Methanex(US:MEOH)2025-07-30 21:08Financial Performance - Methanex reported net income attributable to shareholders of $64 million for Q2 2025, down from $111 million in Q1 2025, primarily due to lower average realized prices and reduced sales volume[12]. - Adjusted EBITDA for Q2 2025 was $183 million, compared to $248 million in Q1 2025, reflecting the impact of lower sales and prices[12]. - In Q2 2025, Methanex recorded a net income of $64 million, down from $111 million in Q1 2025, primarily due to a lower average realized price and reduced sales of produced product[39]. - Adjusted EBITDA for Q2 2025 was $183 million, down from $248 million in Q1 2025, while adjusted net income was $66 million compared to $88 million in Q1 2025[36][37]. - Adjusted net income for Q2 2025 was $66 million, down from $88 million in Q1 2025 and up from $42 million in Q2 2024[116]. - Revenue for Q2 2025 was $797 million, a decrease from $896 million in Q1 2025 and $949 million in Q4 2024[116]. - The effective tax rate for Q2 2025 was 3%, compared to a negative 5% in Q1 2025, reflecting a recovery due to resolved tax disputes[81]. - Comprehensive income for Q2 2025 was $74,305 thousand, compared to $50,904 thousand in Q2 2024, an increase of 45.9%[131]. - The total net income for the six months ended June 30, 2025, was $160.1 million, up from $86.0 million in the same period of 2024, representing an increase of 86.0%[161]. Production and Sales - Total sales volume for Q2 2025 was 2,133,000 tonnes, a decrease from 2,217,000 tonnes in Q1 2025, with Methanex-produced methanol sales at 1,528,000 tonnes[12]. - Production for Q2 2025 was 1,621,000 tonnes, slightly up from 1,619,000 tonnes in Q1 2025, with higher output from Geismar and Trinidad offset by lower production in Chile, New Zealand, and Egypt[12]. - Methanol sales volume in Q2 2025 was 106,000 tonnes lower than Q1 2025 and 367,000 tonnes lower than Q2 2024, impacting Adjusted EBITDA by $12 million and $37 million respectively[59]. - Methanex produced 1,621,000 tonnes of methanol in Q2 2025, slightly up from 1,619,000 tonnes in Q1 2025[39]. - In Q2 2025, total methanol production reached 2,594,000 tonnes, a 60% increase from Q2 2024's 1,619,000 tonnes[40]. - Methanol sales volume reached 4,350 thousand tonnes in Q2 2025, a 104% increase from 2,133 thousand tonnes in Q1 2025[121]. Pricing - The average realized price for methanol in Q2 2025 was $374 per tonne, down from $404 per tonne in Q1 2025[11]. - The average realized price for methanol in Q2 2025 was $374 per tonne, a decrease of $60 from Q1 2025 and an increase of $43 from Q2 2024[57]. - The average non-discounted posted price for methanol was $605 per tonne in Q2 2025, compared to $639 per tonne in Q1 2025[36]. - Average realized methanol price increased to $390 per tonne in Q2 2025, compared to $374 per tonne in Q1 2025, indicating a positive pricing trend[119]. Dividends and Shareholder Returns - Methanex paid a quarterly dividend of $0.185 per common share, totaling $12.5 million in Q2 2025[12]. - The company had 77,339,520 common shares outstanding as of July 29, 2025[29]. - Adjusted net income per common share for Q2 2025 was $0.97, compared to $1.30 in Q1 2025 and $0.62 in Q2 2024[115]. - Basic net income per common share increased to $0.95 in Q2 2025, up from $0.52 in Q2 2024, representing an increase of 82.7%[129]. Acquisition and Expansion - The company closed the OCI Acquisition on June 27, 2025, which includes two methanol facilities in Beaumont, Texas, and a low-carbon methanol production business[12]. - The acquisition of OCI's global methanol business was completed on June 27, 2025, including two methanol facilities in Beaumont, Texas[50]. - The company anticipates benefits from the OCI Acquisition, including expected synergies and commodity diversification, which may enhance future performance[123]. - The company reported a significant increase in finance costs, totaling $51,216 thousand in Q2 2025, compared to $27,684 thousand in Q2 2024, marking an 84.5% rise[148]. Cash Flow and Liquidity - Cash balance as of June 30, 2025, was $485 million, with access to a revolving credit facility increased to $600 million[12]. - Cash provided by operating activities in Q2 2025 was $277 million, an increase of $114 million compared to $163 million in Q2 2024[97]. - Cash used in investing activities in Q2 2025 was $1,304 million, primarily related to the OCI Acquisition, compared to $10 million in Q2 2024[100]. - The company has access to a $600 million committed revolving credit facility, enhancing its liquidity position[150]. Operational Efficiency - The company is focused on maintaining competitive cash costs and optimizing production efficiency to support profitability[125]. - Methanex is actively monitoring global economic conditions and natural gas supply dynamics, which are critical for its operational strategy[126]. - Planned operational capital expenditure for maintenance and major projects is estimated at approximately $50 million for the remainder of 2025[101]. Market Conditions - Global methanol demand increased slightly in Q2 2025, driven by higher demand in China[85]. - The company expects limited capacity additions in the methanol industry over the next few years due to technical and financing challenges in Iran[89]. - Methanex expects continued demand for methanol, particularly for energy uses, which could drive future sales growth[124].