Westlake Corporation · NYSE:WLK
Westlake — Westlake Chemical — Q1 2020 Earnings Presentation
14 slides from Westlake's earnings presentation, May 4, 2020
Slide 1: Westlake Chemical Corporation First Quarter 2020 Earnings Presentation
Westlake Chemical Corporation First Quarter 2020 Earnings Presentation May 4, 2020
Slide 2: COVID-19 Review: Health and Safety
Westlake Chemical COVID–19 Review Health and Safety . The government has designated our sector as "critical infrastructure" during this time permitting Westlake to continue to produce essential materials for life-enhancing products that protect and benefit lives every day . Our first priority is to
Slide 3: First Quarter 2020 Highlights
Westlake Chemical First Quarter 2020 Highlights Business Highlights . Net income of $145 million or $1.13 per diluted share . EBITDA of $337 million . Maintains Strong balance sheet with over $1.54 billion in cash and cash equivalents . Increased sales volumes 4.7% and 4.3% in the first quarter of 2
Slide 4: Commitment to Social Responsibility and Advancing Sustainability
Westlake’s Commitment to Social Responsibility and Advancing Sustainability Westlake’s commitment to social responsibility and advancing sustainability form by the company’s longstanding core values: . Health, Safety & Environmental - The vigilant stewardship of the environment and sustainability ar
Slide 5: Financial Highlights
Westlake Chemical Corporation First Quarter 2020 Financial Highlights 1Q2020 vs. 1Q2020 vs. ($ in millions) 1Q2020 4Q2019 4Q2019 1Q2019 1Q2019 Sales $1,932 $1,883 3% $2,025 (5%) Operating Income $136 $102 33% $134 1% Vinyls EBITDA $232 $218 6% $239 (3%) Olefins EBITDA $98 $86 14% $74 32% Corporate E
Slide 6: Vinyls Segment Performance
Vinyls Segment Performance 1Q2020 vs. 1Q2020 vs. ($ in millions) 1Q2020 4Q2019 4Q2019 1Q2019 1Q2019 Sales $1,505 $1,485 1% $1,566 (4%) Operating Income $73 $68 7% $101 (28%) EBITDA $232 $218 6% $239 (3%) First Quarter 2020 vs. First Quarter 2020 vs. Fourth Quarter 2019 First Quarter 2019 + Higher sa
Slide 7: Olefins Segment Performance
Olefins Segment Performance 1Q2020 vs. 1Q2020 vs. ($ in millions) 1Q2020 4Q2019 4Q2019 1Q2019 1Q2019 Sales $427 $398 7% $459 (7%) Operating Income $62 $49 27% $37 68% EBITDA $98 $86 14% $74 32% First Quarter 2020 vs. First Quarter 2020 vs. Fourth Quarter 2019 First Quarter 2019 + Higher polyethylene
Slide 8: Financial Reconciliations
EXHIBIT 99.2 Westlake Chemical Financial Reconciliations
Slide 9: Consolidated Statements of Operations
Consolidated Statements of Operations Three months ended Three months ended March 31, December 31, 2019 2020 2019 (In millions of dollars, except per share data) Net sales $ 1,883 $ 1,932 $ 2,025 Cost of sales 1,633 1,649 1,726 Gross profit 250 283 299 Selling, general and administrative expenses 11
Slide 10: Reconciliation of EBITDA to Net Income, Income from Operations and Operating Cash Flow
Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities Three Months Ended December 31, Three Months Ended March 31, 2019 2020 2019 (In millions of dollars) Net cash provided by operating activities $ 333 $ 61 $ 147 Changes in operating assets and
Slide 11: Reconciliation of Vinyls, Olefins and Corporate EBITDA to Operating Income
Reconciliation of Vinyls, Olefins and Corporate EBITDA to Applicable Operating Income (Loss) Three months ended December 31, Three months ended March 31, (in $ millions) 2019 2020 2019 Vinyls EBITDA $218 $232 $239 Less: Depreciation and Amortization 150 153 134 Other Income (Expenses) 0 6 4 Vinyls O
Slide 12: Quarterly Industry Pricing
EXHIBIT 99.2 Westlake Chemical Quarterly Industry Pricing
Slide 13: Average Quarterly Industry Prices
Average Quarterly Industry Prices (1) Quarter Ended March 31, June 30, September 30, December 31, March 31, 2019 2019 2019 2019 2020 Average domestic prices Ethane (cents/lb) (2) 10.0 7.1 5.8 6.3 4.7 Propane (cents/lb) (3) 15.7 12.8 10.3 11.8 8.8 Ethylene (cents/lb) (4) 17.0 13.7 20.7 22.8 15.8 Poly
Slide 14: Safe Harbor Language
Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding managing working capital, lowering operating costs and reducing capital expenditures and the timing of the Petro 2 turnaround. Actual results may differ materially depending on factors s