Except where otherwise noted, all currency amounts are stated in United States dollars. Net income attributable to Methanex shareholders of $53 million and Adjusted EBITDA of $160 million in the first quarter. Our average realized price in the first quarter was $343 per tonne compared to $322 per tonne in the fourth quarter of 2023.Work is progressing to safely repair the Geismar 3 ("G3") plant and we believe that the plant is on track to start up in the third quarter of 2024. Repair costs are expected to b ...

VANCOUVER, British Columbia, April 24, 2024 (GLOBE NEWSWIRE) -- Methanex Corporation (TSX:MX) (NASDAQ:MEOH) announced today that it has renewed its US$300 million revolving credit facility, which replaces the Company's existing revolving facility, and added an additional US$200 million tranche. The facility has been arranged with a syndicate of banks and will expire April 24, 2028 with the US$200 million tranche expiring April 24, 2026. RBC Capital Markets was the Arranger for the facility. Rich Sumner, Pre ...

Financial Performance - Revenue for 2023 was $3,723 million, a decrease from $4,311 million in 2022[17] - Net income attributable to Methanex shareholders in 2023 was $174 million, down from $354 million in 2022[17] - Adjusted EBITDA for 2023 was $622 million, compared to $932 million in 2022[17] - Methanex generated $622 million in adjusted EBITDA and $2.25 in adjusted net income per share in 2023[30] - Adjusted EBITDA for 2023 was $622 million, a decrease of $310 million compared to $932 million in 2022[96][103] - Net income attributable to Methanex shareholders for 2023 was $174 million ($2.57 per share), down from $354 million ($4.86 per share) in 2022[95] - Revenue for 2023 was $3.7 billion, a decrease from $4.3 billion in 2022, primarily due to lower average realized prices[99] - Average realized price for methanol in 2023 was $333 per tonne, down from $397 per tonne in 2022, decreasing Adjusted EBITDA by $657 million[101][105] - Methanol sales volume (excluding commission sales) increased to 10.0 million tonnes in 2023 from 9.8 million tonnes in 2022, increasing Adjusted EBITDA by $16 million[106] - Total cash costs increased Adjusted EBITDA by $331 million in 2023 compared to 2022, driven by lower Methanex-produced methanol costs ($199 million) and purchased methanol costs ($207 million)[111] - Methanex-produced methanol costs decreased by $199 million in 2023 due to changes in realized methanol prices, spot gas prices, and inventory timing[112] - The proportion of Methanex-produced methanol sales increased in 2023, decreasing costs and increasing Adjusted EBITDA by $18 million[113] - Purchased methanol costs decreased by $207 million in 2023 due to lower methanol prices and timing of inventory flows[114] - Logistics costs increased by $18 million in 2023 compared to 2022, primarily due to production mix and longer supply routes, impacting Adjusted EBITDA[115] - The Egypt gas redirection and sale proceeds contributed $58 million to Adjusted EBITDA in 2022, which did not recur in 2023[116] - Other costs increased by $17 million in 2023 compared to 2022, mainly due to the start-up costs of the Geismar 3 plant[117] - The mark-to-market impact of share-based compensation was $16 million in 2023, compared to $171 million in 2022, driven by changes in the company's share price[119][124] - Depreciation and amortization increased to $392 million in 2023 from $372 million in 2022, driven by higher costs of depreciable assets and ocean-going vessel additions[125] - Finance costs decreased to $117 million in 2023 from $131 million in 2022, primarily due to higher capitalized interest related to the Geismar 3 project[126] - Finance income and other increased to $40 million in 2023 from $25 million in 2022, primarily due to higher interest income[127] - The effective tax rate based on Adjusted net income was 23% in 2023, compared to 29% in 2022, reflecting changes in earnings distribution and foreign exchange impacts[130] - Cash flows from operating activities decreased to $660 million in 2023 from $987 million in 2022, primarily due to lower earnings and changes in non-cash working capital[133] - Net income before income tax was $286 million in 2023, compared to $582 million in 2022, with an income tax expense of $2 million in 2023 and $120 million in 2022[128] - Non-cash working capital changes decreased cash flows from operating activities by $59 million in 2023, compared to an increase of $54 million in 2022[135] - Trade and other receivables