Westlake Chemical Partners LP reported a total revenue of $1.17 billion for the fiscal year ending December 31, 2025, marking a 2.7% increase from $1.14 billion in 2024. The increase was primarily driven by higher ethylene sales prices, which rose by 10.4%, and a Buyer Deficiency Fee of $5.8 million due to production shortfalls linked to a turnaround at the Petro 1 facility. However, net income decreased to $298.6 million from $369.2 million in the previous year, with net income attributable to the Partnership falling to $48.7 million from $62.4 million. The decline in profitability was attributed to lower sales volumes and increased costs for ethane feedstock and natural gas.
In terms of operational changes, Westlake Chemical Partners LP renewed its Ethylene Sales Agreement and Feedstock Supply Agreement with Westlake Corporation through December 31, 2027. This renewal is expected to provide continued revenue stability, as Westlake is committed to purchasing 95% of OpCo's planned ethylene production annually. The Partnership's total assets as of December 31, 2025, were reported at $1.26 billion, with a significant portion of its revenue generated from sales to Westlake, which accounted for approximately 88.6% of total net sales.
The Partnership's operational metrics showed a decrease in production volumes due to the Petro 1 turnaround, which extended into April 2025. This impacted the overall sales volumes to both Westlake and third parties. The average sales price for ethylene increased, but the overall volume sold decreased by 8.2%, contributing to the decline in gross profit, which fell to $347.8 million from $418.9 million in 2024. The gross profit margin also decreased from 36.9% to 29.8%, primarily due to rising feedstock costs.
Looking ahead, Westlake Chemical Partners LP aims to continue providing value to its unitholders through strategic growth opportunities, including potential acquisitions and increasing its ownership interest in OpCo. The Partnership's management remains focused on navigating market conditions and optimizing operational efficiencies to enhance profitability. The outlook for 2026 will depend on the recovery of production volumes post-turnaround and the ability to manage costs effectively in a fluctuating market environment.
About Westlake Chemical Partners LP
Westlake Chemical Partners LP operates ethylene production facilities in the U.S., converting ethane into ethylene used in plastics like polyethylene and PVC. It generates revenue mainly through long-term sales agreements with Westlake Corporation, which owns a controlling interest. The company’s business model relies on ethylene sales, co-product sales, and control of key assets, serving the petrochemical and plastics markets with a focus on operational efficiency and strategic partnerships.
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