Westlake Chemical Partners LP Announces Third Quarter 2024 Results
Westlake Chemical Partners LP (NYSE: WLKP) reported strong Q3 2024 results with net income of $18.1 million ($0.51 per unit), up from $13.2 million in Q3 2023. Cash flows from operating activities reached $126.1 million, increasing by $25.2 million year-over-year. MLP distributable cash flow was $17.9 million, up $4.3 million from Q3 2023. The company declared its 41st consecutive quarterly distribution of $0.4714 per unit. The improvement was driven by higher third-party ethylene sales volume and margins, with the company strategically deferring the Petro 1 ethylene unit turnaround to Q1 2025.
Westlake Chemical Partners LP (NYSE: WLKP) ha riportato risultati solidi per il terzo trimestre del 2024, con un reddito netto di 18,1 milioni di dollari (0,51 dollari per unità), in aumento rispetto ai 13,2 milioni di dollari del terzo trimestre del 2023. I flussi di cassa dalle attività operative hanno raggiunto 126,1 milioni di dollari, con un incremento di 25,2 milioni di dollari rispetto all'anno precedente. Il flusso di cassa disponibile per la distribuzione dell'MLP è stato di 17,9 milioni di dollari, in aumento di 4,3 milioni di dollari rispetto al terzo trimestre del 2023. L'azienda ha dichiarato la sua 41esima distribuzione trimestrale consecutiva di 0,4714 dollari per unità. Il miglioramento è stato guidato da un volume di vendite di etilene di terze parti più elevato e da margini migliori, con l'azienda che ha strategicamente rinviato la manutenzione dell'unità di etilene Petro 1 al primo trimestre del 2025.
Westlake Chemical Partners LP (NYSE: WLKP) informó sobre resultados sólidos para el tercer trimestre de 2024, con un ingreso neto de 18,1 millones de dólares (0,51 dólares por unidad), en comparación con los 13,2 millones de dólares del tercer trimestre de 2023. Los flujos de caja de las actividades operativas alcanzaron 126,1 millones de dólares, aumentando en 25,2 millones de dólares interanualmente. El flujo de caja distribuible del MLP fue de 17,9 millones de dólares, un incremento de 4,3 millones de dólares respecto al tercer trimestre de 2023. La empresa declaró su 41ª distribución trimestral consecutiva de 0,4714 dólares por unidad. La mejora fue impulsada por el aumento del volumen de ventas de etileno de terceros y por márgenes más altos, y la empresa decidió aplazar la reprogramación de la unidad de etileno Petro 1 al primer trimestre de 2025.
Westlake Chemical Partners LP (NYSE: WLKP)는 2024년 3분기 실적을 발표하며 순이익이 1,810만 달러 (유닛당 0.51달러)로 2023년 3분기의 1,320만 달러에서 증가했다고 밝혔습니다. 운영 활동에서의 현금 흐름은 1억 2,610만 달러에 달해, 전년 대비 2,520만 달러 증가했습니다. MLP 분배 가능 현금 흐름은 1,790만 달러로, 2023년 3분기보다 430만 달러 증가했습니다. 이 회사는 유닛당 0.4714달러의 41번째 연속 분기 배당금을 선언했습니다. 개선은 타사 에틸렌 판매량과 마진 증가에 의해 이루어졌으며, 회사는 전략적으로 Petro 1 에틸렌 유닛의 전환 작업을 2025년 1분기로 연기했습니다.
Westlake Chemical Partners LP (NYSE: WLKP) a annoncé des résultats solides pour le troisième trimestre 2024, avec un revenu net de 18,1 millions de dollars (0,51 dollar par unité), en hausse par rapport à 13,2 millions de dollars au troisième trimestre 2023. Les flux de trésorerie des activités opérationnelles ont atteint 126,1 millions de dollars, en augmentation de 25,2 millions de dollars par rapport à l'année précédente. Le flux de trésorerie distribuable du MLP s'élevait à 17,9 millions de dollars, soit une hausse de 4,3 millions de dollars par rapport au troisième trimestre 2023. L'entreprise a déclaré sa 41e distribution trimestrielle consécutive de 0,4714 dollar par unité. L'amélioration a été soutenue par une augmentation du volume des ventes d'éthylène provenant de tiers et de meilleures marges, l'entreprise ayant stratégiquement reporté l'arrêt de l'unité d'éthylène Petro 1 au premier trimestre 2025.