increased by $33 million in 2023, reducing operating cash flows due to timing of invoices and payments[135] - Inventories decreased, increasing operating cash flows by $16 million in 2023 due to lower methanol prices impacting natural gas costs[135] - Accounts payable and accrued liabilities decreased by $23 million in 2023, reducing operating cash flows due to lower gas and methanol prices[135] - The company repurchased 1,894,711 common shares for $86 million in 2023, compared to 5,551,751 shares for $253 million in 2022[136] - Total dividend payments in 2023 were $49 million, with quarterly dividends increasing from $0.175 to $0.185 per share in April 2023[136] - Capital expenditures for consolidated operations were $178 million in 2023, primarily for planned turnarounds in Geismar, New Zealand, and Chile[139] - The Geismar 3 project incurred $270 million in capital expenditures in 2023, with total capital costs expected to not exceed $1.3 billion[139][151] - Total liquidity decreased to $758 million in 2023 from $1.458 billion in 2022, with cash and cash equivalents at $458 million[141] - The company plans to repay a $300 million bond due at the end of 2024, prioritizing excess cash for this repayment[140] - The company's financial assets measured at fair value decreased from $323 million in 2022 to $121 million in 2023, primarily due to a decline in derivative instruments designated as cash flow hedges[169] - Cash and cash equivalents decreased significantly from $858 million in 2022 to $458 million in 2023[169] - Total financial liabilities increased from $3,715 million in 2022 to $3,806 million in 2023, driven by higher trade payables and lease obligations[169] - As of December 31, 2023, the company had a cash balance of $458 million and an undrawn $300 million revolving credit facility expiring in July 2026[196] - Long-term debt obligations include $1,986 million in unsecured notes and $156 million related to limited recourse debt for ocean-going vessels[197] - The company faces liquidity risks, with no assurance of sufficient funding for future capital projects without incurring additional debt[200] Production and Sales - Total sales volume in 2023 was 11,169 thousand tonnes, up from 10,774 thousand tonnes in 2022[17] - Methanex produced 6.6 million tonnes of methanol in 2023, an increase of approximately 0.5 million tonnes compared to 2022[26] - Methanex's average realized methanol price in 2023 was $333 per tonne, compared to $397 per tonne in 2022[61] - Methanex's total annual operating capacity, including interests in jointly owned plants, is currently 9.3 million tonnes[48] - Methanex's 2023 sales volume of 11.2 million tonnes of methanol represented approximately 12% of global methanol demand[64] - In 2023, the company produced 6,642 thousand tonnes of methanol, an increase from 6,118 thousand tonnes in 2022, with total sales volume reaching 11,169 thousand tonnes[80] - The Geismar plants in the United States produced 2.1 million tonnes of methanol in 2023, up from 2.0 million tonnes in 2022, due to an unplanned outage in late 2022[84] - New Zealand production increased to 1.4 million tonnes in 2023 from 1.2 million tonnes in 2022, but 2024 production is estimated to be lower at 1.0 - 1.1 million tonnes due to natural gas supply constraints[85][86] - The Atlas facility in Trinidad produced 1.1 million tonnes of methanol in 2023, up from 1.0 million tonnes in 2022, with plans to idle the facility in September 2024 and restart the Titan plant[87] - Chile production increased to 1.0 million tonnes in 2023 from 0.9 million tonnes in 2022, with 2024 production estimated at 1.1 - 1.2 million tonnes, supported by natural gas supply from Argentina[88] - Egypt production reached 1.0 million tonnes in 2023 (Methanex share of 0.5 million), up from 0.8 million tonnes in 2022 (Methanex share of 0.4 million), despite an unplanned outage in mid-October[89] - The company owns 63.1% of the Atlas methanol facility and 50% of the Egypt methanol facility, with the remaining shares marketed through commission agreements[93][94] - The company owns 63.1% of the Atlas methanol facility, which is accounted for as an equity investment[173] Market and Demand - Global methanol demand increased to approximately 91 million tonnes in 2023, driven primarily by growth in China[51] - Methanex expects methanol demand growth rates in 2024 to be similar to 2023, with the market relatively balanced[31] - Methanol demand in China includes approximately 30,000 taxis and