Core Viewpoint - The Schall Law Firm is investigating Methanex Corporation for potential violations of securities laws related to misleading statements and undisclosed information impacting investors [1][2]. Group 1: Investigation Details - The investigation centers on whether Methanex issued false or misleading statements or failed to disclose critical information to investors [2]. - Methanex announced an unplanned outage at its 1.8 million tonne methanol plant, Geismar 3, in Louisiana, which occurred in late February 2025 [2]. - Following the announcement, Methanex's shares dropped by 12.9% on March 10, 2025, due to analyst downgrades [2]. Group 2: Company Background - Methanex Corporation is a significant player in the methanol production industry, with a notable facility in Geismar, Louisiana [2]. - The company is currently working on repairs to the autothermal reformer (ATR) at the affected plant, with an estimated startup date projected for early May 2025 [2].

Core Viewpoint - Methanex Corporation is under investigation for potential securities fraud and unlawful business practices following an unplanned outage at its Geismar 3 methanol plant, which has led to a significant stock price decline [1][2][3]. Group 1: Company Operations - Methanex announced that its Geismar 3 methanol plant in Louisiana experienced an unplanned outage in late February 2025, prompting management to undertake repairs to the autothermal reformer (ATR) [2]. - The company estimates that the plant will restart by early May 2025 after completing various inspections and repairs [2]. Group 2: Market Reaction - Following the announcement of the outage, Methanex's stock price fell by $5.45 per share, representing a 12.9% decrease, closing at $36.80 per share on March 10, 2025 [3]. - Scotiabank downgraded Methanex's stock rating from Sector Outperform to Sector Perform in response to the outage news [2]. Group 3: Legal Investigation - Pomerantz LLP is investigating claims on behalf of Methanex investors regarding possible securities fraud or other unlawful business practices by the company and its officers or directors [1].

Core Insights - Methanex Corporation's Geismar 3 plant experienced an unplanned outage in late February, impacting second-quarter financial results due to lower methanol sales, although repair costs are not expected to be significant [1] - The plant is projected to restart by early May 2025 after inspections and repairs, with planned maintenance work being expedited [2] - Methanex's production guidance for 2025 is approximately 7.5 million tons, excluding additional production from OCI assets post-acquisition [3] Financial Performance - A significant increase in adjusted EBITDA is anticipated in the first quarter of 2025 compared to the fourth quarter, with produced sales expected to align with fourth quarter 2024 levels and a higher average realized price [4] - The expected average realized price for methanol is projected to be between $395 to $405 per ton for January and February [4] Market Position - Methanex currently holds a Zacks Rank of 3 (Hold), while competitors such as Ingevity Corporation, Carpenter Technology Corporation, and ArcelorMittal have higher rankings [5] - Ingevity has a current-year earnings estimate of $4.45 per share, with a notable earnings surprise average of 202.9% over the past four quarters [6] - Carpenter Technology's earnings estimate is $6.95 per share, with a consistent record of beating estimates and a share price increase of 168.7% in the past year [7] - ArcelorMittal's earnings estimate stands at $3.72 per share, with a mixed record of surpassing estimates [8]

Core Viewpoint - Methanex Corporation's Geismar 3 methanol plant in Louisiana experienced an unplanned outage, with repairs expected to be completed by early May 2025, impacting second quarter financial results due to lower methanol sales [1][2]. Group 1: Plant Operations - The Geismar 3 plant has a production capacity of 1.8 million tonnes of methanol [1]. - Management has decided to repair the autothermal reformer (ATR) during the outage, which will allow for the completion of other planned maintenance work [2]. - The outage is anticipated to primarily affect the second quarter financial results due to reduced methanol sales [2]. Group 2: Financial Impact - The cost of repairs is not expected to be material, indicating that the financial burden from the outage may be limited [2]. - The previously budgeted three-week outage for planned maintenance is no longer expected to be required, suggesting potential operational efficiencies [2]. Group 3: Company Overview - Methanex is the world's largest supplier of methanol and is publicly traded on the Toronto Stock Exchange and Nasdaq [3]. - The company is headquartered in Vancouver, British Columbia, and operates globally [3].

Core Insights - Methanex Corporation released its 2024 Sustainability Report, highlighting progress on sustainability topics relevant to the company and its stakeholders [1] - The company achieved its best-ever safety performance in 2024, ranking in the top ten percent for safety among members of the American Chemistry Council's Responsible Care [2] - Methanex is recognized as the world's largest producer and supplier of methanol, contributing to sustainable solutions and improving everyday life [2][3] Company Overview - Methanex is a publicly traded company based in Vancouver, Canada, and is the largest global supplier of methanol [3] - The company's shares are listed on the Toronto Stock Exchange under the symbol "MX" and on the Nasdaq under "MEOH" [3] - Methanex emphasizes its commitment to safety, environmental impact reduction, and community contributions in its sustainability efforts [2]

[2024 Financial Highlights](index=4&type=section&id=2024%20Financial%20Highlights) 2024 Financial Highlights (U.S.$ millions, except where noted) | Metric | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Operations** | | | | | | | Revenue | 3,720 | 3,723 | 4,311 | 4,415 | 2,650 | | Net income (loss) (attributable to Methanex shareholders) | 164 | 174 | 354 | 482 | (157) | | Adjusted net income (loss) | 252 | 153 | 343 | 460 | (123) | | Adjusted EBITDA | 764 | 622 | 932 | 1,108 | 346 | | Cash flows from operating activities | 737 | 660 | 987 | 994 | 461 | | **Diluted per Share Amounts (U.S.$ per common share)** | | | | | | | Net income (loss) (attributable to Methanex shareholders) | 2.39 | 2.57 | 4.86 | 6.13 | (2.06) | | Adjusted net income (loss) | 3.72 | 2.25 | 4.79 | 6.03 | (1.62) | | **Financial Position** | | | | | | | Cash and cash equivalents | 892 | 458 | 858 | 932 | 834 | | Total assets | 6,597 | 6,427 | 6,631 | 6,090 | 5,696 | | Long-term debt, including current portion | 2,415 | 2,142 | 2,152 | 2,158 | 2,363 | | Net debt to capitalization | 39% | 44% | 35% | 39% | 51% | | **Other Information** | | | | | | | Average realized price (U.S.$ per tonne) | 355 | 333 | 397 | 393 | 247 | | Total sales volume (000s tonnes) | 10,469 | 11,169 | 10,774 | 11,184 | 10,740 | | Sales of Methanex-produced methanol (000s tonnes) | 6,094 | 6,455 | 6,141 | 6,207 | 6,704 | | Total production (000s tonnes) | 6,358 | 6,642 | 6,118 | 6,514 | 6,614 | [President's Message to Shareholders](index=5&type=section&id=President's%20Message%20to%20Shareholders) [2024 Achievements and Strategic Milestones](index=5&type=section&id=2.1%202024%20Achievements%20and%20Strategic%20Milestones) The company achieved record safety performance, completed the Geismar 3 plant, and announced the OCI Global acquisition for long-term growth - Achieved **best-ever safety performance**, placing the company in the top ten percent of safety performance among the American Chemistry Council's Responsible Care® members[22](index=22&type=chunk)[24](index=24&type=chunk) - Successfully started up the **1.8 million tonne Geismar 3 (G3) plant** in July, completing commercial performance tests in October, which strengthens the asset portfolio and cash flow capability with the lowest carbon intensity plant[22](index=22&type=chunk)[25](index=25&type=chunk) - Announced the acquisition of OCI Global's international methanol business for approximately **$2.05 billion**, subject to regulatory approval, expected to drive shareholder value by adding world-scale North American methanol assets at an attractive price and increasing exposure to stable, low-cost natural gas[22](index=22&type=chunk)[26](index=26&type=chunk) [Portfolio Management and Gas Dynamics](index=5&type=section&id=2.2%20Portfolio%20Management%20and%20Gas%20Dynamics) Methanex actively managed its global natural gas portfolio by extending contracts, restarting Titan while idling Atlas, and optimizing New Zealand operations - Extended gas contracts in Chile until 2030 with Chilean producers and 2027 with Argentinian producers, underpinning higher production levels and driving a **fourth consecutive annual increase in production guidance for Chile for 2025**[27](index=27&type=chunk) - Restarted the wholly-owned **Titan plant** in Trinidad in September 2024 after being idle since 2019, and idled the Atlas plant following the expiration of its 20-year gas supply agreement[23](index=23&type=chunk)[28](index=28&type=chunk) - Made the decision to **indefinitely idle one of the New Zealand plants** and optimize to a one-plant operation due to the medium-term gas outlook, after temporarily halting operations in August 2024 to provide natural gas to the New Zealand electricity market[23](index=23&type=chunk)[28](index=28&type=chunk) [Low-Carbon Future and Market Performance](index=6&type=section&id=2.3%20Low-Carbon%20Future%20and%20Market%20Performance) The company advanced its low-carbon objectives and benefited from tight methanol markets, which drove higher pricing and strong financial results - Continued to progress low-carbon objectives, focusing on methanol as a marine fuel with over **350 methanol dual-fuel vessels expected by 2030**, and partnered with Entropy for a carbon capture, utilization, and sequestration study at the Medicine Hat plant[31](index=31&type=chunk) - Tight industry fundamentals in 2024, driven by demand growth and tight supply, led to a **$22 per metric tonne increase in average realized price** compared to 2023[32](index=32&type=chunk) 2024 Financial Performance (vs. 2023) | Metric | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA (U.S.