Canada's Methanex Q4 net loss widens to $140m on impairment charge

31 January 2013 06:52  [Source: ICIS news]

SINGAPORE (ICIS)--Canadian firm Methanex said late on Wednesday that its net loss widened to $140m (€104m) in the fourth quarter of last year, weighed by an impairment charge related to its assets in Chile.

“As a result of the continuing challenges related to securing a sustainable natural gas feedstock in Chile, we recorded a non-cash before-tax $297m asset impairment charge to write down the carrying value of our Chile assets,” Methanex said in a statement.

The company made a loss of $3m in the fourth quarter of 2011, according to the statement.

On a year-on-year basis, the company’s revenue was flat at $696m in the fourth quarter, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was up by 14.4% at $119m.

"Methanol prices increased during the fourth quarter and this led to higher adjusted EBITDA compared to last quarter,” said John Floren, president and CEO of Methanex.

Methanol demand has been healthy and prices have been “relatively stable” in the first quarter of 2013, he said.

“The longer-term outlook for the industry looks very attractive, with demand growth expected to significantly outpace new capacity additions over the next few years,” Floren added.

For the full-year of 2012, Methanex swung to a net loss of $68m from a net profit of $201m in the previous year.

The firm’s sales rose by 2.49% year on year to $2.67bn in 2012, while adjusted EBITDA climbed by 0.47% to $429m.

($1 = € 0.74)

By: Nurluqman Suratman

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