Except where otherwise noted, all currency amounts are stated in United States dollars.

• Continued strong methanol pricing generated net income attributable to Methanex shareholders of $119 million and Adjusted EBITDA of $337 million.
• Methanol industry fundamentals remain solid entering the second quarter. High global energy prices have shifted the industry cost curve up and continue to provide methanol pricing support.
• Geismar 3 ("G3") project continues to progress safely, on schedule and on budget and is expected to reach commercial production by late 2023/early 2024. The remaining capital spend of $625 to $725 million is fully funded with cash on hand.
• Closed the strategic shipping partnership with Mitsui O.S.K. Lines, Ltd. and received proceeds of approximately $145 million.
• In April 2022, we released our 2021 Sustainability Report which outlines our solutions-focused Environmental, Social and Governance (ESG) commitments.
• The Board approved a 16% dividend increase to $0.145 per share per quarter, and an increase to the existing Normal Course Issuer Bid increasing the number of common shares that may be purchased from 3,810,464 to 6,094,171, representing 10% of the public float.

For the first quarter of 2022, Methanex (TSX:MX) (NASDAQ:MEOH) reported net income attributable to Methanex shareholders of $119 million ($1.60 net income per common share on a diluted basis) compared to net income of $201 million ($2.51 net income per common share on a diluted basis) in the fourth quarter of 2021. The decrease in net income is primarily due to the change in the mark-to-market impact of share-based compensation, and the effective tax rate which was lower in the fourth quarter of 2021 due to a reduced tax rate in Chile and the resolution of outstanding tax matters not recurring in the first quarter of 2022. Adjusted EBITDA for the first quarter of 2022 was $337 million, and Adjusted net income was $159 million ($2.16 Adjusted net income per common share). This compares with Adjusted EBITDA of $340 million and Adjusted net income of $185 million ($2.43 Adjusted net income per common share) for the fourth quarter of 2021.

The methanol market was tight entering the first quarter of 2022 and supply continued to be constrained by low industry operating rates. The conflict between Russia and the Ukraine further increased global energy prices providing support for the methanol cost curve. The average realized price in the first quarter was $425 per tonne compared to $445 per tonne in the fourth quarter of 2021.

Methanex generated strong cash flows ending the quarter with $1.1 billion in cash and returned $101 million to shareholders through the regular dividend and share repurchases. The continued strength of the balance sheet combined with solid methanol market fundamentals has allowed us to increase distributions to shareholders going forward through the increases to the dividend and Normal Course Issuer Bid.

John Floren, President & CEO of Methanex, said, “I am pleased to see strong industry conditions continue through the first quarter and into the second quarter. Our continued strong financial performance allows us to continue our long track record of returning excess cash to shareholders through our increased dividend and upsized share buyback program. The G3 project is progressing well and as a fellow shareholder I am excited about its cash flow generation capability and its world-class CO2 intensity profile."

FURTHER INFORMATION

The information set forth in this news release summarizes Methanex's key financial and operational data for the first quarter of 2022. It is not a complete source of information for readers and is not in any way a substitute for reading the first quarter 2022 Management’s Discussion and Analysis ("MD&A") dated April 27, 2022 and the unaudited condensed consolidated interim financial statements for the period ended March 31, 2022, 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, 2022 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

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. This is a non-GAAP ratio that does not have any standardized meaning prescribed by GAAP and therefore is unlikely to be comparable to similar measures presented by other companies. ARP 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. 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, Adjusted EBITDA, and Average realized price 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 Non-GAAP Measures section on page 13 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:

• We recorded net income attributable to Methanex shareholders of $119 million in the first quarter of 2022 compared to net income of $201 million in the fourth quarter of 2021. The decrease in net income is primarily due to the change in the mark-to-market impact of share-based compensation, and the effective tax rate which was lower in the fourth quarter of 2021 due to a reduced tax rate in Chile and the resolution of outstanding tax matters not recurring in the first quarter of 2022.
• We recorded Adjusted EBITDA of $337 million for the first quarter of 2022 compared to $340 million for the fourth quarter of 2021. We recorded Adjusted net income of $159 million for the first quarter of 2022 compared to Adjusted net income of $185 million for the fourth quarter of 2021. Adjusted EBITDA for the first quarter of 2022 are comparable to the fourth quarter of 2021 as the modest decrease in our average realized methanol price to $425 per tonne from $445 per tonne was primarily offset by lower costs due to a higher proportion of Methanex-produced methanol sales and the methanol price impact on our methanol-linked gas costs. Adjusted net income for the first quarter of 2022 is lower compared to the fourth quarter of 2021 as the effective tax rate which was lower in the fourth quarter of 2021 due to reduced tax rate in Chile and resolution of outstanding tax matters not recurring in the first quarter of 2022.
• We sold 2,758,000 tonnes in the first quarter of 2022 compared to 2,804,000 tonnes for the fourth quarter of 2021. Sales of Methanex-produced methanol were 1,797,000 tonnes in the first quarter of 2022 compared to 1,672,000 tonnes in the fourth quarter of 2021.
• Production for the first quarter of 2022 was 1,789,000 tonnes compared to 1,933,000 tonnes for the fourth quarter of 2021. Production is lower for the first quarter of 2022 primarily due to unplanned and planned outages at our Geismar, Egypt and Atlas facilities.
• Construction on our highly advantaged Geismar 3 project continues on plan and is well-positioned to be completed on-time and on-budget by the end of 2023 or early 2024. Our capital cost estimate for the project is $1.25 to $1.35 billion and we have spent $620 million to the end of March 31, 2022 (all amounts before capitalized interest). Geismar 3's world-class CO2 intensity profile will enhance our current asset portfolio and help us meet our recently published commitment to reduce our greenhouse gas emissions intensity.
• In the third quarter of 2021 we commenced a normal course issuer bid to repurchase up to 3,810,464 common shares. To March 31, 2022, we have repurchased 3,304,540 common shares for $155 million. On April 27, 2022 the Board approved an increase to the normal course issuer bid for an incremental 2,283,707 shares, for a total of 6,094,171 shares, which increases the normal course issuer bid to 10% of our public float.
• In the first quarter of 2022 we paid a $0.125 per common share quarterly dividend to shareholders for a total of $9 million. On April 27, 2022 we announced a 16% increase in our quarterly dividend to $0.145 per common share. The increased dividend will apply to the dividend payable on June 30, 2022.
• At March 31, 2022, we have a strong liquidity position including a cash balance of $1.1 billion and $600 million of undrawn backup liquidity.

