25 July 2013 04:29 [Source: ICIS news]
SINGAPORE (ICIS)--Methanex generated a second-quarter net profit of $54m (€41m), up by 3.8% year on year, backed by higher sales volumes and prices of methanol, the Canadian producer said late on Wednesday.
Methanol sales volumes in the three months to June 2013 grew 9.0% year on year to 2.01m tonnes, while the average realised prices of the product increased 10.7% to $425/tonne, the company said in a statement.
The company posted an adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $157m in the second quarter, 39.8% higher year on year, it said.
In the first six months of 2013, the company’s net profit was up 54% year on year to $114m, Methanex said.
Sales volume for January-June this year increased 5.0% year on year to 3.84m tonnes, with the average realised price for methanol rising 9.1% to $418/tonne, it said.
Adjusted EBITDA for the six-month period increased 49.0% to $307m, Methanex said.
"The higher methanol pricing environment in the second quarter contributed to stronger EBITDA and earnings,” Methanex president and CEO John Floren said in the statement.
“Entering the third quarter, we continue to move forward on a number of growth projects. These projects are expected to expand our annual operating capacity by approximately three million (3m) tonnes over the next three years, representing a 60% capacity increase," he said.
Methanex’s initiatives at Motonui in New Zealand and at Medicine Hat in Canada are expected to add up to 1m tonnes of annual production capacity by the end of 2013, Floren said.
Methanex is also in the process of relocating two of its idle facilities in Chile to Geismar, Louisiana in the US. During the June quarter, the company incurred $54m in capital expenditures related to the projects.
“The 1m tonne Geismar I facility is expected to be operational by the end of 2014 and the 1m tonne Geismar II facility is expected to be operational in early 2016,” the company added.
($1 = €0.76)
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