Westlake Chemical Partners LP (NYSE: WLKP) berichtete über starke Ergebnisse im dritten Quartal 2024 mit einem Nettoergebnis von 18,1 Millionen Dollar (0,51 Dollar pro Einheit), verglichen mit 13,2 Millionen Dollar im dritten Quartal 2023. Die Cashflows aus den operativen Aktivitäten beliefen sich auf 126,1 Millionen Dollar, was einem Anstieg von 25,2 Millionen Dollar im Jahresvergleich entspricht. Der distributable Cashflow des MLP betrug 17,9 Millionen Dollar, was einem Anstieg von 4,3 Millionen Dollar gegenüber dem dritten Quartal 2023 entspricht. Das Unternehmen erklärte seine 41. aufeinanderfolgende vierteljährliche Ausschüttung von 0,4714 Dollar pro Einheit. Die Verbesserung wurde durch höhere Verkaufsvolumen von Ethylen von Dritten und durch höhere Margen vorangetrieben, während das Unternehmen strategisch die Wartung der Ethylen-Einheit Petro 1 auf das erste Quartal 2025 verschob.
- Net income increased by $4.9 million YoY to $18.1 million
- Operating cash flows grew by $25.2 million YoY to $126.1 million
- MLP distributable cash flow increased by $4.3 million YoY to $17.9 million
- Improved coverage ratio to 1.03x from 0.96x in Q2 2024
- Higher third-party ethylene sales prices and margins achieved
- Expected moderation in distributable cash flow for Q4 2024
- Increased maintenance capital spending anticipated for upcoming Petro 1 turnaround
Insights
The Q3 2024 results show significant improvements with
Key positives include higher third-party ethylene sales volumes and improved margins, benefiting from market disruptions. The strategic deferral of the Petro 1 turnaround to Q1 2025 allowed for capitalizing on strong market conditions. The stable
However, investors should note potential headwinds in Q4 2024 due to increased maintenance capital spending for the upcoming turnaround and remaining third-party sales opportunities for the year.
-
Celebrated 10th anniversary as a publicly traded master limited partnership having grown the quarterly distribution
71% since IPO -
Declared quarterly distribution of
per unit; 41st consecutive quarterly distribution$0.47 14
Third quarter 2024 net income attributable to the Partnership of
"We are pleased with the Partnership's performance for the third quarter of 2024. During the quarter, third-party ethylene sales prices and margins improved to their highest quarterly average in years, in part due to weather events and production outages at other producers. In an effort to better capture these attractive third-party margins we opportunistically made the decision to defer the planned turnaround at our Petro 1 ethylene unit to the first quarter of 2025 while also shifting third-party sales volumes planned for later in the year into the third quarter. As a result, we were pleased with the improvement in our third quarter distributable cash flow compared to recent quarters," said Jean-Marc Gilson, President and Chief Executive Officer. "Looking ahead to the remainder of 2024, with most of our planned third-party ethylene sales volumes for the year already booked, and as maintenance capital spending increases to support the upcoming Petro 1 turnaround in early 2025, we expect some moderation in our distributable cash flow in the fourth quarter. However, the improved outlook for third-party ethylene margins and continued execution of our ethylene sales contract with Westlake position us well for continued predictable cash flow and distributions to our unitholders, which we have demonstrated since our IPO ten years ago."
On October 30, 2024, the Partnership announced that the Board of Directors of Westlake Chemical Partners GP LLC had approved a quarterly distribution for the third quarter of 2024 of
OpCo's Ethylene Sales Agreement with Westlake is designed to provide for stable and predictable cash flows. The agreement provides that
The statements in this release and the related teleconference relating to matters that are not historical facts, such as those with respect to the timing of the anticipated Petro 1 turnaround, results of our turnaround reserves and activities, our future coverage ratio, our outlook for third-party ethylene margins, our expectations regarding feedstock and energy costs, the ability to deliver value, returns, predictable cash flows and distributions to unitholders, the expectation that strong distributions will continue, and the nature of the sales agreement with Westlake, 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, operating difficulties; the volume of ethylene that we are able to sell; the price at which we are able to sell ethylene; changes in the price and availability of feedstocks; changes in prevailing economic conditions; actions and commitments of Westlake Corporation; actions of third parties; the timing and results of capital expenditures, including turnaround activities; inclement or hazardous weather conditions, including flooding, and the physical impacts of climate change; environmental hazards; changes in laws and regulations (or the interpretation thereof); inability to acquire or maintain necessary permits; inability to obtain necessary production equipment or replacement parts; technical difficulties or failures; labor disputes; difficulty collecting receivables; inability of our customers to take delivery; fires, explosions or other industrial accidents; our ability to borrow funds and access capital markets; and other risk factors. For more detailed information about the factors that could cause actual results to differ materially, please refer to the Partnership's Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC in February 2024, and the Partnership's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, which was filed with the SEC in August 2024.
