US Westlake Chemical Q1 net income up 40% despite lower sales

06 May 2013 11:51  [Source: ICIS news]

LONDON (ICIS)--Westlake Chemical’s Q1 net income increased by 40% year on year to $123.3m (€93.7m) despite a 16% fall in net sales, the US producer said on Monday.

Westlake said its net sales of $864.6m for the quarter were down mainly because of lower feedstock, ethylene and ethylene co-product sales volumes and lower sales prices for polyethylene and PVC resin.

The planned turnaround and expansion of one of the company’s ethylene units at Lake Charles, Louisiana, impacted ethylene and co-product sales volumes, Westlake said.

Operating income increased by 33% from the same period last year to $194.1m, benefiting from improved olefins and vinyls integrated product margins. This was mostly due to lower feedstock and energy costs as compared to the first quarter of 2012, the company said.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) was also up, rising by 28% to $232.9m.

"We are pleased to report record earnings in the first quarter of 2013. We continue to benefit from a globally advantaged energy and feedstock position resulting from North American shale gas and oil production,” said president and CEO Albert Chao.

($1 = €0.76)

By: Graeme Paterson
+44 20 8652 3214

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