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Westlake Chemical’s 1Q profit down 15.9% on lower prices
HOUSTON, May 3, 2016 (PCW) -- Westlake Chemical on Tuesday reported 1Q net income of $123.1 million, down from $146.3 million, or 15.9%, from a year ago. The decrease was due to lower sales prices for all of the company’s major products, it said.
The company’s olefins segment saw 1Q net income of $149.2 million in the first quarter, down from $191.1 million reported in 1Q 2015. This decrease was due to lower olefins integrated product margins primarily as a result of lower sales prices.
The vinyls segment saw reported income from operations of $62.1 million in 1Q, up nearly 32% from $47.1 million seen in 1Q 2015. This increase was due to higher product margins at Westlake’s European operations and higher US caustic soda sales volumes.
Looking ahead, Westlake said its 2Q income would take a hit of some $65 million from lost production and associated costs from the turnaround and expansion at its Lake Charles Petro 1 cracker and other planned turnarounds. In 3Q, the company’s income is expected to be impacted around $15-20 million due to planned turnarounds at other olefins and vinyls units, although executives did not provide details on the plants that will be undergoing maintenance. -- Samantha Hartke