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Jun 30, 2020

Westlake Q2 2020 Earnings Report

Westlake's net income decreased due to the impacts of COVID-19 and lower oil prices.

Key Takeaways

Westlake Chemical Corporation reported a challenging second quarter of 2020 with a decrease in net income to $15 million, or $0.11 per diluted share, compared to $119 million, or $0.92 per share, in the second quarter of 2019. The decrease was primarily due to the global economic impact from COVID-19 and the significant drop in oil prices, which reduced North American ethylene industry feedstock competitiveness. Reduced demand led to lower global sales prices and volumes for caustic soda and downstream vinyls products.

Net income attributable to Westlake was $15 million, or $0.11 per diluted share.

Net sales were $1,709 million.

Income from operations was $36 million.

Net cash provided by operating activities was $448 million.

Total Revenue
$1.71B
Previous year: $2.14B
-20.3%
EPS
$0.11
Previous year: $0.92
-88.0%
Gross Profit
$169M
Previous year: $340M
-50.3%
Cash and Equivalents
$1.11B
Previous year: $409M
+171.1%
Free Cash Flow
$321M
Previous year: $112M
+186.6%
Total Assets
$13.6B
Previous year: $12.2B
+11.0%

Westlake

Westlake

Westlake Revenue by Segment

Forward Guidance

Westlake is focused on managing working capital, lowering operating costs and reducing capital expenditures to deliver long-term value to shareholders.

Revenue & Expenses

Visualization of income flow from segment revenue to net income