Westlake Chemical Partners LP (WLKP) 2025 Q3 法說會逐字稿

Good afternoon and thank you for standing by. Welcome to the Westlake Chemical Partners third quarter 2025 earnings conference call.

下午好，感謝您的耐心等待。歡迎參加 Westlake Chemical Partners 2025 年第三季財報電話會議。

During this presentation, all participants will be in a listen-only mode. After the speaker's remark, you will be invited to participate in a question-and-answer session. (Operator Instructions). Please be advised that today's conference is being recorded today, October 30, 2025.

本次演示期間，所有參與者將處於唯讀模式。演講結束後，您將被邀請參加問答環節。（操作說明）請注意，今天的會議正在錄製，時間是2025年10月30日。

I would now like to turn the call over to your host Jeff Holy, Westlake Chemical Partners Vice President and Chief Accounting Officer. Sir, you may begin.

現在，我謹將電話轉交給主持人傑夫霍利，他是韋斯特萊克化學合作夥伴公司的副總裁兼首席會計官。先生，您可以開始了。

Thank you, Gerald. Good afternoon, everyone, and welcome to the Westlake Chemical Partners third quarter 2025 conference call.

謝謝你，傑拉德。各位下午好，歡迎參加 Westlake Chemical Partners 2025 年第三季電話會議。

I'm joined today by Albert Chao, our Executive Chairman; Jean-Marc Gilson, our President and CEO; Steve Bender, our Executive Vice President and Chief Financial Officer, and other members of our management team.

今天與我一同出席的有：執行董事長 Albert Chao；總裁兼執行長 Jean-Marc Gilson；執行副總裁兼財務長 Steve Bender，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. 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 a partnership which owns certain Olefins assets. 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.

在本次通話中，我們將自稱為 Westlake Partners 或合夥企業。文中提及的 Westlake 指的是我們的母公司 Westlake Corporation，提及的 OpCo 指的是 Westlake Chemical OpCo LP，它是 Westlake 的子公司，也是一家擁有某些烯烴資產的合夥企業。此外，當我們提到可分配現金流時，我們指的是 Westlake Chemical Partners MLP 的可分配現金流。這些術語的定義可在合作方的網站上找到。

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

今天，管理層將討論一些主題，其中包含基於管理層信念、假設以及目前可獲得的資訊的前瞻性資訊。這些前瞻性陳述包含預測或預期，因此存在風險或不確定性。我們鼓勵您透過查閱我們監管文件中的警示性聲明來了解可能導致我們實際業績與預期業績存在差異的因素，這些文件也可在我們的投資者關係網站上查閱。

This morning, Westside Partners issued a press release with details of our third quarter 2025 financial and operating results. This document is available in the press release section of our webpage at WLKpartners.com.

今天上午，Westside Partners 發布了一份新聞稿，詳細介紹了我們 2025 年第三季的財務和營運業績。這份文件可在我們網站 WLKpartners.com 的新聞稿部分找到。

A replay of today's call will be available beginning 2 hours after the conclusion of this call. The replay can be accessed via the partnership's website. Please note that information reported on this call speaks only as of today, October 30th, 2025, and therefore you're advised that time sensitive information may no longer be accurate as of the time of any replay.

本次電話會議的錄音回放將於會議結束後 2 小時開始提供。觀眾可以透過合作方的網站觀看回放。請注意，本次通話中報告的資訊僅代表截至 2025 年 10 月 30 日的情況，因此，請注意，時效性資訊可能在任何重播時不再準確。

I finally advise you that this conference call is being broadcast live through an internet webcast system that can be accessed on our webpage at WLKpartners.com. Now, I would like to turn the call over to Jean-Marc Gilson. Jean-Marc?

最後，我告知各位，本次電話會議正在透過網路直播系統進行現場直播，您可以透過我們的網站 WLKpartners.com 存取系統。現在，我將把電話交給讓-馬克吉爾森。讓-馬克？

Thank you, Jeff. Good afternoon, everyone, and thank you for joining us to discuss our third quarter, 2025 results.

謝謝你，傑夫。各位下午好，感謝各位參加本次會議，共同探討我們2025年第三季的業績。

In this morning's press release, we reported Westlake Partners third quarter 2025 net income of $15 million or $0.42 per unit. Compared to the second quarter of 2025, our third quarter sales and earnings benefited from the completion of the planned turnaround at a Petro 1 Ethylene unit in Lake Charles, Louisiana during the second quarter.