methanol hybrid passenger cars and 4,000 heavy-duty trucks running on M100 fuel, representing approximately one million tonnes of annual methanol demand[55] - Methanol demand in China for cleaner fuels in industrial boilers, kilns, and cooking stoves represents approximately seven million tonnes of methanol demand[56] - Methanol demand is driven by global economic growth, industrial production, energy prices, and government regulations, with over 30% of global demand coming from energy-related applications[176][177] - In 2023, approximately 2-3 million tonnes of new methanol production capacity was added in China, while a new plant in Iran faced operational challenges due to sanctions and technical issues[183] - The company faces risks related to global trade, including potential increases in import duties and restrictions on methanol exports to key markets like China, which accounts for 60% of global methanol demand[192] Capital Projects and Investments - The Geismar 3 plant, with a capacity of 1.8 million tonnes, is expected to reach commercial production in 2024[23] - Methanex secured a two-year natural gas agreement in Trinidad and Tobago to restart the Titan methanol plant in September 2024[27] - Methanex expects its new 1.8 million tonne Geismar 3 facility in Louisiana to reach commercial production in 2024[59] - Methanex has marketing rights for 100% of the production from jointly-owned plants in Trinidad and Tobago and Egypt, providing an additional 1.3 million tonnes per year of methanol offtake supply[49] - The company maintains a strong liquidity position with $458 million in cash and $300 million of undrawn backup liquidity, enabling full funding of the Geismar 3 project with cash on hand[75] - The company expects its new 1.8 million tonne Geismar 3 facility in Louisiana to reach commercial production in 2024, contributing to increased supply[184] Risk Management - Methanex's enterprise risk management program has been further matured in 2023, with greater emphasis on explicit risk management discussions and analyses[38] - Methanex's Board and senior management have integrated risk management discussions into the corporate strategy process, aiming for enhanced assessment of material risks and a more comprehensive discussion of risk appetite[38] - The company is exposed to macroeconomic risks, including potential impacts from pandemics, global economic downturns, and inflationary pressures, which could negatively affect methanol demand and prices[185][187] - The company operates in multiple jurisdictions, exposing it to risks such as expropriation, political instability, and changes in laws or policies that could adversely affect its operations[189] - Methanol produced in sanctioned countries may create competitive price pressure, potentially impacting the company's operations and financial condition[193] - The company is subject to taxation risks in multiple jurisdictions, with potential adverse impacts from new taxes or rate increases[194] - Foreign operations are organized based on tax law assumptions, but changes in foreign tax laws could lead to adverse financial consequences[195] - Foreign currency risk is significant, with exposure to fluctuations in currencies such as the Canadian dollar, Chinese yuan, and euro, impacting costs and revenues[201] Operational Costs and Efficiency - The company's production facilities outside North America are supported by natural gas purchase agreements linked to methanol prices, ensuring competitiveness throughout the methanol price cycle[69] - In North America, the company has fixed price contracts and hedges targeting a minimum operating rate of approximately 70% in the near term, with remaining gas requirements purchased through the spot market[70] - Distribution costs, including ocean shipping, in-market storage, and distribution, are a significant component of total operating costs, with efforts focused on cost reduction through optimized shipping fleet use and geographic product exchanges[71]

Methanex Corporation (NASDAQ:MEOH) Q4 2023 Earnings Conference Call February 1, 2024 11:00 AM ET Company Participants Sarah Herriott - Director of Investor Relations Rich Sumner - President and Chief Executive Officer Conference Call Participants Joel Jackson - BMO Capital Markets Steven Hansen - Raymond James Ltd. Hassan Ahmed - Alembic Global Advisors Ben Isaacson - Scotiabank Joshua Spector - UBS Securities Co., Ltd. Nelson Ng - RBC Capital Markets Matthew Blair - Tudor, Pickering, Holt & Co. Laurence Al ...

