Methanex Reports Higher Produced Sales and Adjusted EBITDA in First Quarter 2025
Methanex reported strong Q1 2025 financial results with net income of $111 million ($1.44 per share) and Adjusted EBITDA of $248 million. The company's average realized methanol price increased to $404 per tonne from $370 in Q4 2024.
Production reached 1,619,000 tonnes, down from 1,868,000 tonnes in Q4 2024 due to a planned turnaround at Geismar 2 and an unplanned outage at Geismar 3, partially offset by higher production from Chile. The company maintained a strong liquidity position with $1,087 million in cash.
Key developments include the expected closure of OCI Global's international methanol business acquisition in Q2 2025 and the scheduled restart of Geismar 3 by early May 2025. The company returned $12.5 million to shareholders through regular dividends in Q1. Management noted moderating methanol pricing at the start of Q2 due to increased supply and global energy pricing decline.
Methanex ha riportato solidi risultati finanziari nel primo trimestre 2025, con un utile netto di 111 milioni di dollari (1,44 dollari per azione) e un EBITDA rettificato di 248 milioni di dollari. Il prezzo medio realizzato del metanolo è aumentato a 404 dollari per tonnellata, rispetto ai 370 dollari del quarto trimestre 2024.
La produzione ha raggiunto 1.619.000 tonnellate, in calo rispetto alle 1.868.000 tonnellate del quarto trimestre 2024, a causa di una manutenzione programmata presso Geismar 2 e di un fermo non programmato presso Geismar 3, parzialmente compensati da una maggiore produzione in Cile. L'azienda ha mantenuto una solida posizione di liquidità con 1.087 milioni di dollari in cassa.
Tra gli sviluppi chiave si segnala la prevista chiusura dell'acquisizione del business internazionale del metanolo di OCI Global nel secondo trimestre 2025 e la riapertura programmata di Geismar 3 entro i primi di maggio 2025. La società ha restituito 12,5 milioni di dollari agli azionisti attraverso dividendi regolari nel primo trimestre. La direzione ha osservato un moderato calo dei prezzi del metanolo all'inizio del secondo trimestre, dovuto all'aumento dell'offerta e al calo dei prezzi energetici globali.
Methanex reportó sólidos resultados financieros en el primer trimestre de 2025, con una ganancia neta de 111 millones de dólares (1,44 dólares por acción) y un EBITDA ajustado de 248 millones de dólares. El precio promedio realizado del metanol aumentó a 404 dólares por tonelada desde 370 dólares en el cuarto trimestre de 2024.
La producción alcanzó 1.619.000 toneladas, disminuyendo desde 1.868.000 toneladas en el cuarto trimestre de 2024 debido a un mantenimiento programado en Geismar 2 y una parada no planificada en Geismar 3, compensado parcialmente por una mayor producción en Chile. La compañía mantuvo una fuerte posición de liquidez con 1.087 millones de dólares en efectivo.
Entre los desarrollos clave se incluye el esperado cierre de la adquisición del negocio internacional de metanol de OCI Global en el segundo trimestre de 2025 y el reinicio programado de Geismar 3 a principios de mayo de 2025. La empresa devolvió 12,5 millones de dólares a los accionistas mediante dividendos regulares en el primer trimestre. La gerencia señaló una moderación en los precios del metanol al inicio del segundo trimestre debido al aumento de la oferta y la caída de los precios globales de la energía.
Methanex는 2025년 1분기에 순이익 1억 1,100만 달러(주당 1.44달러)와 조정 EBITDA 2억 4,800만 달러의 견고한 재무 실적을 보고했습니다. 회사의 평균 실현 메탄올 가격은 2024년 4분기 370달러에서 톤당 404달러로 상승했습니다.
생산량은 161만 9,000톤으로, 계획된 Geismar 2 정비와 Geismar 3의 예기치 않은 가동 중단으로 인해 2024년 4분기 186만 8,000톤에서 감소했으나, 칠레에서의 생산 증가로 일부 상쇄되었습니다. 회사는 현금 10억 8,700만 달러로 강력한 유동성 상태를 유지했습니다.
