pages 9, 10 and 11. Fourth Quarter 2020 vs. Third Quarter 2020 + Higher sales prices and margins for po
Slide 6: Vinyls Segment Performance
Vinyls Segment Performance 6 Fourth Quarter 2020 vs. Third Quarter 2020 + Higher sales prices and margins for PVC resin + Lower restructuring costs – Impact from hurricanes – Higher fuel costs Fourth Quarter 2020 vs. Fourth Quarter 2019 + Higher sales prices and margins for PVC resin + Higher earnin
Slide 7: Olefins Segment Performance
Olefins Segment Performance 7 Fourth Quarter 2020 vs. Third Quarter 2020 – Impact from hurricanes + Higher sales prices and margins for polyethylene Fourth Quarter 2020 vs. Fourth Quarter 2019 – Impact from hurricanes + Higher sales prices and margins for polyethylene ($ in millions) 4Q 2020 3Q 2020
Slide 8: Financial Reconciliations
EXHIBIT 99.2 Financial Reconciliations
Slide 9: Consolidated Statements of Operations
Consolidated Statements of Operations 9 Three months ended September 30, Three months ended December 31, Twelve months ended December 31, 2020 2020 2019 2020 2019 (In millions of dollars, except per share data) Net sales $ 1,898 $ 1,965 $ 1,883 $ 7,504 $ 8,118 Cost of sales 1,650 1,642 1,633 6,481 6
Slide 10: 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 10 Three months ended September 30, Three months ended December 31, Twelve months ended December 31, 2020 2020 2019 2020 2019 (In millions of dollars) Net cash provided by operating activitie
Slide 11: Reconciliation of Vinyls, Olefins and Corporate EBITDA to Operating Income
Reconciliation of Vinyls, Olefins and Corporate EBITDA to Applicable Operating Income (Loss) 11 Three months ended September 30, Three months ended December 31, Twelve months ended December 31, 2020 2020 2019 2020 2019 (In millions of dollars) Vinyls EBITDA $ 209 $ 334 $ 218 $ 957 $ 1,032 Less: Depr
Slide 12: Quarterly Industry Pricing
EXHIBIT 99.2 Ie Quarterly Industry Pricing !
Slide 13: Industry pricing data notes
1) Industry pricing data was obtained through IHS Markit ("IHS"). We have not independently verified the data. 2) Average Mont Belvieu spot prices of purity ethane over the period. 3) Average Mont Belvieu spot prices of non-TET propane over the period. 4) Average North American spot prices of ethyle
Slide 14: Safe Harbor Language
Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding PVC, polyethylene and building products pricing and demand, continued recovery in key end markets (such as housing starts), our cost control and efficiency efforts, our ability to captur
Slide 15: Westlake Chemical
Westlake Chemical