Methanex Corporation (NASDAQ:MEOH) Q3 2021 Earnings Conference Call October 28, 2021 11:00 AM ET Company Participants Kim Campbell - Director, Investor Relations John Floren - President & Chief Executive Officer Rich Sumner - Senior Vice President, Global Marketing & Logistics Conference Call Participants Joel Jackson - BMO Capital Markets Nelson Ng - RBC Capital Markets Jacob Bout - CIBC Edlain Rodriguez - Jefferies Mike Leithead - Barclays Hassan Ahmed - Alembic Global Advisors Eric Petrie - Citi Matthew ...

Financial Data and Key Metrics Changes - The average realized price increased to $376 per tonne, a $13 increase compared to the first quarter [7] - Adjusted EBITDA rose to $262 million, an increase of $20 million from the first quarter [7] - Adjusted net income was $95 million or $1.24 per share, up $13 million or $0.17 per share from the first quarter [7] Business Line Data and Key Metrics Changes - Production in New Zealand was lower due to reduced gas availability, with an estimated production of 1.4 million tonnes for 2021 [10][12] - Geismar's production increased due to the completion of a planned turnaround, with an annual operating capacity now at 2.2 million tonnes, a 10% increase [10] - Trinidad's production was higher than the first quarter, with an estimated production of 1.1 million tonnes for 2021 [11] - Chile's production was lower than the first quarter, with an estimated production of 800,000 to 900,000 tonnes for 2021 [12] Market Data and Key Metrics Changes - Global methanol demand increased by approximately 3% in the second quarter compared to the first quarter, expected to surpass pre-pandemic levels later this year [8] - Current methanol prices in August were $542 per tonne in North America and $420 per tonne in Asia Pacific [9] - The industry cost curve in China has increased to approximately $300 to $320 per tonne due to rising coal and natural gas prices [8] Company Strategy and Development Direction - The company announced the restart of construction on the Geismar 3 project, with a capital cost estimate of $1.25 billion to $1.35 billion [16] - The company aims to maintain financial flexibility, targeting a minimum of $300 million in cash on hand and reducing debt levels over time [17] - The company plans to increase shareholder distributions through share buybacks and dividends when methanol prices reach approximately $325 per tonne or higher [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the methanol market, citing strong demand and low inventory levels [8] - The company expects third-quarter production and adjusted EBITDA results to be similar to the second quarter [18] - Management noted that global demand for methanol is expected to continue growing through the second half of the year [55] Other Important Information - The company has over $750 million in cash on its balance sheet and a strong financial position [14] - The company is committed to enhancing sustainability and ESG-related disclosures [19] Q&A Session Summary Question: Update on gas availability in Chile - Management indicated that gas availability in Argentina and Chile has improved, expecting both plants in Chile to operate by late third quarter or early fourth quarter [22][23] Question: Freight market impact - Management noted that liquid tanker rates are below average, and they expect higher prices to improve profitability [32] Question: Methanol unit operations at LyondellBasell - Management did not have specific information but mentioned that the unit was in a planned turnaround [35] Question: Demand growth forecast - Management expects demand to return to pre-pandemic levels later this year, with some applications still lagging [55] Question: Global shipping capacity for methanol - Management confirmed eight owned ships on order and expects more orders in the future, with significant demand from the industrial boiler market [68] Question: Liquidity and capital returns - Management reiterated their strategy to maintain cash reserves for G3 and return excess cash to shareholders flexibly [81] Question: Confidence in labor resources - Management expressed confidence in their labor capabilities, noting low turnover rates and a focus on diversity and inclusion [96]