Financial Data and Key Metrics - Adjusted EBITDA for Q3 2023 was $105 million, with adjusted net income of $0.02 per share [2] - The average realized price for methanol was $303 per tonne, with produced sales of approximately 1.5 million tonnes [2] - The company entered Q3 with $500 million in cash and $300 million of undrawn backup liquidity [28] - Global average realized price for October and November is estimated at $310 to $320 per metric tonne [27] Business Line Data and Key Metrics - Methanol demand improved in China, driven by stronger demand for MTBE and methanol-to-olefins (MTO) applications [25] - The olefins market showed improvement, but pricing remains below mid-cycle levels, with significant pressure on the sector [20] - The company is exploring opportunities to convert underutilized assets into green methanol production, particularly in the marine industry [21] Market Data and Key Metrics - Coal pricing in China increased from around RMB800 per tonne to above RMB1,000 per tonne during Q3, driven by supply disruptions [26] - Methanol demand outside China remained relatively flat compared to Q2, with high energy pricing and improved supply-demand fundamentals leading to slightly higher pricing [40] - North America, Asia-Pacific, and China posted prices for November were $549, $370, and $360 per metric tonne, respectively, while Europe posted €375 per metric tonne [41] Company Strategy and Industry Competition - The company is focused on completing the Geismar 3 (G3) project, with commercial production expected by the end of 2023 and a budget range of $1.25 billion to $1.3 billion [67] - Methanex is working on green and blue methanol projects, with over 200 ships expected to use methanol as fuel by 2027-2028, representing around 7 million tonnes of demand [105] - The company is also exploring renewable hydrogen and CO2 projects to green existing assets [21] Management Commentary on Operating Environment and Future Outlook - Management highlighted challenges in the Trinidad gas market, with current production at 2.5 to 3 Bcf per day against demand of 4.5 Bcf per day [45] - The company expects higher adjusted EBITDA in Q4 2023 due to higher realized methanol prices and increased produced sales [43] - Methanex is monitoring the global macroeconomic environment, with high operating rates in the MTO sector and improved affordability from higher energy and olefins pricing [40] Other Important Information - The company is committed to repaying the $300 million bond due at the end of 2024, with any excess cash allocated to debt repayment rather than refinancing [28] - Methanex is working on long-term gas supply agreements in Trinidad and Chile, with improved gas availability from Argentina allowing for increased production guidance in Chile [42] Q&A Session Summary Question: Chilean Gas Situation and Pressure Profile - Joel Jackson asked about the Chilean gas situation and its impact on the pressure profile for 2024, particularly during the summer months [6] - Rich Sumner explained that the gas situation in Chile is improving, with both plants expected to run at full rates from September 2023 through April 2024 [42] Question: Underutilized Assets and Green Methanol Opportunities - Hassan Ahmed inquired about opportunities for underutilized assets, including the possibility of relocating the Atlas plant or converting it to green methanol production [18] - Rich Sumner responded that the company is focused on securing long-term gas supply in Trinidad and is exploring green methanol projects but is not currently considering relocating Atlas [98] Question: Trinidad Gas Situation and Short-Term Challenges - Ben Isaacson asked about the short-term challenges in Trinidad's gas market and whether the company expects improvement [44] - Rich Sumner acknowledged the tight gas market in Trinidad but expressed optimism about long-term improvements, citing ongoing developments and incentives to restart capacity [45] Question: G3 Project and Inventory Build - Joel Jackson followed up on the G3 project, asking about the expected inventory build and its impact on cash flow [16] - Rich Sumner clarified that the G3 project is nearing completion, with commercial production expected by year-end, and that the inventory build would likely take 45 to 70 days to flow through earnings [74] Question: Green and Blue Methanol Strategy - Kevin Estok asked for updates on the company's green and blue methanol strategy and the impact of current interest rates on future investments [104] - Rich Sumner highlighted the growing demand for methanol in marine fuels and the company's efforts to produce green methanol using renewable natural gas in North America [105][106] Question: Cash Flow and Capital Allocation in 2024 - Matthew Blair inquired about the company's cash flow and capital allocation plans for 2024, including potential buybacks [99] - Rich Sumner emphasized the focus on repaying the $300 million bond and generating free cash flow, with any excess cash likely allocated to deleveraging and potentially returning cash to shareholders [99]

Jacob Bout Good morning. Rich Sumner Yes, I wanted to go back to that discussion on China and your thoughts on the low MTO affordability that we're dealing with right now. One, does that improve, because I thought part of the discussion, there was just the overcapacity situation wins for the Chinese olefins market given the ramp and new capacity there? Rich Sumner Yes, so the olefins market has been under pressure for well over a year. That's on the back of both like you said the new capacity that's been co ...

