Methanex ( (MEOH) ) has released its Q3 earnings. Here is a breakdown of the information Methanex presented to its investors.
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Methanex Corporation, headquartered in Vancouver, is the world’s largest producer and supplier of methanol, serving major international markets, and is listed on both the Toronto Stock Exchange and the NASDAQ Global Market.
In its third-quarter earnings report for 2024, Methanex Corporation announced a net income of $31 million and an adjusted EBITDA of $216 million, alongside strategic moves such as the acquisition of OCI Global’s methanol business and updates on its global production facilities.
Key highlights from the quarter include the completion of commercial and technical performance tests at the new Geismar 3 plant, the signing of a major acquisition deal with OCI Global, and the extension of key gas contracts in Chile. These strategic initiatives are poised to enhance Methanex’s production capabilities and market presence. The company also reported a stable average realized price of $356 per tonne and maintained robust liquidity with a cash balance of $511 million.
Challenges during the quarter included lower production rates due to equipment calibration at Geismar 3 and temporary idling of operations in New Zealand, resulting in a significant asset impairment charge. However, strategic actions like optimizing operating costs in New Zealand and securing gas contracts in Chile demonstrate Methanex’s efforts to mitigate these challenges.
Looking ahead, Methanex is optimistic about increasing production levels with Geismar 3 operating at full capacity and improved gas supply in Chile, while focusing on integrating OCI’s methanol business to strengthen its global leadership in the methanol industry.
