VANCOUVER, British Columbia, April 24, 2019 (GLOBE NEWSWIRE) -- For the first quarter of 2019, Methanex (TSX:MX) (NASDAQ:MEOH) reported net income attributable to Methanex shareholders of $38 million ($0.50 per common share on a diluted basis) compared to net income of $161 million ($1.68 per common share on a diluted basis) in the fourth quarter of 2018. Adjusted EBITDA for the first quarter of 2019 was $194 million and Adjusted net income was $56 million ($0.73 per common share). These results include the impact of IFRS 16, a substantial change to lease accounting standards. Excluding the impact of IFRS 16, Adjusted EBITDA would have been $166 million in the first quarter of 2019. This compares with Adjusted EBITDA of $197 million and Adjusted net income of $90 million ($1.15 per common share) for the fourth quarter of 2018.

John Floren, President and CEO of Methanex, commented, "The lower Adjusted EBITDA and earnings in the first quarter primarily reflects lower average realized prices compared to the last quarter which was partially offset by higher sales of Methanex-produced methanol. In addition, in a declining price environment, our margins tend to be lower than in a stable price environment due to inventory timing differences. Our average realized methanol price decreased by $70 per tonne in the quarter to $331 per tonne, which compares to $401 per tonne realized in the fourth quarter. We were pleased to see methanol pricing stabilize, supported by steady demand combined with a number of supply outages globally.”

“In the quarter, we successfully completed our first major turnaround at our Geismar 1 facility and subsequently achieved a daily production record from the plant. We continued our long track record of returning excess cash to shareholders by returning $31 million through our regular dividend and share repurchases. On March 18, 2019, we commenced a normal course issuer bid to purchase up to 3,863,298 common shares. To March 31, 2019, we have repurchased 99,893 common shares for $5.8 million. In addition, I am pleased to announce that the Board of Directors has approved a 9% increase to the quarterly dividend to shareholders, to $0.36 per share from $0.33 per share."

“We have $285 million of cash on hand at the end of the first quarter, a committed revolving credit facility, and a robust balance sheet. The strategic investments we have made in our business have strengthened our asset base, significantly increased our global production capacity, enhanced our ability to serve customers and substantially improved our earnings capabilities and cash generation potential over a wide range of methanol prices.

"Our balanced approach to capital allocation remains unchanged. We believe we are well positioned to meet our financial commitments, pursue our growth opportunities and deliver on our commitment to return excess cash to shareholders through dividends and share repurchases," Floren said.

FURTHER INFORMATION
The information set forth in this news release summarizes Methanex's key financial and operational data for the first quarter of 2019. It is not a complete source of information for readers and is not in any way a substitute for reading the first quarter 2019 Management’s Discussion and Analysis ("MD&A") dated April 24, 2019 and the unaudited condensed consolidated interim financial statements for the period ended March 31, 2019, both of which are available from the Investor Relations section of our website at www.methanex.com. The MD&A and the unaudited condensed consolidated interim financial statements for the period ended March 31, 2019 are also available on the Canadian Securities Administrators' SEDAR website at www.sedar.com and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov. 

FINANCIAL AND OPERATIONAL DATA

 Three Months Ended
($ millions except per share amounts and where noted)Mar 31
 2019		 Dec 31
 2018		 Mar 31
 2018		 
Production (thousands of tonnes) (attributable to Methanex shareholders)1,808 1,885 1,943 
Sales volume (thousands of tonnes)   
Methanex-produced methanol1,921 1,599 1,884 
Purchased methanol473 908 613 
Commission sales329 245 321 
Total sales volume 12,723 2,752 2,818 
    
Methanex average non-discounted posted price ($ per tonne) 2392 487 475 
Average realized price ($ per tonne) 3331 401 402 
    
Revenue733 977 962 
Adjusted revenue800 1,008 987 
Adjusted EBITDA194 197 306 
Cash flows from operating activities213 218 245 
Adjusted net income56 90 171 
Net income (attributable to Methanex shareholders)38 161 169 
    
Adjusted net income per common share0.73 1.15 2.03 
Basic net income per common share0.50 2.07 2.02 
Diluted net income per common share0.50 1.68 2.00 
    
Common share information (millions of shares)   
Weighted average number of common shares77 78 84 
Diluted weighted average number of common shares77 78 84 
Number of common shares outstanding, end of period77 77 83 

1   Methanex-produced methanol represents our equity share of volume produced at our facilities and excludes volume marketed on a commission basis related to the 36.9% of the Atlas facility and 50% of the Egypt facility that we do not own. Methanex-produced methanol includes any volume produced by Chile using natural gas supplied from Argentina under a tolling arrangement ("Tolling Volume"). There was no Tolling Volume produced in the first quarter of 2019 or the fourth quarter of 2018. There was 40,000 MT of Tolling Volume in the first quarter of 2018.