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (
Use of Non-GAAP Financial Measures
This release makes reference to certain "non-GAAP" financial measures, such as MLP distributable cash flow, coverage ratio and EBITDA. For this purpose, a non-GAAP financial measure is generally defined by the Securities and Exchange Commission ("SEC") as a numerical measure of a registrant's historical or future financial performance, financial position or cash flows that (1) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with
Westlake Chemical Partners LP
Westlake Chemical Partners is a limited partnership formed by Westlake Corporation to operate, acquire and develop ethylene production facilities and other qualified assets. Headquartered in
Westlake Chemical Partners LP Conference Call Information:
A conference call to discuss Westlake Chemical Partners' third quarter 2024 results will be held Tuesday, November 5th, 2024 at 1:00 PM Eastern Time (12:00 PM Central Time). To access the conference call, please register at: https://register.vevent.com/register/BId643f8e14d904c4dbc8954f14daeb022. A dial-in will be provided upon registration.
The conference call will also be available via webcast at: https://edge.media-server.com/mmc/p/sdd3kqrb and the earnings release can be obtained via the Partnership web page at: https://investors.wlkpartners.com/corporate-profile/default.aspx.
WESTLAKE CHEMICAL PARTNERS LP ("WESTLAKE PARTNERS")
|
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(In thousands of dollars, except per unit data) |
||||||||||||||
Revenue |
|
|
|
|
|
|
|
|
||||||||
Net sales—Westlake Corporation ("Westlake") |
|
$ |
215,799 |
|
|
$ |
289,303 |
|
|
$ |
690,535 |
|
|
$ |
771,349 |
|
Net co-products, ethylene and other sales—third parties |
|
|
61,196 |
|
|
|
32,361 |
|
|
|
155,301 |
|
|
|
122,169 |
|
Total net sales |
|
|
276,995 |
|
|
|
321,664 |
|
|
|
845,836 |
|
|
|
893,518 |
|
Cost of sales |
|
|
160,052 |
|
|
|
228,683 |
|
|
|
525,481 |
|
|
|
606,742 |
|
Gross profit |
|
|
116,943 |
|
|
|
92,981 |
|
|
|
320,355 |
|
|
|
286,776 |
|
Selling, general and administrative expenses |
|
|
7,254 |
|
|
|
6,741 |
|
|
|
21,936 |
|
|
|
21,884 |
|
Income from operations |
|
|
109,689 |
|
|
|
86,240 |
|
|
|
298,419 |
|
|
|
264,892 |
|
Other income (expense) |
|
|
|
|
|
|
|
|
||||||||
Interest expense—Westlake |
|
|
(6,698 |
) |
|
|
(6,437 |
) |
|
|
(19,930 |
) |
|
|
(19,869 |
) |
Other income, net |
|
|
1,325 |
|
|
|
1,272 |
|
|
|
3,916 |
|
|
|
3,153 |
|
Income before income taxes |
|
|
104,316 |
|
|
|
81,075 |
|
|
|
282,405 |
|
|
|
248,176 |
|
Provision for income taxes |
|
|
216 |
|
|
|
222 |
|
|
|
633 |
|
|
|
607 |
|
Net income |
|
|
104,100 |
|
|
|
80,853 |
|
|
|
281,772 |
|
|
|
247,569 |
|
Less: Net income attributable to noncontrolling interest in Westlake Chemical OpCo LP ("OpCo") |
|
|
85,964 |
|
|
|
67,647 |
|
|
|
234,376 |
|
|
|
207,585 |
|
Net income attributable to Westlake Partners |
|
$ |
18,136 |
|
|
$ |
13,206 |
|
|
$ |
47,396 |
|
|
$ |
39,984 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per limited partner unit attributable to Westlake Partners (basic and diluted) |
|
|
|
|
|
|
|
|
||||||||
Common units |
|
$ |
0.51 |
|
|
$ |
0.37 |
|
|
$ |
1.35 |
|
|
$ |
1.14 |
|
|
|
|
|
|
|
|
|
|
||||||||
Distributions declared per unit |
|
$ |
0.4714 |
|
|
$ |
0.4714 |
|
|
$ |
1.4142 |
|
|
$ |
1.4142 |
|
|
|
|
|
|
|
|
|
|
||||||||
