Westlake Q3 Report 2023

Third quarter 2023 net income of $285 million decreased by $12 million compared to the second quarter of 2023. The sequential decrease in net income compared to the prior quarter was primarily due to lower prices and integrated margins for most of the products in our PEM segment, partially offset by higher operating rates and sales volumes.

Sales volume increased 4% vs. 2Q’23 due to demand growth in HIP and improved plant operations
• EBITDA margin(3) of 22% stable vs. 2Q’23 (21%) as higher margin in HIP from lower material costs
offset lower margin in Performance and Essential Materials (PEM) due to sales price declines
• Raising 2023 cost savings target to $95 – $110 million after achieving $30 million of cost
savings in 3Q’23 and $80 million year-to-date
• Generated free cash flow of $451 million in the quarter and $1.5 billion in the twelve months
ended September 30, 2023
• Raised quarterly dividend by 40% to $0.50/share