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Westlake earnings and sales fall on weak pricing

February 21/2020

MOSCOW (MRC) -- Westlake Chemical Corporation saw lower profits in the fourth quarter of 2019, hurt by reduced global sales prices for its major products, according to Kemicalinfo.

The chemical maker posted a profit of USD72 million down around 41% from USD123 million it earned in the prior-year quarter.
Decrease in profit was attributed to lower global sales prices for key products due to trade uncertainties and a slower global economic growth.

Sales in the Olefins segment fell around 19% year over year to USD398 million in the reported quarter. Operating income in the segment tumbled roughly 46% to USD49 million. The decline was mainly due to reduced sales prices for major products resulting from higher olefins production and greater impacts from turnaround activity.

The Vinyls segment generated sales of USD1.5 billion, down around 1% year over year. Operating income in the segment was USD68 million, down around 46% year over year. The decline was caused by reduced sales prices for caustic soda and PVC (polyvinyl chloride) resin.
Revenues for full-year 2019 were USD8.12 billion, down around 6% year over year.

Westlake Chemical said that it remains focused on optimizing its operations and lowering its cost position.

In February 2018, as MRC informed before, Westlake Chemical announced plans to expand its capacities for the production of PVC and VCM at three of its chemical facilities. Two of the plants are located in Germany (Burghausen, Gendorf) and one is located in Geismar, Louisiana. The expansions in Burghausen and Geismar are expected to be completed in 2019. The Gendorf expansions are expected to be completed in 2020 and 2021.

According to MRC's ScanPlast report, contrary to seasonal factors, Russian producers of unmixed PVC have maintained a high level of capacity utilisation. Overal PVC output totalled 91,700 tonnes in January 2020, up by 4% year on year,

Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film.
Author:Margaret Volkova
Tags:PVC, kausticheskaya soda, SPVC, petrochemistry, Westlake Chemical, Russia, USA.
Category:General News
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