VANCOUVER, British Columbia, June 12, 2025 (GLOBE NEWSWIRE) -- Methanex Corporation (TSX:MX) (Nasdaq:MEOH) announced today that the regulatory review period under the U.S. Hart-Scott-Rodino Antitrust Act has lapsed. Accordingly, all regulatory approvals required for Methanex to close its previously announced acquisition of OCI Global’s international methanol business have been obtained. The transaction is expected to close on June 27, 2025, and remains subject to the satisfaction of customary closing condit ...

Core Viewpoint - Methanex shares have increased by approximately 2.6% since the last earnings report, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Group 1: Earnings and Estimates - Recent estimates for Methanex have trended downward, with the consensus estimate shifting by -49.32% over the past month [2] - The stock has a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4] Group 2: VGM Scores - Methanex currently holds a strong Growth Score of A, but has a low Momentum Score of F, while also receiving an A for value, placing it in the top 20% for this investment strategy [3] - The overall aggregate VGM Score for Methanex is A, which is significant for investors not focused on a single strategy [3]

Core Viewpoint - Methanex Corporation reported a significant increase in profit for the first quarter of 2025, despite a decline in revenues and production, indicating potential challenges ahead for the company. Financial Performance - The profit attributable to shareholders for Q1 2025 was $111 million or $1.44 per share, up from $53 million or 77 cents per share in the same quarter last year [1] - Adjusted earnings per share were $1.30, exceeding the Zacks Consensus Estimate of $1.25 [1] - Revenues decreased by approximately 2.2% year over year to $896 million, missing the Zacks Consensus Estimate of $1,039.5 million [1] Operational Highlights - Adjusted EBITDA rose around 55% year over year to $248 million [2] - Total production for the quarter was 1,619,000 tons, down 5.9% year over year, affected by a planned turnaround and an unplanned outage [2] - Total sales volume decreased by 16.9% year over year to 2,217,000 tons, missing the estimate of 2,629,000 tons [3] - The average realized price for methanol was $404 per ton, up from $343 per ton in the prior-year quarter, exceeding the estimate of $396 per ton [3] Cash Flow and Shareholder Returns - Cash and cash equivalents at the end of the quarter were $1,087.4 million [4] - Cash flow from operating activities was $315 million [4] - The company returned $12.5 million to shareholders through dividends in the reported quarter [4] Outlook - Methanex expects 2025 production to be lower than the previously estimated 7.5 million tons due to the unplanned G3 outage [5] - The company anticipates lower adjusted EBITDA in Q2 2025 compared to Q1, primarily due to reduced sales from the G3 outage and a lower average realized price [6] - The expected average realized price for methanol in April and May is projected to be between $360 and $370 per ton [6] Stock Performance - Methanex shares have declined by 33.1% over the past year, compared to a 28.9% decline in the industry [7] Zacks Rank and Comparisons - Methanex currently holds a Zacks Rank 3 (Hold) [8] - Other better-ranked stocks in the basic materials sector include Hawkins, Inc. (Zacks Rank 1), Franco-Nevada Corporation (Zacks Rank 2), and Avino Silver & Gold Mines Ltd. (Zacks Rank 2) [8]

Core Insights - Methanex reported $896 million in revenue for Q1 2025, a year-over-year decline of 2.2%, with an EPS of $1.30 compared to $0.65 a year ago, indicating a significant improvement in earnings despite the revenue drop [1] - The reported revenue fell short of the Zacks Consensus Estimate of $1.04 billion, resulting in a surprise of -13.80%, while the EPS exceeded the consensus estimate of $1.25 by 4.00% [1] Financial Performance Metrics - Sales volume of Methanex-produced methanol was 1,703 KTon, below the estimated 1,800.93 KTon [4] - The average realized methanol price was $404 per tonne, slightly above the estimated $399.32 per tonne [4] - Total sales volume was 2,217 KTon, compared to the estimated 2,599.33 KTon [4] - Commission sales volume was 132 KTon, below the average estimate of 149.33 KTon [4] - Purchased methanol sales volume was 382 KTon, significantly lower than the estimated 649.06 KTon [4] - Total production was 1,619 KTon, below the estimated 1,908.27 KTon [4] Operating Capacity - Operating capacity in the USA (Geismar) was 1,000 KTon, below the estimated 1,450 KTon [4] - Operating capacity in New Zealand was 215 KTon, compared to the estimated 320 KTon [4] - Operating capacity in Chile matched the estimate at 425 KTon [4] - Operating capacity in Egypt (50% interest) was 158 KTon, slightly above the estimated 157 KTon [4] - Operating capacity in Canada (Medicine Hat) was 140 KTon, below the estimated 150 KTon [4] - Production in Canada (Medicine Hat) was 140 KTon, slightly above the estimated 138.72 KTon [4] Stock Performance - Methanex shares have returned -7.5% over the past month, contrasting with the Zacks S&P 500 composite's -0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Performance - Methanex reported quarterly earnings of $1.30 per share, exceeding the Zacks Consensus Estimate of $1.25 per share, and significantly up from $0.65 per share a year ago, representing an earnings surprise of 4% [1] - The company posted revenues of $896 million for the quarter ended March 2025, which was 13.80% below the Zacks Consensus Estimate and down from $916 million year-over-year [2] - Over the last four quarters, Methanex has surpassed consensus EPS estimates four times but has only topped revenue estimates once [2] Stock Performance - Methanex shares have declined approximately 36.4% since the beginning of the year, contrasting with the S&P 500's decline of 5.5% [3] - The current Zacks Rank for Methanex is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.56 on revenues of $880.72 million, while for the current fiscal year, the estimate is $3.31 on revenues of $4.21 billion [7] - The outlook for the Chemical - Diversified industry, to which Methanex belongs, is currently in the bottom 14% of over 250 Zacks industries, which may impact the stock's performance [8]