Methanex Corporation (NASDAQ:MEOH) Q3 2022 Earnings Conference Call October 27, 2022 11:00 AM ET Company Participants Sarah Herriott - Director, IR John Floren - President and CEO Rich Sumner - Incoming CEO Conference Call Participants Joel Jackson - BMO Capital Markets Ben Isaacson - Scotiabank Nelson Ng - RBC Capital Markets Steve Hansen - Raymond James Josh Spector - UBS Jacob Bout - CIBC Hassan Ahmed - Alembic Global Matthew Blair - TPH Chris Shaw - Monness Crespi Steve Hansen - Raymond James Operator W ...

Methanex Corporation (NASDAQ:MEOH) Q2 2022 Earnings Conference Call July 28, 2022 11:00 AM ET Company Participants Sarah Herriott - Director, IR John Floren - President and CEO Conference Call Participants Ben Isaacson - Scotiabank Joel Jackson - BMO Capital Markets Steve Hansen - Raymond James Nelson Ng - RBC Capital Markets Matthew Blair - TPH Josh Spector - UBS Laurence Alexander - Jefferies Hassan Ahmed - Alembic Global Charles Neivert - Piper Sandler John Roberts - Credit Suisse Operator Welcome to the ...

Financial Data and Key Metrics Changes - In Q1 2022, Methanex reported an average realized price of $425 per ton, adjusted EBITDA of $337 million, and adjusted net income of $159 million or $2.16 per share [11][19][21] - The company ended Q1 2022 with approximately $1.1 billion in cash and $600 million of undrawn backup liquidity [19][23] Business Line Data and Key Metrics Changes - Production levels were lower in Q1 2022 compared to Q4 2021 due to lower gas availability in New Zealand and planned outages in Egypt [17][18] - The company forecasts 2022 production to be approximately 7 million equity tonnes, although actual production may vary [18] Market Data and Key Metrics Changes - Global methanol demand increased slightly in Q1 2022, driven by higher operating rates for methanol-to-olefins (MTO) plants [12] - North American methanol prices decreased by $21 per ton to $638 per ton, while Asia-Pacific and China prices decreased by $20 and $30 per ton to $520 and $470 per ton respectively [15] Company Strategy and Development Direction - The company is focused on progressing the Geismar 3 project, which is expected to reach commercial production by late 2023 or early 2024, enhancing cash flow generation capability [21][22] - Methanex aims to maintain a disciplined approach to capital allocation, prioritizing cash generation, growth opportunities, and returning excess cash to shareholders [19][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the methanol market fundamentals remain solid, with no significant evidence of demand destruction despite elevated prices and geopolitical tensions [16][25] - The company expects Q2 2022 to be another excellent quarter for EBITDA generation and earnings, with strong cash generation and a fully funded G3 project [25][26] Other Important Information - The company announced a 16% increase in the quarterly dividend to $0.145 per share and an increase in the share buyback program [23] - Methanex released its 2021 sustainability report, outlining commitments to reduce greenhouse gas emissions intensity [24] Q&A Session Summary Question: Impact of COVID lockdowns in China on methanol demand - Management indicated no current impact on demand from COVID lockdowns, with pricing in China around $365 per ton, below the cost curve [29] Question: Factors setting methanol prices - Management stated that supply issues have driven higher pricing rather than the cost curve, with demand holding up well [40][41] Question: Update on G3 project costs and inflation - Management confirmed that labor is the primary cost concern moving forward, with no significant inflation pressures observed [44][46] Question: Dividend outlook and potential for special dividends - Management expressed a preference for share buybacks over special dividends, citing flexibility and tax implications for shareholders [81][82] Question: European methanol capacity and potential curtailments - Management noted that high gas prices in Europe make methanol production challenging, leading to potential curtailments [87][89] Question: Inventory levels in the methanol market - Management reported low inventory levels, as customers are running supply chains lean due to high prices [90]

