Methanex (MX) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw an average realized price of $352/ton, with produced sales of 1.6 million tons, generating adjusted EBITDA of $164 million and adjusted net income of $0.62 per share, up from Q1 due to higher prices.

• Net income attributable to shareholders was $35 million for Q2 2024, with adjusted net income of $42 million.

• First methanol was produced at the new Geismar 3 (G3) plant in late July, with ramp-up underway.

• Methanol markets tightened in early Q2, with global demand outpacing supply, leading to inventory drawdowns and price increases.

• Production was lower in Chile and New Zealand due to gas constraints, but Egypt production increased after restart.

Financial highlights

• Adjusted EBITDA for Q2 was $164 million, including $13 million in G3 delay costs; excluding these, adjusted EBITDA would have been $177 million.

• Revenue for Q2 2024 was $920 million, up from $916 million in Q1 2024.

• Adjusted net income per share was $0.62, slightly down from $0.65 in Q1 2024.

• Average realized price increased to $352/ton from $343/ton in Q1 2024.

• Ended Q2 with $426 million in cash and an undrawn $500 million revolving credit facility.

Outlook and guidance

• Q3 adjusted EBITDA expected to be lower than Q2 due to reduced sales from Chile and New Zealand and G3's initial inventory build.

• Q4 sales and earnings anticipated to reflect full G3 production run rate.

• 2024 production in Chile expected slightly above high end of 1.2 million ton guidance; New Zealand below previous 1 million ton guidance.

• Full-year produced volume guidance reaffirmed at 7 million tons, supported by G3 ramp-up.

• Average realized price for July and August expected between $350 and $360 per ton.