$ millions) | 764 | 622 | +142 | | Adjusted net income per share (U.S.$) | 3.72 | 2.25 | +1.47 | [Financial Strength and 2025 Outlook](index=6&type=section&id=2.4%20Financial%20Strength%20and%202025%20Outlook) Methanex maintained a strong financial position in 2024 and is well-positioned for 2025 with an enhanced asset base and focus on debt reduction - Completed the Geismar 3 project on budget, repaid a **$300 million bond**, and executed a financing plan for the OCI acquisition, ending 2024 with **$892 million in cash**[33](index=33&type=chunk) - For 2025, key priorities include safely executing core business, closing the OCI transaction, integrating OCI assets to achieve synergies, and **reducing debt by $550 million to $600 million** over the next 18 months[35](index=35&type=chunk) - Expected significant enhancement in production capability in 2025 with G3 startup and OCI acquisition, shifting approximately **65% of production to North America** with stable, low-cost gas supply[34](index=34&type=chunk) [Chair's Message to Shareholders](index=7&type=section&id=Chair's%20Message%20to%20Shareholders) [OCI Global Acquisition Oversight](index=7&type=section&id=3.1%20OCI%20Global%20Acquisition%20Oversight) The Board of Directors provided robust oversight for the OCI Global acquisition, ensuring alignment with the company's strategic pillars - The Board established a Manufacturing Special Committee and a Transaction Special Committee to oversee the OCI acquisition process, including manufacturing due diligence, strategic rationale, valuation, bid contents, and financing[40](index=40&type=chunk)[41](index=41&type=chunk) - The acquisition was **unanimously approved by the Board**, aligning with Methanex's strategy of global leadership, low cost, and operational excellence, and its disciplined capital allocation philosophy[39](index=39&type=chunk)[42](index=42&type=chunk) [Board Composition and Director Recognition](index=7&type=section&id=3.2%20Board%20Composition%20and%20Director%20Recognition) The Board's diverse skill set was crucial for informed decision-making, and the Chair recognized the contributions of two retiring directors - The Board's composition includes directors with deep chemical industry knowledge, strong financial backgrounds, experience with large capital assets, and understanding of commodity cycles, enabling robust decision-making[43](index=43&type=chunk) - Recognized retiring directors **Bob Kostelnik** for his invaluable experience in methanol price cycles and 10 years as Chair of the Responsible Care Committee, and **Margaret Walker** for her diverse corporate skills and advocacy for safety and Responsible Care[44](index=44&type=chunk) [Management's Discussion and Analysis](index=8&type=section&id=Management's%20Discussion%20and%20Analysis) [Overview of the Business](index=8&type=section&id=4.1%20Overview%20of%20the%20Business) Methanex is the world's largest producer and supplier of methanol, a commodity chemical used in diverse applications - Methanol is a clear liquid commodity chemical produced from natural gas (and coal in China), with approximately **50% of global demand from traditional chemical derivatives**, over 30% from energy-related applications, and about 20% from methanol-to-olefins (MTO)[51](index=51&type=chunk) - Methanex is the world's largest producer and supplier of methanol, serving customers in Asia Pacific, North America, Europe, and South America, with a total annual operating capacity of **10.6 million tonnes** across six countries[52](index=52&type=chunk) - The company supplements its own production by purchasing methanol from others under off-take contracts and on the spot market, providing flexibility in managing its supply chain and meeting customer needs[52](index=52&type=chunk)[53](index=53&type=chunk) [Acquisition of OCI Global's Methanol Business](index=9&type=section&id=4.1.1%20Acquisition%20of%20OCI%20Global's%20Methanol%20Business) Methanex announced the acquisition of OCI Global's international methanol business for approximately $2.05 billion, expected to close in Q2 2025 - On September 8, 2024, Methanex agreed to acquire OCI Global's international methanol business for approximately **$2.05 billion**, including a 910,000 MT methanol facility and a 50% interest in the 1.7 million MT Natgasoline facility (Methanex's share: 850,000 MT)[54](index=54&type=chunk) - The purchase price consists of **$1.18 billion in cash**, **9.9 million common shares** of Methanex (valued at $450 million), and the assumption of approximately **$450 million in debt and leases**[55](index=55&type=chunk) - Closing is expected in **Q2 2025**, subject to regulatory approvals and other conditions, with an ongoing legal proceeding between OCI and its Natgasoline joint venture partner potentially allowing Methanex to carve out the Natgasoline purchase[55](index=55&type=chunk)[56](index=56&type=chunk) [2024 Industry Overview & Outlook](index=9&type=section&id=4.1.2%202024%20Industry%20Overview%20%26%20Outlook) Global methanol demand increased in 2024, driven by traditional and energy applications, with limited new supply expected in the next five years - Global methanol demand increased to approximately **97 million tonnes in 2024**, primarily due to growth in traditional chemical and energy applications and stable demand from the MTO sector[58](index=58&type=chunk) - Methanol is gaining interest as a marine fuel, with over **350 dual-fueled ships expected by 2030**, and as a vehicle fuel in China (M100 taxis and trucks) and a cleaner thermal fuel for industrial boilers, kilns, and cooking stoves[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - In 2024, approximately **1.5 million tonnes of production capacity were added in China**, and Methanex's **1.8 million tonne Geismar 3 facility** became fully operational; however, overall production in Trinidad decreased by about 1 million tonnes annually due to the idling of Atlas and restart of Titan[65](index=65&type=chunk) Methanol Price Trends | Metric | 2024 | 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Average realized price (U.S.$ per tonne) | 355 | 333 | +22 | [Our Strategy](index=10&type=section&id=4.2%20Our%20Strategy) Methanex's strategy is built on global leadership, low cost, and operational excellence, underpinned by a commitment to sustainability - The company's primary objective is to create value through leadership in global methanol production, marketing, and delivery, guided by a strategy of **leadership, low cost, and operational excellence**[67](index=67&type=chunk) - Leadership is maintained through its position as the leading producer and supplier (**11% of global demand in 2024**), extensive global supply chain, and ability to supplement production with third-party methanol[68](index=68&type=chunk)[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) - A low-cost structure is achieved by managing natural gas costs through **methanol-price-linked contracts** (outside North America) and **fixed-price contracts/hedges** (North America), and optimizing distribution costs via its shipping fleet and geographic product exchanges[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) - Operational excellence encompasses manufacturing, supply chain, marketing, sales, Responsible Care (safety, environmental stewardship, social responsibility), and financial management, including successful completion of the Geismar 3 project and OCI acquisition financing[76](index=76&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) - Sustainability is embedded in the long-term strategy, prioritizing material topics like **GHG emissions**, transition to a low-carbon economy, and employee/process safety, with a focus on diversity, equity, and inclusion[80](index=80&type=chunk)[82](index=82&type=chunk)[84](index=84&type=chunk) [Financial Highlights](index=12&type=section&id=4.3%20Financial%20Highlights%20(MD%26A)) Adjusted net income and Adjusted EBITDA significantly improved year-over-year, while net income attributable to shareholders saw a minor decrease 2024 Financial Highlights (U.S.