주요 발전 사항으로는 OCI Global의 국제 메탄올 사업 인수가 2025년 2분기에 완료될 예정이며, Geismar 3는 2025년 5월 초에 재가동될 예정입니다. 회사는 1분기에 정기 배당금을 통해 주주들에게 1,250만 달러를 환원했습니다. 경영진은 공급 증가와 글로벌 에너지 가격 하락으로 인해 2분기 초 메탄올 가격이 조정되고 있다고 언급했습니다.
Methanex a annoncé de solides résultats financiers pour le premier trimestre 2025, avec un bénéfice net de 111 millions de dollars (1,44 dollar par action) et un EBITDA ajusté de 248 millions de dollars. Le prix moyen réalisé du méthanol a augmenté, passant de 370 dollars la tonne au quatrième trimestre 2024 à 404 dollars.
La production a atteint 1 619 000 tonnes, en baisse par rapport à 1 868 000 tonnes au quatrième trimestre 2024, en raison d'un arrêt planifié chez Geismar 2 et d'une panne imprévue chez Geismar 3, partiellement compensés par une production accrue au Chili. L'entreprise a maintenu une solide position de liquidité avec 1 087 millions de dollars en trésorerie.
Parmi les développements clés, on note la clôture attendue de l'acquisition de l'activité internationale de méthanol d'OCI Global au deuxième trimestre 2025 et le redémarrage prévu de Geismar 3 début mai 2025. La société a reversé 12,5 millions de dollars aux actionnaires via des dividendes réguliers au premier trimestre. La direction a noté une modération des prix du méthanol au début du deuxième trimestre, attribuée à une augmentation de l'offre et à la baisse des prix mondiaux de l'énergie.
Methanex meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem Nettogewinn von 111 Millionen US-Dollar (1,44 US-Dollar pro Aktie) und einem bereinigten EBITDA von 248 Millionen US-Dollar. Der durchschnittlich realisierte Methanolpreis stieg von 370 US-Dollar im vierten Quartal 2024 auf 404 US-Dollar pro Tonne.
Die Produktion erreichte 1.619.000 Tonnen, was einen Rückgang gegenüber 1.868.000 Tonnen im vierten Quartal 2024 darstellt, bedingt durch eine geplante Wartung bei Geismar 2 und einen ungeplanten Ausfall bei Geismar 3, teilweise ausgeglichen durch eine höhere Produktion in Chile. Das Unternehmen hielt eine starke Liquiditätsposition mit 1.087 Millionen US-Dollar in bar.
Zu den wichtigen Entwicklungen gehört der erwartete Abschluss der Übernahme des internationalen Methanolgeschäfts von OCI Global im zweiten Quartal 2025 sowie der geplante Neustart von Geismar 3 Anfang Mai 2025. Das Unternehmen zahlte im ersten Quartal 12,5 Millionen US-Dollar an die Aktionäre in Form regulärer Dividenden zurück. Das Management stellte eine moderate Preisentwicklung beim Methanol zu Beginn des zweiten Quartals fest, bedingt durch ein steigendes Angebot und sinkende globale Energiepreise.
- Net income increased to $111M in Q1 2025 from $45M in Q4 2024
- Adjusted EBITDA grew to $248M in Q1 2025 from $224M in Q4 2024
- Average realized price improved to $404/tonne from $370/tonne in Q4 2024
- Strong liquidity position with $1.087B cash balance
- Higher production from Chile operations at 429,000 tonnes vs 387,000 in Q4
- Pending acquisition of OCI Global's methanol business to expand operations
- Revolving credit facility to increase from $500M to $600M post-acquisition
- Total production decreased to 1.619M tonnes from 1.868M tonnes in Q4 2024
- Total sales volume declined to 2.217M tonnes from 2.564M tonnes in Q4
- Unplanned outage at Geismar 3 facility affecting Q2 2025 production
- Expected lower Adjusted EBITDA in Q2 2025 compared to Q1
- Projected lower average realized price of $360-370/tonne for April-May
- Gas availability issues in Egypt affecting production levels
- 2025 production expected to be lower than previously guided 7.5M tonnes
Insights
Methanex reports strong Q1 earnings with higher prices, but signals weaker Q2 amid production challenges and declining pricing.
