MOSCOW (MRC) -- Westlake’s Q1 sales rose 72.1% year on year and net income more than tripled on strong demand and higher prices and margins, said the company.
Significantly higher sales prices and margins across most of Westlake’s businesses, as well as contributions from recently acquired businesses, drove the Q1 results, it said. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 135% to USD1.3bn and the EBITDA margin rose to 32% from 23% in Q1 2021.
"We continued to see robust residential construction and remodeling activity drive demand for PVC [polyvinyl chloride] resin, as well as for products in our Housing and Infrastructure Products segment," said CEO Albert Chao.
"The growth in the US economy and the diminishing impact of COVID-19 continue to spur consumer and industrial demand with improvements in manufacturing and packaging benefiting caustic soda and polyethylene (PE) usage," Chao said.
As per MRC, Westlake Chemical Corporation, the world's petrochemical major, has officially changed its name to Westlake Corporation. Westlake is now organized under one unified brand name with two financial reporting segments: Housing & Infrastructure Products and Performance & Essential Materials.
According to MRC's ScanPlast report, Russia's estimated consumption of unmixed PVC was about 999,300 tonnes in 2021, up by 7% year on year. The emulsion and suspension PVC market showed stronger demand, despite over a twofold price increase. December estimated SPVC consumption was 81,200 tonnes (excluding deliveries to the Republic of Belarus and the Republic of Kazakhstan) versus 74,690 tonnes a month earlier.
Westlake Corporation is a global manufacturer and supplier of materials and innovative products that enhance life every day. Headquartered in Houston, with operations in Asia, Europe, and North America, we provide the building blocks for vital solutions — from housing and construction, to packaging and healthcare, to automotive and consumer.