$ millions, except as noted) | Metric | 2024 | 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Production (thousands of tonnes) | 6,358 | 6,642 | -284 | | Total sales volume (thousands of tonnes) | 10,469 | 11,169 | -700 | | Methanex average non-discounted posted price ($ per tonne) | 508 | 434 | +74 | | Average realized price ($ per tonne) | 355 | 333 | +22 | | Revenue | 3,720 | 3,723 | -3 | | Net income (attributable to Methanex shareholders) | 164 | 174 | -10 | | Adjusted net income | 252 | 153 | +99 | | Adjusted EBITDA | 764 | 622 | +142 | | Cash flows from operating activities | 737 | 660 | +77 | | Diluted net income per common share ($ per share) | 2.39 | 2.57 | -0.18 | | Adjusted net income per common share ($ per share) | 3.72 | 2.25 | +1.47 | [Production Summary](index=13&type=section&id=4.4%20Production%20Summary) Total production decreased in 2024 due to reduced output in New Zealand and Trinidad, partially offset by increases in the US and Chile Annual Operating Capacity and Actual Production (Thousands of tonnes) | Facility | Annual operating capacity | 2024 Production | 2023 Production | Change (YoY) | | :--- | :--- | :--- | :--- | :--- | | USA (Geismar) | 4,000 | 2,529 | 2,142 | +387 | | Trinidad (Methanex interest) | 1,960 | 956 | 1,074 | -118 | | New Zealand | 1,720 | 670 | 1,381 | -711 | | Chile | 1,700 | 1,180 | 993 | +187 | | Egypt (50% interest) | 630 | 460 | 504 | -44 | | Canada (Medicine Hat) | 600 | 563 | 548 | +15 | | **Total** | **10,610** | **6,358** | **6,642** | **-284** | - USA (Geismar) production increased significantly in 2024 due to the successful startup and commercial operation of the **Geismar 3 plant** in October[89](index=89&type=chunk) - Trinidad production decreased as the **Atlas plant was idled** in September 2024 upon gas contract expiration, concurrent with the restart of the Titan plant under a new two-year gas supply agreement[90](index=90&type=chunk) - New Zealand production was **nearly halved** in 2024 due to temporary idling to supply natural gas to the electricity market and the indefinite idling of one of the two Motunui plants based on the medium-term gas outlook[91](index=91&type=chunk) - Chilean production increased in 2024 due to higher gas availability from Argentina, with 2025 production estimated to be between **1.3 - 1.4 million tonnes**, supported by extended gas contracts[93](index=93&type=chunk) [How We Analyze Our Business](index=14&type=section&id=4.5%20How%20We%20Analyze%20Our%20Business) Methanex operates as a single segment and analyzes financial results primarily through Adjusted EBITDA, driven by price, costs, and volume - The company's operations constitute a **single operating segment**: the production and sale of methanol[96](index=96&type=chunk) - Key drivers of changes in Adjusted EBITDA are **average realized price**, **cash costs** (Methanex-produced and purchased methanol, logistics, SG&A), and **sales volume** (excluding commission sales)[98](index=98&type=chunk) - Adjusted EBITDA, Adjusted net income, and Adjusted net income per common share include Methanex's **63.1% equity share in Atlas** and exclude non-controlling interests' share in consolidated entities like Egypt (50%) and Waterfront Shipping (40%)[99](index=99&type=chunk)[100](index=100&type=chunk) [Financial Results](index=15&type=section&id=4.6%20Financial%20Results) Net income decreased due to a non-recurring asset impairment, while Adjusted EBITDA and Adjusted net income increased significantly Net Income and Adjusted Financials (U.S.$ millions, except per share) | Metric | 2024 | 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net income attributable to Methanex shareholders | 164 | 174 | -10 | | Diluted net income per common share | 2.39 | 2.57 | -0.18 | | Adjusted EBITDA | 764 | 622 | +142 | | Adjusted net income | 252 | 153 | +99 | | Adjusted net income per common share | 3.72 | 2.25 | +1.47 | - The decrease in net income was primarily due to a non-recurring **$125 million asset impairment expense** related to the New Zealand cash generating unit, partially offset by higher average realized prices, New Zealand gas sale net proceeds ($103 million), and Egypt insurance proceeds ($59 million)[101](index=101&type=chunk)[106](index=106&type=chunk) [Revenue](index=16&type=section&id=4.6.1%20Revenue) Revenue remained comparable to 2023, as a higher average realized price was offset by lower sales volume Revenue and Average Realized Price | Metric | 2024 | 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue (U.S.$ millions) | 3,720 | 3,723 | -3 | | Average realized price (U.S.$ per tonne) | 355 | 333 | +22 | | Average non-discounted posted price (U.S.$ per tonne) | 508 | 434 | +74 | Geographic Distribution of Revenue by Customer Location (U.S.$ millions) | Region | 2024 Revenue | 2024 % | 2023 Revenue | 2023 % | | :--- | :--- | :--- | :--- | :--- | | China | 828 | 22% | 1,043 | 28% | | Europe | 842 | 23% | 722 | 19% | | United States | 502 | 13% | 575 | 15% | | South America | 479 | 13% | 429 | 12% | | South Korea | 483 | 13% | 392 | 11% | | Other Asia | 402 | 11% | 387 | 10% | | Canada | 184 | 5% | 175 | 5% | | **Total** | **3,720** | **100%** | **3,723** | **100%** | [Adjusted EBITDA (Attributable to Methanex Shareholders)](index=17&type=section&id=4.6.2%20Adjusted%20EBITDA%20(Attributable%20to%20Methanex%20Shareholders)) Adjusted EBITDA increased by $142 million, driven by higher prices and gas sale proceeds, partially offset by lower volume and higher costs Drivers of Change in Adjusted EBITDA (2024 vs. 2023, U.S.$ millions) | Driver | Impact on Adjusted EBITDA | | :--- | :--- | | Average realized price | +206 | | Sales volume | -31 | | Geismar 3 delay costs | -22 | | New Zealand gas sale proceeds, net of gas and fixed costs | +91 | | Total cash costs | -102 | | **Increase in Adjusted EBITDA** | **+142** | - Average realized price increased by **$22 per tonne to $355** in 2024, contributing **$206 million** to Adjusted EBITDA[112](index=112&type=chunk) - Total sales volume (excluding commission sales) decreased to **9.6 million tonnes** in 2024 from 10.0 million tonnes in 2023, reducing Adjusted EBITDA by **$31 million**[113](index=113&type=chunk) - Total cash costs increased by **$102 million**, driven by higher purchased methanol costs ($39 million), increased logistics costs ($39 million), and other net costs ($48 million), partially offset by a $30 million Egypt insurance recovery[119](index=119&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) [Mark-to-Market Impact of Share-Based Compensation](index=19&type=section&id=4.6.3%20Mark-to-Market%20Impact%20of%20Share-Based%20Compensation) A $2 million mark-to-market expense was recorded in 2024 due to an increase in the company's share price - The company's share price increased from **$47.36** at December 31, 2023, to **$49.94** at December 31, 2024[126](index=126&type=chunk)[131](index=131&type=chunk) - A **$2 million mark-to-market expense** related to share-based compensation was recorded in 2024, reflecting the increase in share price and its impact on the fair value of outstanding units[126](index=126&type=chunk)[131](index=131&type=chunk) [Depreciation and Amortization](index=19&type=section&id=4.6.4%20Depreciation%20and%20Amortization) Depreciation and amortization for 2024 was comparable to 2023 Depreciation and Amortization (U.S.$ millions) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Depreciation and amortization | 386 | 392 | [Finance Costs](index=20&type=section&id=4.6.5%20Finance%20Costs) Finance costs increased due to financing fees for the OCI Acquisition and additional interest on new debt Finance Costs (U.S.$ millions) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Finance costs before capitalized interest | 184 | 172 | | Less capitalized interest | (51) | (55) | | **Finance costs** | **133** | **117** | - Finance costs were higher primarily due to financing fees incurred on a bridge facility for the **OCI Acquisition** and additional interest on new debt issued[133](index=133&type=chunk) - Capitalized interest decreased as the **Geismar 3 plant** completed its commercial performance tests in October 2024, ceasing interest capitalization[133](index=133&type=chunk) [Finance Income and Other](index=20&type=section&id=4.6.6%20Finance%20Income%20and%20Other) Finance income and other decreased significantly due to foreign exchange impacts and lower interest income Finance Income and Other (U.S.$ millions) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Finance income and other before gas supply contract mark-to-market impact | 9 | 31 | | New Zealand gas contract mark-to-market impact | 9 | - | | Egypt gas supply contract mark-to-market impact | (6) | 9 | | **Finance income and other expenses** | **12** | **40** | - The decrease was primarily due to changes in foreign exchange rates, lower interest income earned on cash balances, and the mark-to-market impact on the New Zealand and Egypt gas supply contracts[134](index=134&type=chunk) [Income Taxes](index=20&type=section&id=4.6.7%20Income%20Taxes) Income tax expense increased in 2024, while the adjusted effective tax rate remained stable Income Tax Summary (U.S.