Westlake Q2 Report 2023

For the three months ended June 30, 2023, the Company reported quarterly net income of $297 million, or $2.31 per share, on net sales of $3,251 million. The year-over-year decrease in net income of $561 million from the second quarter of 2022 was primarily due to lower average sales prices and integrated margins in Performance Materials and lower operating rates and sales volumes across almost all product categories. These factors were only partially offset by higher Essential Materials average sales prices.

Better global demand drove sequentially higher sales volume for most products with improved sales mix in PVC
resin and polyethylene as sales volume shifted back to domestic from export markets
+ Lower natural gas, ethane and ethylene prices reduced feedstock and energy costs in both the U.S. and Europe
+ HIP segment EBITDA margin stable YoY at 20% despite a 21% volume decline due to higher average selling
prices and lower raw material costs on both a sequential and YoY basis
– Building and construction demand fell on a YoY basis driving lower HIP and PVC sales volumes and lower PVC
average selling prices
– Recent improvement in polyethylene and PVC prices weren’t enough to offset price reductions in the second half
of 2022, driving lower average selling prices on both a sequential and YoY basis