Methanex's Q1 profits up 49% on high prices

26 April 2007 14:45  [Source: ICIS news]

TORONTO (ICIS news)--Methanex’s first-quarter operating income rose 49% on high methanol prices and tight market supply, according to a statement on Thursday.

 

The Vancouver-based company’s income was $213.1m, up from $142.9m in the same period a year ago. Revenues were $674m, up 46.6%, and net income was $144.7m, up 25.6%.

 

First-quarter methanol sales volumes fell totalling 1.654m tonnes, down almost 6% from 1.759m in the first quarter of 2006 but prices rose year on year, the company said. 

 

Methanex’s average realised price for methanol was $444/tonne, up from $283/tonne year on year but down from $460/tonne from 2006’s fourth quarter, the company said.

 

Meanwhile, the April posted contract price for methanol was about $330/tonne in all of the major regions, and earlier this week Methanex announced a price roll-over at that level for May in North America.

 

Although prices have come down, Methanex expected industry fundamentals to continue to be favourable, chief executive Bruce Aitken said.

 

Competitors were expected to close more high-cost capacity and on the demand side high energy prices improved the economics for using methanol derivatives in fuel blending, biodiesel and methyl tertiary butyl ether (MTBE), he added.

 

By: Stefan Baumgarten
+1 713 525 2653

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