Westlake Chemical ( (WLK) ) has released its Q4 earnings. Here is a breakdown of the information Westlake Chemical presented to its investors.
Westlake Chemical Partners LP is a limited partnership formed by Westlake Corporation, focusing on the operation, acquisition, and development of ethylene production facilities, primarily in the chemical industry, with assets located in Kentucky and Louisiana.
In its latest earnings report, Westlake Chemical Partners LP announced a net income of $15.0 million for the fourth quarter of 2024, maintaining a steady performance compared to the same period in 2023. The company also declared a quarterly distribution of $0.4714 per unit, marking its 42nd consecutive quarterly distribution.
Key financial metrics revealed that cash flows from operating activities increased to $132.5 million in the fourth quarter of 2024, up from $107.7 million in the same quarter of the previous year, driven by higher net income and favorable working capital changes. However, the MLP distributable cash flow saw a slight decrease to $15.0 million due to increased contributions to turnaround reserves and maintenance capital. For the full year 2024, the company reported a net income of $62.4 million, up from $54.3 million in 2023, attributed to higher third-party ethylene sales prices and margins.
Looking ahead, Westlake Chemical Partners LP anticipates a temporary dip in its coverage ratio below 1.00x in 2025 due to planned maintenance at its Petro 1 ethylene unit. However, the company remains optimistic about its cash flow prospects, expecting improved performance once production levels normalize post-maintenance, supported by favorable ethylene prices and margins.