Methanex (MX) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw an average realized price of $356/ton, produced sales of 1.4 million tons, adjusted EBITDA of $216 million, and adjusted net income of $1.21 per share, both up from Q2 2024 due to higher prices, gas sales in New Zealand, and an insurance recovery in Egypt.

• Net income attributable to shareholders was $31 million for Q3 2024, with adjusted EBITDA of $216 million and adjusted net income of $82 million.

• Announced a definitive agreement to acquire OCI Global's international methanol business for $2.05 billion, including interests in two Beaumont, Texas facilities; expected to close in H1 2025.

• G3 plant completed performance and reliability tests, producing 154,000 tons in 30 days and has operated at full rates since early October.

• Production was lower than Q2 due to temporary idling in New Zealand and gas constraints in Chile and Egypt; New Zealand shifted to a one-plant operation due to limited gas supply.

Financial highlights

• Adjusted EBITDA for Q3 was $216 million, higher than Q2, driven by improved pricing and one-time items.

• Adjusted net income per share was $1.21, up from $0.62 in Q2.

• Revenue for Q3 2024 was $935 million, with sales volume of 2,623,000 tonnes.

• Ended Q3 with $511 million in cash and access to a $500 million undrawn revolving credit facility, extended to $600 million post-OCI acquisition.

• On track to repay $300 million bond due December 1, 2024.

Outlook and guidance

• Q4 equity production guidance is approximately 1.9 million tons, with similar adjusted EBITDA expected as Q3.

• Q4 average realized price expected between $365 and $375/ton, with higher posted prices in Europe and North America.

• New Zealand will operate one plant at full rates, with annual capacity of 800,000–850,000 tons.

• Chile’s 2025 production could reach 1.3–1.4 million tons, depending on winter gas supply.

• Focus remains on deleveraging post-OCI transaction, targeting $550–$600 million debt repayment over 18 months and integrating OCI's methanol business.