$ millions, except rate) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net income before income tax | 280 | 286 | | Income tax expense | (30) | (1) | | Effective tax rate (consolidated) | 11% | 1% | | Adjusted net income before tax | 325 | 199 | | Adjusted income tax expense | (73) | (46) | | Adjusted effective tax rate | 22% | 23% | - The effective tax rate varies depending on the source of earnings/losses, foreign exchange fluctuations, and changes in tax legislation across jurisdictions (US 22%, New Zealand 28%, Trinidad 38%, Chile 35%, Egypt 32.5%, Canada 24.5%)[136](index=136&type=chunk)[137](index=137&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=4.7%20Liquidity%20and%20Capital%20Resources) The company significantly improved its liquidity position, managed debt, and secured financing for the OCI Acquisition Liquidity and Capitalization (U.S.$ millions, except ratios) | Metric | Dec 31, 2024 | Dec 31, 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 892 | 458 | +434 | | Undrawn credit facility | 500 | 300 | +200 | | **Total liquidity** | **1,392** | **758** | **+634** | | Total debt | 2,415 | 2,142 | +273 | | Total capitalization | 4,797 | 4,315 | +482 | | Total debt to capitalization | 50% | 50% | 0% | | Net debt to capitalization | 39% | 44% | -5% | - The company successfully repaid **$300 million of unsecured notes** due in December 2024 using cash from operations and completed the financing plan for the OCI Acquisition, including issuing **$600 million of unsecured notes**[143](index=143&type=chunk)[146](index=146&type=chunk) - The revolving credit facility was renewed and increased to **$500 million** (from $300 million), with further increases to $600 million and a $650 million term loan commitment subject to the OCI Acquisition closing[150](index=150&type=chunk) [Cash Flow Highlights](index=22&type=section&id=4.7.1%20Cash%20Flow%20Highlights) Operating cash flows increased, while cash used in financing and investing activities decreased significantly Cash Flow Summary (U.S.$ millions) | Activity | 2024 | 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Cash flows from operating activities | 737 | 660 | +77 | | Cash flows from financing activities | (205) | (551) | +346 | | Cash flows from investing activities | (100) | (509) | +409 | | Increase (decrease) in cash and cash equivalents | 432 | (400) | +832 | - Operating cash flows increased due to higher operational earnings, partially offset by a **$124 million decrease** from changes in non-cash working capital, mainly due to decreased accounts payable and accrued liabilities[140](index=140&type=chunk)[141](index=141&type=chunk) - Financing activities included **no share repurchases in 2024** (vs. $86 million in 2023), dividend payments of $50 million (up from $49 million), and net proceeds of **$585 million** from new long-term debt issuance[142](index=142&type=chunk)[143](index=143&type=chunk) - Investing activities saw capital expenditures for property, plant, and equipment decrease to **$101 million** (from $178 million) and for the Geismar 3 project decrease to **$73 million** (from $270 million)[145](index=145&type=chunk) [Summary of Contractual Obligations and Commercial Commitments](index=24&type=section&id=4.7.2%20Summary%20of%20Contractual%20Obligations%20and%20Commercial%20Commitments) The company has significant contractual obligations totaling $7.38 billion, primarily for debt, leases, and natural gas purchases Contractual Obligations and Commercial Commitments (U.S.$ millions) | Obligation Type | 2025 | 2026-2027 | 2028-2029 | After 2029 | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Long-term debt repayments | 14 | 729 | 732 | 968 | 2,443 | | Long-term debt interest obligations | 135 | 261 | 192 | 347 | 935 | | Lease obligations | 169 | 264 | 226 | 423 | 1,082 | | Repayments of other long-term liabilities | 53 | 40 | 15 | 90 | 198 | | Natural gas and other | 518 | 728 | 551 | 766 | 2,563 | | Other commitments | 86 | 39 | 33 | 2 | 160 | | **Total** | **975** | **2,061** | **1,749** | **2,596** | **7,381** | - Long-term debt includes **$700 million** unsecured notes due in 2027, **$700 million** in 2029, **$600 million** in 2032, and **$300 million** in 2044[156](index=156&type=chunk) - Natural gas commitments include take-or-pay contracts with base and variable price components linked to methanol prices, and fixed-price contracts/hedges for North American facilities[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) [Risk Factors and Risk Management](index=27&type=section&id=4.8%20Risk%20Factors%20and%20Risk%20Management) The company faces a range of risks including methanol price cyclicality, macroeconomic factors, financial risks, and operational challenges - Methanol prices are **highly cyclical** and depend on global supply and demand, which are influenced by economic strength, industrial production, energy prices, and government policies[174](index=174&type=chunk)[175](index=175&type=chunk) - The company is exposed to macroeconomic risks such as **global economic conditions**, geopolitical disputes, trade restrictions, and potential pandemics, which can impact demand, costs, and operations[184](index=184&type=chunk)[185](index=185&type=chunk)[189](index=189&type=chunk)[191](index=191&type=chunk) - Financial risks include taxation, liquidity (maintaining credit facility covenants), indebtedness (**higher leverage post-OCI acquisition**), foreign currency fluctuations, customer credit, and insurance coverage[193](index=193&type=chunk)[195](index=195&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) - Operational risks are significant, particularly regarding the **security and price of natural gas supply** across its global facilities, production reliability, successful execution of capital projects, and the integration of the OCI Global acquisition[204](index=204&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk)[224](index=224&type=chunk) - Climate-related risks include regulatory changes (GHG legislation, carbon taxes, marine decarbonization targets) and physical impacts (water scarcity, extreme weather), which could increase costs or disrupt operations[246](index=246&type=chunk)[247](index=247&type=chunk)[249](index=249&type=chunk)[250](index=250&type=chunk) - Regulatory and compliance risks involve environmental regulations, chemical control laws (TSCA, REACH), and potential litigation, including tax assessments in Trinidad and Tobago[253](index=253&type=chunk)[256](index=256&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk) [Methanol Market Fundamentals](index=27&type=section&id=4.8.1%20Methanol%20Market%20Fundamentals) Methanol prices are highly cyclical and influenced by global supply and demand dynamics, with limited new capacity expected near-term - Methanol prices are **highly competitive and cyclical**, driven by global demand (traditional chemicals, energy applications, MTO) and supply (production costs, operating rates, capacity changes)[174](index=174&type=chunk)[175](index=175&type=chunk)[181](index=181&type=chunk) - Demand for energy-related applications (over 30% of global demand) and MTO (approx. 20%) is **sensitive to energy prices** and the competitiveness of methanol against other feedstocks[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk) - Global methanol supply is impacted by trade sanctions, technical issues, and natural gas constraints, with **limited capacity additions expected in the next five years**, though potential easing of sanctions in Iran could increase supply[182](index=182&type=chunk) [Macroeconomic Risks](index=28&type=section&id=4.8.2%20Macroeconomic%20Risks) Methanex is exposed to global economic conditions, political risks, trade restrictions, and potential pandemic impacts - Deteriorating global economic conditions or inflationary pressures can negatively impact methanol supply/demand, access to credit, and increase default risks for counterparties[184](index=184&type=chunk) - Global operations expose the company to **political risks** (expropriation, import/export restrictions, war, civil unrest), increased duties/taxes, and changes in laws, particularly in certain jurisdictions[185](index=185&type=chunk) - Global trade in methanol is subject to duties and tariffs, with potential for new restrictions that could limit market access or increase supply chain costs, such as the **25% duty on US methanol imported to China**[189](index=189&type=chunk) - Pandemic risks can lead to substantial reductions in global manufacturing, supply chain disruptions, and increased exposure to various business risks[191](index=191&type=chunk)[192](index=192&type=chunk) [Financial Risks](index=29&type=section&id=4.8.3%20Financial%20Risks) The company faces taxation, liquidity, and increased indebtedness risks, as well as foreign currency and credit default exposures - The company is subject to taxes, duties, and levies in numerous jurisdictions, including the **global minimum tax (Pillar Two rules)**, with potential for adverse impacts from new taxes or rate increases[193](index=193&type=chunk) - Liquidity is supported by **$892 million cash** and a **$500 million undrawn revolving credit facility**, but access is subject to meeting financial covenants (interest coverage ratio, funded debt to total capitalization)[195](index=195&type=chunk) - The