Financial Data and Key Metrics Changes - The average realized methanol price increased to $363 per tonne, up by $81 compared to Q4 2020 [12] - Adjusted EBITDA rose to $242 million, an increase of $106 million over Q4 2020 [12] - Adjusted net income was $82 million or $1.07 per share, an increase of $70 million or $0.92 per share compared to Q4 2020 [12] Business Line Data and Key Metrics Changes - Production in Q1 2021 was 1.6 million tonnes, similar to Q4 results, with higher production from Atlas and Medicine Hat facilities offsetting lower production in New Zealand and Geismar [17] - New Zealand's production was lower due to reduced gas deliveries, with an estimated production of 1.5 million tonnes for 2021 [18] - Geismar's production was lower due to a planned turnaround, but record production levels were achieved post-turnaround [19] - Trinidad's production was higher than Q4 due to planned turnaround activities impacting the previous quarter [21] - Chile's production was higher, with the Chile I plant running nearly at full rates, while the Chile IV plant remained idle due to gas supply constraints [22] Market Data and Key Metrics Changes - Global methanol demand increased by approximately 5% compared to Q1 2020, with expectations to return to pre-pandemic levels later in 2021 [13][14] - The industry cost curve remains at approximately $260 to $280 per tonne, with spot prices in China above this range [15] - North American methanol price increased by $23 to $542 per tonne, while Asia Pacific price remained at $430 per tonne [16] Company Strategy and Development Direction - The company is focused on financial flexibility and liquidity, with plans to decide on the next steps for the Geismar three project later in 2021 [26][27] - The company aims to balance capital allocation between growth opportunities and returning excess cash to shareholders through dividends and share repurchases [26] - The company is optimistic about the global economic recovery and its impact on methanol demand, particularly as vaccines are rolled out [28] Management's Comments on Operating Environment and Future Outlook - Management noted that the pandemic has created challenges but highlighted the resilience of the business model [9][10] - The company anticipates similar realized methanol prices in Q2 2021 compared to Q1, based on posted prices so far [29] - Management expressed confidence in the recovery of methanol demand and the favorable industry conditions continuing into the second quarter [14][28] Other Important Information - The company has a strong liquidity position with over $850 million in cash and no debt maturities until the end of 2024 [25] - The company is monitoring industry operating rates and new capacity scheduled to start up later this year [28] Q&A Session Summary Question: Capital allocation priorities - The company prioritizes financial flexibility and liquidity, balancing growth investments with returning excess cash to shareholders [36][37] Question: Market share importance - Leadership in the industry is more important than specific market share targets, with a focus on optimizing operations [48] Question: Labor market conditions for G3 - The labor market is currently stable, but there may be cost pressures as economic activity increases [55][56] Question: Methanol demand and pricing - Demand is expected to recover, with tight markets and low inventories supporting a favorable pricing environment [64][68] Question: Impact of Uri on demand - The demand loss was primarily in China, with expectations for recovery as the pandemic situation improves [87][88] Question: Trade flow changes and Iran - Trade flows have been affected by supply chain disruptions, and the situation with Iran remains uncertain [120][121] Question: Industry supply state post-COVID - The company has faced challenges in maintenance and reliability due to COVID-19, impacting overall operational efficiency [125][127]

