Westlake Chemical Partners(US:WLKP)2025-10-31 19:02Financial Performance - Total net sales for Q3 2025 reached $308.9 million, a 11.5% increase from $276.9 million in Q3 2024[10] - Gross profit for Q3 2025 was $99.4 million, down 15.0% from $116.9 million in Q3 2024[10] - Net income attributable to Westlake Chemical Partners LP for Q3 2025 was $14.7 million, a decrease of 19.8% compared to $18.1 million in Q3 2024[10] - The company reported a net income of $214.3 million for the nine months ended September 30, 2025, compared to $281.8 million for the same period in 2024[10] - Net income for the nine months ended September 30, 2025, was $214,318, a decrease from $281,772 in the same period of 2024, representing a decline of approximately 24%[19] - Net income for the three months ended September 30, 2025, was $14,653, a decrease of 19.5% compared to $18,136 for the same period in 2024[43] - For the nine months ended September 30, 2025, net income was $34,159, a decrease of 28.0% from $47,396 in the same period of 2024[45] - Total net income attributable to the Partnership for the nine months ended September 30, 2025, was $34,159, down from $47,396 in 2024, a decrease of about 28%[41] - Total net income for the three months ended September 30, 2025, was $86,214, a decrease of 17.2% from $104,100 in 2024[85] - OpCo's net income for the nine months ended September 30, 2025, was $233,296, down from $303,505 in 2024[85] Assets and Liabilities - Total assets as of September 30, 2025, were $1.27 billion, slightly down from $1.29 billion at the end of 2024[8] - Total liabilities decreased to $458.3 million from $458.6 million at the end of 2024[8] - Cash and cash equivalents decreased to $37.9 million from $58.3 million at the end of 2024[8] - The company’s total equity as of September 30, 2025, was $813.3 million, down from $829.3 million at the end of 2024[8] - Accounts receivable from third parties increased to $16,141 as of September 30, 2025, from $11,576 at the end of 2024, representing an increase of approximately 39%[34] - Inventories decreased to $3,078 as of September 30, 2025, down from $4,058 at the end of 2024, indicating a decline of about 24%[36] - Accrued and other liabilities increased to $32,036 as of September 30, 2025, from $16,920 at December 31, 2024[77] - Long-term debt payable to Westlake remained constant at $399,674 for both September 30, 2025, and December 31, 2024[67] - The weighted average interest rate on long-term debt was 6.1% as of September 30, 2025, down from 6.4% at December 31, 2024[71] - Total assets as of September 30, 2025, were $1,271,613, a slight decrease from $1,287,956 at December 31, 2024[85] Cash Flow and Distributions - Net cash provided by operating activities decreased to $160,090 for the nine months ended September 30, 2025, compared to $352,532 in 2024, reflecting a decline of about 55%[19] - The Partnership declared a quarterly cash distribution of $0.4714 per common unit for the three months ended September 30, 2025[39] - Distributions to unitholders for Q3 2025 totaled $49.8 million, consistent with $49.8 million in Q3 2024[19] - Total cash distributions declared for the nine months ended September 30, 2025, amounted to $49,838,000, compared to $49,826,000 for the same period in 2024[41] - Distributions per common unit for the nine months ended September 30, 2025, were $1.4142, consistent with the previous year[46] Related Party Transactions - Westlake accounted for approximately 89.5% of the Partnership's net sales for the three months ended September 30, 2025, compared to 77.9% in 2024, indicating a significant increase in concentration[68] - Charges for feedstock purchased from Westlake included in cost of sales for the three months ended September 30, 2025, were $95,110, compared to $65,053 in 2024, representing a 46.2% increase[52] - Interest on related party debt for the three months ended September 30, 2025, was $5,947, a decrease of 11.2% from $6,698 in 2024[66] - For the nine months ended September 30, 2025, interest on related party debt was $17,391, down 12.8% from $19,930 in 2024[66] - The Partnership's accounts receivable from Westlake increased to $59,665 as of September 30, 2025, compared to $31,975 at the end of 2024[61] - Operating lease rentals paid to Westlake for the nine months ended September 30, 2025, were $1,246, down from $1,326 in 2024[63] Expenses - Interest expense for Q3 2025 was $5.9 million, a decrease from $6.7 million in Q3 2024[10] - The Partnership's depreciation and amortization expenses for the nine months ended September 30, 2025, were $93,424, compared to $84,421 in 2024, an increase of approximately 11%[19] - Depreciation expense on property, plant, and equipment for the three months ended September 30, 2025, was $21,966, compared to $21,626 for the same period in 2024[37] - Amortization expense on deferred charges and other assets for the three months ended September 30, 2025, was $11,906, up from $6,486 for the same period in 2024[38] - Interest paid by the Partnership decreased to $17,292 for the nine months ended September 30, 2025, from $19,852 for the same period in 2024[79] Agreements and Renewals - On October 28, 2025, OpCo and Westlake renewed the Ethylene Sales Agreement and Feedstock Supply Agreement through December 31, 2027[88] - The Partnership's long-term debt valuation methodology is classified as Level 3 within the fair value hierarchy due to the use of significant unobservable inputs[74]