Canada's Methanex Q4 profit up 8.6% on strong sales, high prices

27 January 2011 03:25  [Source: ICIS news]

SINGAPORE (ICIS)--Methanex posted an 8.6% year-on-year increase in its fourth-quarter 2010 net income to $27.9m (€20.4m) as its sales volumes surged, the Canadian methanol producer said late on Wednesday.

Sales volumes jumped 19.3% year on year to 1.79m tonnes in the fourth quarter, with the average realised price for methanol rising 23.4% at $348/tonne, the statement said.

Methanex's operating income for the quarter rose slightly to $41.2m from $40.9m in the same period in 2009, it said.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the three-month period ending 31 December dipped slightly to $71.3m, versus $72.9m in the previous corresponding period, Methanex said in a statement.

 “As we entered the fourth quarter of 2010, market conditions were tight as demand was strong and there were a number of planned and unplanned outages across the methanol industry,” the firm said.

This resulted in an increase in spot and contract methanol prices in the October-December period, it said.

There would be little new capacity additions outside of China expected over the next few years, the company added.

The company’s net income for the full year surged to $101.7m, versus $700,000 in 2009, while adjusted EBITDA surged 88% to $266.7m.

The net income figure included an after-tax gain of $22.2m related to the sale of its terminal facilities in Kitimat, Canada.

Sales volumes for the full year rose 16.5% year on year to 6.93m tonnes, accompanied by a 36% surge in average realised price of methanol at $306/tonne.

($1 = €0.73)

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By: Nurluqman Suratman

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