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Dec 31, 2020
Westlake Q4 2020 Earnings Report
Westlake reported a strong finish to the year, capitalizing on robust global demand and higher prices.
Key Takeaways
Westlake Chemical Corporation reported a net income of $113 million, or $0.87 per diluted share, on net sales of $1,965 million for the fourth quarter of 2020. The company benefited from higher sales prices and margins for polyethylene and PVC resin, as well as strong demand in the downstream building products business.
Fourth quarter net income increased by $41 million, or 57%, compared to the fourth quarter of 2019.
Income from operations increased by $76 million compared to the fourth quarter of 2019.
The Vinyls segment saw an increase in income from operations due to higher sales and margins for PVC resin and strong performance in downstream building products.
The Olefins segment experienced a decrease in income from operations due to lower sales volumes and lost production from hurricanes, partially offset by higher polyethylene prices and margins.
Forward Guidance
Westlake anticipates continued strength in global demand for polyethylene and PVC, driven by rising housing starts and new building permits, which will benefit its downstream building products business. The company will focus on operating efficiently, making disciplined investments, developing new products, furthering chain integration, lowering costs, and leveraging its global footprint.
Positive Outlook
- Continued improvement of our performance in 2021
- Demand for polyethylene
- Demand for PVC
- Demand for downstream business products
- Results of investments in initiatives and delivering long-term value to shareholders
Challenges Ahead
- COVID-19 pandemic and the response thereto
- General economic and business conditions
- The cyclical nature of the chemical industry
- Availability, cost and volatility of raw materials and utilities, including natural gas and natural gas liquids from shale production
Historical Earnings Impact
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Avg. Return Before/After Earnings
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