在今天早上的新聞稿中，我們公佈了 Westlake Partners 2025 年第三季淨收入為 1500 萬美元，每單位 0.42 美元。與 2025 年第二季相比，我們第三季的銷售額和收益受益於第二季路易斯安那州查爾斯湖 Petro 1 乙烯裝置的計畫檢修的完成。

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

現在我想把電話交給史蒂夫，讓他詳細介紹本季的財務和營運表現。史蒂夫？

Thank you, Jean-Marc, and good afternoon, everyone. In this morning's press release, we reported Westlake Partners' third quarter 2025 net income of $15 million or $0.42 per unit. Consolidated net income, including OpCo's earnings, was $86 million on consolidated net sales of $309 million.

謝謝你，讓-馬克，大家下午好。在今天早上的新聞稿中，我們報道了 Westlake Partners 2025 年第三季淨收入為 1500 萬美元，即每單位 0.42 美元。包括 OpCo 的收益在內，合併淨收入為 8,600 萬美元，合併淨銷售額為 3.09 億美元。

The Partnership had distributable cash flow for the quarter of $15 million or $0.42 per unit. Third quarter 2025 net income for Westlake Partners of 15 million was lower than the third quarter of 2024 partnership net income, partially due to lower margins on sales of ethylene to third parties.

該合夥企業本季可分配現金流量為 1,500 萬美元，即每單位 0.42 美元。Westlake Partners 2025 年第三季淨收入為 1,500 萬美元，低於 2024 年第三季合夥企業淨收入，部分原因是向第三方銷售乙烯的利潤率較低。

Distributable cash flow of $15 million or $0.42 per unit for the third quarter of 2025 decreased by $3 million compared to the third quarter of 2024 due to higher maintenance capital expenditures as a result of changes in the timing of maintenance activities in 2025 as compared to 2024.

2025 年第三季可分配現金流為 1,500 萬美元，每單位 0.42 美元，與 2024 年第三季相比減少了 300 萬美元，原因是 2025 年維護活動的時間安排與 2024 年相比發生了變化，導致維護資本支出增加。

Turning our attention to the balance sheet and cash flows at the end of the third quarter, we had consolidated cash and cash investments with Westlake through our investment management agreement totaling $51 million.

到第三季末，我們將注意力轉向資產負債表和現金流量，我們透過投資管理協議與 Westlake 合併了現金和現金投資，總額為 5,100 萬美元。

Long-term debt 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. In the third quarter of 2025, OpCo spent $30 million on capital expenditures. We maintained our strong leverage metrics with a consolidated leverage ratio of approximately one time.

長期截至季末，債務為 4 億美元，其中 3.77 億美元在合夥企業，剩餘的 2,300 萬美元在營運公司。2025 年第三季度，OpCo 在資本支出上花費了 3,000 萬美元。我們維持了強勁的槓桿指標，綜合槓桿比率約為 1 倍。

On October 28, 2025, we announced a quarterly distribution of $0.4714 per unit with respect to the third quarter of 2025. Since our IPO in 2014, the Partnership has made 45 consecutive quarterly distributions to unit holders, and we have grown distributions 71% since the Partnership's original minimum quarterly distribution of $0.275 per unit.

2025 年 10 月 28 日，我們宣布 2025 年第三季每單位發放 0.4714 美元的季度股利。自 2014 年首次公開募股以來，合夥企業已連續 45 個季度向單位持有人派發股息，自合夥企業最初每單位最低季度派息 0.275 美元以來，我們的派息額增長了 71%。

The Partnership's third quarter distribution will be paid on November 26, 2025, to unit holders of record November 10, 2025. The Partnership's predictable fee-based cash flow continues to prove beneficial in today's economic environment. It's differentiated by the consistency of our earnings and cash flows.

合夥企業的第三季分紅將於 2025 年 11 月 26 日支付給 2025 年 11 月 10 日登記在冊的單位持有人。在當今的經濟環境下，合夥企業可預測的基於費用的現金流繼續證明其優勢。我們的優勢在於獲利和現金流的穩定性。

Looking back, since the IPO in July of 2014, we've maintained a cumulative distribution coverage ratio of approximately 1.1 times, and with the partner's stability and cash flows, we are able to sustain our current distribution without the need to access capital markets at all. For modeling purposes, we have no planned turnarounds for the remainder of 2025 or in 2026.

