Westlake Chemical Corporation Reports First Quarter 2019 Results

Westlake Chemical Corporation (NYSE: WLK) (the "Company" or "Westlake")
today reported net income attributable to Westlake for the three months
ended March 31, 2019 of $72 million, or $0.55 per diluted share, on net
sales of $2,025 million. Net income decreased by $215 million compared
to first quarter 2018 net income of $287 million, or $2.20 per diluted
share. Income from operations for the first quarter of 2019 of $134
million decreased $267 million from income from operations of $401
million for the first quarter of 2018. The decrease was primarily due to
lower margins which resulted from lower sales prices for our major
products, higher ethane feedstock costs, and higher costs associated
with restructuring, transaction and integration-related activity. Sales
prices for many of our major products fell in the fourth quarter of 2018
following the 40% decline in global crude oil prices and weaker demand
in China driven largely by international trade tensions between the
United States and China. Following the decline, the lower sales prices
for our major products carried through the first quarter of 2019 as
increased olefins industry capacity, high global chlor-alkali operating
rates and the continuing uncertainties concerning international trade
kept prices from rising. Restructuring, acquisition and
integration-related costs in the first quarter of 2019 were $22 million,
or $0.16 per diluted share.

First quarter 2019 net income of $72 million, or $0.55 per diluted
share, on net sales of $2,025 million, decreased by $51 million from
fourth quarter 2018 net income of $123 million, or $0.95 per diluted
share, on sales of $1,995 million. Income from operations for the first
quarter of 2019 of $134 million decreased by $73 million from fourth
quarter 2018 income from operations of $207 million. The decrease was
primarily due to lower sales prices for all of our major products and
higher costs associated with restructuring, acquisition and
integration-related activities, partially offset by lower feedstock and
fuel costs, and higher sales volumes for styrene and PVC resin.

“In the first quarter, we continued to see good demand for our major
chemical products in both the domestic and export markets and believe we
are well positioned on the lower end of the global cost curves in both
our Olefins and Vinyls businesses,” said Albert Chao, President and
Chief Executive Officer. “Although we experienced a difficult pricing
environment in the first quarter following the sharp decline in global
crude oil prices in late 2018 and weaker Chinese demand, we are
cautiously optimistic that higher crude oil prices and a resolution to
trade tensions between the U.S. and China will lead to improved industry
fundamentals in the second half of 2019.”

Net cash provided by operating activities was $147 million and capital
expenditures were $203 million for the first quarter of 2019. As of
March 31, 2019, cash and cash equivalents were $445 million and
long-term debt was $2,669 million.

EBITDA (earnings before interest expense, income taxes, depreciation and
amortization) of $314 million for the first quarter of 2019 decreased by
$265 million compared to first quarter 2018 EBITDA of $579 million.
First quarter 2019 EBITDA decreased by $60 million compared to fourth
quarter 2018 EBITDA of $374 million. A reconciliation of EBITDA to net
income, income from operations and net cash provided by operating
activities can be found in the financial schedules at the end of this
press release.

OLEFINS SEGMENT

First quarter 2019 income from operations for the Olefins segment of $37
million decreased by $126 million from first quarter 2018 income from
operations of $163 million. This decrease in income from operations was
primarily due to lower margins resulting from lower sales prices for our
major products following the sharp drop in global crude oil prices in
the fourth quarter of 2018 and increased olefins production capacity as
well as higher ethane feedstock costs, partially offset by higher
polyethylene and styrene sales volumes.

Olefins income from operations of $37 million for the first quarter of
2019 decreased by $53 million from fourth quarter 2018 income from
operations of $90 million. The decrease in income from operations was
primarily due to lower sales prices for our major products and higher
costs associated with increased planned turnaround activity partially
offset by lower ethane feedstock costs.

VINYLS SEGMENT

First quarter 2019 income from operations for the Vinyls segment of $101
million decreased $165 million from first quarter 2018 income from
operations of $266 million. This decrease in income from operations was
primarily due to lower sales prices for our major products, higher
ethane feedstock costs and higher costs associated with restructuring,
acquisition and integration-related activities, partially offset by
lower purchased ethylene costs.

Vinyls income from operations for the first quarter of 2019 of $101
million decreased by $24 million from fourth quarter 2018 income from
operations of $125 million. The decrease in income from operations was
primarily due to lower sales prices for all of our major products and
higher restructuring, acquisition and integration-related costs,
partially offset by lower ethane feedstock and purchased ethylene costs
and higher sales volumes for PVC resin.

The statements in this release and the related teleconference
relating to matters that are not historical facts, including statements
regarding the demand for our products, industry fundamentals and our
position on the global cost curves for the Olefins and Vinyls
businesses, are forward-looking statements. These forward-looking
statements are subject to significant risks and uncertainties. Actual
results could differ materially, based on factors including, but not
limited to: general economic and business conditions; the cyclical
nature of the chemical industry; availability, cost and volatility of
raw materials and utilities, including natural gas and natural gas
liquids from shale production; the price of crude oil; uncertainties
associated with the United States and worldwide economies, including
those due to global economic and financial conditions; governmental
regulatory actions, including environmental regulation and changes in
trade policies; political unrest; industry production capacity and
operating rates; the supply/demand balance for Westlake's products;
competitive products and pricing pressures; access to capital markets;
technological developments; the effect and results of litigation and
settlements of litigation; operating interruptions; and other risk
factors. For more detailed information about the factors that could
cause actual results to differ materially, please refer to Westlake's
Annual Report on Form 10-K for the year ended December 31, 2018, which
was filed with the SEC in February 2019.

Use of Non-GAAP Financial Measures

This release makes reference to certain "non-GAAP" financial
measures, such as EBITDA, as defined in Regulation G of the U.S.
Securities Exchange Act of 1934, as amended. We report our financial
results in accordance with U.S. generally accepted accounting principles
("U.S. GAAP"), but believe that certain non-GAAP financial measures,
such as EBITDA, provide useful supplemental information to investors
regarding the underlying business trends and performance of the
company's ongoing operations and are useful for period-over-period
comparisons of such operations. These non-GAAP financial measures should
be considered as a supplement to, and not as a substitute for, or
superior to, the financial measures prepared in accordance with U.S.
GAAP. A reconciliation of EBITDA to net income, income from operations
and net cash provided by operating activities can be found in the
financial schedules at the end of this press release.

Westlake Chemical Corporation

Westlake Chemical Corporation is an international manufacturer and
supplier of petrochemicals, polymers and building products with
headquarters in Houston. The Company's range of products includes:
ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative
products, PVC suspension and specialty resins, PVC compounds, and PVC
building products including siding, pipe, fittings and specialty
components, windows, fence, deck and film. For more information, visit
the Company's web site at www.westlake.com.

Westlake Chemical Corporation Conference Call Information:

A conference call to discuss Westlake Chemical Corporation's first
quarter 2019 results will be held Thursday, May 2, 2019 at 11:00 AM
Eastern Time (10:00 AM Central Time). To access the conference call,
dial (855) 760-8160 or (704) 288-0624 for international callers,
approximately 10 minutes prior to the scheduled start time and reference
passcode 1248758.

A replay of the conference call will be available beginning two hours
after its conclusion until 11:59 p.m. Eastern Time on May 9, 2019. To
hear a replay, dial (855) 859-2056 or (404) 537-3406 for international
callers. The replay passcode is 1248758.

The conference call will also be available via webcast at: https://edge.media-server.com/m6/p/9ii2oooo
and the earnings release can be obtained via the company's web page at: http://www.westlake.com/investor-relations.

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