Release Date: May 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: It seems like the financial impact of the Q1 turnaround at Petro 1 was more significant on your quarterly earnings than previous turnarounds. Could you help us understand that? Was it due to the size of the turnaround or any unplanned expenses? A: Steve Bender, CFO: The impact was as planned. The unit was down for February and March, which was expected. The elevated interest rates affecting loan obligations might be a factor you're considering, but the performance was as budgeted.
Q: The valuation difference between the parent Westlake and the MLP, Westlake LP, seems to have compressed lately. Is there still enough of a valuation difference to justify keeping Westlake LP around? A: Steve Bender, CFO: Despite some compression in valuations, the value proposition remains over the business cycle. The valuation differential between the partnership and Westlake Corporation remains elevated over a reasonable cycle period.
Q: Can you provide more details on the financial results for the first quarter of 2025? A: Steve Bender, CFO: Westlake Partners reported a net income of $5 million or $0.14 per unit. Consolidated net income, including OpCo's earnings, was $42 million on consolidated net sales of $238 million. Distributable cash flow for the quarter was $5 million or $0.13 per unit.
Q: How did the planned turnaround at Petro 1 affect the financial results compared to the previous year? A: Steve Bender, CFO: The first quarter 2025 net income was $10 million below the first quarter 2024 primarily due to lower production and sales volume from the planned turnaround at Petro 1. Distributable cash flow decreased by $12 million compared to the first quarter of 2024.
Q: What is the outlook for future production and any planned turnarounds? A: Jean-Marc Gilson, CEO: The successful completion of the Petro 1 turnaround positions us for solid production levels. There are no further planned turnarounds in 2025 or 2026, and the Ethylene Sales Agreement will continue to provide stable and predictable cash flows.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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