- The Plastics Exchange

Westlake Corporation's Q2 2023 results revealed a mixed performance. The company reported net sales of $3.3 billion, net income of $297 million, and EBITDA of $690 million.

The Housing and Infrastructure Products (HIP) segment saw a 13% increase in sales volumes from Q1 2023, benefiting from seasonal residential construction demand and lower raw material costs. Conversely, the Performance and Essential Materials (PEM) segment faced challenges, including a 6% decrease in average sales prices and unplanned outages impacting income and EBITDA.

Overall, the company's sales prices decreased 4% compared to Q1 2023, while sales volumes increased 1%. Year-over-year, there was a 15% overall sales price decline and a 13% sales volume decline.

PEM's EBITDA margin dropped to 20% from 26% in Q1 2023, while HIP's increased to 22% from 20%. Net income decreased by $97 million compared to Q1 2023, mainly due to lower sales prices and margins in PEM, partially offset by higher volumes in HIP.

Albert Chao, President and CEO, acknowledged the global manufacturing weakness affecting the PEM segment but expressed optimism for HIP. He emphasized the company's focus on improving costs, commercializing innovation, and redeploying free cash flow to enhance shareholder value.

The company's forward-looking statements include a commitment to addressing customer sustainability challenges and positioning itself well for market improvements. Westlake's diverse product offerings and robust free cash flow of $315 million are seen as key strengths moving forward.

--The Plastic Exchange

Atlantic Hurricane Season 2023: Unprecedented Warm Waters Fueling Intensity

North Atlantic Ocean temperatures have reached record-breaking levels, with an average sea surface readings of 76.8° Fahrenheit (24.9° Celsius) observed on July 26th. A series of shallow buoys of the coast of Florida recorded water temps in excess of 100° Fahrenheit. These unprecedented warm waters are set to impact the Atlantic hurricane season, which is typically busiest from August to early October. Despite the strong El Niño effect, which usually reduces tropical activity, the 2023 season has already had an active start with five named storms and one hurricane, none of which threatened the petrochemical producing part of the Gulf Coast. The unusually warm waters could lead to cyclones strengthening faster and becoming more intense, potentially overriding the El Niño's dampening effect. Several factors contribute to the seasonal ramp-up in August, including low wind shear, rising sea-surface temperatures, and increased instability. The record warmth in the Atlantic Ocean is more than one degree warmer than a 30-year climatological average, and this overheating has occurred early, weeks before the traditional seasonal peak. Seasonal forecasts hint at 18 named tropical systems for 2023, well above the 30-year average. The record-warm Atlantic could boost the intensity of tropical storms and hurricanes, leading to explosive and rapidly developing storms. The US plastics and petrochemical industry, centered along the northwest gulf coast has been vulnerable to significant production disruption storms in the past. Some of these storms have caused massive infrastructure damage, which has restricted monomer and resin supplies and have sent these prices soaring. Even the threat of an impending hurricane could trigger preventative measures and shutdowns, which are already disruptive. Major gulf storms of recent memory include Hurricane Rita (2005), Katrina (2005), Ike (2008), Gustav (2008), Isaac (2012), Harvey (2017), Laura (2020) and Ida (2021). The 2023 hurricane season, covering the entire Atlantic Ocean, the Gulf of Mexico, and the Caribbean region, promises to be one of the most closely watched and potentially impactful in recent history. The combination of record-breaking warm waters and the annual peak of tropical activity sets the stage for a season that could defy expectations and present unprecedented challenges for the petrochemical industry. - - The Plastic Exchange

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Westlakes Mixed Q2 2023: Growth in Housing, Decline in Performance Materials

NOVA Chemicals and Plastic Energy: A Partnership for Sustainable Plastic Solutions

ExxonMobil Earns 7.9 Billion in Second Quarter 2023

Chevrons Q2 2023 Key Highlights

Atlantic Hurricane Season 2023: Unprecedented Warm Waters Fueling Intensity

A New Era in PGP Production in Texas

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