Financial Data and Key Metrics Changes - In Q4 2020, the company recorded adjusted EBITDA of $136 million and adjusted net income of $12 million, or $0.15 per share, which was higher than Q3 results primarily due to realized prices [12] - For the full year 2020, adjusted EBITDA was $346 million, with an adjusted net loss of $123 million, or $1.62 per share, reflecting lower realized methanol prices compared to 2019 [12] Business Line Data and Key Metrics Changes - Production levels in New Zealand increased in Q4 due to improved gas supply, but the outlook for 2021 is uncertain due to expected lower gas deliveries [19][20] - Geismar facilities achieved record production in Q4, benefiting from a completed debottlenecking project, with an expected annual capacity of 2.2 million tonnes [21] - Production in Trinidad remained stable in Q4, but 2021 production is estimated to decline to 900,000 tonnes due to upstream production declines [22] - Chile's production was higher in Q4, but lower gas deliveries later in the quarter led to idling of one plant, with 2021 production estimated at 900,000 to 1,000,000 tonnes [24] - Egypt's production in Q4 was similar to Q3, with 2021 production forecasted to be similar to 2020 levels of 6.6 million tonnes [25] Market Data and Key Metrics Changes - Global methanol demand increased by approximately 2% in Q4 2020 compared to Q3, but overall demand for 2020 was down 3% compared to 2019 [13][14] - Methanol prices in North America and Asia Pacific increased in early 2021, with February prices at $492 per tonne and $430 per tonne respectively [16] - The industry cost curve is estimated at approximately $260 per tonne, influenced by higher coal prices [15] Company Strategy and Development Direction - The company remains focused on maintaining liquidity and financial flexibility while prioritizing safe and reliable operations [30] - The Geismar 3 project is on hold, with a decision expected in mid-2021, contingent on market conditions and economic recovery [27][42] - The company is cautious about future investments and will assess the demand recovery before making significant capital allocation decisions [65] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about early signs of economic recovery but remains cautious due to ongoing uncertainties from the COVID-19 pandemic [28] - The company expects realized methanol prices in Q1 2021 to be higher than in Q4 2020, with production levels anticipated to be similar [29] - The management highlighted the challenges in gas supply across various regions, impacting production capabilities [55] Other Important Information - The company ended 2020 with a strong liquidity position of over $800 million in cash and no debt maturities until the end of 2024 [26] - The company is committed to returning excess cash to shareholders through dividends and share repurchases [26] Q&A Session Summary Question: How does the company see normalization of various issues affecting operations? - Management indicated that predicting normalization is difficult, particularly regarding gas supply issues in New Zealand and Trinidad, which were unexpected [34] Question: How did the company manage to increase prices despite a weaker spot market? - Management explained that pricing decisions are based on supply-demand fundamentals and customer discussions, rather than solely on spot market prices [38] Question: What is the current status of the Geismar 3 project? - The company is targeting a decision on the Geismar 3 project in mid-2021, with ongoing evaluations of market conditions [42] Question: What are the expectations for methanol demand recovery? - Management noted that traditional demand was down 5% in 2020, with North America experiencing the most significant decline [80] Question: How does the company view the impact of LNG and coal price spikes on production? - Management stated that while coal prices could influence the cost curve, producers are currently running at full capacity due to favorable pricing dynamics [84]

Methanex Corporation (NASDAQ:MEOH) Q3 2020 Earnings Conference Call October 29, 2020 11:00 AM ET Company Participants Kim Campbell - Director, Investor Relations John Floren - President and Chief Executive Officer Conference Call Participants Ben Isaacson - Scotiabank Jacob Bout - CIBC Steve Hansen - Raymond James Cherilyn Radbourne - TD Securities John Roberts - UBS Jonas Oxgaard - Bernstein Eric Petrie - Citi Nelson Ng - RBC Capital Markets Hassan Ahmed - Alembic Global Advisors. Mike Leithead - Barclays ...

Financial Data and Key Metrics Changes - In Q2 2020, Methanex recorded adjusted EBITDA of $32 million and an adjusted net loss of $64 million, equating to $0.84 per share, significantly lower than the previous quarter due to reduced average realized prices and lower sales volumes [12][13] - Global methanol demand declined by approximately 5% or 1 million tons in Q2 2020 compared to Q1, and by approximately 12% or 2.5 million tons compared to Q4 2019 [14][15] Business Line Data and Key Metrics Changes - Methanol demand in China increased by approximately 4% in Q2 2020 versus Q1, driven by recovery in economic activity and improved fuel demand [16] - Outside of China, methanol demand declined by approximately 19% quarter-over-quarter due to lower manufacturing activity in key sectors like automotive and construction [18] Market Data and Key Metrics Changes - Global methanol supply declined by approximately 9% when comparing Q2 2020 to Q4 2019, with production in Q2 being 379,000 tons lower than in Q1 2020 [20] - Spot prices in China are currently marginally below the industry cost curve of approximately $200 to $220 per ton [21] Company Strategy and Development Direction - The company has deferred approximately $500 million in capital spending on the Geismar 3 project for up to 18 months to strengthen its balance sheet and preserve liquidity [23] - Methanex is focused on cash preservation and evaluating options to maintain financial capacity during the downturn, while planning for long-term demand growth for methanol [29][35] Management's Comments on Operating Environment and Future Outlook - The management expressed uncertainty regarding the full impact of the COVID-19 pandemic and lower oil prices on methanol demand, indicating that the near-term outlook remains uncertain [30] - Despite the challenges, the management believes in the long-term demand growth for methanol as it is a key ingredient in various applications [34] Other Important Information - The company ended the quarter with nearly $800 million in cash and has no near-term debt maturities, indicating a strong liquidity position [26] - Methanex has amended its credit facilities to provide financial covenant relief, allowing for greater flexibility in the current environment [27] Q&A Session Summary Question: Ability to push out G3 project timeline - Management confirmed that the completion date for the G3 project has been pushed out by another 12 months due to renegotiated terms with lenders [44] Question: Incremental costs from COVID-19 - Management indicated that the incremental costs related to COVID-19 were very minor, primarily associated with remote working [45] Question: Global methanol demand recovery - Management noted that demand outside China remains under pressure and is slow to recover, with significant declines still observed compared to Q4 2019 [46][47] Question: Inventory levels at Chinese ports - Management characterized current inventory levels in China as normal, despite a rise due to increased demand from MTO operations [51] Question: Methanol market contraction - Management explained that their sales volumes contracted more than the industry average due to a strategic decision to take certain plants offline in response to declining demand [60][62] Question: Turnaround plans for G1 and G2 - Management stated that G1 is not due for a turnaround for another three years, while G2 is approaching its turnaround schedule [64] Question: Trinidad gas supply negotiations - Management confirmed ongoing negotiations with the government to secure a profitable gas supply arrangement, with no immediate updates available [108] Question: MTO operating rates - Management reported that MTO operations remained high at around 90% during Q2, despite low pricing for ethylene and propylene [112] Question: Working capital and liquidity strategy - Management highlighted a positive working capital move in Q2, driven by methanol prices, and emphasized tight management of working capital going forward [120][124] Question: Methanol as a clean fuel alternative - Management reiterated that methanol is a viable alternative fuel and can meet future environmental standards, emphasizing its flexibility and availability [135]

