- Net income attributable to Methanex shareholders of $60 million and Adjusted EBITDA of $209 million in the first quarter. The average realized price in the first quarter was $371 per tonne compared to $373 per tonne in the fourth quarter of 2022.
- Geismar 3 (“G3”) project is over 80% complete and is progressing safely, on time and on budget. Production expected in the fourth quarter of 2023. The remaining capital spend of $330 – 380 million is fully funded with cash on hand.
- The Board approved a 6% dividend increase to $0.185 per share per quarter, applicable to the dividend payable on June 30th, 2023.
- Returned $60 million to shareholders through dividends and share repurchases and have a strong liquidity position with $780 million in cash.
According to the company’s website news release on April 26, 2023, for the first quarter of 2023, Methanex (TSX:MX) (NASDAQ:MEOH) reported net income attributable to Methanex shareholders of $60 million ($0.87 net income per common share on a diluted basis) compared to net income of $41 million ($0.59 net income per common share on a diluted basis) in the fourth quarter of 2022. Net income was higher compared to the prior quarter primarily due to higher sales of Methanex-produced methanol driven by higher production in Egypt, Atlas and Chile. Adjusted EBITDA for the first quarter of 2023 was $209 million and Adjusted net income was $76 million ($1.11 Adjusted net income per common share). This compares with Adjusted EBITDA of $160 million and Adjusted net income of $51 million ($0.73 Adjusted net income per common share) for the fourth quarter of 2022.
In the first quarter methanol pricing remained relatively stable. The average realized price in the first quarter was $371 per tonne compared to $373 per tonne in the fourth quarter of 2022.
During the quarter, we returned $60 million to shareholders through the regular dividend and share repurchases. We ended the quarter with $780 million in cash, or approximately $709 million in cash excluding non-controlling interests and including our share of cash in the Atlas joint venture. We also have an undrawn $300 million revolving credit facility that provides additional financial flexibility.
Rich Sumner, President & CEO of Methanex, said, “I am proud of the team for delivering another quarter of strong operational and financial results. The G3 project is over 80% complete and we are looking forward to having it start up in the fourth quarter of this year as it will significantly enhance our cash flow generation capability and lower our average CO2 emissions intensity. Our business is well-positioned to navigate through the continuing macro-economic uncertainty and create shareholder value.”
FURTHER INFORMATION
The information set forth in this news release summarizes Methanex’s key financial and operational data for the first quarter of 2023. It is not a complete source of information for readers and is not in any way a substitute for reading the first quarter 2023 Management’s Discussion and Analysis (“MD&A”) dated April 26, 2023 and the unaudited condensed consolidated interim financial statements for the period ended March 31, 2023, 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, 2023 are also available on the Canadian Securities Administrators’ SEDAR website at www.sedar.com and on the United States Securities and Exchange Commission’s EDGAR website at www.sec.gov.
FORWARD-LOOKING INFORMATION WARNING
This first quarter 2023 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 2023 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.sedar.com and on the United States Securities and Exchange Commission’s EDGAR website at www.sec.gov.
NON-GAAP MEASURES
The Company has used the terms Adjusted EBITDA, Adjusted net income, Adjusted net income per common share and Average realized price throughout this document. 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 gas contract revaluation and the impact of certain items associated with specific identified events. Refer to Additional Information – Non-GAAP Measures on page 12 of the Company’s MD&A for the period ended March 31, 2023 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