Methanex delivered significant financial improvement in Q1 2025, with net income more than doubling to
The company's Adjusted EBITDA reached
However, these financial gains came despite operational challenges. Q1 production declined by
Looking forward, management explicitly forecasts weaker Q2 performance, citing two key factors: continued production loss from the Geismar 3 outage and declining methanol prices. Based on April and May posted prices, the company expects an average realized price range of only
The acquisition of OCI Global's international methanol business remains on track to close in Q2 2025. This strategic move will expand Methanex's production footprint in Texas and is expected to be funded through a
The mixed nature of these results – strong Q1 financials balanced against production challenges and weaker Q2 guidance – presents a nuanced outlook for investors to consider.
VANCOUVER, British Columbia, April 30, 2025 (GLOBE NEWSWIRE) -- Except where otherwise noted, all currency amounts are stated in United States dollars.
Financial and Production Highlights
- Net income attributable to Methanex shareholders of
$111 million and Adjusted EBITDA of$248 million in the first quarter. Our average realized price in the first quarter was$404 per tonne compared to$370 per tonne in the fourth quarter of 2024. - Production in the first quarter was 1,619,000 tonnes compared to 1,868,000 tonnes in the fourth quarter of 2024. The lower production in the first quarter was due to a planned turnaround at Geismar 2 and an unplanned outage at Geismar 3, which was somewhat offset by higher production from Chile. Repairs to Geismar 3 are on schedule, with production expected by early May 2025.
- The acquisition of OCI Global's international methanol business ("OCI Acquisition"), including OCI's interest in two world class methanol facilities in Beaumont, Texas, is expected to close later in the second quarter of 2025.
- In the first quarter,
$12.5 million was returned to shareholders through regular dividends. We ended the first quarter with$1,087 million in cash or$1,031 million excluding non-controlling interest portion of$62 million but including our share of cash held by the Atlas joint venture of$6 million .
VANCOUVER, BRITISH COLUMBIA - For the first quarter of 2025, Methanex (TSX:MX) (NASDAQ:MEOH) reported net income attributable to Methanex shareholders of
Rich Sumner, President & CEO of Methanex, said, "We delivered a solid quarter of earnings and cash flows during the first quarter of 2025. At the start of the second quarter, we have seen methanol pricing moderate with increased supply from restarts of several large-scale methanol plants as well as a decline in global energy pricing with increased uncertainty and concerns about potential tariffs and their effect on global economic activity. We are closely monitoring the macro-economic environment and are proactively managing the business. Our priorities are the safe restart of Geismar 3, the reliable and cost efficient operation of our assets and supply chain, and effectively integrating the OCI assets post closing."
FURTHER INFORMATION
The information set forth in this news release summarizes Methanex's key financial and operational data for the first quarter of 2025. It is not a complete source of information for readers and is not in any way a substitute for reading the first quarter 2025 Management’s Discussion and Analysis ("MD&A") dated April 30, 2025 and the unaudited condensed consolidated interim financial statements for the period ended March 31, 2025, both of which are available from the Investor Relations section of our website at www.methanex.com. The MD&A and the unaudited condensed consolidated interim financial statements for the period ended March 31, 2025 are also available on the Canadian Securities Administrators' SEDAR+ website at www.sedarplus.ca and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov.