Methanex Corp (NASDAQ:MEOH) Q1 2020 Earnings Conference Call May 6, 2020 11:00 AM ET Company Participants Kim Campbell - Director, IR John Floren - President, CEO & Director Ian Cameron - SVP, Finance & CFO Conference Call Participants Benjamin Isaacson - Scotiabank Steven Hansen - Raymond James Jacob Bout - CIBC Capital Markets Joel Jackson - BMO Capital Markets Michael Leithead - Barclays Bank Hassan Ahmed - Alembic Global Advisors Nelson Ng - RBC Capital Markets Jonas Oxgaard - Sanford C. Bernstein & Co. ...

Methanex Corporation (NASDAQ:MEOH) Q4 2019 Earnings Conference Call January 30, 2020 11:00 AM ET Company Participants Kim Campbell - IR John Floren - President and CEO Conference Call Participants Michael Leithead - Barclays Capital Joel Jackson - BMO Capital Markets Steve Hansen - Raymond James Cherilyn Radbourne - TD Securities Matthew Blair - Tudor, Pickering, Holt & Co. Jonas Oxgaard - Bernstein Nelson Ng - RBC Capital Markets Eric Petrie - Citigroup Global Markets Hassan Ahmed - Alembic Global Advisors ...

Methanex Corporation (NASDAQ:MEOH) Q3 2019 Earnings Conference Call October 31, 2019 11:00 AM ET Company Participants Kim Campbell - Investor Relations John Floren - President and Chief Executive Officer Ian Cameron - Chief Financial Officer and Senior Vice President-Finance Conference Call Participants Michael Leithead - Barclays Capital Eric Petrie - Citigroup Global Markets Jacob Bout - CIBC World Markets Joel Jackson - BMO Capital Markets Hassan Ahmed - Alembic Global Advisors John Roberts - UBS Steve H ...

Methanex Corporation (NASDAQ:MEOH) Q2 2019 Earnings Conference Call August 1, 2019 12:00 PM ET Company Participants Kim Campbell ??? Investor Relations John Floren ??? President and Chief Executive Officer Vanessa James ??? Senior Vice President-Global Marketing & Logistics Ian Cameron ??? Senior Vice President-Finance & Chief Financial Officer Conference Call Participants Mike Leithead ??? Barclays Joel Jackson ??? BMO Capital Markets Jacob Bout ??? CBIC Eric Petrie ??? Citi Cherilyn Radbourne ??? TD Secur ...