Westlake (WLK) FY Earnings Call Presentation

Financial Performance - Westlake Chemical Corporation reported net sales of $6.936 billion and EBITDA of $1.291 billion [4] - Net income attributable to Westlake Chemical Corporation was $456 million [4] - Olefins contributed $750 million to EBITDA, representing 53% of the total, while Vinyls contributed $658 million, accounting for 47% [4] Strategic Acquisitions and Synergies - The acquisition of Axiall has created a diverse, vertically-integrated chemicals leader, enhancing margin stability and growth opportunities [7] - Westlake expects to realize $120 million in synergy savings and cost reductions in 2017, with a total of $200 million expected by 2018 [7] Ethylene and Feedstock Advantages - Westlake has a short position in ethylene, providing cost advantages in the coming years due to its all-ethane feedstock capability [11, 12] - The company's ethylene plants are fully capable of using ethane and have some NGL flexibility, with the European business (Vinnolit) providing further feedstock diversification [22] Polyethylene Product Mix - Westlake has an advantaged polyethylene product mix, with LDPE accounting for 58% and LLDPE for 42% of its capacity [24] - The company focuses on LDPE, which has a higher average margin advantage compared to other PE grades [24] PVC and Global Presence - The Axiall acquisition has given Westlake a global PVC presence with facilities in North America, Europe, and Asia [36] - Westlake/Vinnolit is a leading specialty PVC producer with a global capacity of approximately 4,000 KMT in 2016 [48]