Westlake Corporation · NYSE:WLK
Westlake — Westlake Chemical — Q4 2019 Earnings Presentation
14 slides from Westlake's earnings presentation, Feb 18, 2020
Slide 1: Fourth Quarter and Year-End 2019 Earnings Presentation
Westlake Chemical Corporation Fourth Quarter and Year-End 2019 Earnings Presentation February 18, 2020
Slide 2: Westlake Chemical 2019 Highlights
Westlake Chemical 2019 Highlights Business Highlights . Net income of $421 million; EBITDA of $1.4 billion; Cash flows from operations of $1.3 billion . Record annual sales volumes . Acquired NAKAN™, a global PVC compounding business – expanding Westlake’s international footprint and market channels
Slide 3: Westlake Chemical 2020 Outlook
Westlake Chemical 2020 Outlook Business Outlook . Chlor Alkali and PVC remains constructive o Integrated facilities in North America benefit from low cost feedstocks and natural gas o Outlook for demand growth outpaces industry capacity additions . LACC should provide a cost advantaged ethylene feed
Slide 4: Westlake's Commitment to Advancing Sustainability
Westlake’s Commitment to Advancing Sustainability Westlake’s commitment to corporate social responsibility is formed by the company’s longstanding core values: . Health, Safety & Environmental - The vigilant stewardship of the environment and sustainability are of utmost importance and at the forefr
Slide 5: Fourth Quarter 2019 Financial Highlights
Westlake Chemical Corporation Fourth Quarter 2019 Financial Highlights 4Q 2019 vs. 4Q 2019 vs. FY 2019 vs. ($ in millions) 4Q 2019 3Q 2019 3Q 2019 4Q 2018 4Q 2018 FY 2019 FY 2018 FY 2018 Sales $1,883 $2,066 (9%) $1,995 (6%) $8,118 $8,635 (6%) Operating Income $102 $226 (55%) $207 (51%) $656 $1,408 (
Slide 6: Vinyls Segment Performance
Vinyls Segment Performance 4Q 2019 vs. 4Q 2019 vs. FY 2019 vs. ($ in millions) 4Q 2019 3Q 2019 3Q 2019 4Q 2018 4Q 2018 FY 2019 FY 2018 FY 2018 Sales $1,485 $1,618 (8%) $1,502 (1%) $6,336 $6,616 (4%) Operating Income $68 $153 (56%) $125 (46%) $451 $913 (51%) EBITDA $218 $306 (29%) $257 (15%) $1,032 $
Slide 7: Olefins Segment Performance
Olefins Segment Performance 4Q 2019 vs. 4Q 2019 vs. FY 2019 vs. ($ in millions) 4Q 2019 3Q 2019 3Q 2019 4Q 2018 4Q 2018 FY 2019 FY 2018 FY 2018 Sales $398 $448 (11%) $493 (19%) $1,782 $2,019 (12%) Operating Income $49 $92 (47%) $90 (46%) $260 $573 (55%) EBITDA $86 $128 (33%) $126 (32%) $407 $715 (43
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 December 31, Twelve Months Ended December 31, September 30, 2019 2019 2018 2019 2018 (In millions of dollars, except per share data) Net sales $ 2,066 $ 1,883 $ 1,995 $ 8,118 $ 8,635 Cost of sales 1,695 1,633 1,641 6,858 6,6
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 Three Months Ended September 30, Three Months Ended December 31, Twelve Months Ended December 31, 2019 2019 2018 2019 2018 (In millions of dollars) Net cash provided by operating activities $
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 September 30, Three months ended December 31, Twelve months ended December 31, (in $ millions) 2019 2019 2018 2019 2018 Vinyls EBITDA $306 $218 $257 $1,032 $1,439 Less: Depreciation and Am
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 December 31, March 31, June 30, September 30, December 31, 2018 2019 2019 2019 2019 Average domestic prices Ethane (cents/lb) (2) 11.6 10.0 7.1 5.8 6.3 Propane (cents/lb) (3) 18.7 15.7 12.8 10.3 11.8 Ethylene (cents/lb) (4) 20.2 17.0 13.7 20.7 22.8
Slide 14: Safe Harbor Language
Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding the results of projects, demand growth outpacing industry capacity additions, improvement in integrated margins and LACC providing a cost advantaged ethylene feedstock to drive strong vi