Methanex Reports Higher Production and Adjusted EBITDA in Fourth Quarter 2024

January 29, 2025 18:35 ET | Source: Methanex Corporation Except where otherwise noted, all currency amounts are stated in United States dollars. Financial and Production Highlights Net income attributable to Methanex shareholders of $45 million and Adjusted EBITDA of $224 million in the fourth quarter. Our average realized price in the fourth quarter was $370 per tonne compared to $356 per tonne in the third quarter of 2024.Full year 2024 net income attributable to Methanex shareholders of $164 million and Adjusted EBITDA of $764 million.Fourth quarter production of 1,868 kmt was higher than third quarter production of 1,347 kmt driven by higher production from Chile, New Zealand, Geismar, and Egypt.In 2024, $50 million was returned to shareholders through regular dividends and the $300 million bond due in December was repaid with cash flows generated from operations. We ended the year with $892 million in cash.During the fourth quarter we completed the financing plan for the acquisition of OCI Global's international methanol business ("OCI Acquisition") including renewing and increasing the undrawn credit facility, syndicating a $650 million Term Loan A and issuing a $600 million bond.We have been advised by our legal counsel that earlier today OCI Global received a favourable decision from the Delaware Court of Chancery in its dispute with its joint venture partner with respect to the Natgasoline asset (subject to any potential further proceedings or appeal). VANCOUVER, British Columbia, Jan. 29, 2025 (GLOBE NEWSWIRE) -- For the fourth quarter of 2024, Methanex (TSX:MX) (NASDAQ:MEOH) reported net income attributable to Methanex shareholders of $45 million ($0.67 net income per common share on a diluted basis) compared to net income of $31 million ($0.35 net income per common share on a diluted basis) in the third quarter of 2024. Adjusted EBITDA for the fourth quarter of 2024 was $224 million and Adjusted net income was $84 million ($1.24 Adjusted net income per common share). This compares with Adjusted EBITDA of $216 million and Adjusted net income of $82 million ($1.21 Adjusted net income per common share) for the third quarter of 2024. Our average realized price in the fourth quarter was $370 per tonne compared to $356 per tonne in the third quarter of 2024. The increase in our average realized price was driven by tightening market conditions from lower supply compared to the third quarter coupled with steady demand. For the year ended December 31, 2024, Methanex reported net income attributable to Methanex shareholders of $164 million ($2.39 net income per common share on a diluted basis), Adjusted EBITDA of $764 million and an Adjusted net income of $252 million ($3.72 Adjusted net income per common share). This compares with a net income attributable to Methanex shareholders of $174 million ($2.57 net income per common share on a diluted basis), Adjusted EBITDA of $622 million and an Adjusted net income of $153 million ($2.25 Adjusted net income per common share) for the year ended December 31, 2023. Rich Sumner, President & CEO of Methanex, said, "2024 was a significant year for Methanex. Thanks to the dedication of our global team, we achieved the best safety performance in the company's history, successfully achieved commercial production at G3, and announced the acquisition of OCI Global's methanol business. Our top priorities for 2025 are operating our assets and supply chain safely, reliably, and efficiently, closing the OCI acquisition and integrating the business, and generating strong cash flows to continue to decrease leverage." FURTHER INFORMATION The information set forth in this news release summarizes Methanex's key financial and operational data for the fourth quarter of 2024. It is not a complete source of information for readers and is not in any way a substitute for reading the fourth quarter 2024 Management’s Discussion and Analysis ("MD&A") dated January 29, 2025 and the unaudited condensed consolidated interim financial statements for the period ended December 31, 2024, both of which are available from the Investor Relations section of our website at www.methanex.com. The MD&A and the unaudited condensed consolidated interim financial statements for the period ended December 31, 2024 are also available on the Canadian Securities Administrators' SEDAR+ website at www.sedarplus.ca and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov. FINANCIAL AND OPERATIONAL DATA Three Months Ended Years Ended($ millions except per share amounts and where noted)Dec 31 2024 Sep 30 2024 Dec 31 2023 Dec 31 2024 Dec 31 2023 Production (thousands of tonnes) (attributable to Methanex shareholders) 1 1,868 1,347 1,779 6,358 6,642 Sales volume (thousands of tonnes) Methanex-produced methanol 1,455 1,378 1,712 6,094 6,455 Purchased methanol 911 987 890 3,471 3,527 Commission sales 198 258 260 904 1,187 Total sales volume 2,564 2,623 2,862 10,469 11,169 Methanex average non-discounted posted price ($ per tonne) 2 547 519 421 508 434 Average realized price ($ per tonne) 3 370 356 322 355 333 Revenue 949 935 922 3,720 3,723 Net income (attributable to Methanex