Westlake Chemical Q2 net income rises slightly, cash flows fall

Westlake Chemical Partners LP

05/08/2025 11:39

Overview

Westlake Chemical Q2 net income rises slightly to $14.6 mln from $14.4 mln

Cash flows from operations fall to $9.1 mln due to Petro 1 turnaround

MLP distributable cash flow decreases to $15.0 mln amid higher maintenance costs

Outlook

Company expects distributable cash flow to improve in second half of 2025

Westlake Chemical Partners anticipates stronger coverage ratio post-Petro 1 turnaround

Result Drivers

PETRO 1 TURNAROUND - Higher maintenance capital expenditures due to Petro 1 turnaround impacted cash flows

PRODUCTION INCREASE - Completion of Petro 1 turnaround increased production and sales volume, boosting net income

STABLE SALES AGREEMENT - OpCo benefitted from fixed margin sales agreement with Westlake Corporation, offsetting lower production volumes

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
$85.80 mln
Q2 EBITDA
$124.39 mln
Q2 Gross Profit
$97.53 mln
Q2 Income from Operations
$91.23 mln
Q2 Pretax Profit
$86 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

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 $25.50, about 14.5% above its August 4 closing price of $21.80

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw6FqcyYa

(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.)