2   Methanex average non-discounted posted price represents the average of our non-discounted posted prices in North America, Europe and Asia Pacific weighted by sales volume. Current and historical pricing information is available at www.methanex.com. 

3   Average realized price is calculated as revenue, excluding commissions earned and the Egypt non-controlling interest share of revenue, but including an amount representing our share of Atlas revenue, divided by the total sales volume of Methanex-produced and purchased methanol, but excluding Tolling Volume.

A reconciliation from net income attributable to Methanex shareholders to Adjusted net income and the calculation of Adjusted net income per common share is as follows:

 Three Months Ended
($ millions except number of shares and per share amounts)Mar 31
 2019
 Dec 31
 2018		 Mar 31
 2018		 
Net income (attributable to Methanex shareholders)$38 $161 $169 
Mark-to-market impact of share-based compensation, net of tax18 (71)2 
Adjusted net income$56 $90 $171 
Diluted weighted average shares outstanding (millions)77 78 84 
Adjusted net income per common share$0.73 $1.15 $2.03 

PRODUCTION HIGHLIGHTS

 Q1 2019Q4 2018 Q1 2018 
(thousands of tonnes)Operating Capacity 1 Production Production Production 
New Zealand 2608 437 389 487 
USA (Geismar)500 405 527 513 
Trinidad (Methanex interest) 3500 429 448 459 
Chile 4430 241 206 166 
Egypt (50% interest)158 141 155 165 
Canada (Medicine Hat)150 155 160 153 
 2,346 1,808 1,885 1,943 

1   Operating capacity includes only those facilities which are currently capable of operating, but excludes any portion of an asset that is underutilized due to a lack of natural gas feedstock over a prolonged period of time. The operating capacity of our production facilities may be higher than original nameplate capacity as, over time, these figures have been adjusted to reflect ongoing operating efficiencies at these facilities. Actual production for a facility in any given year may be higher or lower than operating capacity due to a number of factors, including natural gas composition or the age of the facility's catalyst. 

2   The operating capacity of New Zealand is made up of the two Motunui facilities and the Waitara Valley facility.

3   The operating capacity of Trinidad is made up of the Titan (100% interest) and Atlas (63.1% interest) facilities.

4   The operating capacity of our Chile I and IV facilities is 1.7 million tonnes annually assuming access to natural gas feedstock. For 2018, our operating capacity in Chile was 0.9 million tonnes. In the fourth quarter of 2018 we restarted our 0.8 million tonne Chile IV plant that had been idle since 2007.

Key production and operational highlights during the first quarter include:

CONFERENCE CALL

A conference call is scheduled for April 25, 2019 at 12:00 noon ET (9:00 am PT) to review these first quarter results. To access the call, dial the conferencing operator ten minutes prior to the start of the call at (416) 340-2216, or toll free at (800) 273-9672. A simultaneous audio-only webcast of the conference call can be accessed from our website at www.methanex.com and will also be available following the call. A playback version of the conference call will be available until May 9, 2019 at (905) 694-9451, or toll free at (800) 408-3053. The passcode for the playback version is 8039337#.

ABOUT METHANEX

Methanex is a Vancouver-based, publicly traded company and is the world’s largest producer and supplier of methanol to major international markets. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the NASDAQ Global Market in the United States under the trading symbol "MEOH".

FORWARD-LOOKING INFORMATION WARNING

This first quarter 2019 press release contains forward-looking statements with respect to us and the chemical industry. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond the Company's control. Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Methanex does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law. Refer to Forward-Looking Information Warning in the first quarter 2019 Management's Discussion and Analysis for more information which is available from the Investor Relations section of our website at www.methanex.com, the Canadian Securities Administrators' SEDAR website at www.sedar.com and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov.

NON-GAAP MEASURES

The Company has used the terms Adjusted EBITDA, Adjusted net income, Adjusted net income per common share, Adjusted revenue and operating income throughout this document. These items are non-GAAP measures that do not have any standardized meaning prescribed by GAAP. These measures represent the amounts that are attributable to Methanex Corporation shareholders and are calculated by excluding the mark-to-market impact of share-based compensation as a result of changes in our share price and the impact of certain items associated with specific identified events. Refer to Additional Information - Supplemental Non-GAAP measures on page 15 of the Company's MD&A for the period ended March 31, 2019 for reconciliations to the most comparable GAAP measures. Unless otherwise indicated, the financial information presented in this release is prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

For further information, contact:

Kim Campbell
Manager, Investor Relations
Methanex Corporation
604-661-2600