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WLKP — Westlake Chemical Partners LP News Story

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Westlake Chemical Partners Q1 net income jumps on higher volumes

Corrects Q1 revenue figure to $305.7 mln from $263.09 mln in Key Details table

Overview

U.S. ethylene producer's Q1 net income rose 93% yr/yr on higher production and sales volume

Q1 revenue increased yr/yr

Company declared 47th consecutive quarterly distribution; export demand rose after Middle East conflict

Outlook

Company says war in Iran and Strait of Hormuz closure boosting global demand for its products

Company expects higher third-party ethylene sales prices to benefit distributable cash flow

Company's ethylene sales agreement with Westlake aims to provide stable, predictable cash flows

Result Drivers

HIGHER PRODUCTION AND SALES VOLUME - Co said increased production and sales volume, following the prior year's Petro 1 turnaround, drove yr/yr gains in net income and distributable cash flow

LOWER MAINTENANCE CAPITAL EXPENDITURES - Co said lower maintenance capital expenditures after the prior year's turnaround supported higher distributable cash flow

SURGE IN EXPORT DEMAND - Co said late Q1 export demand for North American chemicals and polymers rose after the outbreak of war with Iran and closure of the Strait of Hormuz, lifting third-party ethylene sales prices and distributable cash flow

Company press release: ID:nBw9070PCa

Key Details

MetricBeat/MissActualConsensus Estimate
Q1 RevenueMiss$305.68 mln$522 mln (1 Analyst)
Q1 Net Income$81.66 mln
Q1 EBITDA$121.22 mln
Q1 Gross Profit$93.76 mln
Q1 Income from Operations$86.57 mln
Analyst Coverage The one available analyst rating on the shares is "buy" The average consensus recommendation for the commodity chemicals peer group is "buy" Wall Street's median 12-month price target for Westlake Chemical Partners LP is $28.00, about 23.5% above its May 4 closing price of $22.67 The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com. (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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