WLKP Earnings Prediction
The chart below shows how WLKP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WLKP sees a -1.79% change in stock price 10 days leading up to the earnings, and a -0.97% change 10 days following the report. On the earnings day itself, the stock moves by +0.55%. This data can give you a slight idea of what to expect for the next quarter's release.
WLKP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
290.06M
-2.43%
4.72%
Gross Margin
33.99%
0.35%
-19.49%
Operating Margin
31.73%
1.63%
-19.87%
Net Margin
30.13%
2.87%
-19.82%
EPS
0.43
4.88%
-15.69%
No Data Available
WLKP Earnings Analysis
Westlake Chemical Partners LP Corporation (WLKP.N) Earnings Conference Call
Positive
Earnings Per Share Beat: Westlake Chemical Partners LP reported an EPS of $0.43, exceeding expectations of $0.36.
Net Income Increase: The partnership achieved a full year net income of $62 million, or $1.77 per unit, an increase of $8 million compared to 2023.
Strong Net Income Performance: Consolidated net income, including OpCo, was $369 million for the full year 2024, demonstrating strong overall performance.
Stable Cash Flow Assurance: The company maintained a stable fee-based cash flow due to a fixed margin ethylene sales agreement for 95% of annual plant production, insulating it from market volatility.
Consistent Quarterly Distributions: The partnership has delivered 42 consecutive quarterly distributions since its IPO in July 2014, showcasing consistent performance.
Quarterly Distribution Growth: The fourth quarter distribution of $0.4714 per unit reflects a 71% growth since the original minimum quarterly distribution of $0.275 per unit.
Distribution Coverage Ratio: The partnership's distribution coverage for the full year of 2024 was 1.01 times, indicating strong cash flow relative to distributions.
Cash and Investments Total: Consolidated cash and cash investments totaled $193 million at the end of the fourth quarter, supporting financial stability.
Strong Balance Sheet: The partnership's leverage ratio remains below one times, indicating a strong balance sheet and conservative financial management.
Ethylene Price Improvement: North American spot ethylene prices and margins improved in 2024, benefiting the partnership through higher third-party ethylene sales prices.
Negative
Distributable Cash Flow Decline: Distributable cash flow for Q4 2024 decreased by $1 million compared to Q4 2023, primarily due to higher turnaround reserve and maintenance capital contributions.
Turnaround Impact on Coverage: The planned turnaround at the PetroOne ethylene unit is expected to impact the distribution coverage ratio during the period before recovering, similar to past turnarounds.
Fourth Quarter Net Income Growth: Despite an increase in net income for the full year 2024, the partnership's fourth quarter net income only increased slightly by $1 million compared to the previous year, indicating limited growth in that period.
Distribution Coverage Analysis: The partnership's distribution coverage for the full year of 2024 was only 1.01 times, suggesting a tight margin for sustaining distributions.
Long-Term Debt Risks: The company has a significant long-term debt of $400 million, which could pose risks if market conditions worsen.
WLKP FAQs
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WLKP Earning Call Sentiment
Westlake Chemical Partners LP (NYSE:WLKP) Q4 2024 Earnings Call Transcript
WLKP.N
-0.55%Positive
The earnings call revealed stable financial performance with slight growth in net income and distributions. However, uncertainties around the 2025 turnaround impact and lack of clear guidance on potential cost-cutting measures, such as the MLP arrangement, weigh on sentiment. The fixed margin agreement provides stability, but no new partnerships or share repurchase plans were announced. Despite increased distributions, the absence of a share repurchase program and potential regulatory risks maintain a neutral outlook.