OCI Acquisition will result in **higher indebtedness**, requiring sufficient cash generation to meet planned debt repayments and achieve leverage goals[200](index=200&type=chunk) - Exposure to **foreign currency risk** exists as some operating costs and capital expenditures are in non-USD currencies, and a portion of revenue is earned in Chinese yuan and euros[201](index=201&type=chunk) [Operational Risks](index=31&type=section&id=4.8.4%20Operational%20Risks) Key operational risks include natural gas supply, production disruptions, capital project execution, and OCI acquisition integration - **Security and price of natural gas supply is critical**; disruptions or uneconomical terms could force production curtailments or plant shutdowns across US, Trinidad, New Zealand, Chile, Egypt, and Canada operations[204](index=204&type=chunk)[207](index=207&type=chunk)[210](index=210&type=chunk)[212](index=212&type=chunk)[216](index=216&type=chunk)[218](index=218&type=chunk)[220](index=220&type=chunk) - Production risks include process safety events, equipment breakdowns, feedstock interruptions, power failures, and prolonged maintenance, which could lead to plant shutdowns[221](index=221&type=chunk) - The **OCI Acquisition carries risks** such as failure to close due to regulatory approvals, potential carve-out of the Natgasoline joint venture, failure to realize anticipated benefits/synergies, unexpected costs, and significant demands on personnel and systems during integration[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk)[230](index=230&type=chunk) - Other operational risks include new technologies making plants obsolete, disputes in joint arrangements, holding losses on purchased methanol, supply chain interruptions, excess shipping capacity, talent attraction/retention, sophisticated cybersecurity threats, and reputational damage from various events[235](index=235&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk)[242](index=242&type=chunk)[245](index=245&type=chunk) [Climate Related Risks](index=36&type=section&id=4.8.5%20Climate%20Related%20Risks) Methanex faces transition risks from GHG legislation and physical risks from climate change impacts like water scarcity and extreme weather - Transition risks include **GHG legislation and carbon prices** in New Zealand, Canada, and Chile, and the EU's Emissions Trading System (ETS) for Waterfront Shipping, which increase operating costs and may impact competitiveness[247](index=247&type=chunk) - Physical impacts of climate change, such as **water scarcity**, changing sea/river levels, and severe storms, could adversely affect production at facilities (e.g., New Zealand, Geismar, Medicine Hat, Egypt) and disrupt methanol transport[250](index=250&type=chunk)[251](index=251&type=chunk) - Marine demand for low-carbon methanol is influenced by EU and IMO regulations aiming to reduce maritime GHG emissions, but there's **no assurance low-carbon methanol will be the preferred fuel**[249](index=249&type=chunk) [Regulatory and Compliance Risks](index=37&type=section&id=4.8.6%20Regulatory%20and%20Compliance%20Risks) The company is subject to stringent environmental laws, potential changes in chemical regulations, and litigation risks - The company is subject to environmental laws and regulations governing hazardous materials, emissions, and natural resources, with **increasing stringency and potential for absolute liability**[253](index=253&type=chunk)[254](index=254&type=chunk) - Changes in chemical control laws (TSCA, REACH, CLP) or reclassification of methanol's toxicity could **reduce future methanol demand**[256](index=256&type=chunk)[257](index=257&type=chunk) - Litigation risks include breach of contract, product liability, tax disputes, and environmental damage claims; the company is currently defending against **tax assessments in Trinidad and Tobago** for the 2005-2018 financial years[262](index=262&type=chunk)[263](index=263&type=chunk)[266](index=266&type=chunk) [Critical Accounting Estimates](index=38&type=section&id=4.9%20Critical%20Accounting%20Estimates) Financial reporting relies on critical estimates for property, plant, and equipment, income taxes, and fair value of financial instruments - Critical accounting estimates include property, plant and equipment (capitalization, depreciation, recoverability), income taxes, and fair value measurement of financial instruments[268](index=268&type=chunk) - Estimates for asset recoverability depend on future methanol prices and natural gas availability, with a non-cash asset impairment charge of **$125 million recorded in 2024** for the New Zealand CGU due to a shift to single-plant operation[276](index=276&type=chunk)[278](index=278&type=chunk) - Income tax estimates involve assessing uncertain tax positions and deferred tax assets, which are complex due to varying tax laws and interpretations across jurisdictions[280](index=280&type=chunk)[281](index=281&type=chunk) - Fair value measurement of financial instruments, particularly complex natural gas supply contracts in Egypt and New Zealand, relies on Monte-Carlo and economic models with significant unobservable inputs (**Level 3 hierarchy**)[282](index=282&type=chunk)[285](index=285&type=chunk)[289](index=289&type=chunk) [Property, Plant and Equipment](index=38&type=section&id=4.9.1%20Property,%20Plant%20and%20Equipment) The net book value of property, plant, and equipment was $4.2 billion, with a $125 million impairment charge recorded for the New Zealand CGU - Net book value of property, plant and equipment was **$4.2 billion** as at December 31, 2024[269](index=269&type=chunk) - Estimated useful lives of assets (up to 25 years) are primarily determined by **natural gas feedstock availability** and are reviewed annually[273](index=273&type=chunk) - An asset impairment charge of **$125 million** ($90 million after-tax) was recorded in 2024 to write down the New Zealand CGU to its recoverable amount, following the decision to restructure to a single-plant operation due to a forecasted decline in gas profile[278](index=278&type=chunk) [Income Taxes](index=40&type=section&id=4.9.2%20Income%20Taxes) Income tax provisions are calculated for each jurisdiction, with recognition of deferred tax assets dependent on future taxable profit - Income tax expense and recoveries are not final until tax returns are filed and accepted, with potential for material differences from initial estimates due to tax authority challenges and interpretations[280](index=280&type=chunk) - Deferred tax assets are recognized based on the **probability of future taxable income**, requiring judgments on expected profitability, volatility, and tax-planning strategies[281](index=281&type=chunk) - As of December 31, 2024, recognized deferred tax assets totaled **$204 million**, primarily from non-capital loss carryforwards in the United States, Trinidad and Tobago, and New Zealand[281](index=281&type=chunk) [Financial Instruments Measured at Fair Value](index=40&type=section&id=4.9.3%20Financial%20Instruments%20Measured%20at%20Fair%20Value) The company uses derivatives to manage risks, with complex gas supply contracts valued using Level 3 fair value hierarchy models - Derivative financial instruments are used to mitigate market risks (natural gas prices, currency exchange rates) and are measured at fair value, with changes recorded in earnings or other comprehensive income for cash flow hedges[282](index=282&type=chunk) - The long-term natural gas supply contract in Egypt is treated as a derivative and valued using a **Monte-Carlo model (Level 3 fair value hierarchy)** due to the absence of an observable, liquid spot market or forward curve for natural gas in Egypt[283](index=283&type=chunk)[284](index=284&type=chunk)[285](index=285&type=chunk) - The New Zealand natural gas supply contract is also considered a derivative and valued using an **economic model (Level 3 fair value hierarchy)** due to the limited observable market for gas in New Zealand, especially after entering into short-term commercial arrangements to sell gas to the electricity market[286](index=286&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk)[289](index=289&type=chunk) [Adoption of New Accounting Standards](index=41&type=section&id=4.10%20Adoption%20of%20New%20Accounting%20Standards) The company adopted amendments to IAS 1, IFRS 16, and IAS 7, which did not materially impact its financial statements - Adopted amendments to IAS 1 (classification of liabilities), IFRS 16 (sale-and-leaseback transactions), and IAS 7 (supplier finance arrangements) effective January 1, 2024[291](index=291&type=chunk) - The adopted amendments **did not have a material impact** on the company's consolidated financial statements[291](index=291&type=chunk) [Anticipated Changes to International Financial Reporting Standards](index=41&type=section&id=4.11%20Anticipated%20Changes%20to%20International%20Financial%20Reporting%20Standards) The company is reviewing new or amended IFRS standards effective in 2025 and beyond, with the potential impact yet to be determined - The company is reviewing new or amended standards effective January 1, 2025, and subsequent years[292](index=292&type=chunk) - Anticipated changes include amendments to IAS 