Except where otherwise noted, all currency amounts are stated in United States dollars.
Financial and Production Highlights
- Net income attributable to Methanex shareholders of $45 million and Adjusted EBITDA of $224 million in the fourth quarter. Our average realized price in the fourth quarter was $370 per tonne compared to $356 per tonne in the third quarter of 2024.
- Full year 2024 net income attributable to Methanex shareholders of $164 million and Adjusted EBITDA of $764 million.
- Fourth quarter production of 1,868 kmt was higher than third quarter production of 1,347 kmt driven by higher production from Chile, New Zealand, Geismar, and Egypt.
- In 2024, $50 million was returned to shareholders through regular dividends and the $300 million bond due in December was repaid with cash flows generated from operations. We ended the year with $892 million in cash.
- During the fourth quarter we completed the financing plan for the acquisition of OCI Global's international methanol business ("OCI Acquisition") including renewing and increasing the undrawn credit facility, syndicating a $650 million Term Loan A and issuing a $600 million bond.
- We have been advised by our legal counsel that earlier today OCI Global received a favourable decision from the Delaware Court of Chancery in its dispute with its joint venture partner with respect to the Natgasoline asset (subject to any potential further proceedings or appeal).
Our average realized price in the fourth quarter was $370 per tonne compared to $356 per tonne in the third quarter of 2024. The increase in our average realized price was driven by tightening market conditions from lower supply compared to the third quarter coupled with steady demand.
For the year ended December 31, 2024, Methanex reported net income attributable to Methanex shareholders of $164 million ($2.39 net income per common share on a diluted basis), Adjusted EBITDA of $764 million and an Adjusted net income of $252 million ($3.72 Adjusted net income per common share). This compares with a net income attributable to Methanex shareholders of $174 million ($2.57 net income per common share on a diluted basis), Adjusted EBITDA of $622 million and an Adjusted net income of $153 million ($2.25 Adjusted net income per common share) for the year ended December 31, 2023.
Rich Sumner, President & CEO of Methanex, said, "2024 was a significant year for Methanex. Thanks to the dedication of our global team, we achieved the best safety performance in the company's history, successfully achieved commercial production at G3, and announced the acquisition of OCI Global's methanol business. Our top priorities for 2025 are operating our assets and supply chain safely, reliably, and efficiently, closing the OCI acquisition and integrating the business, and generating strong cash flows to continue to decrease leverage."
FURTHER INFORMATION
The information set forth in this news release summarizes Methanex's key financial and operational data for the fourth quarter of 2024. It is not a complete source of information for readers and is not in any way a substitute for reading the fourth quarter 2024 Management's Discussion and Analysis ("MD&A") dated January 29, 2025 and the unaudited condensed consolidated interim financial statements for the period ended December 31, 2024, both of which are available from the Investor Relations section of our website at www.methanex.com. The MD&A and the unaudited condensed consolidated interim financial statements for the period ended December 31, 2024 are also available on the Canadian Securities Administrators' SEDAR+ website at www.sedarplus.ca and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov.
FINANCIAL AND OPERATIONAL DATA
| Three Months Ended | Years Ended | |||||||||||||||
| ($ millions except per share amounts and where noted) | Dec 31
2024 | Sep 30 2024 | Dec 31
2023 | Dec 31 2024 | Dec 31 2023 | |||||||||||
| Production (thousands of tonnes) (attributable to Methanex shareholders) 1 | 1,868 | 1,347 | 1,779 | 6,358 | 6,642 | |||||||||||
| Sales volume (thousands of tonnes) | ||||||||||||||||
| Methanex-produced methanol | 1,455 | 1,378 | 1,712 | 6,094 | 6,455 | |||||||||||
| Purchased methanol | 911 | 987 | 890 | 3,471 | 3,527 | |||||||||||
| Commission sales | 198 | 258 | 260 | 904 | 1,187 | |||||||||||
| Total sales volume | 2,564 | 2,623 | 2,862 | 10,469 | 11,169 | |||||||||||
| Methanex average non-discounted posted price ($ per tonne) 2 | 547 | 519 | 421 | 508 | 434 | |||||||||||
| Average realized price ($ per tonne) 3 | 370 | 356 | 322 | 355 | 333 | |||||||||||
| Revenue | 949 | 935 | 922 | 3,720 | 3,723 | |||||||||||
| Net income (attributable to Methanex shareholders) | 45 | 31 | 33 | 164 | 174 | |||||||||||
| Adjusted net income 4 | 84 | 82 | 35 | 252 | 153 | |||||||||||
| Adjusted EBITDA 4 | 224 | 216 | 148 | 764 | 622 | |||||||||||
| Cash flows from operating activities | 281 | 210 | 195 | 737 | 660 | |||||||||||
| Basic net income per common share | 0.67 | 0.46 | 0.50 | 2.43 | 2.57 | |||||||||||
| Diluted net income per common share | 0.67 | 0.35 | 0.50 | 2.39 | 2.57 | |||||||||||
| Adjusted net income per common share 4 | 1.24 | 1.21 | 0.52 | 3.72 | 2.25 | |||||||||||
| Common share information (millions of shares) | ||||||||||||||||
| Weighted average number of common shares | 67 | 67 | 67 | 67 | 68 | |||||||||||
| Diluted weighted average number of common shares | 67 | 68 | 68 | 68 | 68 | |||||||||||
| Number of common shares outstanding, end of period | 67 | 67 | 67 | 67 | 67
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| 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. |
| 2 | Methanex average non-discounted posted price represents the average of our non-discounted posted prices in North America, Europe, China and Asia Pacific weighted by sales volume. Current and historical pricing information is available at www.methanex.com. |
| 3 | The Company has used Average realized price ("ARP") throughout this document. ARP is calculated as revenue divided by the total sales volume. It is used by management to assess the realized price per unit of methanol sold, and is relevant in a cyclical commodity environment where revenue can fluctuate in response to market prices. |
| 4 | Note that Adjusted net income, Adjusted net income per common share, and Adjusted EBITDA are non-GAAP measures and ratios that do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. Refer to the Additional Information - Non-GAAP Measures section on page 14 of our fourth quarter MD&A dated January 29, 2025 for a description of each non-GAAP measure. |
- A reconciliation from net income attributable to Methanex shareholders to Adjusted EBITDA, Adjusted net income and the calculation of Adjusted net income per common share is as follows:
| Three Months Ended | Years Ended | |||||||||||||||
| ($ millions) | Dec 31 2024 | Sep 30
2024 | Dec 31 2023 | Dec 31
2024 | Dec 31 2023 | |||||||||||
| Net income attributable to Methanex shareholders | $ | 45 | $ | 31 | $ | 33 | $ | 164 | $ | 174 | ||||||
| Mark-to-market impact of share-based compensation | 22 | (18 | ) | 3 | 2 | 16 | ||||||||||
| Gas contract settlement, net of tax | - | - | - | - | (31 | ) | ||||||||||
| Depreciation and amortization | 91 | 99 | 100 | 386 | 392 | |||||||||||
| Finance costs | 49 | 28 | 30 | 133 | 117 | |||||||||||
| Finance income and other expenses | 37 |
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