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EX - 99.1 2 ex991_20210331earningsrele.htm EX - 99.1 Contact ( 713 ) 960-9111 Investors Steve Bender Media L. Benjamin Ederington WESTLAKE CHEMICAL CORPORATION Westlake Chemical Corporation Reports First Quarter 2021 Results 154 % increase in first quarter 2021 operating income of $ 346 million vs first quarter 2020 EXHIBIT 99.1 HOUSTON -- ( BUSINESS WIRE ) -- Westlake Chemical Corporation ( NYSE : WLK ) ( the " Company " or " Westlake " ) today reported net income attributable to Westlake for the three months ended March 31 , 2021 of $ 242 million , or $ 1.87 per diluted share , on net sales of $ 2,357 million . Net income in the first quarter of 2021 increased by $ 97 million from first quarter 2020 net income of $ 145 million , or $ 1.13 per share , on net sales of $ 1,932 million . Income from operations of $ 346 million for the first quarter of 2021 increased by $ 210 million from income from operations of $ 136 million for the first quarter of 2020. The increases in net income and income from operations were primarily driven by higher sales prices and integrated margins for most of our major products including polyethylene and PVC , as well as higher earnings resulting from strong demand in our downstream building products business . These increases in demand were driven by rebounding global economic activity in packaging consumption combined with the strength in the North American residential construction and the repair and remodeling markets . These increases were partially offset by lost sales and production volumes , increased maintenance expense and higher ethane and ethylene feedstock and natural gas fuel costs related to the severe winter storm . Compared to the prior - year period , net income was also impacted by higher income tax expense as the first quarter of 2020 included a tax benefit from the CARES Act of $ 62 million , or $ 0.48 per share . First quarter 2021 net income of $ 242 million , or $ 1.87 per share , increased by $ 129 million from fourth quarter 2020 net income of $ 113 million , or $ 0.87 per share . Income from operations of $ 346 million for the first quarter of 2021 increased by $ 168 million from income from operations of $ 178 million for the fourth quarter of 2020. The increases in net income and income from operations versus the prior quarter were primarily due to continuing strength in demand for packaging products and construction activity which drove higher prices , integrated margins and volumes for most of our major products including polyethylene and PVC , in addition to strong earnings in our downstream building products business . These increases were partially offset by lower caustic soda prices as well as higher feedstock and fuel costs . " Westlake had a strong start to 2021 as we experienced solid financial performance as we benefitted from the continuing global economic recovery and robust product demand paired with higher prices and margins for many of our products . The severe winter storm caused widespread industry disruption , including Westlake . Through the efforts of our employees , we quickly responded to the disruptions caused by the storm and fully resumed operations by the end of the quarter . We have worked tirelessly to address strong customer demand during the quarter , " said Albert Chao , President and Chief Executive Officer . " As we look further into the year , we see continuing strong global demand in our PVC , polyethylene and downstream building products business driven by solid markets for the downstream uses of our products including residential construction , packaging and healthcare . We will remain focused on our strategy of safely and efficiently operating our facilities , while making disciplined investments , launching new and sustainable products , furthering our chain integration , lowering our costs and leveraging our current products and footprint around the world , while being a good steward of the environment in the communities in which we operate . " Net cash provided by operating activities was $ 265 million for the first quarter of 2021. As of March 31 , 2021 , cash and cash equivalents were $ 1,393 million and long - term debt was $ 3,547 million . Capital expenditures were $ 141 million for the first quarter of 2021 . EBITDA ( earnings before interest expense , income taxes , depreciation and amortization ) of $ 553 million for first quarter 2021 increased by $ 216 million compared to first quarter 2020 EBITDA of $ 337 million . First quarter 2021 EBITDA increased by $ 167 million compared to fourth quarter 2020 EBITDA of $ 386 million . A reconciliation of EBITDA to net income , income from operations , and net cash provided by operating activities can be found in the financial schedules at the end of this press release .