21 (lack of exchangeability), IFRS 9 and IFRS 7 (classification and measurement of financial instruments, power purchase agreements), and IFRS 18 (replacement of IAS 1)[292](index=292&type=chunk) [Non-GAAP Measures](index=41&type=section&id=4.12%20Non-GAAP%20Measures) The company uses non-GAAP measures like Adjusted EBITDA to provide a better understanding of its underlying performance and financial flexibility - Non-GAAP measures include **Adjusted EBITDA**, **Adjusted net income (loss)**, Adjusted net income (loss) per common share, Adjusted net income (loss) before income tax, Adjusted income tax expense, and Adjusted effective tax rate[293](index=293&type=chunk) - These measures reflect Methanex's economic interests (**63.1% in Atlas**, 50% in Egypt, 60% in Waterfront Shipping) and exclude non-controlling interests and mark-to-market impacts of share-based compensation[293](index=293&type=chunk)[297](index=297&type=chunk)[298](index=298&type=chunk) - Non-GAAP capital management measures, **Net debt to capitalization** and **Total liquidity**, are used to assess the company's liquidity and financing structure risk[294](index=294&type=chunk)[295](index=295&type=chunk) [Quarterly Financial Data (Unaudited)](index=43&type=section&id=4.13%20Quarterly%20Financial%20Data%20(Unaudited)) Quarterly results show fluctuating revenue and net income, with Adjusted EBITDA and Adjusted net income generally increasing through 2024 Quarterly Financial Data (U.S.$ millions, except per share amounts) | Metric | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 949 | 935 | 920 | 916 | 922 | 823 | 939 | 1,038 | | Net income (attributable to Methanex shareholders) | 45 | 31 | 35 | 53 | 33 | 24 | 57 | 60 | | Diluted net income per common share | 0.67 | 0.35 | 0.52 | 0.77 | 0.50 | 0.36 | 0.73 | 0.87 | | Adjusted EBITDA | 224 | 216 | 164 | 160 | 148 | 105 | 160 | 209 | | Adjusted net income | 84 | 82 | 42 | 44 | 35 | 1 | 41 | 76 | | Adjusted net income per common share | 1.24 | 1.21 | 0.62 | 0.65 | 0.52 | 0.02 | 0.60 | 1.11 | [Selected Annual Information](index=43&type=section&id=4.14%20Selected%20Annual%20Information) Annual data shows stable revenue, a slight decrease in net income, but significant improvements in adjusted net income and Adjusted EBITDA Selected Annual Information (U.S.$ millions, except per share amounts) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Total assets | 6,597 | 6,427 | 6,631 | | Total long-term liabilities (excluding deferred income tax) | 3,247 | 2,733 | 3,032 | | Revenue | 3,720 | 3,723 | 4,311 | | Net income (attributable to Methanex shareholders) | 164 | 174 | 354 | | Adjusted net income | 252 | 153 | 343 | | Adjusted EBITDA | 764 | 622 | 932 | | Basic net income per common share | 2.43 | 2.57 | 4.95 | | Diluted net income per common share | 2.39 | 2.57 | 4.86 | | Adjusted net income per common share | 3.72 | 2.25 | 4.79 | | Cash dividends declared per common share | 0.740 | 0.730 | 0.620 | [Controls and Procedures](index=44&type=section&id=4.15%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of year-end 2024 - As of December 31, 2024, disclosure controls and procedures were evaluated and **deemed effective** by management[303](index=303&type=chunk) - Management concluded that internal control over financial reporting was **effective** as of December 31, 2024, based on the COSO framework[306](index=306&type=chunk) - KPMG LLP issued an **unqualified attestation report** on the effectiveness of the company's internal control over financial reporting as of December 31, 2024[307](index=307&type=chunk) - There have been **no material changes** in the company's internal control over financial reporting during the year ended December 31, 2024[308](index=308&type=chunk) [Forward-Looking Statements](index=45&type=section&id=4.16%20Forward-Looking%20Statements) This analysis contains forward-looking statements regarding future events and performance, which involve inherent risks and uncertainties - Forward-looking statements relate to future events or performance, identified by words like 'believes,' 'expects,' 'may,' 'will,' 'should,' 'potential,' 'estimates,' 'anticipates,' 'plan,' 'predict'[310](index=310&type=chunk) - Key forward-looking topics include the anticipated closing and benefits of the **OCI Acquisition**, expected methanol demand and supply, production levels, prices, natural gas availability, capital expenditures, financial strength, and regulatory actions[312](index=312&type=chunk)[313](index=313&type=chunk) - Forward-looking statements involve risks and uncertainties inherent in producing and marketing methanol and executing major capital projects, including conditions in the methanol industry, natural gas prices, and governmental actions[314](index=314&type=chunk)[315](index=315&type=chunk) [Consolidated Financial Statements](index=49&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Financial Position](index=51&type=section&id=5.1%20Consolidated%20Statements%20of%20Financial%20Position) Total assets increased to $6.60 billion, driven by a significant rise in cash, while total liabilities and equity also grew Consolidated Statements of Financial Position (thousands of U.S. dollars) | Metric | Dec 31, 2024 | Dec 31, 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Current assets | 1,910,819 | 1,480,321 | +430,498 | | Cash and cash equivalents | 891,910 | 458,015 | +433,895 | | Trade and other receivables | 473,336 | 533,615 | -60,279 | | Inventories | 453,463 | 426,774 | +26,689 | | Non-current assets | 4,686,307 | 4,946,234 | -259,927 | | Property, plant and equipment | 4,197,509 | 4,411,768 | -214,259 | | Investment in associate | 101,438 | 184,249 | -82,811 | | Deferred income tax assets | 204,091 | 152,250 | +51,841 | | **Total assets** | **6,597,126** | **6,426,555** | **+170,571** | | **LIABILITIES AND EQUITY** | | | | | Current liabilities | 729,616 | 1,302,306 | -572,690 | | Current maturities on long-term debt | 13,727 | 314,716 | -300,989 | | Non-current liabilities | 3,486,244 | 2,951,232 | +535,012 | | Long-term debt | 2,401,208 | 1,827,085 | +574,123 | | Lease obligations | 695,461 | 751,389 | -55,928 | | Deferred income tax liabilities | 239,113 | 217,840 | +21,273 | | **Total liabilities** | **4,215,860** | **4,253,538** | **-37,678** | | Total equity | 2,381,266 | 2,173,017 | +208,249 | | **Total liabilities and equity** | **6,597,126** | **6,426,555** | **+170,571** | [Consolidated Statements of Income](index=52&type=section&id=5.2%20Consolidated%20Statements%20of%20Income) Net income decreased to $250 million, as stable revenue and higher operating income were offset by an asset impairment charge Consolidated Statements of Income (thousands of U.S. dollars) | Metric | 2024 | 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue | 3,719,829 | 3,723,475 | -3,646 | | Cost of sales and operating expenses | (3,009,407) | (3,068,072) | +58,665 | | Depreciation and amortization | (385,703) | (391,830) | +6,127 | | New Zealand gas sale net proceeds | 102,969 | - | +102,969 | | Egypt insurance recovery | 59,065 | - | +59,065 | | Asset impairment charge | (124,788) | - | -124,788 | | Operating income | 361,965 | 263,573 | +98,392 | | Earnings of associate | 38,335 | 99,466 | -61,131 | | Finance costs | (132,634) | (117,366) | -15,268 | | Finance income and other | 12,420 | 39,938 | -27,518 | | Income before income taxes | 280,086 | 285,611 | -5,525 | | Income tax (expense) recovery | (29,841) | (1,489) | -28,352 | | **Net income** | **250,245** | **284,122** | **-33,877** | | Attributable to Methanex Corporation shareholders | 163,986 | 174,140 | -10,154 | | Attributable to Non-controlling interests | 86,259 | 109,982 | -23,723 | | Basic net income per common share | 2.43 | 2.57 | -0.14 | | Diluted net income per common share | 2.39 | 2.57 | -0.18 | [Consolidated Statements of Comprehensive Income](index=53&type=section&id=5.3%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income increased significantly to $222 million, primarily due to a much smaller negative impact from cash flow hedges Consolidated Statements of Comprehensive Income (thousands of U.S. dollars) | Metric | 2024 | 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net income | 250,245 | 284,122 | -33,877 | | Other comprehensive income: | | | | | Change in cash flow hedges and excluded forward element | (23,211) | (310,456) | +287,245 | | Realized losses (gains) on foreign exchange hedges reclassified to revenue | (3,604) | 3,105 | -6,709 | | Amounts reclassified on discontinuation of hedging relationship | 11,702 | - | +11,702 | | Actuarial gain (loss) on defined benefit pension plans | 1,353 | (2,827) | +4,180 | | Taxes on above items | (14,096) | 66,636 | -80,732 | | **Comprehensive income** | **222,389** | **40,580** | **+181,809** | | Attributable to Methanex Corporation shareholders | 136,130 | (69,402) | +205,532 | | Attributable to Non-controlling interests | 86,259 | 109,982 | -23,723 | [Consolidated Statements of Changes in Equity](index=54&type=section&id=5.4%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased to $2.38 billion, driven by net income and realized hedge gains, with share repurchases ceasing in 2024 Consolidated Statements of Changes in Equity (thousands