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US Westlake Chemical posts record net income in Q2

by ChemOrbis Editorial Team - content@chemorbis.com
  • 05/08/2015 (14:19)
According to a press release on the company’s website, US Westlake Chemical’s net income reached record high of $205.1 million in the second quarter of this year, up $35.7 million when compared to the same period of 2014 and up $58.8 million from the income of $146.3 million posted in the previous quarter. The increase was attributed to the acquisition of a controlling interest in their Chinese PVC joint venture, Suzhou Huasu Plastics Company, and an impairment loss related to an equity investment.

The company’s net sales for the second quarter, meanwhile, rose by $186.4 million to reach $1.185 billion in the second quarter of 2015 owing to higher sales by Vinnolit, the company’s specialty PVC resin business which they acquired in July 2014, as well as higher sales volumes for several major products. The company’s Q2 net sales also represented an increase of $81.5 million from $1.104 billion in the first three months. Stronger quarterly net sales were attributed to higher sales prices for PE and PVC as well as higher sales volumes for most of the company’s major products.

Westlake’s income from operations was reported at $295.4 million for the second quarter, up from $266.8 million in the same period of the previous year. The higher income from operations was attributed to lower feedstock costs, increased production at the company’s Calvert City, Kentucky facility following the completion of the ethylene expansion project and higher production rates at the company’s Geismar, Louisiana chlor-alkali plant. In the second quarter, Westlake’s EBITDA (earnings before interest expense, income taxes, depreciation and amortization) reached $377.8 million, up $57.9 million compared with the second quarter of 2014.

For the olefins segment, however, the company’s income from operations declined to $220.9 million in the second quarter of this year from $238.7 million in the second quarter of 2014. Lower olefins integrated product margins stemming from lower sales prices as well as several polyethylene maintenance turnarounds completed during the second quarter were cited as the main reason behind the decrease. However, the company stated that higher polyethylene sales volumes and lower feedstock and energy costs limited the financial impact of their PE turnarounds.
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