Westlake Chemical Partners LP: A Year of Records and Resilience
Ticker: WLKP | EPS: $0.49 | Revenue Forecast: Promising Growth Ahead
Quarterly Highlights
In an impressive display of financial might, Westlake Chemical Partners LP (NYSE: WLKP) announced its fourth quarter and full year 2019 earnings, showcasing a remarkable earnings surprise. The partnership reported a net income of $17.4 million, translating to an EPS of $0.49 for the quarter, which is a leap from the previous year?s $11.9 million. This upswing is largely attributed to a strategic increase in ownership interest in Westlake Chemical OpCo LP, along with enhanced third-party sales margins.
Annual Achievements
For the full year 2019, net income attributable to the Partnership soared to $61.0 million, or $1.77 per unit, marking a significant increase from the $49.3 million recorded in 2018. This achievement reflects not only strong operational performance but also the successful execution of the acquisition strategy that Westlake has championed. The MLP distributable cash flow reached a record of $73.2 million, a solid jump from the $60.0 million in 2018, suggesting that the company's growth trajectory is both sustainable and robust.
Distribution Growth
In a delightful twist of fate for unitholders, Westlake Chemical Partners increased its quarterly cash distribution by 1.5% sequentially, reaching $0.4714 per unit. This marks the 20th consecutive quarterly increase, a feat that speaks volumes to the company?s commitment to delivering value amidst evolving market conditions. It?s almost like they have a magic formula for distributions?one that keeps their investors smiling.
Looking Ahead
As we glance into the crystal ball of 2020, the company?s leadership remains optimistic. Albert Chao, President and CEO, expressed enthusiasm for continued growth, emphasizing the partnership?s strategy to capitalize on organic expansions and periodic dropdowns of interest in OpCo. With a strong foundation built on record earnings and cash flow, the future appears bright. The company?s focus on reducing reliance on equity markets while maximizing long-term value for unitholders could set a trend for industry peers to follow.
Sector Implications
For those keeping score, Westlake's achievements may signal a positive ripple effect across the chemical sector. As MLPs continue to navigate the choppy waters of market conditions, Westlake?s performance could inspire a wave of similar strategies among competitors. After all, when one ship sails high, the others might just catch the same wind.