Westlake Chemical Partners(US:WLKP)2024-08-09 16:31Financial Performance - Total net sales for the three months ended June 30, 2024, were $284,168,000, an increase of 7.4% compared to $264,177,000 for the same period in 2023[7]. - Gross profit for the three months ended June 30, 2024, was $101,232,000, representing a 15.4% increase from $87,722,000 in the prior year[7]. - Net income attributable to Westlake Chemical Partners LP for the three months ended June 30, 2024, was $14,427,000, up 21.5% from $11,886,000 in the same period last year[7]. - The company reported a net income per limited partner unit of $0.41 for the three months ended June 30, 2024, compared to $0.34 for the same period in 2023[7]. - The company’s income from operations for the three months ended June 30, 2024, was $93,627,000, an increase of 16.3% from $80,493,000 in the same period last year[7]. - For the quarter ended June 30, 2024, net income was $88.0 million on net sales of $284.2 million, an increase from $75.3 million on net sales of $264.2 million for the same period in 2023, representing a year-over-year increase of 16.9% in net income[78]. - Net income attributable to the Partnership for Q2 2024 was $14.4 million, up from $11.9 million in Q2 2023, reflecting a 20.2% increase[78]. - Income from operations for Q2 2024 was $93.6 million, compared to $80.5 million in Q2 2023, indicating a growth of 16.4%[78]. - Total net sales for the first half of 2024 were $568.8 million, slightly down from $571.9 million in the first half of 2023, a decrease of 0.5%[72]. - For the six months ended June 30, 2024, net income was $177.7 million on net sales of $568.8 million, compared to net income of $166.7 million on net sales of $571.9 million for the same period in 2023, representing an increase in net income of $11.0 million[79]. Assets and Liabilities - Total current assets increased to $232,126,000 as of June 30, 2024, from $226,203,000 at December 31, 2023[5]. - Total liabilities decreased to $453,515,000 as of June 30, 2024, down from $460,592,000 at December 31, 2023[5]. - Cash and cash equivalents increased to $65,999,000 as of June 30, 2024, compared to $58,619,000 at December 31, 2023[5]. - The company’s total equity decreased to $834,847,000 as of June 30, 2024, from $856,250,000 at December 31, 2023[5]. - The company’s total assets decreased to $1,288,362,000 as of June 30, 2024, from $1,316,842,000 at December 31, 2023[5]. - The Partnership's accounts receivable from Westlake decreased to $39,090 as of June 30, 2024, from $49,565 as of December 31, 2023[45]. - The Partnership's accounts payable to Westlake decreased to $10,581 as of June 30, 2024, from $15,166 as of December 31, 2023[46]. - Accrued and other liabilities decreased to $21,840 as of June 30, 2024, from $24,980 at December 31, 2023, representing a decline of approximately 12.5%[55]. Cash Flow and Investments - Net cash provided by operating activities for the six months ended June 30, 2024, was $226,461, down from $243,403 in 2023, a decrease of 6.9%[13]. - Net cash used for investing activities for the six months ended June 30, 2024, was $(19,951), down from $(46,285) in 2023, a decrease of 56.9%[13]. - The Partnership's cash and cash equivalents at the end of the period increased to $65,999 as of June 30, 2024, from $59,434 at the end of June 30, 2023, an increase of 11.0%[13]. - Operating activities provided cash of $226.5 million in the first six months of 2024, a decrease of $16.9 million compared to $243.4 million in the first six months of 2023[90]. - Net cash used for investing activities in the first six months of 2024 was $20.0 million, compared to $46.3 million in the first six months of 2023, resulting in a favorable change of $26.3 million[91]. Sales and Revenue - Sales to related parties for the three months ended June 30, 2024, amounted to $239,527, compared to $224,575 for the same period in 2023, reflecting an increase of approximately 6.4%[38]. - The average sales price for ethylene decreased, contributing to lower sales prices to Westlake, despite higher sales volumes[78]. - Total net sales for the second quarter of 2024 increased by $20.0 million, or 7.6%, to $284.2 million from $264.2 million in the second quarter of 2023, primarily due to higher ethylene sales volumes[80]. - Total net sales decreased by $3.1 million, or 0.5%, to $568.8 million for the six months ended June 30, 2024, primarily due to lower ethylene sales prices[85]. Profitability Metrics - Gross profit for the second quarter of 2024 increased to $101.2 million, with a gross profit margin of 35.6%, compared to $87.7 million and a margin of 33.2% in the second quarter of 2023[81]. - Gross profit for the six months ended June 30, 2024, increased to $203.4 million, with a gross profit margin of 35.8%, compared to $193.8 million and a margin of 33.9% for the same period in 2023[86]. - EBITDA for Q2 2024 was $123.2 million, up from $108.6 million in Q2 2023, representing a 13.5% increase[76]. - MLP distributable cash flow for Q2 2024 was $17.1 million, compared to $15.0 million in Q2 2023, marking an increase of 7.7%[75]. - MLP distributable cash flow increased by $2.1 million to $17.1 million in the second quarter of 2024 from $15.0 million in the second quarter of 2023[84]. Debt and Interest - The weighted average interest rate on all long-term debt was 7.2% as of June 30, 2024, unchanged from December 31, 2023[50]. - Interest paid by the Partnership, net of interest capitalized, increased to $13,228 for the six months ended June 30, 2024, compared to $11,987 for the same period in 2023, marking an increase of approximately 10.4%[57]. - The carrying value of long-term debt payable to Westlake was $399,674 as of June 30, 2024, with a fair value of $412,110[53]. - A hypothetical increase of 100 basis points in the average interest rate on variable rate debt would raise annual interest expense by approximately $4.0 million[112]. Future Plans and Risks - The Partnership plans to commence the next planned maintenance turnaround at Petro 1 in the first quarter of 2025[67]. - The company intends to use the MLP Revolver for future acquisitions and to purchase additional limited partnership interests in OpCo[103]. - The company is subject to various risks including economic conditions, commodity price fluctuations, and regulatory changes that could impact future operations[108].