Westlake Chemical reported a profit of $607 million ($4.69 per share) in the July-September quarter of 2021, compared to a profit of $57 million (45 cents per share) a year earlier. That beat analysts’ consensus estimate of $4.01 per share. Sales jumped 61% year-on-year from $1,898 million to $3,055 million, which also exceeded analysts’ consensus estimate of $2,716.2 million. The company posted consecutive record quarterly earnings owing to the global economic recovery from the COVID-19 pandemic, which boosted margins and prices for most of its key products.
Westlake’s Vinyls segment achieved sales of $2,348 million in the third quarter, an increase of 54% from a year earlier. The unit’s operating income surged to $601 million from $42 million a year earlier. Meanwhile, the olefins segment posted a 92% year-on-year increase in its sales at $707 million, with operating income shooting up from $51 million to $281 million.
Westlake’s cash and cash equivalents stood at $3,571 million at the end of September, up around threefold from a year earlier. Long-term debt was up 34% year-on-year to $4,929 million, while cash flow from operations soared 112% year-on-year to $755 million. The company’s shares have increased 34.1% in the past year, in line with 34.3% growth in the industry.
