Methanex swings to Q4 profit on methanol demand, pricing

30 January 2014 16:03  [Source: ICIS news]

HOUSTON (ICIS)--Methanex recorded fourth-quarter net income of $128m, up from a $140m loss in the 2012 fourth quarter, because of healthy methanol demand and stronger pricing, the Canada-based methanol major said in a statement released late on Wednesday.

"Demand remained healthy in the fourth quarter, driving methanol pricing higher amidst industry supply constraints," said CEO John Floren.

"Increased production from our plants in New Zealand and Chile, together with strong methanol pricing, contributed to robust EBITDA [earnings before interest, tax, depreciation and amortisation] and earnings results," Floren added.

Methanex’s adjusted EBITDA for the three months ended 31 December was $245m, up from $119m in the 2012 fourth quarter.

Production for the fourth quarter of 2013 was 1,194,000 tonnes, compared with 1,067,000 tonnes in the 2012 fourth quarter, and 1,035,000 tonnes in the 2013 third quarter of 2013.

Methanex said that during the fourth quarter of 2013 its plant at Medicine Hat in Canada’s Alberta province had an unplanned outage which resulted in lost production of about 50,000 tonnes. The facility restarted on 10 January and is currently operating, the company said.

Floren also updated on Methanex’s project to relocate two methanol plants from Chile to Geismar, Louisiana.

"All of the major equipment pieces for Geismar 1 are now on site in Louisiana," Floren said.

"We are targeting to be producing methanol from Geismar 1 in late 2014 and from Geismar 2 in early 2016," he said.

"These key projects support the 3m tonne increase in our operating capacity to 8m tonnes by 2016, a time when new market supply is expected to be limited," he said.

By: Stefan Baumgarten
+1 713 525 2653

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