Westlake Chemical Partners LP (WLKP) 2024 Q3 法說會逐字稿

Good afternoon.

午安.

Thank you for standing by.

謝謝你的支持。

Welcome to the Westlake Chemical Partners third quarter, 2024 earnings conference call.

歡迎參加 Westlake Chemical Partners 2024 第三季財報電話會議。

During the presentation, all participants will be in a listen-only mode after the speakers' remarks, you will be invited to participate in a question-and-answer session.

演講期間，所有參與者將處於僅聽模式，演講者發言後，您將被邀請參加問答環節。

As a reminder, this conference is being recorded today.

提醒一下，今天正在錄製這次會議。

November 5th, 2024.

2024 年 11 月 5 日。

I would now like to turn the call over to today's host, Johnathan Zoeller Westlake Chemical Partners, Vice President and treasurer.

現在我想將電話轉給今天的主持人、Westlake Chemical Partners 副總裁兼財務主管 Johnathan Zoeller。

Sir.

先生。

You may begin.

你可以開始了。

Thank you.

謝謝。

Good afternoon, everyone and welcome to the Westlake Chemical Partners third quarter, 2024 conference call.

大家下午好，歡迎參加 Westlake Chemical Partners 2024 年第三季電話會議。

I am joined today by Albert Y.

今天，阿爾伯特·Y (Albert Y.) 也加入了我的行列。

Chao, our executive Chairman, Jean-Marc Gilson, our President and CEO M. Steven Bender, our executive Vice President and Chief Financial Officer and other members of our management team.

Chao，我們的執行主席，Jean-Marc Gilson，我們的總裁兼執行長 M. Steven Bender，我們的執行副總裁兼財務長以及我們管理團隊的其他成員。

During this call, we refer to ourselves as Westlake Partners or the partnership.

在本次電話會議中，我們將自己稱為 Westlake Partners 或合夥企業。

References to Westlake, refer to our parent company Westlake Corporation and references to OPCO refer to Westlake Chemical, OPCO LP, a subsidiary of Westlake and the partnership which owns certain Olefins assets.

提及 Westlake 時，指的是我們的母公司 Westlake Corporation；提及 OPCO 時，指的是 Westlake Chemical、OPCO LP（Westlake 的子公司）以及擁有某些烯烴資產的合夥企業。

Additionally, when we refer to distributable cash flow, we are referring to Westlake Chemical partners', MLP distributable cash flow definitions of these terms are available on the partnership's website.

此外，當我們提到可分配現金流時，我們指的是 Westlake Chemical 合作夥伴的 MLP 可分配現金流，這些術語的定義可在合作夥伴的網站上找到。

Today, management is going to discuss certain topics that will contain forward-looking information that is based on management's beliefs as well as assumptions made by and information currently available to management.

今天，管理層將討論某些主題，其中包含基於管理層信念以及管理層所做的假設和當前可獲得的資訊的前瞻性資訊。

These forward-looking statements suggest predictions or expectations and thus are subject to risks or uncertainties.

這些前瞻性陳述暗示了預測或預期，因此存在風險或不確定性。

We encourage you to learn more about the factors that could lead our actual results to differ by reviewing the cautionary statements in our regulatory filings which are also available on our investor relations website.

我們鼓勵您查看我們的監管文件中的警告聲明，以了解更多可能導致我們的實際結果有所不同的因素，這些聲明也可以在我們的投資者關係網站上找到。

This morning, Westlake partners issued a press release with details of our third quarter, 2024 financial and operating results.

今天上午，Westlake Partners 發布了一份新聞稿，詳細介紹了我們 2024 年第三季的財務和營運表現。

This document is available in the press release section of our web page at wlkpartners.com. A replay of today's call will be available beginning two hours after the conclusion of this call.

本文件可在我們 wlkpartners.com 網頁的新聞稿部分取得。今天的電話會議的重播將在本次電話會議結束後兩小時開始提供。

The replay can be accessed via the partnership website.

可以透過合作夥伴網站存取重播。

Please note that information reported on this call speaks only as of today, November 5th, 2024, and therefore you are advised that time sensitive information may no longer be accurate as of the time of any replay.

請注意，本次電話會議報告的資訊僅截至今天（2024 年 11 月 5 日），因此我們建議您，時間敏感的資訊在任何重播時可能不再準確。

I would finally advise you that this conference call is being broadcast live through an internet webcast system that can be accessed on our web page at wlkpartners.com.

最後我想告訴您，本次電話會議正在透過網路網路廣播系統進行現場直播，該系統可以在我們的網頁 wlkpartners.com 上存取。

Now I'd like to turn the call over to Jean-Marc Gilson, Jean Marc.

