Methanex Corp Stock Price, News & Analysis

Methanex (MEOH) reported Q3 2024 net income of $31 million ($0.35 per share) and Adjusted EBITDA of $216 million. Average realized price was $356 per tonne, up from $352 in Q2. The company announced a $2.05 billion acquisition of OCI Global's international methanol business. Geismar 3 plant achieved full operational rates in October, producing 154,000 tonnes monthly. In New Zealand, one Motunui plant was indefinitely idled, resulting in a $90 million non-cash impairment. The company extended gas contracts in Chile with ENAP and YPF until 2030 and 2027, respectively. Cash position ended at $511 million, with $12.5 million returned to shareholders through dividends.

Methanex (TSX:MX, NASDAQ:MEOH) has successfully syndicated acquisition financing for its previously announced $2.05 billion acquisition of OCI Global's international methanol business. The financing package includes up to $650 million in Term Loan A commitments with variable interest rates and flexible repayment terms, and a $600 million revolving credit facility split between a $400 million five-year tranche and a $200 million three-year tranche. The syndication banks continue to underwrite the remaining $525 million bridge facility. The new facilities will replace the company's existing $500 million facility and include consistent financial covenants.

Methanex (TSX:MX) (NASDAQ:MEOH) has announced a $2.05 billion acquisition of OCI Global's international methanol business. The deal includes two world-scale methanol facilities in Beaumont, Texas, a low-carbon methanol production and marketing business, and an idled facility in the Netherlands. This strategic move is expected to increase Methanex's global methanol production by over 20% and be immediately accretive to free cash flow per share.

The transaction involves $1.15 billion in cash, 9.9 million Methanex common shares valued at $450 million, and the assumption of $450 million in debt and leases. OCI will hold a 13% ownership stake in Methanex post-acquisition. The deal is anticipated to close in the first half of 2025, subject to regulatory approvals and shareholder consent.

Methanex (TSX:MX) (NASDAQ:MEOH) has temporarily idled its New Zealand operations until the end of October 2024 to assist in improving energy balances. The company has entered into short-term commercial arrangements to provide its contracted natural gas into the New Zealand electricity market. These arrangements are expected to positively impact Methanex's Q3 and Q4 2024 earnings, with after-tax proceeds expected to meaningfully exceed the margin lost on New Zealand methanol production.

The decision comes as New Zealand's energy balances are currently strained due to seasonally high demand, low hydro levels, and relatively lower gas supply in 2024. Methanex will utilize its global supply chain to ensure continued methanol supply to customers. The company remains committed to working with all parties to improve structural energy balances in New Zealand, where it has natural gas contracted through 2029.

Methanex (MEOH) reported Q2 2024 net income of $35 million ($0.52 per share) and Adjusted EBITDA of $164 million. The company's average realized price was $352 per tonne, up from $343 in Q1. Geismar 3 (G3) produced its first methanol in late July and is ramping up to full rates. Production was 1.4 million tonnes in Q2, down from 1.7 million in Q1 due to lower output in Chile and New Zealand. The company expects 2024 production to be approximately 7 million tonnes. Methanex returned $12.5 million to shareholders through dividends and ended Q2 with $426 million in cash.

Methanex (TSX:MX) (NASDAQ:MEOH), a leading global producer and supplier of methanol, has announced a quarterly dividend of US$0.185 per share. The dividend will be payable on September 30, 2024, to shareholders of record as of September 16, 2024. This announcement demonstrates the company's commitment to returning value to shareholders through consistent dividend payments.

Methanex, based in Vancouver, Canada, is publicly traded on both the Toronto Stock Exchange (MX) and NASDAQ Global Select Market (MEOH). As one of the world's largest methanol producers, the company plays a significant role in supplying major international markets with this essential chemical.

Methanex (TSX:MX, NASDAQ:MEOH) and Entropy have partnered to invest in a Pre-FEED study for carbon capture, utilization and sequestration (CCUS) at Methanex's Medicine Hat, Alberta facility. The project aims to capture 400 tonnes of CO2 daily, with an estimated investment of CAD $100 million. A portion of the captured CO2 will produce 50,000 tonnes of additional methanol annually, while the remainder will be sequestered underground.

The collaboration leverages Entropy's proprietary carbon capture technology and Methanex's manufacturing expertise. Upon final investment decision, Entropy will construct and own the capture equipment, while Methanex will supply utilities, build tie-ins, and operate the equipment. The project is expected to create 200 construction jobs and several permanent positions, showcasing Canadian leadership in the low-carbon transition.

Methanex announced the temporary idling of its 1.26 million tonne Egypt methanol production facility due to lower gas supply and increased seasonal power demand. Methanex holds a 50% equity interest in this facility, equating to 0.63 million tonnes per annum. The company is collaborating with its partner and gas supplier to restore gas supply. Methanex, based in Vancouver, is the world’s largest methanol supplier, with shares traded on the TSX under 'MX' and NASDAQ under 'MEOH'.