FINANCIAL AND OPERATIONAL DATA
| Three Months Ended | |||
| ($ millions except per share amounts and where noted) | Mar 31 2025 | Dec 31 2024 | Mar 31 2024 |
| Production (thousands of tonnes) (attributable to Methanex shareholders) 1 | 1,619 | 1,868 | 1,721 |
| Sales volume (thousands of tonnes) | |||
| Methanex-produced methanol | 1,703 | 1,455 | 1,681 |
| Purchased methanol | 382 | 911 | 807 |
| Commission sales | 132 | 198 | 182 |
| Total sales volume | 2,217 | 2,564 | 2,670 |
| Methanex average non-discounted posted price ($ per tonne) 2 | 639 | 547 | 471 |
| Average realized price ($ per tonne) 3 | 404 | 370 | 343 |
| Revenue | 896 | 949 | 916 |
| Net income (attributable to Methanex shareholders) | 111 | 45 | 53 |
| Adjusted net income 4 | 88 | 84 | 44 |
| Adjusted EBITDA 4 | 248 | 224 | 160 |
| Cash flows from operating activities | 315 | 281 | 91 |
| Basic net income per common share | 1.65 | 0.67 | 0.78 |
| Diluted net income per common share | 1.44 | 0.67 | 0.77 |
| Adjusted net income per common share 4 | 1.30 | 1.24 | 0.65 |
| Common share information (millions of shares) | |||
| Weighted average number of common shares | 67 | 67 | 67 |
| Diluted weighted average number of common shares | 68 | 67 | 68 |
| Number of common shares outstanding, end of period | 67 | 67 | 67 |
| 1 Methanex-produced methanol represents our equity share of volume produced at our facilities and excludes volume marketed on a commission basis related to the | |||
| 2 Methanex average non-discounted posted price represents the average of our non-discounted posted prices in North America, Europe, China and Asia Pacific weighted by sales volume. Current and historical pricing information is available at www.methanex.com. | |||
| 3 The Company has used Average realized price ("ARP") throughout this document. ARP is calculated as revenue divided by the total sales volume. It is used by management to assess the realized price per unit of methanol sold, and is relevant in a cyclical commodity environment where revenue can fluctuate in response to market prices. | |||
| 4 Note that Adjusted net income, Adjusted net income per common share, and Adjusted EBITDA are non-GAAP measures and ratios that do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. Refer to the Additional Information - Non-GAAP Measures section on page 13 of our first quarter MD&A dated April 30, 2025 for a description of each non-GAAP measure. | |||
- A reconciliation from net income attributable to Methanex shareholders to Adjusted EBITDA, Adjusted net income and the calculation of Adjusted net income per common share is as follows:
| Three Months Ended | |||||||||
| ($ millions) | Mar 31 2025 | Dec 31 2024 | Mar 31 2024 | ||||||
| Net income attributable to Methanex shareholders | $ | 111 | $ | 45 | $ | 53 | |||
| Mark-to-market impact of share-based compensation | (32 | ) | 22 | (10 | ) | ||||
| Depreciation and amortization | 106 | 91 | 95 | ||||||
| Finance costs | 51 | 49 | 28 | ||||||
| Finance income and other expenses | (4 | ) | 37 | (3 | ) | ||||
| Income tax expense | 36 | 9 | 6 | ||||||
| Earnings of associate adjustment | 2 | 3 | 9 | ||||||
| Non-controlling interests adjustment | (22 | ) | (32 | ) | (18 | ) | |||
| Adjusted EBITDA | $ | 248 | $ | 224 | $ | 160 | |||
| Three Months Ended | |||||||||
| ($ millions except number of shares and per share amounts) | Mar 31 2025 | Dec 31 2024 | Mar 31 2024 | ||||||
| Net income attributable to Methanex shareholders | $ | 111 | $ | 45 | $ | 53 | |||
| Mark-to-market impact of share-based compensation, net of tax | (26 | ) | 19 | (9 | ) | ||||
| Impact of Egypt and New Zealand gas contract revaluation, net of tax | 3 | 20 | — | ||||||
| Adjusted net income 1 | $ | 88 | $ | 84 | $ | 44 | |||
| Diluted weighted average shares outstanding (millions) | 68 | 67 | 68 | ||||||
| Adjusted net income per common share 1 | $ | 1.30 | $ | 1.24 | $ | 0.65 | |||
- We recorded net income attributable to Methanex shareholders of
$111 million in the first quarter of 2025 compared to net income of$45 million in the fourth quarter of 2024. Net income in the first quarter of 2025 was higher compared to the prior quarter primarily due to a higher average realized price, higher sales of produced product, and a recovery on mark-to-market adjustments of share-based compensation, offset by lower New Zealand gas sale net proceeds and higher finance costs. - We sold 2,217,000 tonnes in the first quarter of 2025 compared to 2,564,000 tonnes in the fourth quarter of 2024. Sales of Methanex-produced methanol were 1,703,000 tonnes in the first quarter of 2025 compared to 1,455,000 tonnes in the fourth quarter of 2024.
