Westlake Chemical Partners LP Reports Q2 2025 Financial Results with $85.8M Net Income

Westlake Chemical Partners LP reported its financial results for the second quarter and first half of 2025, revealing a net income of $85.8 million on total net sales of $297.1 million for the quarter, compared to a net income of $88.0 million on net sales of $284.2 million in the same period last year. For the first half of 2025, the company recorded a net income of $128.1 million on net sales of $534.7 million, down from $177.7 million on $568.8 million in the first half of 2024. The decrease in net income for both periods was attributed to lower sales volumes and higher costs associated with ethane feedstock and natural gas, exacerbated by a planned maintenance turnaround at the Petro 1 facility that concluded in April 2025.

The company’s revenue from Westlake, its primary customer, increased by 12.9 million, or 5.4%, in the second quarter, primarily due to higher ethylene sales prices. However, this was offset by a decrease in sales volumes, which fell by 9.3% compared to the previous year. The total net sales for the first half of 2025 decreased by $34.1 million, or 6.0%, largely due to lower production volumes resulting from the Petro 1 turnaround. The company recognized a buyer deficiency fee of $13.6 million during the second quarter, reflecting a forecasted production deficiency.

Operationally, Westlake Chemical Partners LP's gross profit for the second quarter was $97.5 million, down from $101.2 million in the prior year, resulting in a gross profit margin of 32.8%. Selling, general, and administrative expenses decreased to $6.3 million from $7.6 million, reflecting cost management efforts. The company reported a decrease in interest expense to $5.9 million from $6.7 million, attributed to lower interest rates on outstanding debt. The total equity of the partnership increased slightly to $831.2 million as of June 30, 2025, from $829.3 million at the end of 2024.

Looking ahead, Westlake Chemical Partners LP anticipates continued challenges due to fluctuating commodity prices and the impact of maintenance activities on production volumes. The company plans to maintain its focus on managing operating expenses and capital expenditures while ensuring liquidity through its existing credit facilities and cash reserves. The board of directors has declared a quarterly cash distribution of $0.4714 per common unit, payable on August 27, 2025, reflecting the partnership's commitment to returning value to its unitholders despite the recent operational challenges.