Westlake Chemical Corporation (NYSE:WLK) has announced that its Calvert City, KY complex is in the process of resuming work, following the unexpected shut down in Jun 2016 due to the mechanical failure of its ethylene unit. This led to a complete outage of the complex, resulting in stopping all production including EDC, VCM, Chlor-Alkali and PVC resin.
The outage will impact the second and third quarter financial results by about $40 million, with nearly half of this amount affecting the third quarter.
As a result of the incident, Westlake Chemical, its subsidiaries and affiliates, have declared force majeure at the Calvert City complex. The company is working with its customers and suppliers to bring down the effect of the outage and meet their needs as production resumes.
Westlake Chemical posted earnings of 94 cents per share in first-quarter 2016, down 14.5% from $1.10 a year ago. This beat the Zacks Consensus Estimate of 89 cents.
Westlake Chemical reported revenues of $975.2 million, falling around 11.6% year over year. It missed the Zacks Consensus Estimate of $1,008 million.
Sales were hit by lower sales price in the reported quarter, due to lower price of crude oil. However, this was partly offset by lesser average feedstock and energy costs as well as higher product margins at the European operations and increased production of chlor alkali, compared to the prior year quarter. EBITDA decreased 8.9% year over year to $270.6 million in the reported quarter.
Westlake Chemical currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the chemicals industry include Kuraray Co. Ltd. (OTC:KURRY) , Trinseo SA (NYSE:TSE) and Axiall Corporation (NYSE:AXLL) , all sporting a Zacks Rank #1 (Strong Buy).
WESTLAKE CHEM (WLK): Free Stock Analysis Report
KURARAY CO U-AD (KURRY): Free Stock Analysis Report
TRINSEO SA (TSE): Free Stock Analysis Report
AXIALL CORP (AXLL): Free Stock Analysis Report
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