shareholders) 45 31 33 164 174 Adjusted net income 4 84 82 35 252 153 Adjusted EBITDA 4 224 216 148 764 622 Cash flows from operating activities 281 210 195 737 660 Basic net income per common share 0.67 0.46 0.50 2.43 2.57 Diluted net income per common share 0.67 0.35 0.50 2.39 2.57 Adjusted net income per common share 4 1.24 1.21 0.52 3.72 2.25 Common share information (millions of shares) Weighted average number of common shares 67 67 67 67 68 Diluted weighted average number of common shares 67 68 68 68 68 Number of common shares outstanding, end of period 67 67 67 67 67 1Methanex-produced methanol represents our equity share of volume produced at our facilities and excludes volume marketed on a commission basis related to the 36.9% of the Atlas facility and 50% of the Egypt facility that we do not own. 2Methanex 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. 3The 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. 4Note 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 14 of our fourth quarter MD&A dated January 29, 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 Years Ended($ millions)Dec 31 2024 Sep 30 2024 Dec 31 2023 Dec 31 2024 Dec 31 2023 Net income attributable to Methanex shareholders$45 $31 $33 $164 $174 Mark-to-market impact of share-based compensation 22 (18) 3 2 16 Gas contract settlement, net of tax — — — — (31)Depreciation and amortization 91 99 100 386 392 Finance costs 49 28 30 133 117 Finance income and other expenses 37 (42) (11) (12) (40)Income tax expense (recovery) 9 11 (14) 30 1 Asset impairment charge — 125 — 125 — Earnings of associate adjustment 3 14 15 43 67 Non-controlling interests adjustment (32) (32) (8) (107) (74)Adjusted EBITDA$224 $216 $148 $764 $622 Three Months Ended Years Ended($ millions except number of shares and per share amounts)Dec 31 2024 Sep 30 2024 Dec 31 2023 Dec 31 2024 Dec 31 2023 Net income attributable to Methanex shareholders$45 $31 $33 $164 $174 Mark-to-market impact of share-based compensation, net of tax 19 (15) 3 2 13 Impact of Egypt and New Zealand gas contract revaluation, net of tax 20 (24) (1) (4) (3)Impact on earnings of associate of gas contract settlement, net of tax — — — — (31)Asset impairment charge, net of tax — 90 — 90 — Adjusted net income 1$84 $82 $35 $252 $153 Diluted weighted average shares outstanding (millions) 67 68 68 68 68 Adjusted net income per common share 1$1.24 $1.21 $0.52 $3.72 $2.25 We recorded net income attributable to Methanex shareholders of $45 million in the fourth quarter of 2024 compared to net income of $31 million in the third quarter of 2024. Net income in the fourth quarter of 2024 was higher compared to the prior quarter primarily due to a higher average realized price and the impact of the non-recurring asset impairment expense recorded in the third quarter of 2024. This was offset by lower New Zealand gas sale net proceeds, the negative impact of the mark-to-market adjustments of share-based compensation and gas supply contracts, higher finance costs and the impact of the non-recurring Egypt insurance proceeds recorded in the third quarter of 2024. We sold 2,564,000 tonnes in the fourth quarter of 2024 compared to 2,623,000 tonnes in the third quarter of 2024. Sales of Methanex-produced methanol were 1,455,000 tonnes in the fourth quarter of 2024 compared to 1,378,000 tonnes in the third quarter of 2024. Production was higher than produced sales in the fourth quarter of 2024 due to seasonally higher production in Chile and New Zealand and the start-up timing of G3. Production for the fourth quarter of 2024 was 1,868,000 tonnes compared to 1,347,000 tonnes for the third quarter of 2024. Production was higher in the fourth quarter of 2024 compared to the third quarter of 2024 mainly due to higher production in Chile, New Zealand, Geismar and Egypt which was partially offset by lower production in Trinidad. In the fourth quarter of 2024 we paid a quarterly dividend of $0.185 per common share for a total of $12.5 million. At December 31, 2024, we had a strong liquidity position including a cash balance of $892 million, or $879 million excluding non-controlling interests and including our share of cash in the Atlas joint venture. During the fourth quarter, we repaid the $300 million bond due in December with cash flows generated from operations. We also completed the financing plan for the acquisition of OCI Global's international methanol business including renewing and extending the undrawn credit facility, syndicating a $650 million Term Loan A and issuing a $600 million bond. The new facilities have been structured to provide financial flexibility to support the OCI Acquisition while allowing future de-leveraging. PRODUCTION HIGHLIGHTS (thousands of tonnes)Annual Operating Capacity12024 Production 2023 ProductionQ4 2024 ProductionQ3 2024 ProductionQ4 2023 ProductionUSA (Geismar) 24,0002,529 2,142839605587Trinidad (Methanex interest) 31,960956 1,074205262283New Zealand 41,720670 1,38114372344Chile1,7001,180 993387173403Egypt (50% interest)630460 5041559320Canada (Medicine Hat)600563 548139142142 10,6106,358 6,6421,8681,3471,779 1The 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. 