- Production for the first quarter of 2025 was 1,619,000 tonnes compared to 1,868,000 tonnes for the fourth quarter of 2024. Production was lower in the first quarter of 2025 compared to the fourth quarter of 2024 mainly due to a planned turnaround at Geismar 2 and an unplanned outage at Geismar 3, which was somewhat offset by higher production from Chile.
- In the first quarter of 2025 we paid a quarterly dividend of
$0.18 5 per common share for a total of$12.5 million . - At March 31, 2025, we had a strong liquidity position including a cash balance of
$1,087 million , or$1,031 million excluding non-controlling interests and including our share of cash in the Atlas joint venture. We expect to complete the acquisition of OCI Global's international methanol business ("OCI Acquisition") in the second quarter and to draw on the$650 million Term Loan A that will be available on closing. Upon closing, our existing revolving credit facility will also increase from$500 million to$600 million . Our facilities have been structured to allow the flexible repayment of the term loan commitment to support our capital allocation priority to de-lever.
PRODUCTION HIGHLIGHTS
| Q1 2025 | Q4 2024 | Q1 2024 | ||
| (thousands of tonnes) | Operating Capacity 1 | Production | Production | Production |
| USA (Geismar) | 1,000 | 617 | 839 | 571 |
| Chile | 425 | 429 | 387 | 391 |
| Trinidad (Methanex interest) 2 | 215 | 137 | 205 | 258 |
| New Zealand 3 | 215 | 160 | 143 | 277 |
| Egypt ( | 158 | 136 | 155 | 83 |
| Canada (Medicine Hat) | 140 | 140 | 139 | 141 |
| 2,153 | 1,619 | 1,868 | 1,721 | |
| 1 The operating capacity of our production facilities may be higher or lower than original nameplate capacity as, over time, these figures have been adjusted to reflect ongoing operating efficiencies at these facilities. Actual production for a facility in any given year may be higher or lower than operating capacity due to a number of factors, including natural gas availability, feedstock composition, the age of the facility's catalyst, turnarounds and access to CO2 from external suppliers for certain facilities. We review and update the operating capacity of our production facilities on a regular basis based on historical performance. | ||||
| 2 The operating capacity of Trinidad consists of the Titan facility ( | ||||
| 3 The operating capacity of New Zealand consists of one Motunui facility, with the other excluded as it is currently idle. Refer to the New Zealand section below. | ||||
Key production and operational highlights during the first quarter include:
United States
Geismar produced 617,000 tonnes in the first quarter of 2025 compared to 839,000 tonnes in the fourth quarter of 2024. Production was lower in the first quarter due to a planned turnaround at Geismar 2 ("G2") in the first quarter and an unplanned outage at Geismar 3 ("G3") in late February. Upon completing various plant inspections, management decided to complete repairs to the autothermal reformer and bring forward the completion of other planned maintenance work on G3 which was part of a previously budgeted three-week outage. G2 successfully restarted in March and G3 is expected to resume production by early May.
Chile
Chile produced 429,000 tonnes in the first quarter of 2025 compared to 387,000 tonnes in the fourth quarter of 2024. Production was higher due to better reliability driven by the removal of a technical production constraint. We have gas contracts in place with Chilean and Argentinean gas producers until 2030 and 2027, respectively, which underpin approximately
Trinidad
In Trinidad, the Titan plant produced 137,000 tonnes in the first quarter of 2025 compared to the 205,000 tonnes in the fourth quarter of 2024. Production was lower in the first quarter compared to the fourth quarter due to an unplanned outage that has been resolved.
