US Westlake Chemical’s Q2 net income rises 26% to $145.8m

30 July 2013 12:13  [Source: ICIS news]

LONDON (ICIS)--Westlake Chemical’s second-quarter net income increased by 26% year on year to $145.8m (€109.4m) on the back of higher sales, the US producer said on Tuesday.

Net sales for the second quarter of 2013 stood at $939.0m, an increase of $25.0m compared with the same period last year, mainly because of higher sales volumes for building products, polyvinyl chloride (PVC) resin and caustic, which was partially offset by lower feedstock and ethylene sales volumes.

Westlake’s second-quarter income from operations was $235.2m, an increase from $171.0m in the same period in 2012. The company said its operating income benefited primarily from improved olefins and vinyls integrated product margins predominantly due to lower feedstock costs.

“Industry ethane prices declined 32.4% and industry propane prices declined 6.5% in the second quarter of 2013 as compared to the second quarter of 2012,” it added.

Albert Chao, president and CEO, said: "We are pleased to report record quarterly earnings largely driven by lower cost, natural gas-based ethylene production resulting from North American shale gas and oil production.

“In addition, our Vinyls segment continues to improve as the US economy slowly recovers. We continue to make progress on our integration strategy, with the completion of the expansion of one of our ethylene crackers at our Lake Charles, Louisiana site and the acquisition of a specialty PVC pipe business in the first half of 2013."

The CEO added: “Our planned completion of a new chlor-alkali plant in Geismar, Louisiana in the fourth quarter of this year, and the conversion to ethane feedstock and expansion of our ethylene and PVC capacity in Calvert City, Kentucky in 2014, are expected to further improve the profitability of our Vinyls segment."

($1 = €0.75)

By: Franco Capaldo
+44 (0)20 8652 3214

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