回顧過去，自 2014 年 7 月首次公開募股以來，我們一直保持著約 1.1 倍的累計分配覆蓋率，憑藉合作夥伴的穩定性和現金流，我們完全無需進入資本市場即可維持目前的分配水準。出於建模目的，我們在 2025 年剩餘時間和 2026 年沒有計劃進行任何調整。

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

現在我想把電話交還給讓-馬克，讓他做一些總結性發言。讓馬克？

Thank you, Steve. The stability of Westlake Partners business model is consistently demonstrated through our fixed margin Ethylene Sales Agreement, which minimizes market volatility and other production risk. The high degree of stability in cash flow when paired with the predictability of our model has enabled us to deliver a long history of reliable distributions and coverage.

謝謝你，史蒂夫。Westlake Partners 商業模式的穩定性透過我們的固定利潤乙烯銷售協議持續體現，該協議最大限度地降低了市場波動和其他生產風險。現金流的高度穩定性，加上我們模型的可預測性，使我們能夠長期提供可靠的分紅和覆蓋。

As a result of its importance to the stability of our cash flows, I'm pleased that earlier this week OpCo and Westlake agreed to renew the Ethylene Sales agreement to the end of 2027 with no changes to the contract's terms or conditions.

由於乙烯銷售協議對我們現金流的穩定性至關重要，我很高興本週早些時候，OpCo 和 Westlake 同意將乙烯銷售協議續約至 2027 年底，且合約條款和條件沒有任何變化。

The renewed Ethylene and Sales Agreement maintain the same pricing formula and sales volume protections that have provided the partnership with a distributable cash flow to make 45 consecutive quarterly distributions to unit holders since its IPO in 2014.

續約的乙烯銷售協議維持了相同的定價公式和銷售量保護措施，這些措施為合夥企業提供了可分配的現金流，使其自 2014 年首次公開募股以來，已連續 45 個季度向單位持有人進行分紅。

Furthermore, we believe that Westlake's decision to renew the Ethylene Sales Agreement under the same terms that have been in place since its origination demonstrates the critical nature of OpCo's supply of ethylene to their operations and their commitment to support OpCo's continued safe, reliable operations through stable, predictable gas flows.

此外，我們認為，Westlake 決定按照自協議簽訂以來一直沿用的相同條款續簽乙烯銷售協議，表明 OpCo 對其運營至關重要，並且他們致力於通過穩定、可預測的天然氣流量來支持 OpCo 繼續安全、可靠的運營。

Turning to our outlook, global industrial and manufacturing activity remains soft in 2025, which is broadly impacting the global chemical industry. Despite the challenging global macroeconomic backdrop, the Partnership financial performance and distributions will continue to be supported by an Ethylene Sales Agreement which provides a predictable fee-based cash flow structure from uptake or pay contract with Westlake for 95% of OpCo's production.

展望未來，2025 年全球工業和製造業活動依然疲軟，將對全球化學工業產生廣泛影響。儘管全球宏觀經濟形勢充滿挑戰，但合夥企業的財務業績和分配將繼續得到乙烯銷售協議的支持，該協議通過與 Westlake 簽訂的合同，為 OpCo 95% 的產量提供可預測的基於費用的現金流結構，要么接受要么支付合同。

As has been the case since IPO over 10 years ago, this Ethylene Sales Agreement has delivered stable and predictable cash flow to economic ups and downs, as well as planned and unplanned turnarounds.

自 10 多年前上市以來，這份乙烯銷售協議一直為公司帶來穩定且可預測的現金流，以應對經濟的起伏波動以及計劃內和計劃外的調整。

Turning to our capital structure, we maintain a strong balance sheet with conservative financial and leverage metrics.

從資本結構來看，我們維持穩健的資產負債表，財務和槓桿指標也較保守。

As we continue to navigate market conditions, we will evaluate opportunities via our four levels of growth in the future, including Increases our our ownership interest of OpCo, acquisitions of other qualified income streams, organic growth opportunities such as expansion of our current Ethylene facilities and negotiation of a higher fixed margin in our Ethylene and Sales Agreement with Westlake. We remain focused on our ability to continue to provide long-term value and distribution to our unit holders.

隨著我們繼續應對市場狀況，我們將透過我們未來的四個成長層次來評估機會，包括增加我們對營運公司的所有權權益、收購其他合格的收入來源、有機成長機會（例如擴大我們現有的乙烯設施）以及與 Westlake 就乙烯銷售協議中更高的固定利潤率進行談判。我們將繼續專注於為我們的單位持有人提供長期價值和收益分配的能力。

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. Thank you very much for listening to our third quarter earnings call. Now we'll turn the call back over to Jeff.

