Westlake Chemical Partners LP reported its financial results for the third quarter and nine months ended September 30, 2025, revealing a net income of $86.2 million on total net sales of $308.9 million. This marks a decrease in net income of $17.9 million compared to $104.1 million in the same quarter of 2024, while net sales increased by $31.9 million from $277.0 million. The increase in sales was primarily driven by higher ethylene sales prices and volumes to Westlake, although this was partially offset by lower sales prices and volumes of ethylene and co-products to third parties. For the nine-month period, net income was $214.3 million on net sales of $843.6 million, down from $281.8 million on $845.8 million in the prior year.
The company experienced significant changes in its financial performance, with gross profit decreasing to $99.4 million in Q3 2025 from $116.9 million in Q3 2024, resulting in a gross profit margin of 32.2%, down from 42.2%. The decline in profitability was attributed to increased costs for ethane feedstock and natural gas. Selling, general, and administrative expenses remained stable at $7.4 million for the third quarter. Interest expense decreased to $5.9 million from $6.7 million, reflecting lower interest rates on outstanding debt.
Operationally, Westlake Chemical Partners LP's total assets as of September 30, 2025, were $1.27 billion, slightly down from $1.29 billion at the end of 2024. The company reported a decrease in cash and cash equivalents to $37.9 million from $58.3 million. Accounts receivable from Westlake increased significantly to $59.7 million from $32.0 million, while accounts payable to Westlake decreased to $8.7 million from $20.7 million. The company’s equity also saw a decline, with total partners' capital dropping to $260.6 million from $276.1 million.
Strategically, Westlake Chemical Partners LP renewed its Ethylene Sales Agreement and Feedstock Supply Agreement with Westlake through December 31, 2027, which includes provisions for automatic renewal. The company also recognized a buyer deficiency fee of $13.6 million during the nine months ended September 30, 2025, due to a production deficiency related to the Petro 1 turnaround, which extended beyond its planned completion date. This fee is expected to support cash flow in the upcoming periods.
Looking ahead, Westlake Chemical Partners LP anticipates continued challenges due to fluctuating commodity prices and increased operational costs. The company plans to manage its cash flow by reserving funds for future turnaround costs and maintaining its distribution policy, which includes a declared quarterly cash distribution of $0.4714 per common unit, payable on November 26, 2025. The management remains focused on optimizing operational efficiency and navigating market conditions to sustain profitability.
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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