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Driven by Vinnolit, Q3 revenues surge 24.8% at Westlake
07
Nov '14
Driven by sales from Vinnolit, which it acquired in July 2014 and higher sales prices, revenue at Westlake Chemical surged 24.8% year-on-year in the third quarter ending September 30, 2014.

Third-quarter of 2014 turnover climbed to $1,253.2 million, up $249 million or 24.8% from $1004.2 million, in the corresponding quarter of 2013 at Westlake.

According to Westlake, among many reasons, it is mainly attributable to sales contributed by Vinnolit, which it acquired in July 2014.

Sales also grew from higher sales prices for its major olefins products and PVC resin and higher sales volumes of PVC resin, caustic soda and ethylene, which were however partially offset by lower sales volumes for styrene and ethylene co-products.

Net income in the reporting quarter fell $2.5 million to reach $167.8 million or $1.25 per diluted share, compared with $170.3 million, or $1.27 per diluted share in the third quarter of 2013.

Westlake said, third quarter of 2014, net income was impacted by formation of Westlake Chemical Partners, Vinnolit acquisition-related costs of $21.6 million and several unplanned outages.

Unplanned outages in the quarter at its Calvert City, Kentucky and Geismar, Louisiana facilities resulted in maintenance and other costs of $7.1 million after tax and also loss of sales and margins.

Income from operations improved to a record $306.8 million for the third quarter of 2014 versus $266.6 million from a year ago quarter.

“Income from operations for the third quarter of 2014 benefited primarily from improved olefins and vinyls integrated product margins,” the NYSE-listed chemicals producer explained.

Third quarter of 2014 EBITDA at $358.0 million increased by $51.0 million compared to $307.0 million in the third quarter of 2013.

Net cash provided by operating activities reached $776.1 million in the first nine months of 2014 and capital expenditures in the same period totalled $311.2 million.

During the quarter under review, Westlake raised $286.1 million from the initial public offering of WLKP, and paid $611.1 million, net of cash acquired, for the acquisition of Vinnolit.

As of September 30, 2014, Westlake had cash of $813.5 million and its long-term debt stood at $764.0 million.

CEO Albert Chao said, "Our results were supported by strong performance in our Olefins segment and by record operating income in our Vinyls segment.”

“The improved profitability in Vinyls segment, demonstrates the benefit of recent investments to improve the cost position of our Vinyls assets and feedstock conversion of our Calvert City ethylene unit from propane to ethane feedstock,” he added. (AR)

Fibre2fashion News Desk - India

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