Methanex(US:MEOH)2025-10-29 22:55Financial Performance - Methanex reported a net loss of $7 million in Q3 2025, a decrease from a net income of $64 million in Q2 2025, primarily due to lower average realized prices and higher finance costs[12]. - Adjusted EBITDA for Q3 2025 was $191 million, compared to $183 million in Q2 2025, while adjusted net income was $5 million, down from $66 million[12]. - For Q3 2025, Methanex reported a revenue of $927 million, an increase from $797 million in Q2 2025[116]. - The net income attributable to Methanex shareholders for Q3 2025 was a loss of $7 million, compared to a profit of $64 million in Q2 2025[116]. - Adjusted net income for Q3 2025 was $5 million, a decrease from $66 million in Q2 2025[116]. - The effective tax rate based on Adjusted net income was 47% for Q3 2025, compared to a negative 5% recovery in Q2 2025[80]. - Net income for Q3 2025 was $4 million, down from $5 million in Q2 2025 and significantly lower than $83 million in Q3 2024[79]. - Cash provided by operating activities in Q3 2025 was $184 million, down from $210 million in Q3 2024, primarily due to lower earnings compared to the previous year[94]. Production and Sales - Total methanol sales volume in Q3 2025 was 2,476,000 tonnes, up from 2,133,000 tonnes in Q2 2025, with Methanex-produced methanol sales increasing to 1,891,000 tonnes[12]. - Methanol production for Q3 2025 reached 2,212,000 tonnes, significantly higher than 1,621,000 tonnes in Q2 2025, driven by contributions from newly acquired facilities[12]. - Beaumont and Natgasoline plants produced 239,000 tonnes and 222,000 tonnes of methanol, respectively, in their first full quarter of operations[37]. - The total methanol production for the first nine months of 2025 was 5,452,000 tonnes, compared to 4,490,000 tonnes in the same period of 2024[35]. - Methanol sales volume in Q3 2025 was 400,000 tonnes higher than in Q2 2025, contributing an increase of $49 million to Adjusted EBITDA[56]. Pricing and Costs - The average realized price for methanol in Q3 2025 was $345 per tonne, a decrease from $374 per tonne in Q2 2025[11]. - The company’s average non-discounted posted price for methanol was $578 per tonne in Q3 2025, compared to $605 per tonne in Q2 2025[35]. - Higher Methanex-produced methanol costs decreased Adjusted EBITDA by $5 million compared to Q3 2024 and by $41 million for YTD Q3 2025 compared to the same period in 2024[65]. - Logistics costs increased Adjusted EBITDA by $1 million compared to Q2 2025 and by $5 million compared to Q3 2024, with a total increase of $2 million for YTD Q3 2025 compared to the same period in 2024[68]. - Other costs increased Adjusted EBITDA by $15 million compared to Q2 2025 and by $14 million compared to Q3 2024, but decreased Adjusted EBITDA by $24 million for YTD Q3 2025 compared to the same period in 2024[70]. Debt and Liquidity - As of September 30, 2025, Methanex had a cash balance of $413 million and access to a $600 million revolving credit facility, indicating a strong liquidity position[12]. - Total debt and lease obligations attributable to Methanex shareholders as of September 30, 2025, was $3.816 billion, compared to $2.885 billion at the end of 2024[93]. - Long-term debt as of September 30, 2025, was $2.83 billion, a decrease from $2.96 billion as of June 30, 2025[115]. - Cash outflows for financing activities in Q3 2025 were $241 million, significantly higher than the $86 million outflow in Q3 2024, primarily due to a $125 million repayment on the Term Loan A facility[95]. Future Outlook - The company expects 2025 production to be approximately 8.0 million tonnes, including 7.8 million tonnes of methanol and 0.2 million tonnes of ammonia[21]. - In Q4 2025, Methanex anticipates a significant increase in Adjusted EBITDA compared to Q3 2025, despite a slightly lower average realized price[22]. - The demand outlook for methanol as a marine fuel is expected to grow, with over 420 ships capable of running on methanol projected to be operational in the next five years[85]. - The company expects continued demand for methanol, particularly for energy uses, as part of its forward-looking strategy[125]. Acquisition and Integration - The company completed the acquisition of OCI Global's methanol business for a total consideration of $1.18 billion in cash and $0.34 billion in equity, funded through cash on hand and financing arrangements[191][192]. - Methanex anticipates achieving synergies from the OCI Acquisition, which is expected to enhance its market position and operational efficiency[125]. - The integration of the acquired business into global operations makes it impractical to disclose specific revenue and profit contributions[195].