Westlake Corporation · NYSE:WLK
Westlake — Westlake Chemical — Q3 2019 Earnings Presentation
13 slides from Westlake's earnings presentation, Nov 5, 2019
Slide 1: Third Quarter 2019 Earnings Presentation
Third Quarter 2019 Earnings Presentation November 5, 2019
Slide 2: Business Highlights
Westlake Chemical Corporation Business Highlights . Net income of $158 million for the third quarter of 2019; 33% improvement over the second quarter of 2019 . Issued EUR 700,000,000 of senior unsecured notes due 2029 at a coupon of 1.625% per annum in July of 2019 . Exercised right to increase owne
Slide 3: Third Quarter 2019 Financial Highlights
Westlake Chemical Corporation Third Quarter 2019 Financial Highlights 3Q 2019 vs. 3Q 2019 vs. YTD YTD YTD 2019 vs. ($ in millions) 3Q 2019 2Q 2019 2Q 2019 3Q 2018 3Q 2018 2019 2018 YTD 2018 Sales $2,066 $2,144 (4%) $2,255 (8%) $6,235 $6,640 (6%) Operating Income $226 $194 16% $396 (43%) $554 $1,201
Slide 4: Vinyls Segment Performance
Vinyls Segment Performance YTD 2019 3Q 2019 vs. 3Q 2019 vs. YTD YTD vs. YTD ($ in millions) 3Q 2019 2Q 2019 2Q 2019 3Q 2018 3Q 2018 2019 2018 2018 Sales $1,618 $1,667 (3%) $1,714 (6%) $4,851 $5,114 (5%) Operating Income $153 $129 19% $251 (39%) $383 $788 (51%) EBITDA $306 $269 14% $391 (22%) $814 $1
Slide 5: Olefins Segment Performance
Olefins Segment Performance 3Q 2019 vs. 3Q 2019 vs. YTD YTD YTD 2019 vs. ($ in millions) 3Q 2019 2Q 2019 2Q 2019 3Q 2018 3Q 2018 2019 2018 YTD 2018 Sales $448 $477 (6%) $541 (17%) $1,384 $1,526 (9%) Operating Income $92 $82 12% $162 (43%) $211 $483 (56%) EBITDA $128 $119 8% $198 (35%) $321 $589 (46%
Slide 6: Financial Reconciliations
Financial Reconciliations 6
Slide 7: Consolidated Statements of Operations
Consolidated Statements of Operations Three Months Three Months Ended September 30, Nine Months Ended September 30, Ended June 30, 2019 2019 2018 2019 2018 (In millions of dollars, except per share data) Net sales $ 2,144 $ 2,066 $ 2,255 $ 6,235 $ 6,640 Cost of sales 1,804 1,695 1,716 5,225 5,007 Gr
Slide 8: 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, 2019 2019 2018 2019 2018 (In millions of dollars) Net cash provided by operating activities $ 320$
Slide 9: Reconciliation of Vinyls, Olefins and Corporate EBITDA to Operating Income (Loss)
Reconciliation of Vinyls, Olefins and Corporate EBITDA to Applicable Operating Income (Loss) Three months Three months ended September 30, Nine months ended September 30, ended June 30, (in $ millions) 2019 2019 2018 2019 2018 VinylsEBITDA $269 $306 $391 $814 $1,182 Less: Depreciation and Amortizati
Slide 10: Quarterly Industry Pricing
Quarterly Industry Pricing 10
Slide 11: Average Quarterly Industry Prices
Average Quarterly Industry Prices (1) Quarter Ended September 30, December 31, March 31, June 30, September 30, 2018 2018 2019 2019 2019 Average domestic prices Ethane (cents/lb) (2) 14.3 11.6 10.0 7.1 5.8 Propane (cents/lb) (3) 23.5 18.7 15.7 12.8 10.3 Ethylene (cents/lb) (4) 17.3 20.2 17.0 13.7 20
Slide 12: Safe Harbor Language
Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding the timing and results of capital projects and demand for our products and capacity additions in the vinyls industry. Actual results may differ materially depending on factors such as ge
Slide 13: Westlake Chemical
Westlake Chemical