of U.S. dollars) | Metric | Dec 31, 2024 | Dec 31, 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Balance, beginning of year | 2,173,017 | 2,429,457 | -256,440 | | Net income | 250,245 | 284,122 | -33,877 | | Other comprehensive income (loss) | (27,856) | (243,542) | +215,686 | | Compensation expense recorded for stock options | 162 | 124 | +38 | | Issue of shares on exercise of stock options | 227 | 1,437 | -1,210 | | Payments for repurchase of shares | - | (86,392) | +86,392 | | Dividend payments to Methanex Corporation shareholders | (49,867) | (49,378) | -489 | | Distributions made and accrued to non-controlling interests | (40,642) | (185,336) | +144,694 | | Realized hedge losses recognized in cash flow hedges | 75,980 | 22,525 | +53,455 | | **Balance, end of year** | **2,381,266** | **2,173,017** | **+208,249** | [Consolidated Statements of Cash Flows](index=55&type=section&id=5.5%20Consolidated%20Statements%20of%20Cash%20Flows) Cash from operations increased, while cash used in financing and investing decreased, resulting in a substantial increase in cash balances Consolidated Statements of Cash Flows (thousands of U.S. dollars) | Activity | 2024 | 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Cash flows from operating activities | 737,178 | 660,269 | +76,909 | | Cash flows from financing activities | (203,546) | (551,418) | +347,872 | | Cash flows from investing activities | (99,737) | (508,583) | +408,846 | | **Increase (decrease) in cash and cash equivalents** | **433,895** | **(399,732)** | **+833,627** | | Cash and cash equivalents, beginning of year | 458,015 | 857,747 | -399,732 | | **Cash and cash equivalents, end of year** | **891,910** | **458,015** | **+433,895** | [Notes to Consolidated Financial Statements](index=56&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Nature of operations](index=56&type=section&id=6.1%20Nature%20of%20operations) Methanex Corporation is the world's largest producer and supplier of methanol, a commodity chemical, to customers across major global markets - Methanex Corporation is the world's largest producer and supplier of methanol, serving customers globally[352](index=352&type=chunk) - The company's operations consist solely of the production and sale of methanol[352](index=352&type=chunk) [Material accounting policies](index=56&type=section&id=6.2%20Material%20accounting%20policies) Financial statements are prepared under IFRS, with key policies for asset valuation, depreciation, impairment, and financial instruments - Consolidated financial statements are prepared in accordance with **International Financial Reporting Standards (IFRS)** and use the United States dollar as the reporting currency[353](index=353&type=chunk)[355](index=355&type=chunk) - Property, plant and equipment are initially recorded at cost and depreciated on a straight-line basis over estimated useful lives, which are influenced by **natural gas feedstock availability**[359](index=359&type=chunk)[362](index=362&type=chunk)[363](index=363&type=chunk) - Long-lived assets are tested for recoverability when impairment indicators exist, comparing carrying value to the higher of fair value less costs to sell or value in use, with key variables being **methanol price and natural gas availability/price**[364](index=364&type=chunk)[365](index=365&type=chunk)[366](index=366&type=chunk) - Financial instruments are measured at amortized cost or fair value, with derivatives (including embedded derivatives) classified as **fair value through profit or loss** unless designated as cash flow hedges[391](index=391&type=chunk)[392](index=392&type=chunk) - Income tax expense includes current and deferred tax, with deferred tax assets recognized based on the **probability of future taxable profit** and uncertain tax positions measured using management estimates[395](index=395&type=chunk)[397](index=397&type=chunk) [Trade and other receivables](index=61&type=section&id=6.3%20Trade%20and%20other%20receivables) Total trade and other receivables decreased to $473 million, primarily driven by a reduction in 'Other' receivables Trade and Other Receivables (thousands of U.S. dollars) | Category | Dec 31, 2024 | Dec 31, 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Trade | 433,519 | 431,602 | +1,917 | | Value-added and other tax receivables | 22,123 | 22,292 | -169 | | Other | 17,694 | 79,721 | -62,027 | | **Total** | **473,336** | **533,615** | **-60,279** | [Inventories](index=61&type=section&id=6.4%20Inventories) Inventories are valued at the lower of cost or net realizable value, with $2.80 billion recognized as an expense in 2024 - Inventories are valued at the lower of cost (determined on a **first-in, first-out basis**) and estimated net realizable value[403](index=403&type=chunk) Inventories Recognized as Expense (thousands of U.S. dollars) | Metric | 2024 | 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Inventories recognized as expense in cost of sales and operating expenses and depreciation and amortization | 2,800,000 | 2,860,000 | -60,000 | [Property, plant and equipment](index=61&type=section&id=6.5%20Property,%20plant%20and%20equipment) The net book value of property, plant, and equipment decreased to $4.20 billion, including a $125 million asset impairment charge Net Book Value of Property, Plant and Equipment (thousands of U.S. dollars) | Category | Dec 31, 2024 | Dec 31, 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Owned Assets | 3,501,683 | 3,654,475 | -152,792 | | Right-of-use assets | 695,826 | 757,293 | -61,467 | | **Total** | **4,197,509** | **4,411,768** | **-214,259** | - The Geismar 3 plant, with **$201 million of capitalized interest** and finance charges, completed commercial performance tests and was transferred from 'Plants Under Construction' to 'Buildings, plant installations and machinery' in 2024[405](index=405&type=chunk) - A non-cash before-tax asset impairment charge of **$125 million** ($90 million after-tax) was recorded in 2024 for the New Zealand cash generating unit, writing down its carrying value due to restructuring to a single-plant operation[407](index=407&type=chunk)[410](index=410&type=chunk) - The useful lives of Chile facilities and Geismar 1 and 2 were extended based on natural gas feedstock availability and Geismar 3 completion, resulting in a **$9.7 million decrease in depreciation expense** in 2024[405](index=405&type=chunk)[406](index=406&type=chunk) [Investment in associate](index=64&type=section&id=6.6%20Investment%20in%20associate) The investment in the Atlas joint venture decreased to $101 million after the facility was idled in September 2024 - Methanex has a **63.1% equity interest** in Atlas Methanol Company Unlimited, which owns a 1.8 million tonne per year methanol production facility in Trinidad and Tobago[413](index=413&type=chunk) - The Atlas facility was **idled in mid-September 2024** following the expiration of its 20-year natural gas supply agreement[413](index=413&type=chunk) Investment in Associate (Atlas) Summary (thousands of U.S. dollars) | Metric | Dec 31, 2024 | Dec 31, 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net assets at 63.1% | 101,438 | 107,921 | -6,483 | | Long-term receivable from Atlas | - | 76,328 | -76,328 | | **Investment in associate** | **101,438** | **184,249** | **-82,811** | | Net earnings at 100% | 60,753 | 157,632 | -96,879 | | Earnings of associate at 63.1% | 38,335 | 99,466 | -61,131 | | Dividends received from associate | 32,181 | 112,318 | -80,137 | | Share capital reduction | 12,643 | - | +12,643 | - Atlas is subject to **tax assessments** from the Board of Inland Revenue of Trinidad and Tobago for 2005-2018, related to fixed-price sales contracts; Methanex believes its position should be sustained, and the Trinidad tax court issued a ruling in the company's favor in 2024[414](index=414&type=chunk)[415](index=415&type=chunk)[418](index=418&type=chunk)[419](index=419&type=chunk) [Other assets](index=65&type=section&id=6.7%20Other%20assets) Total other assets increased to $214 million, driven by higher cash flow hedges and a new New Zealand gas supply contract derivative Other Assets (thousands of U.S. dollars) | Category | Dec 31, 2024 | Dec 31, 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Cash flow hedges | 128,414 | 121,108 | +7,306 | | Chile VAT receivable | 15,834 | 17,824 | -1,990 | | Restricted cash for debt service and major maintenance | 14,305 | 15,772 | -1,467 | | Fair value of Egypt gas supply contract derivatives | 14,341 | 20,402 | -6,061 | | Fair value of New Zealand gas supply contract derivatives | 8,713 | - | +8,713 | | Deposit for catalyst supply | 6,274 | - | +6,274 | | Investment in Carbon Recycling International | 5,620 | 5,620 | 0 | | Defined benefit pension plans | 3,733 | 5,718 | -1,985 | | Other | 16,855 | 15,416 | +1,439 | | **Total other assets** | **214,089** | **201,860** | **+12,229** | | Less current portion | (30,820) | (3,893) | -26,927 | | **Non-current other assets** | **183,269** | **197,967** | **-14,698** | - Restricted cash of **$14.3 million** is held for debt service and major maintenance accounts[421](index=421&type=chunk) - The current portion of other assets increased significantly to **$30.8 million** in 2024, mainly