現在我想把電話轉給讓-馬克·吉爾森，讓·馬克。

Thank you, John.

謝謝你，約翰。

Good afternoon, everyone and thank you for joining us to discuss our third quarter, 2024 results in this morning's press release, we reported Westlake partners third quarter, 2024 net income of $18 million or 51¢ per unit compared to the third quarter of 2023.

大家下午好，感謝大家在今天早上的新聞稿中與我們一起討論2024 年第三季度的業績，我們報告了Westlake Partners 2024 年第三季度的淨利潤為1800 萬美元，與2023 年第三季度相比，每單位淨利為51 美分。

A third quarter of 2024 sales and earnings benefited from higher third-party sales price and market in an effort to better capture these attractive third-party margins.

2024 年第三季的銷售額和收益受益於更高的第三方銷售價格和市場，以更好地獲取這些有吸引力的第三方利潤。

We opportunistically made the decision to defer the planned turnaround at a petrol one Etla unit to the first quarter of 2025.

我們趁機決定將汽油 One Etla 裝置的計畫週轉時間延後到 2025 年第一季。

While also shifting third party sales volume planned for later in the year into the third quarter.

同時也將計劃在今年稍後進行的第三方銷售量轉移到第三季。

As a result during the third quarter, we were able to generate our highest quarterly distributable cash flow since 2022.

因此，我們在第三季實現了自 2022 年以來最高的季度可分配現金流。

While also adding to our operating surplus during the third quarter, we celebrated our 10th year as a publicly traded Master Limited partnership.

在第三季增加我們的營運盈餘的同時，我們慶祝了我們作為公開交易的 Master Limited 合夥企業成立十週年。

Since our IPO in 2014, we have grown our quarterly distribution by 71% from the partnership's original minimum quarterly distribution of $0.275 per unit.

自 2014 年 IPO 以來，我們的季度分配比合夥企業最初每單位 0.275 美元的最低季度分配增長了 71%。

Over that time period, we made 41 consecutive distributions without any reductions.

在此期間，我們連續進行了 41 次分配，沒有任何減少。

The stability of Westlake's partners business model as is enabled by a fixed margin excellence agreement which minimizes market volatility and other production risk.

Westlake 合作夥伴業務模式的穩定性得益於固定利潤卓越協議，該協議最大限度地減少了市場波動和其他生產風險。

The high degree of cash flow stability paired with the predictability of our business has enabled us to deliver a long history of reliable distributions.

現金流的高度穩定性與業務的可預測性相結合，使我們能夠提供長期可靠的分銷。

I would now like to turn over the call to Steve who will provide more detail on the financial and operating results for the quarter, Steve.

我現在想將電話轉給史蒂夫，他將提供有關本季度財務和營運業績的更多詳細信息，史蒂夫。

Thank you.

謝謝。

Jean Marc.

讓·馬克.

And good afternoon, everyone in this morning's press release, we reported Westlake partners third quarter, 2024 net income of $18 million or $0.51 per unit consolidated net income including Opco's earnings was $104 million on consolidated net sales of $277 million.

大家下午好，今天上午的新聞稿中，我們報告了Westlake Partners 2024 年第三季淨利潤為1800 萬美元，即每單位合併淨利潤為0.51 美元，其中Opco 的收入為1.04 億美元，合併淨銷售額為2.77 億美元。

The partnership had distributable cash flow for the quarter of $18 million or $0.51 per unit.

該合夥企業本季的可分配現金流量為 1,800 萬美元，即每單位 0.51 美元。

Third quarter, 2024 net income for Westlake partners of $18 million was $5 million higher than the third quarter. 2023 partnership net income compared to the third quarter of 2023.

Westlake Partners 2024 年第三季淨利為 1,800 萬美元，比第三季增加 500 萬美元。 2023 年合夥企業淨利與 2023 年第三季相比。

The partnership benefited from Opco's higher production and sales volumes.

此次合作得益於 Opco 較高的產量和銷售量。

Higher.

更高。

Third party ethylene sales prices and margins and higher third-party ethylene sales volumes, distributable cash flow of $18 million for the third quarter of 2024 increased by $4 million compared to the third quarter of 2023.

第三方乙烯銷售價格和利潤以及第三方乙烯銷量的增加，2024年第三季可分配現金流為1800萬美元，比2023年第三季增加了400萬美元。

Due primarily to higher third-party sales volumes sales price and margins.

主要是由於第三方銷售量較高、銷售價格和利潤率較高。

Turning your attention to the balance sheet and cash flows.

