VANCOUVER, BRITISH COLUMBIA—(Marketwired – July 30, 2014) – For the second quarter of 2014, Methanex (TSX:MX)(NASDAQ:MEOH) reported Adjusted EBITDA1 of $160 million, compared to Adjusted EBITDA1 of $255 million reported in the first quarter of 2014 and $157 million reported in the quarter ended June 30, 2013. Adjusted net income1 was $91 million ($0.94 per share on a diluted basis) in the second quarter of 2014, compared to Adjusted net income1 of $160 million ($1.65 per share on a diluted basis) for the first quarter of 2014 and $99 million ($1.02 per share on a diluted basis) for the second quarter of 2013.
John Floren, President and CEO of Methanex commented, “Methanol prices are lower in Q2 2014 compared to Q1 2014, resulting in lower Q2 earnings as compared to the first quarter. We believe pricing is now stabilizing at current levels.” Mr. Floren added, “At these methanol prices, Methanex continues to generate strong EBITDA and cash flows. The methanol industry environment remains favourable, with steady demand and limited new supply additions expected in the near to medium term.”
Mr. Floren added, “We are making excellent progress on the relocation of two of our Chile plants to Geismar, Louisiana, and are targeting methanol production from our Geismar 1 facility in late 2014 and Geismar 2 in early 2016. Each of these plants will add an incremental one million tonnes to our operating capacity.”
“In the second quarter we also reached a settlement agreement with Total Austral S.A. of Argentina and received a lump sum payment of US$42 million, or $27 million net of tax, to terminate their obligations under their former long-term natural gas supply agreement with Methanex in Chile. This payment is not included in our Q2 2014 Adjusted EBITDA or Adjusted net income but has been recorded in Q2 2014 Net income attributable to Methanex shareholders.”
“During the quarter, we returned over $100 million in cash to shareholders in the form of dividends and share repurchases. With over $600 million of cash on hand, an undrawn credit facility, robust balance sheet, and strong cash flow generation, we are well positioned to meet our financial commitments, invest to grow the Company and return excess cash to shareholders through dividends and our share buyback program.”
A conference call is scheduled for July 31, 2014 at 12:00 noon ET (9:00 am PT) to review these second quarter results. To access the call, dial the conferencing operator ten minutes prior to the start of the call at (416) 340-2218, or toll free at (866) 226-1793. A playback version of the conference call will be available until August 21, 2014 at (905) 694-9451, or toll free at (800) 408-3053. The passcode for the playback version is 2070181. Presentation slides summarizing Q2-14 results and a simultaneous audio-only webcast of the conference call can be accessed from our website at www.methanex.com. The webcast will be available on the website for three weeks following the call.
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 Second Quarter 2014 press release contains forward-looking statements with respect to us and the chemical industry. Refer to Forward-Looking Information Warning in the attached Second Quarter 2014 Management’s Discussion and Analysis for more information.
|1||Adjusted EBITDA, Adjusted net income and Adjusted net income per common share are non-GAAP measures which 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 and items considered by management to be non-operational. Refer to the Additional Information – Supplemental Non-GAAP Measures section of the attached Interim Report for the three months ended June 30, 2014 for reconciliations to the most comparable GAAP measures.|
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Director, Investor Relations
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