USA: Westlake Chemical Partners Publish Q2 Earnings Expansion of OpCo's Ethylene Production
Westlake Chemical Partners LP have published their Second Quarter 2016 Earnings and the completion of OpCo's 250 million pound ethylene expansion in Lake Charles, Louisiana.
Houston/USA – Westlake Chemical Partners reported net income of $ 9.3 million for the second quarter 2016, a decrease of $ 1.1 million compared to second quarter 2015. The decrease in net income attributable to the Partnership as compared to the prior year period was primarily due to lower operating rates at Westlake Chemical OpCo Petro 1 facility in Lake Charles, Louisiana. This development is due to a turnaround and expansion project and lower operating rates and increased maintenance expense at OpCo's Calvert City, Kentucky in June 2016. The Calvert City Olefins unit experienced an unexpected shutdown that occurred on June 1, 2016. The unplanned outage was caused by a mechanical failure, which resulted in a force majeure event.
OpCo's sales agreement with Westlake is designed to provide for stable and predictable cash flows. The sales agreement provides that 95 % of OpCo's ethylene production is sold to Westlake for a cash margin of $ 0.10 per pound, net of operating costs, maintenance capital expenditures and reserves for future turnaround expenditures.
"We are pleased to announce the recent completion of the turnaround and expansion of OpCo's Petro 1 facility, which we are currently in the process of restarting. Our teams worked diligently through challenging weather to safely complete this project and we commend them for their efforts. This expansion adds 250 million pounds of ethylene capacity and helps in continuing our path of increasing our distributions at a low double-digit growth rate for our unitholders," said Albert Chao, President and Chief Executive Officer.