Westlake Corporation · NYSE:WLK
Westlake — Westlake Chemical — Q2 2020 Earnings Presentation
14 slides from Westlake's earnings presentation, Aug 6, 2020
Slide 1: Second Quarter 2020 Earnings Presentation
EXHIBIT 99.2 Second Quarter 2020 Earnings Presentation August 6, 2020
Slide 2: Westlake's Commitment to Social Responsibility and Advancing Sustainability
EXHIBIT 99.2 Westlake’s 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
Slide 3: Westlake Chemical Second Quarter 2020 Highlights
EXHIBIT 99.2 Westlake Chemical Second Quarter 2020 Highlights Business Highlights . Strategies to reduce costs and increase operational efficiencies; generated $448 million in cash flows from operations in the second quarter of 2020 . Issued in June 2020 $300 million of ten-year senior unsecured not
Slide 4: Second Quarter 2020 Financial Highlights
EXHIBIT 99.2 Westlake Chemical Corporation Second Quarter 2020 Financial Highlights 2Q 2020 vs. 2Q 2020 vs. YTD YTD YTD 2020 vs. ($ in millions) 2Q 2020 1Q 2020 1Q 2020 2Q 2019 2Q 2019 2020 2019 YTD 2019 Sales $1,709 $1,932 (12%) $2,144 (20%) $3,641 $4,169 (13%) Operating Income $36 $136 (74%) $194
Slide 5: Vinyls Segment Performance
EXHIBIT 99.2 Vinyls Segment Performance 2Q 2020 vs. 2Q 2020 vs. YTD YTD YTD 2020 vs. ($ in millions) 2Q 2020 1Q 2020 1Q 2020 2Q 2019 2Q 2019 2020 2019 YTD 2019 Sales $1,348 $1,505 (10%) $1,667 (19%) $2,853 $3,233 (12%) Operating Income $20 $73 (73%) $129 (84%) $93 $230 (60%) EBITDA $182 $232 (22%) $
Slide 6: Olefins Segment Performance
EXHIBIT 99.2 Olefins Segment Performance 2Q 2020 vs. 2Q 2020 vs. YTD 2020 vs. ($ in millions) 2Q 2020 1Q 2020 1Q 2020 2Q 2019 2Q 2019 YTD 2020YTD 2019 YTD 2019 Sales $361 $427 (15%) $477 (24%) $788 $936 (16%) Operating Income $25 $62 (60%) $82 (70%) $87 $119 (27%) EBITDA $60 $98 (39%) $119 (50%) $15
Slide 7: Financial Reconciliations
EXHIBIT 99.2 Financial Reconciliations
Slide 8: Consolidated Statements of Operations
EXHIBIT 99.2 Consolidated Statements of Operations Three months ended March 31, Three months ended June 30, Six months ended June 30, 2020 2020 2019 2020 2019 (In millions of dollars, except per share data) Net sales $ 1,932 $ 1,709 $ 2,144 $ 3,641 $ 4,169 Cost of sales 1,649 1,540 1,804 3,189 3,530
Slide 9: Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities
EXHIBIT 99.2 Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities Three Months Ended March 31, Three Months Ended June 30, Six Months Ended June 30, 2020 2020 2019 2020 2019 (In millions of dollars) Net cash provided by operating activities $ 6
Slide 10: Reconciliation of Vinyls, Olefins and Corporate EBITDA to Applicable Operating Income (Loss)
EXHIBIT 99.2 Reconciliation of Vinyls, Olefins and Corporate EBITDA to Applicable Operating Income (Loss) Three months ended March 31, Three months ended June 30, Six months ended June 30, 2020 2020 2019 2020 2019 (In millions of dollars) Vinyls EBITDA $ 232 $ 182 $ 269 $ 414 $ 508 Less: Depreciatio
Slide 11: Quarterly Industry Pricing
EXHIBIT 99.2 Quarterly Industry Pricing
Slide 12: Average Quarterly Industry Prices
EXHIBIT 99.2 Average Quarterly Industry Prices (1) Quarter Ended June 30, September 30, December 31, March 31, June 30, 2019 2019 2019 2020 2020 Average domestic prices Ethane (cents/lb) (2) 7.1 5.8 6.3 4.7 6.4 Propane (cents/lb) (3) 12.8 10.3 11.8 8.8 9.6 Ethylene (cents/lb) (4) 13.7 20.7 22.8 15.8
Slide 13: Safe Harbor Language
EXHIBIT 99.2 Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding demand for our products and commitment to an investment grade credit rating. Actual results may differ materially depending on factors such as general economic and business
Slide 14: Westlake Chemical
Westlake Chemical