Financial Performance - Methanex reported net income attributable to shareholders of $111 million for Q1 2025, up from $45 million in Q4 2024, driven by higher average realized prices and increased sales volume [13]. - Adjusted EBITDA for Q1 2025 was $248 million, compared to $224 million in Q4 2024, reflecting improved operational performance [12]. - Revenue for Q1 2025 was $896 million, a decrease of 5.6% from $949 million in Q4 2024 and an increase of 8.7% from $916 million in Q1 2024 [49]. - Net income for Q1 2025 was $132 million, compared to $66 million in Q1 2024, reflecting a significant increase in earnings [78]. - Adjusted net income for Q1 2025 was $88 million, compared to $84 million in Q4 2024 and $44 million in Q1 2024, resulting in an adjusted net income per common share of $1.30 [101]. - Operating income increased significantly to $217,882,000 in Q1 2025 from $84,180,000 in Q1 2024, representing a growth of 159% [117]. - Basic net income per common share rose to $1.65 in Q1 2025 from $0.78 in Q1 2024, an increase of 111% [117]. Sales and Production - Total sales volume in Q1 2025 was 2,217,000 tonnes, a decrease from 2,564,000 tonnes in Q4 2024, with Methanex-produced methanol sales increasing to 1,703,000 tonnes [13]. - Production for Q1 2025 was 1,619,000 tonnes, down from 1,868,000 tonnes in Q4 2024, primarily due to planned and unplanned outages at Geismar facilities [13]. - Methanol sales volume for Q1 2025 was 2,217 thousand tonnes, compared to 2,564 thousand tonnes in Q4 2024 and 2,670 thousand tonnes in Q1 2024 [104]. - The company produced 1,619 thousand tonnes of methanol in Q1 2025, compared to 1,868 thousand tonnes in Q4 2024 and 1,721 thousand tonnes in Q1 2024 [104]. Pricing and Market Conditions - The average realized price for methanol in Q1 2025 was $404 per tonne, up from $370 per tonne in Q4 2024 [11]. - The average realized price of methanol in Q1 2025 was $404 per tonne, compared to $370 per tonne in Q4 2024, indicating a positive price trend [83]. - Global methanol demand decreased in Q1 2025 due to seasonal slowdowns and lower operating rates, particularly from Iran [79]. - The company expects lower Adjusted EBITDA in Q2 2025 compared to Q1 2025, primarily due to the G3 outage and lower average realized prices projected between $360 to $370 per tonne [22]. Cash and Liquidity - The company had a cash balance of $1,087 million as of March 31, 2025, and plans to complete the acquisition of OCI Global's international methanol business in Q2 2025 [13]. - Cash provided by operating activities in Q1 2025 was $315 million, up from $91 million in Q1 2024, driven by higher realized prices and sales [90]. - Cash and cash equivalents increased to $1,087,439,000 as of March 31, 2025, up from $891,910,000 at the end of 2024 [121]. - The company has access to a $600 million revolving credit facility and a term loan commitment of $650 million to support strategic acquisitions [87]. Dividends and Shareholder Returns - The quarterly dividend paid in Q1 2025 was $0.185 per common share, totaling $12.5 million [13]. - Methanex paid dividends of $12,468,000 to shareholders in Q1 2025, consistent with $12,467,000 in Q1 2024 [125]. Acquisition and Strategic Initiatives - Methanex entered into a definitive agreement to acquire OCI Global's international methanol business for approximately $2.05 billion [191]. - The acquisition is subject to certain conditions and approvals, excluding cash, debt, and working capital adjustments [191]. - The company anticipates benefits from the OCI Acquisition, including expected synergies and commodity diversification [112]. - Methanex expects to increase methanol production as part of the OCI Acquisition, with anticipated demand for methanol remaining strong [112]. Operational Efficiency - Methanex's production facilities in the USA, Chile, and New Zealand showed varied performance, with Geismar experiencing outages while Chile improved production reliability [15][16][18]. - The company continues to focus on operational efficiency and market expansion strategies to enhance profitability and shareholder value [110]. - Planned operational capital expenditure for the remainder of 2025 is estimated at approximately $80 million, focusing on maintenance and major projects [93].