due to the current portion of cash flow hedges and restricted cash for anticipated major maintenance of vessels[422](index=422&type=chunk) [Long-term debt](index=65&type=section&id=6.8%20Long-term%20debt) Total long-term debt increased to $2.41 billion due to new notes issued for the OCI Acquisition, offset by a $300 million repayment Long-Term Debt (thousands of U.S. dollars) | Category | Dec 31, 2024 | Dec 31, 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Unsecured notes | 2,273,881 | 1,985,660 | +288,221 | | Other limited recourse debt facilities | 141,054 | 156,141 | -15,087 | | **Total long-term debt** | **2,414,935** | **2,141,801** | **+273,134** | | Less current maturities | (13,727) | (314,716) | +300,989 | | **Long-term debt - non-current portion** | **2,401,208** | **1,827,085** | **+574,123** | - The company issued **$600 million of senior unsecured notes** due March 15, 2032, to partially finance the OCI Acquisition, and repaid **$300 million of unsecured notes** due December 1, 2024[428](index=428&type=chunk) - The revolving credit facility was renewed and increased to **$500 million**, with further increases to $600 million and a $650 million term loan commitment subject to the OCI Acquisition closing[426](index=426&type=chunk)[428](index=428&type=chunk) - Methanex was **in compliance with all covenants** related to its long-term debt obligations as of December 31, 2024[432](index=432&type=chunk) [Lease obligations](index=67&type=section&id=6.9%20Lease%20obligations) Lease obligations decreased to $818 million, with the majority related to ocean-going vessels, terminals, and tanks Lease Obligations (thousands of U.S. dollars) | Metric | 2024 | 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Opening lease obligations | 872,120 | 870,163 | +1,957 | | Additions, net of disposals | 90,486 | 123,187 | -32,701 | | Interest expense | 54,560 | 53,418 | +1,142 | | Lease payments | (195,807) | (171,577) | -24,230 | | Effect of movements in exchange rates and other | (3,154) | (3,071) | -83 | | **Lease obligations at December 31** | **818,205** | **872,120** | **-53,915** | | Less: current portion | (122,744) | (120,731) | -2,013 | | **Lease obligations - non-current portion** | **695,461** | **751,389** | **-55,928** | - The majority of lease obligations are for **ocean-going vessels, terminals, and tanks**[433](index=433&type=chunk) - Total potential future lease payments not included in lease liabilities, should the company exercise extension options, amount to **$56.5 million**[434](index=434&type=chunk)[435](index=435&type=chunk) [Other long-term liabilities](index=68&type=section&id=6.10%20Other%20long-term%20liabilities) Total other long-term liabilities decreased to $197 million, primarily due to a significant reduction in cash flow hedges Other Long-Term Liabilities (thousands of U.S. dollars) | Category | Dec 31, 2024 | Dec 31, 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Share-based compensation liability | 73,547 | 74,107 | -560 | | Site restoration costs | 38,048 | 32,596 | +5,452 | | Land mortgage | 27,483 | 28,014 | -531 | | Defined benefit pension plans | 20,531 | 22,691 | -2,160 | | Cash flow hedges | 36,811 | 91,183 | -54,372 | | Other | 882 | 1,319 | -437 | | **Total** | **197,302** | **249,910** | **-52,610** | | Less current maturities | (46,840) | (94,992) | +48,152 | | **Non-current other long-term liabilities** | **150,462** | **154,918** | **-4,456** | - Site restoration costs increased to **$38 million** in 2024, with $3.8 million in new or revised provisions and $1.6 million in accretion expense[438](index=438&type=chunk) [Expenses](index=68&type=section&id=6.11%20Expenses) Total expenses decreased slightly, driven by lower cost of sales and reduced raw materials and purchased methanol costs Total Expenses by Function (thousands of U.S. dollars) | Category | 2024 | 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Cost of sales | 2,678,081 | 2,797,794 | -119,713 | | Selling and distribution | 583,357 | 552,693 | +30,664 | | Administrative expenses | 133,672 | 109,415 | +24,257 | | **Total expenses by function** | **3,395,110** | **3,459,902** | **-64,792** | Total Expenses by Nature (thousands of U.S. dollars) | Category | 2024 | 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Cost of raw materials and purchased methanol | 2,219,459 | 2,329,856 | -110,397 | | Ocean freight and other logistics | 362,282 | 357,495 | +4,787 | | Employee expenses, including share-based compensation | 251,149 | 243,542

Core Insights - Methanex's Q4 2024 earnings report showed a net income of $45 million, or 67 cents per share, an increase from $33 million, or 50 cents per share, in the prior year [2] - Adjusted earnings per share rose to $1.24 from 52 cents year-over-year, surpassing the Zacks Consensus Estimate of $1.01 [2] - Net sales for Q4 were $949 million, missing the Zacks Consensus Estimate of $1,023.7 million, but showing a 3% growth from the previous year [3] Financial Performance - Adjusted EBITDA for the quarter increased by 105.7% year-over-year to $216 million [3] - Production in Q4 was 1,868,000 tons, up approximately 5% year-over-year, driven by higher output in Chile, New Zealand, Geismar, and Egypt [4] - The average realized price per ton of methanol rose to $370, compared to $356 in the previous quarter and $322 in the year-ago quarter, attributed to stable global demand amid tight market conditions [5] Full Year Results - For FY24, net sales were $3,720 million, slightly down from $3,723 million in FY23, while adjusted earnings per share increased to $3.72 from $2.25 [6] - Methanex returned $50 million to shareholders through dividends and repaid a $300 million bond due in December with operational cash flows [7] - The company ended the year with $892 million in cash and reported an operating cash flow of $281 million in Q4 [7] Future Outlook - Methanex's production guidance for 2025 is approximately 7.5 million tons, excluding additional production from OCI assets [8] - In Q1 2025, significantly higher adjusted EBITDA is expected compared to Q4 2024, with produced sales anticipated to be near Q4 levels and a higher average realized price projected between $395 to $405 per ton for January and February [9] - Estimates for the stock have trended upward, with a consensus estimate shift of 17.02% in the past month [10] Investment Metrics - Methanex currently holds a strong Growth Score of A, a Momentum Score of A, and a Value Score of A, placing it in the top quintile for investment strategies [11] - The stock has an aggregate VGM Score of A, indicating strong overall performance across multiple investment strategies [11] - Methanex has a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [12]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Methanex (MEOH) being highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Methanex has a historical EPS growth rate of 16.1%, with projected EPS growth for the current year also at 16.1%, significantly outperforming the industry average of 7.8% [4]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 17%, which is notably higher than the industry average of -2.6% [5]. - Over the past 3-5 years, Methanex's annualized cash flow growth rate has been 9%, compared to the industry average of -3.9% [6]. Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Methanex, with the Zacks Consensus Estimate for the current year increasing by 7.3% over the past month [7]. Group 4: Overall Assessment - Methanex has achieved a Growth Score of A and holds a Zacks Rank 2, indicating it is a potential outperformer and a solid choice for growth investors [9].

Core Viewpoint - Methanex (MEOH) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Methanex suggest an improvement in the company's underlying business, likely leading to increased stock prices [5]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2025, Methanex is expected to earn $4.32 per share, representing a 16.1% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Methanex has risen by 14.1% [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimates, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions [9][10]. - Methanex's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Company Overview - Methanex is the world's largest supplier of methanol, serving North America, Asia-Pacific, Europe, and Latin America [11] - Approximately two-thirds of methanol demand is for traditional chemical derivatives, while one-third is for energy-related applications [11] Investment Ratings - Methanex holds a Zacks Rank of 2 (Buy) and has a VGM Score of A, indicating strong potential for growth [12] - The company is particularly appealing for growth investors, with a Growth Style Score of A and a forecasted year-over-year earnings growth of 16.1% for the current fiscal year [12] Earnings Estimates - In the last 60 days, four analysts have revised their earnings estimates upwards, increasing the Zacks Consensus Estimate by $0.49 to $4.32 per share [12] - Methanex has an average earnings surprise of 85.2%, suggesting strong performance relative to expectations [12] Conclusion - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Methanex is recommended for investors' consideration [13]