Westlake Chemical Partners LP ( (WLKP) ) has released its Q3 earnings. Here is a breakdown of the information Westlake Chemical Partners LP presented to its investors.
Westlake Chemical Partners LP is a master limited partnership focused on operating, acquiring, and developing ethylene production facilities, with its primary operations centered around three ethylene plants and an associated pipeline in the United States. The company recently reported its third quarter 2024 earnings, marking a decade since its IPO, and announced a quarterly distribution, highlighting its consistent growth in distributions over the years.
In the third quarter of 2024, Westlake Chemical Partners reported a net income of $18.1 million, a significant increase from the previous year, and declared a quarterly distribution of $0.4714 per unit, continuing its trend of 41 consecutive distributions. The company attributed its improved financial performance to increased third-party ethylene sales volumes and higher margins, driven by favorable market conditions.
Key financial metrics for the quarter included a cash flow from operating activities of $126.1 million and a distributable cash flow of $17.9 million, both showing substantial increases from the previous year. The company’s strategic decision to defer a planned ethylene unit turnaround to capitalize on market conditions contributed to these positive results.
Looking ahead, Westlake Chemical Partners maintains a positive outlook for continued stable cash flows and distributions, despite anticipating some moderation in distributable cash flow in the upcoming quarter due to increased maintenance capital spending. The company remains confident in its ability to deliver predictable returns to its unitholders, supported by long-term ethylene sales agreements and a robust market environment.
