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Methanex's (MEOH) Q2 Earnings Beat Estimates, Sales Miss
MethanexMethanex(US:MEOH) ZACKSยท2024-07-31 11:56

Core Insights - Methanex Corporation reported a revenue decline of approximately 2.1% year over year, totaling $920 million, which fell short of the Zacks Consensus Estimate of $986.4 million [1] - The company achieved adjusted earnings of 62 cents per share, surpassing the Zacks Consensus Estimate of 49 cents, and an increase from 60 cents in the prior-year quarter [7] - Adjusted EBITDA rose by 2.5% year over year to $164 million [9] Operational Highlights - The average realized price for methanol was $352 per ton, reflecting a 4.1% increase from $338 in the prior-year quarter and exceeding the estimate of $346 per ton [2] - Production totaled 1,422,000 tons, down approximately 14.2% year over year, and below the estimate of 1,648,000 tons [10] - Total sales volume in the second quarter was 2,612,000 tons, lower than the prior year's figure of 2,782,000 tons and missing the estimate of 2,853,000 tons [10] Financials - Cash and cash equivalents increased by 4.7% from the prior quarter to $426.1 million [3] - Long-term debt remained stable at $1,821.5 million at the end of the quarter [3] - Cash flow from operating activities was $163 million, down around 16.8% year over year, with $12.5 million returned to shareholders in regular dividends [11] Outlook - For the third quarter, the company anticipates decreased earnings due to lower production from Chile and New Zealand, as well as G3 accumulating inventory [4] - The posted pricing for July and August indicates an average realized price range of $350 to $360 per ton for these months [4] Price Performance - Shares of Methanex have gained 3.7% over the past year, contrasting with an 11.5% decline in the industry [13]