Methanex's Earnings and Revenues Surpass Estimates in Q3

Core Insights - Methanex Corporation reported third-quarter 2024 adjusted earnings of $1.21 per share, significantly up from 2 cents in the same quarter last year, and exceeded the Zacks Consensus Estimate of 44 cents [1] - Revenues increased by approximately 13.6% year over year to $935 million, surpassing the Zacks Consensus Estimate of $920.1 million [1] - Adjusted EBITDA rose 105.7% year over year to $216 million in the reported quarter [1] Operational Highlights - Production for the quarter was 1,347,000 tons, down about 12.8% year over year [2] - Total sales volume in the third quarter was 2,623,000 tons, lower than the previous year's figure of 2,720,000 tons, and missed the estimate of 2,629,000 tons [2] - The average realized price for methanol was $356 per ton, an increase from $303 in the prior-year quarter, but below the estimate of $360 per ton [2] Financials - Cash flow from operating activities was $210 million [3] - The company paid out $12.5 million in regular dividends to shareholders [3] - Methanex concluded the third quarter with $511 million in cash [3] Outlook - Methanex's production projection for the fourth quarter is approximately 1.9 million tons, which will be sold in the fourth quarter and the first quarter of 2025 [4] - The company expects adjusted EBITDA to remain flat sequentially, with higher produced sales and a higher average realized price offset by lower New Zealand gas sales and no benefit from Egypt's insurance recovery [5] - Based on pricing stated in October and November, Methanex anticipates its average realized price range will be $365-$375 per ton for these months [5] Stock Performance - Shares of Methanex have gained 0.1% over the past year, compared to a 7.9% rise in the industry [6]