Methanex Reports Higher Production and Adjusted EBITDA in Fourth Quarter 2024

Rhea-AI Summary

Methanex (MEOH) reported Q4 2024 financial results with net income of $45 million ($0.67 per share) and Adjusted EBITDA of $224 million, up from Q3's net income of $31 million. The average realized price increased to $370 per tonne from $356 in Q3 2024.

Q4 production reached 1,868,000 tonnes, significantly higher than Q3's 1,347,000 tonnes, driven by increased output from Chile, New Zealand, Geismar, and Egypt. For full-year 2024, the company reported net income of $164 million and Adjusted EBITDA of $764 million.

The company completed its financing plan for the OCI Global's international methanol business acquisition, including a $650 million Term Loan A and $600 million bond issuance. Methanex ended 2024 with $892 million in cash and returned $50 million to shareholders through regular dividends while repaying a $300 million bond.

Positive

• Q4 Adjusted EBITDA increased to $224M from $216M in Q3 2024
• Production increased 39% QoQ to 1,868,000 tonnes
• Average realized price rose to $370/tonne from $356/tonne in Q3
• Strong cash position of $892M at year-end
• Full-year 2024 Adjusted EBITDA grew to $764M from $622M in 2023

Negative

• Full-year net income declined to $164M from $174M in 2023
• Total sales volume decreased to 2,564,000 tonnes from 2,623,000 tonnes in Q3
• Taking on significant debt for OCI acquisition with new $650M loan and $600M bond

Insights

Financial Analyst

Methanex delivered a robust fourth quarter performance marked by significant operational and financial improvements. The Adjusted EBITDA increased to $224 million from $216 million in Q3, while production surged 38.7% quarter-over-quarter to 1,868 kmt, demonstrating strong operational execution.

The company's financial health remains solid with several notable achievements:

• Full-year Adjusted EBITDA grew 22.8% to $764 million from $622 million in 2023
• Operating cash flow increased to $281 million in Q4, up 33.8% from Q3
• Successfully repaid $300 million bond with operational cash flows

The strategic financing package for the OCI acquisition, including a $650 million Term Loan A and $600 million bond issuance, positions Methanex for growth while maintaining financial flexibility. The company's ability to secure this financing in the current market environment reflects strong creditor confidence.

Operational improvements across multiple facilities, particularly in Chile and New Zealand, coupled with the successful commissioning of Geismar 3, demonstrate enhanced operational capabilities. The diversified production portfolio provides resilience against regional supply constraints, while the strategic gas contracts through 2027-2030 in Chile offer production stability.

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

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 36.9% of the Atlas facility and 50% of the Egypt facility that we do not own.
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 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 Capacity1	2024 Production		2023 Production	Q4 2024 Production	Q3 2024 Production	Q4 2023 Production
USA (Geismar) 2	4,000	2,529		2,142	839	605	587
Trinidad (Methanex interest) 3	1,960	956		1,074	205	262	283
New Zealand 4	1,720	670		1,381	143	72	344
Chile	1,700	1,180		993	387	173	403
Egypt (50% interest)	630	460		504	155	93	20
Canada (Medicine Hat)	600	563		548	139	142	142
	10,610	6,358		6,642	1,868	1,347	1,779

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	G3 produced first methanol in July 2024 and passed its commercial and technical performance tests in October 2024.
3	The 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.
4	The 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

FAQ

What was Methanex (MEOH) Q4 2024 earnings per share?

Methanex reported Q4 2024 earnings of $0.67 per share on a diluted basis, compared to $0.35 per share in Q3 2024.

How much was Methanex (MEOH) Q4 2024 production volume?

Methanex's Q4 2024 production volume was 1,868,000 tonnes, up from 1,347,000 tonnes in Q3 2024.

What was MEOH's average realized methanol price in Q4 2024?

Methanex's average realized price in Q4 2024 was $370 per tonne, an increase from $356 per tonne in Q3 2024.

How much cash did Methanex (MEOH) have at the end of 2024?

Methanex ended 2024 with a cash balance of $892 million.

What is Methanex's (MEOH) production guidance for 2025?

Methanex expects approximately 7.5 million tonnes of production in 2025, excluding any incremental production from OCI assets post-acquisition.