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Westlake Chemical Partners(WLKP) - 2024 Q2 - Quarterly Report
WLKPWestlake Chemical Partners(WLKP)2024-08-09 16:31
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Financial Performance - Total net sales for the three months ended June 30, 2024, were 284,168,000,anincreaseof7.4284,168,000, 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,representinga15.4101,232,000, 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,up21.514,427,000, 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 0.41forthethreemonthsendedJune30,2024,comparedto0.41 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,anincreaseof16.393,627,000, 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 88.0milliononnetsalesof88.0 million on net sales of 284.2 million, an increase from 75.3milliononnetsalesof75.3 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 14.4million,upfrom14.4 million, up from 11.9 million in Q2 2023, reflecting a 20.2% increase[78]. - Income from operations for Q2 2024 was 93.6million,comparedto93.6 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 568.8million,slightlydownfrom568.8 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 177.7milliononnetsalesof177.7 million on net sales of 568.8 million, compared to net income of 166.7milliononnetsalesof166.7 million on net sales of 571.9 million for the same period in 2023, representing an increase in net income of 11.0million[79].AssetsandLiabilities−Totalcurrentassetsincreasedto11.0 million[79]. Assets and Liabilities - Total current assets increased to 232,126,000 as of June 30, 2024, from 226,203,000atDecember31,2023[5].−Totalliabilitiesdecreasedto226,203,000 at December 31, 2023[5]. - Total liabilities decreased to 453,515,000 as of June 30, 2024, down from 460,592,000atDecember31,2023[5].−Cashandcashequivalentsincreasedto460,592,000 at December 31, 2023[5]. - Cash and cash equivalents increased to 65,999,000 as of June 30, 2024, compared to 58,619,000atDecember31,2023[5].−Thecompany’stotalequitydecreasedto58,619,000 at December 31, 2023[5]. - The company’s total equity decreased to 834,847,000 as of June 30, 2024, from 856,250,000atDecember31,2023[5].−Thecompany’stotalassetsdecreasedto856,250,000 at December 31, 2023[5]. - The company’s total assets decreased to 1,288,362,000 as of June 30, 2024, from 1,316,842,000atDecember31,2023[5].−ThePartnership′saccountsreceivablefromWestlakedecreasedto1,316,842,000 at December 31, 2023[5]. - The Partnership's accounts receivable from Westlake decreased to 39,090 as of June 30, 2024, from 49,565asofDecember31,2023[45].−ThePartnership′saccountspayabletoWestlakedecreasedto49,565 as of December 31, 2023[45]. - The Partnership's accounts payable to Westlake decreased to 10,581 as of June 30, 2024, from 15,166asofDecember31,2023[46].−Accruedandotherliabilitiesdecreasedto15,166 as of December 31, 2023[46]. - Accrued and other liabilities decreased to 21,840 as of June 30, 2024, from 24,980atDecember31,2023,representingadeclineofapproximately12.524,980 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 243,403in2023,adecreaseof6.9243,403 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)in2023,adecreaseof56.9(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 59,434attheendofJune30,2023,anincreaseof11.059,434 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 16.9millioncomparedto16.9 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 20.0million,comparedto20.0 million, compared to 46.3 million in the first six months of 2023, resulting in a favorable change of 26.3million[91].SalesandRevenue−SalestorelatedpartiesforthethreemonthsendedJune30,2024,amountedto26.3 million[91]. Sales and Revenue - Sales to related parties for the three months ended June 30, 2024, amounted to 239,527, compared to 224,575forthesameperiodin2023,reflectinganincreaseofapproximately6.4224,575 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 284.2millionfrom284.2 million from 264.2 million in the second quarter of 2023, primarily due to higher ethylene sales volumes[80]. - Total net sales decreased by 3.1million,or0.53.1 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 101.2million,withagrossprofitmarginof35.6101.2 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 203.4million,withagrossprofitmarginof35.8203.4 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 123.2million,upfrom123.2 million, up from 108.6 million in Q2 2023, representing a 13.5% increase[76]. - MLP distributable cash flow for Q2 2024 was 17.1million,comparedto17.1 million, compared to 15.0 million in Q2 2023, marking an increase of 7.7%[75]. - MLP distributable cash flow increased by 2.1millionto2.1 million to 17.1 million in the second quarter of 2024 from 15.0millioninthesecondquarterof2023[84].DebtandInterest−Theweightedaverageinterestrateonalllong−termdebtwas7.215.0 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 11,987forthesameperiodin2023,markinganincreaseofapproximately10.411,987 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].−Ahypotheticalincreaseof100basispointsintheaverageinterestrateonvariableratedebtwouldraiseannualinterestexpensebyapproximately412,110[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].