Westlake Chemical Partners LP reported a total revenue of $1.136 billion for the fiscal year ending December 31, 2024, a decrease of 4.6% from $1.191 billion in 2023. The decline in revenue was primarily attributed to lower ethylene sales prices to Westlake, despite an increase in sales volumes and higher prices for third-party ethylene sales. The partnership's net income rose to $369.2 million, up from $334.6 million in the previous year, with net income attributable to the partnership increasing to $62.4 million from $54.3 million. The partnership's earnings per limited partner unit also improved, reaching $1.77 compared to $1.54 in 2023.
Operationally, Westlake Chemical Partners LP continues to derive most of its revenue from its Ethylene Sales Agreement with Westlake Corporation, which mandates the purchase of 95% of OpCo's planned ethylene production. The partnership's gross profit increased to $418.9 million, reflecting a gross profit margin of 36.9%, up from 32.5% in 2023. This improvement was driven by lower feedstock costs and higher third-party sales prices. The partnership's MLP distributable cash flow also saw an increase, rising to $66.9 million from $62.6 million in the prior year.
In terms of strategic developments, the partnership is preparing for a planned maintenance turnaround at its Petro 1 facility, which commenced in the first quarter of 2025. This turnaround is expected to impact production temporarily but is part of the partnership's long-term operational strategy. The partnership's total capital expenditures for 2024 were $49 million, slightly higher than the $46.8 million spent in 2023, focusing on projects aimed at improving production capacity and safety.
As of December 31, 2024, Westlake Chemical Partners LP had total assets of approximately $1.288 billion, with cash and cash equivalents totaling $58.3 million. The partnership's long-term debt remained stable at $399.7 million, with interest rates on variable-rate debt averaging 6.4%. The partnership's liquidity is supported by its revolving credit facilities and cash generated from operations, which are expected to meet both short-term and long-term capital requirements.
Looking ahead, the partnership anticipates continued demand for ethylene and its derivatives, although it remains cautious about potential market fluctuations and economic conditions that could impact pricing and production. The partnership's management is focused on maintaining operational efficiency and exploring opportunities for growth, including potential acquisitions and expansions, while navigating the challenges posed by the current economic landscape.
About Westlake Chemical Partners LP
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