Westlake Chemical Partners Q3 profit rises on higher output, sales volume
Overview
U.S. ethylene producer's Q3 revenue declined and missed sole analyst estimate
Net income attributable to partnership rose yr/yr on higher sales volume, lower maintenance capex
Company declared 49th consecutive quarterly distribution of $0.4714 per unit
Outlook
Company expects earnings and cash flows to benefit from stable ethylene sales agreement with Westlake
Result Drivers
HIGHER SALES VOLUME - Co said increased production and sales volume contributed to higher net income and distributable cash flow
LOWER MAINTENANCE CAPITAL EXPENDITURES - Co attributed increase in distributable cash flow and coverage ratio to reduced maintenance capex
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $261.90 mln | $336.30 mln (1 Analyst) |
Q3 EPS | $0.46 | ||
Q3 Net Income Attributable | $16.2 mln | ||
Q3 EBITDA | $128.33 mln | ||
Q3 Gross Profit | $103.90 mln | ||
Q3 Income from Operations | $95.56 mln |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the commodity chemicals peer group is "buy"
Wall Street's median 12-month price target for Westlake Chemical Partners LP is $26.00, about 19.4% above its November 3 closing price of $21.78
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)