Westlake Chemical Partners misses Q1 estimates, shares fall 6%

Published 02/05/2025, 11:56
Westlake Chemical Partners misses Q1 estimates, shares fall 6%

NEW YORK - Westlake Chemical Partners LP (NYSE:WLKP) reported disappointing first quarter results that fell short of analyst expectations on Friday.

The company’s shares were down -6.25% in premarket trading following the release.

The chemical company posted earnings per share of $0.14 for the quarter, missing the consensus estimate of $0.37 by a wide margin. Revenue came in at $190.78 million.

Westlake Chemical (NYSE:WLK) Partners’ weak quarterly performance was driven by higher feedstock and energy costs in North America, as well as planned turnarounds and unplanned plant outages that impacted EBITDA by approximately $80 million. The company also cited changes in sales mix as contributing to lower EBITDA and margins compared to both the previous quarter and the same period last year.

"Our first quarter of 2025 earnings were impacted by higher North American feedstock and energy costs, partially due to winter storms early in the quarter, our planned turnaround at our Petro 1 ethylene unit, and unfavorable sales mix changes in our HIP segment," said Jean-Marc Gilson, President and Chief Executive Officer.

The company’s Performance and Essential Materials segment was particularly weak, swinging to a loss from operations of $163 million compared to income of $22 million in Q1 2024. This was primarily due to higher input costs and weaker global demand for PVC resin and polyethylene.

Looking ahead, Westlake expects operating rates to improve with no further major planned turnarounds for the remainder of 2025. However, management noted increased uncertainty around global trade policy is causing some customers to pause activity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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