New Zealand
New Zealand produced 160,000 tonnes in the first quarter of 2025 compared to 143,000 tonnes in the fourth quarter of 2024. Production in the first quarter was higher compared to the fourth quarter with Motunui II operating for the full quarter in the first quarter of 2025, whereas the site was fully shut until October 31, 2024 in order to on-sell gas. Commercial arrangements are in place to on-sell a portion of contracted natural gas to support the energy sector until September. Future production will be dependent on gas availability and hydro inflows impacting the level of support required to meet New Zealand's energy needs. We are in continuing discussions with our gas suppliers to ensure our contractual entitlements, which are in place until 2029, are being respected as well as engaging with our gas suppliers and government agencies in supporting efforts to improve energy balances in the country.
Egypt
Egypt produced 272,000 tonnes (Methanex interest - 136,000 tonnes) in the first quarter of 2025 compared to 310,000 tonnes (Methanex interest - 155,000 tonnes) in the fourth quarter of 2024. Production was lower compared to the fourth quarter as operating rates were impacted by gas availability. Gas availability in Egypt is influenced by several factors, including domestic production levels, and seasonal demand fluctuations. We are monitoring the gas market closely and would expect to experience some curtailments in 2025, particularly in the summer months, depending on gas supply and demand dynamics.
Canada
Medicine Hat produced 140,000 tonnes in the first quarter of 2025 compared to 139,000 tonnes in the fourth quarter of 2024.
Outlook
We expect our 2025 production to be lower than our previously guided 7.5 million tonnes (Methanex interest) primarily due to the unplanned G3 outage. Updated 2025 production guidance will be provided with the second quarter 2025 earnings release. Actual production may vary by quarter based on gas availability, turnarounds, unplanned outages and unanticipated events.
In the second quarter of 2025, we expect lower Adjusted EBITDA compared to the first quarter, with lower produced sales due primarily to the outage at G3, and a lower average realized price. Based on our April and May posted prices we expect that our average realized price range will be between approximately
CONFERENCE CALL
A conference call is scheduled for May 1, 2025 at 11:00 am ET (8:00 am PT) to review these first quarter results. To access the call, dial the conferencing operator fifteen minutes prior to the start of the call at (647) 932-3411, or toll free at (800) 715-9871. The conference ID for the call is #2019292. A simultaneous audio-only webcast of the conference call can be accessed from our website at www.methanex.com/investor-relations/events and will also be available following the call.
ABOUT METHANEX
Methanex is a Vancouver-based, publicly traded company and is the world’s largest producer and supplier of methanol to customers globally. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the NASDAQ Global Market in the United States under the trading symbol "MEOH".
FORWARD-LOOKING INFORMATION WARNING
This first quarter 2025 press release contains forward-looking statements with respect to us and the chemical industry. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond the Company's control. Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Methanex does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law. Refer to Forward-Looking Information Warning in the first quarter 2025 Management's Discussion and Analysis for more information which is available from the Investor Relations section of our website at www.methanex.com, the Canadian Securities Administrators' SEDAR+ website at www.sedarplus.ca and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov.
NON-GAAP MEASURES
Throughout this document, the Company has used the terms Adjusted EBITDA, Adjusted net income, and Adjusted net income per common share. These items are non-GAAP measures and ratios that do not have any standardized meaning prescribed by GAAP. These measures represent the amounts that are attributable to Methanex Corporation shareholders and are calculated by excluding the mark-to-market impact of share-based compensation as a result of changes in our share price, the impact of the Egypt and New Zealand gas contract revaluation and the impact of certain items associated with specific identified events. Refer to Additional Information - Non-GAAP Measures on page 13 of the Company's MD&A for the period ended March 31, 2025 for reconciliations to the most comparable GAAP measures. Unless otherwise indicated, the financial information presented in this release is prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").
For further information, contact:
Sarah Herriott
Director, Investor Relations
Methanex Corporation
604-661-2600
FAQ
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