MLP distributable cash flow |
|
$ |
17,879 |
|
|
$ |
13,620 |
|
|
$ |
51,906 |
|
|
$ |
46,156 |
|
|
|
|
|
|
|
|
|
|
||||||||
Distributions declared |
|
|
|
|
|
|
|
|
||||||||
Limited partner units—publicly and privately held |
|
$ |
9,954 |
|
|
$ |
9,949 |
|
|
$ |
29,855 |
|
|
$ |
29,841 |
|
Limited partner units—Westlake |
|
|
6,657 |
|
|
|
6,658 |
|
|
|
19,971 |
|
|
|
19,973 |
|
Total distributions declared |
|
$ |
16,611 |
|
|
$ |
16,607 |
|
|
$ |
49,826 |
|
|
$ |
49,814 |
|
EBITDA |
|
$ |
139,126 |
|
|
$ |
115,738 |
|
|
$ |
386,756 |
|
|
$ |
349,947 |
|
WESTLAKE CHEMICAL PARTNERS LP
|
||||||||
|
||||||||
|
|
September 30,
|
|
December 31,
|
||||
|
|
(In thousands of dollars) |
||||||
ASSETS |
|
|
|
|
||||
Current assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
60,208 |
|
|
$ |
58,619 |
|
Receivable under the Investment Management Agreement—Westlake |
|
|
109,540 |
|
|
|
94,444 |
|
Accounts receivable, net—Westlake |
|
|
44,885 |
|
|
|
49,565 |
|
Accounts receivable, net—third parties |
|
|
22,511 |
|
|
|
18,701 |
|
Inventories |
|
|
3,751 |
|
|
|
4,432 |
|
Prepaid expenses and other current assets |
|
|
667 |
|
|
|
442 |
|
Total current assets |
|
|
241,562 |
|
|
|
226,203 |
|
Property, plant and equipment, net |
|
|
908,992 |
|
|
|
943,843 |
|
Other assets, net |
|
|
144,141 |
|
|
|
146,796 |
|
Total assets |
|
$ |
1,294,695 |
|
|
$ |
1,316,842 |
|
|
|
|
|
|
||||
LIABILITIES AND EQUITY |
|
|
|
|
||||
Current liabilities (accounts payable and accrued and other liabilities) |
|
$ |
53,291 |
|
|
$ |
56,335 |
|
Long-term debt payable to Westlake |
|
|
399,674 |
|
|
|
399,674 |
|
Other liabilities |
|
|
3,916 |
|
|
|
4,583 |
|
Total liabilities |
|
|
456,881 |
|
|
|
460,592 |
|
Common unitholders—publicly and privately held |
|
|
472,296 |
|
|
|
473,513 |
|
Common unitholder—Westlake |
|
|
48,020 |
|
|
|
48,993 |
|
General partner—Westlake |
|
|
(242,572 |
) |
|
|
(242,572 |
) |
Total Westlake Partners partners' capital |
|
|
277,744 |
|
|
|
279,934 |
|
Noncontrolling interest in OpCo |
|
|
560,070 |
|
|
|
576,316 |
|
Total equity |
|
|
837,814 |
|
|
|
856,250 |
|
Total liabilities and equity |
|
$ |
1,294,695 |
|
|
$ |
1,316,842 |
|
WESTLAKE CHEMICAL PARTNERS LP
|
||||||||
|
||||||||
|
|
Nine Months Ended September 30, |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(In thousands of dollars) |
||||||
Cash flows from operating activities |
|
|
|
|
||||
Net income |
|
$ |
281,772 |
|
|
$ |
247,569 |
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
||||
Depreciation and amortization |
|
|
84,421 |
|
|
|
81,902 |
|
Net loss on disposition and other |
|
|
2,227 |
|
|
|
4,352 |
|
Other balance sheet changes |
|
|
(15,888 |
) |
|
|
10,505 |
|
Net cash provided by operating activities |
|
|
352,532 |
|
|
|
344,328 |
|
Cash flows from investing activities |
|
|
|
|
||||
Additions to property, plant and equipment |
|
|
(35,497 |
) |
|
|
(33,979 |
) |
Investments with Westlake under the Investment Management Agreement |
|
|
(15,000 |
) |
|
|
(164,116 |
) |
Maturities of investments with Westlake under the Investment Management Agreement |
|
|
— |
|
|
|
145,000 |
|
Net cash used for investing activities |
|
|
(50,497 |
) |
|
|
(53,095 |
) |
Cash flows from financing activities |
|
|
|
|
||||
Proceeds from debt payable to Westlake |
|
|
163,000 |
|
|
|
155,250 |
|
Repayment of debt payable to Westlake |
|
|
(163,000 |
) |
|
|
(155,250 |
