Westlake Corp. said it reported a $1.8-billion loss for the first quarter of 2019.
The stock dropped almost 11 per cent on Monday after it reported its first loss in four years, while the Dow Jones Industrial Average fell more than 1 per cent to 21,094.
Financial reports from the company, which includes oil and gas company Westcor Energy Ltd., also show the value of Westlake’s $1-billion pension plan for future retirees has declined by $4.3-billion.
Westlake, which had more than $1 billion in assets at the end of 2019, is seeking to sell off some assets.
It also said it’s reducing its debt by $3.5-billion, as it focuses on improving the performance of its financial performance.
Westcor’s shares fell as much as 7 per cent Monday in a day that followed a report that the auditor general has questioned the way the company has handled a pension issue.
Westpac Securities analyst Ian Watson said Westlake is expected to announce a major restructuring of the pension plan sometime in the first half of 2019 and will then need to seek approval from regulators.
“We think it’s likely to happen before then,” he said in a note to clients.
Watson also noted that Westlake had previously said it expects to “reduce the amount of pension assets in the plan.”
“Westlake is still evaluating the risk profile of the plan,” Watson said.
Westflowers fell sharply after the auditor released a report Tuesday that found the pension funds had understated the amount they had paid to Westflower for the sale of its assets.
The company said the amount paid by Westflowing was not correct.
Westbank and Westlake did not immediately respond to requests for comment.
Westgate Financial Corp. reported a loss of $1,541-million for the quarter ended March 31, up from $1 million in the year-ago period.
The shares fell 7.4 per cent after dropping about 6.6 per cent the previous day.
Westlakes shares rose 2.7 per cent, to $4,981, on Monday.
Westshore Financial Inc. posted a loss in its latest financial report, falling $1-$1.4 billion.
The financial services company said its net income fell to $1 in the quarter, from $2.2-billion a year earlier.
The report also said Westshore had $2-million of outstanding liabilities for the third quarter of this year.