將您的注意力轉向資產負債表和現金流量。

At the end of the third quarter, we had consolidated cash balance and cash investments with Westlake through our investment management agreement totalling $170 million long-term debt.

截至第三季末，我們透過投資管理協議合併了與 Westlake 的現金餘額和現金投資，總額為 1.7 億美元的長期債務。

At the end of the quarter was $400 million of which $377 million was at the partnership and the remaining $23 million was at Opco.

截至本季末，總資產為 4 億美元，其中 3.77 億美元歸合夥企業所有，其餘 2,300 萬美元歸 Opco 所有。

In the third quarter of 2024 Opco spent $16 million on capital expenditures.

2024 年第三季度，Opco 的資本支出為 1,600 萬美元。

We maintained our strong leverage metrics with a consolidated leverage ratio below one times on October 30th, 2024, we announced a quarterly distribution of $0.4714 per unit with respect to the third quarter of 2024.

我們維持了強勁的槓桿指標，2024 年 10 月 30 日的綜合槓桿率低於一倍，我們宣布 2024 年第三季的季度分配為每單位 0.4714 美元。

The partnership's third quarter distribution will be paid on November 27th, 2024, to unit holders of record November 12th, 2024, for modelling purposes.

出於建模目的，該合作夥伴的第三季分配將於 2024 年 11 月 27 日支付給 2024 年 11 月 12 日記錄在案的單位持有人。

We have no planned turnarounds for the remainder of 2024 following our decision to defer the turnaround at our Petro One Ethylene unit in Lake Charles, Louisiana until the first quarter of 2025.

在我們決定將位於路易斯安那州查爾斯湖的 Petro One 乙烯裝置的檢修推遲到 2025 年第一季之後，我們沒有計劃在 2024 年剩餘時間內進行檢修。

We currently expect this turnaround to begin at the end of January 2025 and for it to last approximately 55 days.

目前，我們預計這一週轉將於 2025 年 1 月底開始，持續約 55 天。

Now, I'd like to turn the call back over to Jean Marc to make some closing comments.

現在，我想將電話轉回給讓·馬克 (Jean Marc)，以發表一些結束語。

Jean Marc.

讓·馬克.

Thank you, Steve.

謝謝你，史蒂夫。

We are pleased with the partnership financial and operational performance in the third quarter during the quarter, third party sales prices and margins improved to their highest quarterly average in years in part due to weather events and production outages at other producers.

我們對第三季合作夥伴的財務和營運業績感到滿意，第三方銷售價格和利潤率提高至多年來的最高季度平均水平，部分原因是天氣事件和其他生產商的生產中斷。

In response, we opportunistically shifted the timing of our petrol one turnaround, and our third party says volume to benefit from the improved pricing and margins.

作為回應，我們機會主義地改變了汽油一期週轉的時間，我們的第三方表示銷售將受益於定價和利潤的提高。

Thus far in the fourth quarter, third party sales prices and margins have decreased from the elevated levels in the third quarter.

第四季迄今為止，第三方銷售價格和利潤率較第三季的高水準有所下降。

However, we have relatively little third-party sale volume planned for the rest of 2024.

然而，我們在 2024 年剩餘時間內規劃的第三方銷售量相對較少。

While the overall global macroeconomic environment remains unpredictable, an excellent sales agreement which provides a predictable fee-based cash flow structure from our take or pay contract with wet for 95% of cost production.

雖然全球整體宏觀經濟環境仍然不可預測，但一份出色的銷售協議為我們與濕法生產成本的 95% 簽訂的照付不議合約提供了可預測的基於費用的現金流結構。

We continue to deliver stable and predictable cash flows through economic ups and downs as well as planned and unplanned turnarounds.

透過經濟的起起落落以及計劃內和計劃外的周轉，我們繼續提供穩定且可預測的現金流。

As always, we will continue to focus on safe operations along with being good stewards of the environment where we work and live as part of our broader sustainability efforts.

一如既往，我們將繼續專注於安全運營，並成為我們工作和生活環境的好管理者，作為我們更廣泛的永續發展努力的一部分。

Thank you very much for listening to our third quarter earnings call.

非常感謝您收聽我們的第三季財報電話會議。

Now I will turn the call back over to John.

現在我將把電話轉回給約翰。

Thank you, Jean marc.

謝謝你，讓馬克。

Before we begin taking questions, I would like to remind you that a replay of this teleconference will be available two hours after the call has ended, we will provide instructions to access the replay at the end of the call.

在我們開始提問之前，我想提醒您，本次電話會議的重播將在通話結束後兩小時內提供，我們將在通話結束時提供訪問重播的說明。

Siobhan will now take questions.