) |
Distributions to noncontrolling interest retained in OpCo by Westlake |
|
|
(250,622 |
) |
|
|
(240,333 |
) |
Distributions to unitholders |
|
|
(49,824 |
) |
|
|
(49,813 |
) |
Net cash used for financing activities |
|
|
(300,446 |
) |
|
|
(290,146 |
) |
Net increase in cash and cash equivalents |
|
|
1,589 |
|
|
|
1,087 |
|
Cash and cash equivalents at beginning of period |
|
|
58,619 |
|
|
|
64,782 |
|
Cash and cash equivalents at end of period |
|
$ |
60,208 |
|
|
$ |
65,869 |
|
WESTLAKE CHEMICAL PARTNERS LP
|
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Three Months
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(In thousands of dollars) |
||||||||||||||||||
Net cash provided by operating activities |
|
$ |
121,896 |
|
|
$ |
126,071 |
|
|
$ |
100,925 |
|
|
$ |
352,532 |
|
|
$ |
344,328 |
|
Changes in operating assets and liabilities and other |
|
|
(33,870 |
) |
|
|
(21,971 |
) |
|
|
(20,072 |
) |
|
|
(70,760 |
) |
|
|
(96,759 |
) |
Net income |
|
|
88,026 |
|
|
|
104,100 |
|
|
|
80,853 |
|
|
|
281,772 |
|
|
|
247,569 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation, amortization and disposition of property, plant and equipment |
|
|
29,869 |
|
|
|
28,528 |
|
|
|
32,242 |
|
|
|
86,662 |
|
|
|
86,340 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Contribution to turnaround reserves |
|
|
(8,672 |
) |
|
|
(11,903 |
) |
|
|
(7,565 |
) |
|
|
(32,051 |
) |
|
|
(21,838 |
) |
Maintenance capital expenditures |
|
|
(9,306 |
) |
|
|
(17,753 |
) |
|
|
(22,862 |
) |
|
|
(34,808 |
) |
|
|
(37,407 |
) |
Distributable cash flow attributable to noncontrolling interest in OpCo |
|
|
(82,782 |
) |
|
|
(85,093 |
) |
|
|
(69,048 |
) |
|
|
(249,669 |
) |
|
|
(228,508 |
) |
MLP distributable cash flow |
|
$ |
17,135 |
|
|
$ |
17,879 |
|
|
$ |
13,620 |
|
|
$ |
51,906 |
|
|
$ |
46,156 |
|
WESTLAKE CHEMICAL PARTNERS LP
|
||||||||||||||||||||
|
||||||||||||||||||||
|
|
Three Months
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(In thousands of dollars) |
||||||||||||||||||
Net cash provided by operating activities |
|
$ |
121,896 |
|
|
$ |
126,071 |
|
|
$ |
100,925 |
|
|
$ |
352,532 |
|
|
$ |
344,328 |
|
Changes in operating assets and liabilities and other |
|
|
(33,870 |
) |
|
|
(21,971 |
) |
|
|
(20,072 |
) |
|
|
(70,760 |
) |
|
|
(96,759 |
) |
Net income |
|
|
88,026 |
|
|
|
104,100 |
|
|
|
80,853 |
|
|
|
281,772 |
|
|
|
247,569 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Other income, net |
|
|
1,257 |
|
|
|
1,325 |
|
|
|
1,272 |
|
|
|
3,916 |
|
|
|
3,153 |
|
Interest expense—Westlake |
|
|
(6,651 |
) |
|
|
(6,698 |
) |
|
|
(6,437 |
) |
|
|
(19,930 |
) |
|
|
(19,869 |
) |
Provision for income taxes |
|
|
(207 |
) |
|
|
(216 |
) |
|
|
(222 |
) |
|
|
(633 |
) |
|
|
(607 |
) |
Income from operations |
|
|
93,627 |
|
|
|
109,689 |
|
|
|
86,240 |
|
|
|
298,419 |
|
|
|
264,892 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization |
|
|
28,315 |
|
|
|
28,112 |
|
|
|
28,226 |
|
|
|
84,421 |
|
|
|
81,902 |
|
Other income, net |
|
|
1,257 |
|
|
|
1,325 |
|
|
|
1,272 |
|
|
|
3,916 |
|
|
|
3,153 |
|
EBITDA |
|
$ |
123,199 |
|
|
$ |
139,126 |
|
|
$ |
115,738 |
|
|
$ |
386,756 |
|
|
$ |
349,947 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105383918/en/
(713) 585-2900
Investors—Steve Bender
Media—L. Benjamin Ederington
Source: Westlake Chemical Partners
FAQ
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