Westlake Corporation, a global manufacturer and marketer of basic chemicals, vinyls, and polymers, has reported net sales of $3.2 billion for the second quarter of fiscal 2024 (Q2 FY24), compared to $3.25 billion in Q2 FY23. The company’s net income was $313 million and earnings before interest expense, income taxes, depreciation, and amortisation (EBITDA) was $744 million.

These results were largely driven by higher average sales prices in the performance and essential materials (PEM) segment compared to the first quarter of FY24, the company said in a press release.

Overall sales volume for the company increased by 6 per cent sequentially from the previous quarter. For Q2 FY24, Westlake reported net income of $313 million, or $2.40 per share, reflecting a year-over-year (YoY) increase in net income of $16 million. This quarter's net income also marked a substantial increase of $139 million compared to the first quarter of FY24.

EBITDA for the second quarter of FY24 was $744 million, an increase of $54 million from Q2 FY23's EBITDA of $690 million. Sequentially, Q2 FY24 EBITDA rose by $198 million compared to the first quarter's EBITDA of $546 million.

In the PEM segment, sales volume increased by 1 per cent quarter-over-quarter, while the average sales price rose by 4 per cent over the same period. The EBITDA margin for PEM grew significantly, increasing to 19 per cent from 13 per cent.

For Q2 FY24, PEM's income from operations was $157 million, compared to $215 million in the same quarter of FY23. The YoY decrease of $58 million was attributed to lower average sales prices for key products, though this was partially offset by higher production and sales volumes across major products. Sequentially, PEM's income from operations increased by $135 million compared to the first quarter of FY24.

"While global industrial and manufacturing activity remains sluggish, conditions in our PEM segment have stabilised and we are encouraged by recent trends reflecting improved demand and higher average sales price for most major products, which is driving a recovery in our margins," said Albert Chao, executive chairman.

Fibre2Fashion News Desk (DP)