Westlake Chemical Partners Lp · NYSE:WLKP
Westlake Chemical Partners Lp — Q1 2023 Earnings Presentation
15 slides from Westlake Chemical Partners Lp's earnings presentation, May 4, 2023
Slide 1: 1Q 2023 Earnings Presentation
1Q 2023 Earnings Presentation
Slide 2: Westlake First Quarter 2023 Highlights
Westlake First Quarter 2023 Highlights ▪ Solid financial results reflecting sequential improvement against an uncertain macroeconomic backdrop: ▪ Net sales of $3.4 billion, an increase of 2% vs. fourth quarter 2022 net sales ▪ Net income of $394 million, an increase of 70% vs. fourth quarter 2022 ne
Slide 3: Westlake Corporation Performance First Quarter 2023
Westlake Corporation Performance First Quarter 2023 1Q 2023 vs. 1Q 2023 vs. ($ in millions) 1Q 2023 4Q 2022 4Q 2022 1Q 2022 1Q 2022 Sales $3,356 $3,299 2% $4,056 (17%) Operating Income $536 $327 64% $1,032 (48%) Net Income (1) $394 $232 70% $756 (48%) Performance and Essential Materials EBITDA $615
Slide 4: Sustainable Commitments Embedded Across Westlake
Sustainable Commitments Embedded Across Westlake Through Investments, Goals and Products Targeting a Expanding Efforts Reduction in Portfolio of Recognized Scope 1 and 2 Products with Through Awards Emissions by Sustainability and Industry 20% by 2030(1) Attributes Memberships To further reduce our
Slide 5: Investment Criteria to Drive Growth
Investment Criteria to Drive Growth Strategic Filters Enhances Existing Disciplined and Improves Enhances Core and Adjacent Buying Below Opportunistic Vertical Integration Production Applications and Replacement Approach to Strategy to Further and Technology Products in Costs Acquisition Reduce Cost
Slide 6: Performance and Essential Materials ("PEM") Segment Performance
Performance and Essential Materials (“PEM”) Segment Performance 1Q 2023 vs. 1Q 2023 vs. ($ in millions) 1Q 2023 4Q 2022 4Q 2022 1Q 2022 1Q 2022 Performance Materials Sales $1,282 $1,286 (0%) $1,929 (34%) Essential Materials Sales $1,067 $1,075 (1%) $903 18% Total PEM Sales $2,349 $2,361 (1%) $2,832
Slide 7: Performance and Essential Materials Update
Performance and Essential Materials Update Customer demand improved from 4Q 2022 levels, which drove sequential 1 volume improvement in 1Q 2023; however, volumes were below prior-year levels as customer orders reflected generally weaker end market demand Lower natural gas and feedstock costs, on bot
Slide 8: Housing and Infrastructure Products ("HIP") Segment Performance
Housing and Infrastructure Products (“HIP”) Segment Performance 1Q 2023 vs. 1Q 2023 vs. ($ in millions) 1Q 2023 4Q 2022 4Q 2022 1Q 2022 1Q 2022 Housing Products Sales $818 $758 8% $972 (16%) Infrastructure Products Sales $189 $180 5% $252 (25%) Total HIP Sales $1,007 $938 7% $1,224 (18%) Operating I
Slide 9: Housing and Infrastructure Products Update
Housing and Infrastructure Products Update 1 Slowing new home construction as elevated mortgage rates drive affordability concerns 2 Repair & remodel (R&R) activity remained relatively stable, consistent with its lower historical volatility compared to new home construction Longer-term fundamentals
Slide 10: Financial Reconciliations
Financial Reconciliations 10
Slide 11: Consolidated Statements of Operations
Consolidated Statements of Operations Three months ended Three months ended March 31, December 31, 2023 2022 2022 (In millions of dollars, except per share data) Performance and Essential Materials Sales $ 2,349 $ 2,832 $ 2,361 Housing and Infrastructure Products Sales 1,007 1,224 938 Net sales 3,35
Slide 12: Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities
Reconciliation of EBITDA to Net Income, Income from Operations and Net Cash Provided by Operating Activities Three months ended Three months ended March 31, December 31, 2023 2022 2022 (In millions of dollars) Net cash provided by operating activities $ 512 $ 700 $ 835 Changes in operating assets an
Slide 13: Reconciliation of PEM, HIP and Corporate EBITDA to Applicable Operating Income (Loss)
Reconciliation of PEM, HIP and Corporate EBITDA to Applicable Operating Income (Loss) Three months ended Three months ended March 31, December 31, 2023 2022 2022 (In millions of dollars) Performance and Essential Materials EBITDA $ 615 $ 1,071 $ 443 Less: Depreciation and Amortization 210 184 212 Ot
Slide 14: Safe Harbor Language
Safe Harbor Language This presentation contains certain forward-looking statements including statements regarding creating value for our shareholders, pricing and demand for our products, industry outlook for both of our segments, our cost control and efficiency efforts, our ability to capture integ
Slide 15: Westlake
Vestlake
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