PRODUCTION HIGHLIGHTS

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. We review and update the operating capacity of our production facilities on a regular basis based on historical performance. 

² The operating capacity of New Zealand is made up of the two Motunui facilities and the Waitara Valley facility. The New Zealand facilities are capable of producing up to 2.4 million tonnes annually, depending on natural gas composition and availability. Annual Operating Capacity is currently 2.2 million tonnes based on the natural gas composition expected for the foreseeable future. The Waitara Valley plant is currently idled indefinitely due to insufficient natural gas availability.

³ The operating capacity of Trinidad is made up of the Titan (100% interest) and Atlas (63.1% interest) facilities. The Titan plant remains idled indefinitely since the expiry of its gas contract with the National Gas Company of Trinidad and Tobago Limited ("NGC"). We continue to engage with the NGC to negotiate terms for a new gas contract for Titan.

Key production and operational highlights during the first quarter and production outlook for 2022 include:

• New Zealand produced 386,000 tonnes compared to 405,000 tonnes in the fourth quarter of 2021. In New Zealand, our production was lower in the first quarter of 2022 compared to the fourth quarter of 2021 due to lower gas deliveries. Based on our outlook for natural gas in New Zealand, we estimate production for 2022 to be approximately 1.5 million tonnes.
• Geismar produced 556,000 tonnes in the first quarter of 2022 compared to 605,000 tonnes in the fourth quarter of 2021. Geismar production was lower for the first quarter of 2022 compared to the fourth quarter of 2021 as production was impacted by minor unplanned outages at both Geismar 1 and 2 during the first quarter.
• Atlas produced 258,000 tonnes (Methanex interest) in the first quarter of 2022 compared to 296,000 tonnes in the fourth quarter of 2021. Production in Trinidad was lower in the first quarter of 2022 compared to the fourth quarter of 2021 due to a minor unplanned outage at our Atlas plant. Titan remains idled indefinitely.
• Chile produced 324,000 tonnes in the first quarter of 2022 compared to 334,000 tonnes in the fourth quarter of 2021. Production for the first quarter of 2022 is comparable to the fourth quarter of 2021 as our Chile IV plant ran continuously through both quarters, as both periods fall within the Southern hemisphere summer months, when domestic natural gas demand is lower. We expect to have sufficient gas to operate both Chile plants to the end of April 2022, following which we anticipate operating one plant through the Southern hemisphere winter. We estimate Chile production in 2022 to be approximately 1 million tonnes.
• Egypt produced 208,000 tonnes (Methanex interest - 104,000 tonnes) in the first quarter of 2022 compared to 288,000 tonnes (Methanex interest - 144,000 tonnes) in the fourth quarter of 2021. Production in Egypt was lower in the first quarter of 2022 compared to the fourth quarter of 2021 due to a planned 20 day outage in the first quarter.
• Medicine Hat produced 161,000 tonnes in the first quarter of 2022 compared to 149,000 tonnes in the fourth quarter of 2021. Production for the first quarter of 2022 is slightly higher compared to the fourth quarter of 2021 as the plant did not experience any of the weather related constraints faced in the fourth quarter of 2021.

CONFERENCE CALL

A conference call is scheduled for April 28, 2022 at 11:00 am ET (8:00 am PT) to review these first quarter results. To access the call, dial the conferencing operator fifteen minutes prior to the start of the call at (416) 340-2217, or toll free at (800) 806-5484. The passcode for the call is 2971996#. A simultaneous audio-only webcast of the conference call can be accessed from our website at www.methanex.com/investor-relations/events and will also be available following the call.

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 2022 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 2022 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 (loss), Adjusted net income (loss) per common share and Average realized price throughout this document. These items are non-GAAP measures and ratios 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 - Non-GAAP Measures on page 13 of the Company's MD&A for the period ended March 31, 2022 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:

Sarah Herriott
Director, Investor Relations
Methanex Corporation
604-661-2600