Financial Data and Key Metrics Changes - In Q4 2021, Methanex reported the highest quarterly adjusted EBITDA in the company's history at $340 million and a record adjusted net income of $185 million, or $2.43 per share, primarily due to higher realized prices and increased sales volume [11][12] - For the full year 2021, the company achieved an adjusted EBITDA of $1.1 billion and adjusted net income of $460 million, or $6.03 per share, significantly stronger compared to 2020 [12] Business Line Data and Key Metrics Changes - Production levels in Q4 2021 were significantly higher compared to Q3 2021, driven by higher gas availability in Chile and New Zealand, as well as record production at Geismar facilities [23] - In New Zealand, production was higher following the completion of a short-term commercial arrangement, with an estimated production of approximately 1.5 million tonnes in 2022 from the two Motunui plants [24] - Geismar facilities achieved record quarterly production, with an annual operating capacity increase of 10% to 2.2 million tonnes due to a debottlenecking project [25] Market Data and Key Metrics Changes - Global methanol demand in 2021 increased by approximately 5% to 86 million tonnes, driven by recovery in traditional chemical applications [13] - In Q4 2021, global methanol demand decreased by approximately 2% compared to Q3 2021, primarily due to lower demand from MTO producers and restrictions in China [14] - Methanol prices fluctuated in Q4 2021, with an average realized price increase of $55 per tonne to $445 per tonne compared to Q3 2021 [16] Company Strategy and Development Direction - The company remains focused on managing through the pandemic, progressing the G3 project on time and on budget, and enhancing financial flexibility [33] - Methanex plans to use generated cash to maintain operations, pursue growth opportunities, and return excess cash to shareholders, with a preference for share buybacks [31][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about methanol market fundamentals, expecting robust demand growth in 2022 despite supply challenges [49] - The company anticipates a strong first quarter of 2022, with EBITDA expected to be similar to Q4 2021 due to higher forecasted sales [32] Other Important Information - The company ended Q4 2021 with $932 million in cash and $900 million of undrawn liquidity, positioning it well for future capital expenditures [28] - Methanex's G3 project is expected to be completed on time and on budget by the end of 2023 or early 2024, with a capital cost estimate of $1.25 billion to $1.35 billion [29][30] Q&A Session Summary Question: What was the percentage of sales shifted to China? - Management indicated that the percentage is around 20% to 25% but did not provide an exact number during the call [38][39] Question: What is the guidance for the discount rate in 2022? - The company forecasts a discount rate of 20% on average for 2022 [40] Question: How is the natural gas pricing situation in Europe affecting capacity? - Management noted that there is capacity offline in Europe due to high energy prices and geopolitical tensions, impacting methanol production [43][44] Question: What is the outlook for supply and demand fundamentals in 2022? - Management expects supply challenges to persist in 2022, with traditional demand growing at GDP rates [46][49] Question: How is the dual control energy policy in China affecting production? - The company expects production rates in China to be higher in the summer months compared to Q4 2021, as natural gas becomes more available [57] Question: What is the impact of the discount rate on realized prices? - Management emphasized that realized prices are what drive earnings, and the discount rate varies by region [88][102] Question: What are the plans for capital allocation moving forward? - The company plans to focus on completing the G3 project and returning excess cash to shareholders through buybacks and dividends [109]