• Net Income: Q4 net income decreased to $14.3 million from $16.8 million in Q4 2022.

• Distributable Cash Flow: Full year MLP distributable cash flow fell to $62.6 million, down from $75.9 million in 2022.

• Quarterly Distribution: Declared quarterly distribution of $0.4714 per unit, marking the 38th consecutive payout.

• Operational Highlights: Completed maintenance at Calvert City ethylene unit; plans for Petro 1 unit turnaround in H2 2024.

• Financial Metrics: Full year net income per limited partner unit decreased to $1.54 from $1.82 in 2022.

• Cash Flow: Operating activities generated $452.0 million in cash flow for the full year, a decrease from $463.7 million in 2022.

• Balance Sheet: Total assets stood at $1.316 billion as of December 31, 2023, down from $1.372 billion the previous year.

• Warning! GuruFocus has detected 9 Warning Signs with WLKP.

On February 20, 2024, Westlake Chemical Partners LP (NYSE:WLKP) released its 8-K filing, detailing its financial performance for the fourth quarter and full year of 2023. The company, which operates in the chemical industry in the United States through OpCo, reported a decrease in net income and cash flows from operating activities, primarily due to higher interest expenses and less favorable working capital changes.

Financial Performance Overview

WLKP's net income for the fourth quarter of 2023 was $14.3 million, or $0.41 per limited partner unit, a decrease from the $16.8 million reported in the same period of the previous year. The company attributes the decline mainly to increased interest expenses. Despite a quarterly increase in net income compared to the third quarter of 2023, the full year net income for 2023 decreased to $54.3 million, or $1.54 per limited partner unit, from $64.2 million in 2022.

Cash flows from operating activities for the fourth quarter decreased to $107.7 million from $122.6 million in the fourth quarter of 2022. The full year cash flows from operating activities also saw a decrease to $452.0 million from $463.7 million in the previous year. The company's MLP distributable cash flow for the year ended December 31, 2023, was $62.6 million, a decrease from the $75.9 million reported for the year ended December 31, 2022.

Operational and Strategic Highlights

Albert Chao, President and Chief Executive Officer of WLKP, commented on the company's operational achievements, including the successful completion of the maintenance turnaround at the Calvert City ethylene unit. He also noted the strategic timing of third-party sales to maximize margins. However, Chao cautioned that the upcoming maintenance turnaround at the Petro 1 ethylene unit and other factors might lead to a temporary dip in the coverage ratio below 1.00x in 2024.