2G3 produced first methanol in July 2024 and passed its commercial and technical performance tests in October 2024. 3The operating capacity of Trinidad is made up of the Titan (100% interest) and Atlas (63.1% interest) facilities. The Atlas facility is currently idle. Refer to the Trinidad section below. 4The operating capacity of New Zealand is made up of the two Motunui facilities, one of which is idle. Refer to the New Zealand section below. Key production and operational highlights during the fourth quarter include: United States Geismar produced 839,000 tonnes in the fourth quarter of 2024 compared to 605,000 tonnes in the third quarter of 2024. Production was higher in the fourth quarter with higher production from the Geismar 3 plant. The plant produced first methanol at the end of July and successfully completed its commercial performance tests in early October. In mid-November, a proactive shutdown of G3 was taken to inspect some of the newly commissioned equipment to ensure reliability. The plant successfully restarted and resumed full operating rates in early December. Trinidad In Trinidad, the Titan plant, which restarted in late September, produced 205,000 tonnes (Methanex interest) in the fourth quarter of 2024 compared to the 262,000 tonnes produced primarily by the Atlas plant in the third quarter of 2024. Production was lower in the fourth quarter compared to the third quarter due to the Atlas methanol plant being idled in September and the Titan methanol plant resuming operations. New Zealand New Zealand produced 143,000 tonnes in the fourth quarter of 2024 compared to 72,000 tonnes in the third quarter of 2024. Production in the fourth quarter was higher compared to the third quarter with the restart of Motunui II in November. In August, operations were temporarily idled as we entered short-term commercial arrangements to provide contracted natural gas into the New Zealand electricity market until the end of October 2024. In the fourth quarter, gas availability was seasonally high, allowing the plant to operate at full rates. Based on the current outlook from our gas suppliers we expect 500,000 to 700,000 tonnes of production from New Zealand in 2025. Future production will be dependent on gas availability and any on-selling of gas into the electricity market to support 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. Chile Chile produced 387,000 tonnes in the fourth quarter of 2024 compared to 173,000 tonnes in the third quarter of 2024. Production was higher in the fourth quarter compared to the third quarter primarily due to higher gas supply from Argentina as the Southern hemisphere winter months ended and demand for natural gas in the region decreased. We have gas contracts in place with Chilean and Argentinean gas producers until 2030 and 2027, respectively, which underpin approximately 55% of the site's gas requirements year round. We continue to expect seasonality in production but are seeing positive developments making gas available for longer periods. Based on contracted gas, 2025 production is expected to be between 1.3 - 1.4 million tonnes. Egypt Egypt produced 310,000 tonnes (Methanex interest - 155,000 tonnes) in the fourth quarter of 2024 compared to 186,000 tonnes (Methanex interest - 93,000 tonnes) in the third quarter of 2024. Production increased compared to the third quarter as temperatures moderated, the gas balances in the country stabilized and we operated at full rates. 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 139,000 tonnes in the fourth quarter compared to 142,000 tonnes in the third quarter of 2024. Outlook Our expected production guidance for 2025 is approximately 7.5 million tonnes (Methanex interest), which excludes any incremental production from OCI assets post-acquisition closing date. In 2025, production will be impacted by three turnarounds occurring in the first three quarters of 2025. Actual production may vary by quarter based on gas availability, turnarounds, unplanned outages and unanticipated events. In the first quarter of 2025, we expect significantly higher Adjusted EBITDA compared to the fourth quarter, with produced sales expected to be closer to production levels in the fourth quarter of 2024, and a higher average realized price. Based on our January and February posted prices we expect that our average realized price range will be between approximately $395 to $405 per tonne for these two months. CONFERENCE CALL A conference call is scheduled for January 30, 2025 at 11:00 am ET (8:00 am PT) to review these fourth 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 major international markets. 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 fourth quarter 2024 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 fourth quarter 2024 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, Adjusted net income per common share, and Total debt and lease obligations attributable to Methanex shareholders. 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 14 of the Company's MD&A for the period ended December 31, 2024 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

Methanex Reports Higher Production and Adjusted EBITDA in Fourth Quarter 2024

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