Financial Performance - For Q1 2025, Methanex reported net income of $111 million, or $1.44 per diluted share, compared to $45 million, or $0.67 per diluted share in Q4 2024 [3][14] - Adjusted EBITDA for Q1 2025 was $248 million, up from $224 million in Q4 2024 [3][8] - The average realized price for methanol in Q1 2025 was $404 per tonne, an increase from $370 per tonne in Q4 2024 [7][8] Production and Sales - Total production for Q1 2025 was 1,619,000 tonnes, down from 1,868,000 tonnes in Q4 2024, primarily due to a planned turnaround at Geismar 2 and an unplanned outage at Geismar 3 [6][14] - Total sales volume in Q1 2025 was 2,217,000 tonnes, compared to 2,564,000 tonnes in Q4 2024 [14] - Methanex-produced methanol sales were 1,703,000 tonnes in Q1 2025, up from 1,455,000 tonnes in Q4 2024 [14] Operational Highlights - Geismar produced 617,000 tonnes in Q1 2025, down from 839,000 tonnes in Q4 2024 due to maintenance and outages [16] - Chile's production increased to 429,000 tonnes in Q1 2025 from 387,000 tonnes in Q4 2024, attributed to improved reliability [17] - Egypt's production decreased to 136,000 tonnes in Q1 2025 from 155,000 tonnes in Q4 2024, impacted by gas availability [20] Future Outlook - The company expects lower Adjusted EBITDA in Q2 2025 compared to Q1 2025, primarily due to the outage at Geismar 3 and a lower average realized price [23] - The acquisition of OCI Global's international methanol business is anticipated to close in the second quarter of 2025 [7][14] - Production guidance for 2025 is expected to be lower than the previously guided 7.5 million tonnes due to the unplanned outage [22]

Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud or unlawful business practices involving Methanex Corporation and its officers or directors [1]. Group 1: Company Performance and Events - On March 9, 2025, Methanex announced an unplanned outage at its 1.8 million tonne methanol plant, Geismar 3, in Louisiana, which occurred in late February [3]. - Following the outage announcement, Methanex's management decided to repair the autothermal reformer (ATR) and estimated a plant startup by early May 2025 [3]. - The stock price of Methanex fell by $5.45 per share, or 12.9%, closing at $36.80 per share on March 10, 2025, after the announcement [4]. Group 2: Legal and Regulatory Context - Pomerantz LLP, a firm known for its work in corporate, securities, and antitrust class litigation, is leading the investigation into Methanex [5]. - The firm has a history of recovering multimillion-dollar damages for victims of securities fraud and corporate misconduct [5].

Core Viewpoint - Methanex (MEOH) is positioned well to continue its trend of beating earnings estimates, with a strong history of surprises in recent quarters [1][5]. Earnings Performance - In the last reported quarter, Methanex achieved earnings of $1.24 per share, surpassing the Zacks Consensus Estimate of $1.01 per share, resulting in a surprise of 22.77% [2]. - In the previous quarter, the company was expected to earn $0.44 per share but delivered $1.21 per share, leading to a significant surprise of 175% [2]. Earnings Estimates and Predictions - Methanex has a positive Earnings ESP (Expected Surprise Prediction) of +4.74%, indicating that analysts have recently become more optimistic about the company's earnings prospects [8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat in the upcoming report [8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7].

Company Overview - Methanex (MEOH) shares increased by 17.1% to close at $30.29, following a significant trading volume compared to typical sessions, despite a 29.2% loss over the past four weeks [1] - The company is expected to report quarterly earnings of $1.28 per share, reflecting a year-over-year increase of 96.9%, with revenues projected at $1.04 billion, up 13.6% from the previous year [2] Earnings Estimates - The consensus EPS estimate for Methanex has been revised down by 20.2% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [3] - In contrast, Innospec (IOSP), another company in the same industry, has an unchanged EPS estimate of $1.39, representing a 20.6% decrease from the previous year [4] Industry Context - Methanex is part of the Zacks Chemical - Diversified industry, which has seen a rally in material stocks following President Trump's announcement of a 90-day pause on reciprocal tariffs for most nations [1] - Innospec, also in the same industry, experienced a 7.8% increase in its stock price, closing at $89.88, but has returned -16.5% over the past month [3]