我們將一如既往地專注於安全運營，同時作為我們更廣泛的可持續發展努力的一部分，努力成為我們工作和生活所在環境的良好管理者。非常感謝各位收聽我們第三季財報電話會議。現在我們把電話轉回給傑夫。

Thank you, Jean-Marc. Before I begin taking questions, I'd like to remind you that a replay of this teleconference will be available two hours after the call has ended.

謝謝你，讓-馬克。在開始回答問題之前，我想提醒大家，本次電話會議的錄音將在會議結束後兩小時提供回放。

We will provide instructions to access the replay at the end of the call.

通話結束後，我們將提供收聽回放的說明。

Gerald, we will now take questions.

傑拉德，現在開始接受提問。

Thank you. At this time, we will conduct a question-and-answer session. (Operator Instructions) Please stand by while we compile the Q&A roster.

謝謝。屆時，我們將進行問答環節。（操作員說明）請稍候，我們正在整理問答清單。

Just one moment please. Our first question will come from James Asel from Aviation Advisory Services Inc. The floor is yours.

請稍等片刻。我們的第一個問題來自航空諮詢服務公司的詹姆斯·阿塞爾。請您提問。

Oh, thank you very much.

哦，非常感謝。

Excuse me, I noticed that the distributable cash flow for the quarter was less than the amount of distribution per unit. What is the outlook for getting the distributable cash flow up to a level again where the distribution will be covered?

不好意思，我注意到本季的可分配現金流量少於每單位的分配額。可分配現金流何時才能再次達到足以支付分紅的水平？

Yeah, the entire reason for that was the planned turnaround, and when we have planned turnarounds, it does impact, of course, production and therefore sales. And so, it's not unusual when we have these planned turnaround events for our coverage ratio to dip below the 1.1 target and to have some impact on those on that cash flow, but we have an operating surplus that is quite robust, and we'll continue and have continued to pay those distributions out of that operating surplus.

是的，這完全是因為計畫內的檢修，而計畫內的檢修當然會影響生產，進而影響銷售。因此，當我們進行這些計劃內的扭虧為盈活動時，我們的償付率低於 1.1 的目標，並對現金流產生一定影響，這並不罕見。但我們擁有相當強勁的營運盈餘，我們將繼續並一直從該營運盈餘中支付這些分紅。

And now that we've completed that turnaround successfully and back in full production, that operating surplus should continue to build, and I would fully expect that distribution to continue to be well covered by the cash flows of the business.

現在我們已經成功完成了扭虧為盈，恢復了全面生產，營運盈餘應該會繼續增加，我完全相信公司的現金流將繼續很好地覆蓋分紅。

Okay. So is it reasonable to assume or on a pro forma basis if we, you would not have the impact of the turnaround that the distributable cash flow would have been an excess of the distribution?

好的。那麼，假設（或以備考情況來看），如果我們（你們）沒有受到扭虧為盈的影響，可分配現金流是否會超過分配額，這種假設是否合理？

Yes, it would have wonderful.

是的，那將會是一件很棒的事。

Thank you very much.

非常感謝。

You're welcome.

不客氣。

Thank you for your question.

謝謝你的提問。

Just give it a second to see if anyone else would like a question. So at this time I'm showing no further questions, and I'd like to hand it back to Jeff for closing remarks. The floor is yours, Jeff.

稍等片刻，看看是否還有其他人想提問。所以現在我沒有其他問題了，我想把發言權交還給傑夫，讓他做總結發言。傑夫，現在輪到你發言了。

Thank you.

謝謝。

Thanks again for participating in today's call. We hope you'll join us for our next conference call to discuss our fourth quarter 2025 results.

再次感謝您參加今天的電話會議。我們希望您能參加我們下次的電話會議，討論我們 2025 年第四季的業績。

Thank you for participating in today's Westlake Chemical Partners Third quarter 2025 earnings conference call. As a reminder, this call will be available for replay beginning two hours after the call has ended and may be accessed until 11:59 PM Eastern Time on Thursday, November 13, 2025. The replay can be accessed via the partnership website. Goodbye. This does conclude the program. You may now disconnect.

感謝您參加今天西湖化學合作夥伴公司2025年第三季業績電話會議。提醒各位，本次通話結束後兩小時即可收聽回放，回放有效期至美國東部時間 2025 年 11 月 13 日星期四晚上 11:59。觀眾可透過合作網站觀看回放。再見。節目到此結束。您現在可以斷開連線了。