西沃恩現在將接受提問。

Thank you.

謝謝。

At this time, we will conduct the question-and-answer session.

這時，我們將進行問答環節。

As a reminder to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced to withdraw your question.

作為提問提醒，您需要按電話上的星號 11，並等待宣布您的名字才能撤回您的問題。

Please press star 11 again.

請再按星號 11。

Please stand by while we compile the Q&A roster.

我們正在整理問答名單，請稍候。

Our first question comes from the line of Matthew Blair from TPH.

我們的第一個問題來自 TPH 的 Matthew Blair。

Your line is now open.

您的線路現已開通。

Thank you and good afternoon, John Marc and Steve.

謝謝你們，下午好，約翰馬克和史蒂夫。

I want to touch on the prepared comments that mentioned that you shifted some third-party sales volumes into the third quarter.

我想談談準備好的評論，其中提到您將一些第三方銷售轉移到了第三季。

Is it possible to give us a sense of just how significant this was?

是否有可能讓我們了解這有多重要？

And then for the fourth quarter, should we expect an impact both from the lower ing cracking margins as well as from, from these reduced spot volumes?

那麼，對於第四季度，我們是否應該預期裂解利潤率下降以及現貨量減少都會產生影響？

Yeah.

是的。

So, Matthew, you know, the shift to selling more of the remaining volume we sell in the market in the third quarter when we saw a move up in margins was strategic to try to really maximize what we had left to sell in the market.

所以，馬修，你知道，當我們看到利潤率上升時，我們在第三季度轉向銷售更多市場上剩餘的銷量，這是戰略性的，試圖真正最大化我們在市場上剩餘的銷售量。

As you recall, we sell 5% over the course of the year into the third-party markets.

您還記得，我們​​全年將 5% 的產品銷往第三方市場。

And so, the majority of what we need to sell in 2024 has now been sold.

因此，我們 2024 年需要銷售的大部分產品現已售出。

So, there's very little left to sell in the fourth quarter.

因此，第四季可供出售的產品所剩無幾。

And so even though margins have declined in the fourth quarter, relative to those in the third, we have very little left to be sold in the fourth quarter.

因此，儘管第四季的利潤率相對於第三季度有所下降，但我們第四季可出售的產品已經所剩無幾。

So that lower margin will have no effect really in our results in Q4.

因此，較低的利潤率不會對我們第四季的業績產生真正的影響。

Okay.

好的。

Sounds good.

聽起來不錯。

And then as we look into 2025 are you sensing any sort of increased interest in MLP equities?

然後，當我們展望 2025 年時，您是否感覺到人們對 MLP 股票的興趣增加？

What, what would you put the chances that for, you know, restarting distribution growth and, and restarting asset drop?

什麼，您認為重新啟動分銷成長和重新啟動資產下降的可能性是什麼？

Yeah.

是的。

And so, we continue to assess really the markets and continue to have a strong interest in understanding the appetite for interest and we'll consider and look at all options.

因此，我們將繼續真正評估市場，並繼續對了解興趣愛好抱有濃厚的興趣，我們將考慮並研究所有選擇。

We recognize that the market has changed significantly in the 10-year period since our IPO and we'll continue to assess all options.

我們認識到，自 IPO 以來的 10 年間，市場發生了巨大變化，我們將繼續評估所有選擇。

We have noticed that others have started their distribution growth and that's predicated on our ability to find attractive investors to come into the unit at an accretive price.

我們注意到其他人已經開始其分銷成長，這取決於我們是否有能力找到有吸引力的投資者以增值價格進入該部門。

So, we'll continue to have a good dialogue with investors and see if we can find opportunities that make that transactable.

因此，我們將繼續與投資者進行良好的對話，看看是否能找到使其可交易的機會。

But we'll look and continue to pursue all options that are out there and available to us.

但我們會尋找並繼續尋求所有現有的和可用的選擇。

Great.

偉大的。

Thank you.

謝謝。

You're welcome.

不客氣。

I'm showing no further questions at this time.

我目前沒有提出任何進一步的問題。

I would now like to turn the call back over to John Zeller for any closing remarks.

我現在想將電話轉回給約翰·澤勒，請他發表結束語。

Thank you again for participating in today's call.

再次感謝您參加今天的電話會議。

We, we hope you will join us for our next conference.

我們希望您能參加我們的下一次會議。

Call to discuss our fourth quarter, 2024 results.

致電討論我們 2024 年第四季的業績。

Thank you for your participation in today's conference.

感謝您參加今天的會議。

This does conclude the program.

這確實結束了該程式。

You may now disconnect.

您現在可以斷開連線。