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

• Net income attributable to Methanex shareholders of $60 million and Adjusted EBITDA of $209 million in the first quarter. The average realized price in the first quarter was $371 per tonne compared to $373 per tonne in the fourth quarter of 2022.
• Geismar 3 ("G3") project is over 80% complete and is progressing safely, on time and on budget. Production expected in the fourth quarter of 2023. The remaining capital spend of $330 - 380 million is fully funded with cash on hand.
• The Board approved a 6% dividend increase to $0.185 per share per quarter, applicable to the dividend payable on June 30th, 2023.
• Returned $60 million to shareholders through dividends and share repurchases and have a strong liquidity position with $780 million in cash.

VANCOUVER, British Columbia, April 26, 2023 (GLOBE NEWSWIRE) -- For the first quarter of 2023, Methanex (TSX:MX) (NASDAQ:MEOH) reported net income attributable to Methanex shareholders of $60 million ($0.87 net income per common share on a diluted basis) compared to net income of $41 million ($0.59 net income per common share on a diluted basis) in the fourth quarter of 2022. Net income was higher compared to the prior quarter primarily due to higher sales of Methanex-produced methanol driven by higher production in Egypt, Atlas and Chile. Adjusted EBITDA for the first quarter of 2023 was $209 million and Adjusted net income was $76 million ($1.11 Adjusted net income per common share). This compares with Adjusted EBITDA of $160 million and Adjusted net income of $51 million ($0.73 Adjusted net income per common share) for the fourth quarter of 2022.

In the first quarter methanol pricing remained relatively stable. The average realized price in the first quarter was $371 per tonne compared to $373 per tonne in the fourth quarter of 2022.

During the quarter, we returned $60 million to shareholders through the regular dividend and share repurchases. We ended the quarter with $780 million in cash, or approximately $709 million in cash excluding non-controlling interests and including our share of cash in the Atlas joint venture. We also have an undrawn $300 million revolving credit facility that provides additional financial flexibility.

Rich Sumner, President & CEO of Methanex, said, “I am proud of the team for delivering another quarter of strong operational and financial results. The G3 project is over 80% complete and we are looking forward to having it start up in the fourth quarter of this year as it will significantly enhance our cash flow generation capability and lower our average CO2 emissions intensity. Our business is well-positioned to navigate through the continuing macro-economic uncertainty and create shareholder value."

FURTHER INFORMATION

The information set forth in this news release summarizes Methanex's key financial and operational data for the first quarter of 2023. It is not a complete source of information for readers and is not in any way a substitute for reading the first quarter 2023 Management’s Discussion and Analysis ("MD&A") dated April 26, 2023 and the unaudited condensed consolidated interim financial statements for the period ended March 31, 2023, 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, 2023 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

• 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 $60 million in the first quarter of 2023 compared to net income of $41 million in the fourth quarter of 2022. Net income was higher compared to the prior quarter primarily due to higher sales of Methanex-produced methanol driven by higher production in Egypt, Atlas and Chile.
• We recorded Adjusted EBITDA of $209 million for the first quarter of 2023 compared to $160 million for the fourth quarter of 2022. We recorded Adjusted net income of $76 million for the first quarter of 2023 compared to Adjusted net income of $51 million for the fourth quarter of 2022. Adjusted EBITDA was higher in the first quarter of 2023 primarily due to higher sales of Methanex-produced methanol. The impact of higher Adjusted EBITDA on Adjusted net income for the first quarter of 2023, as compared to the fourth quarter of 2022, was partially offset by higher depreciation charges due to the mix of product sold and lower finance income due to lower foreign exchange gains.
• We sold 2,805,000 tonnes in the first quarter of 2023 compared to 2,647,000 tonnes for the fourth quarter of 2022. Sales of Methanex-produced methanol were 1,649,000 tonnes in the first quarter of 2023 compared to 1,360,000 tonnes in the fourth quarter of 2022.
• Production for the first quarter of 2023 was 1,660,000 tonnes compared to 1,526,000 tonnes for the fourth quarter of 2022. Production was higher for the first quarter of 2023 as production in the fourth quarter of 2022 was impacted by a planned extended turnaround in Egypt, seasonal gas restrictions in Chile and unplanned outages in Geismar and Trinidad.
• The Geismar 3 project is progressing well and on budget with methanol production expected in the fourth quarter of 2023 with an expected total capital cost of $1.25 - 1.3 billion. The remaining cash expenditure of approximately $330 to $380 million, including approximately $75 million of spending accrued in accounts payable, is fully funded with cash on hand. Along with significantly enhancing our cash generation capability, Geismar 3 will have one of the lowest CO2 emissions intensity profiles in the industry, helping us meet our commitment to reduce our greenhouse gas emissions intensity.
• To March 31, 2023, we have repurchased 1,923,432 common shares of 3,506,405 permitted under our current normal course issuer bid for $81 million, an average purchase price of approximately $42 per share. During the first quarter of 2023, we purchased 1,030,659 shares for $48 million.
• In the first quarter of 2023 we paid a quarterly dividend of $0.175 per common share for a total of $12 million. On April 26, 2023 we announced a 6% increase in our quarterly dividend to $0.185 per common share. The increased dividend will apply to the dividend payable on June 30, 2023.
• In March 2023, we released our 2022 Sustainability Report highlighting the progress on our Environmental, Social and Governance (ESG) commitments.
• At March 31, 2023, we had a strong liquidity position including a cash balance of $780 million, or approximately $709 million excluding non-controlling interests and including our share of cash in the Atlas joint venture. We also have access to an undrawn $300 million revolving credit facility providing financial flexibility.
  
  

PRODUCTION HIGHLIGHTS

Key production and operational highlights during the first quarter and production outlook for 2023 include:

United States

Geismar produced 449,000 tonnes in the first quarter compared to 437,000 tonnes in the fourth quarter of 2022. A planned turnaround was completed at Geismar 1 in the first quarter and the plant successfully restarted in late February. Production was higher in the first quarter as the fourth quarter was impacted by an unplanned outage in October caused by a utilities supplier that experienced a loss of power due to a failed transformer.

New Zealand

New Zealand produced 403,000 tonnes in the first quarter of 2023 compared to 395,000 tonnes in the fourth quarter of 2022. We estimate production for 2023 to be between 1.3 - 1.4 million tonnes.

Trinidad

Atlas produced 256,000 tonnes (Methanex interest) in the first quarter of 2023 compared to 225,000 tonnes in the fourth quarter of 2022. Production was higher in the first quarter as the fourth quarter was impacted by an unplanned outage. Titan remains idled indefinitely.

Chile

Chile produced 249,000 tonnes in the first quarter of 2023 compared to 226,000 tonnes in the fourth quarter of 2022. Production was higher in the first quarter due to higher gas deliveries from Argentina. We estimate Chile production in 2023 to be between 0.8 - 0.9 million tonnes.

Egypt

Egypt produced 322,000 tonnes (Methanex interest - 161,000 tonnes) in the first quarter of 2023 compared to 192,000 tonnes (Methanex interest - 96,000 tonnes) in the fourth quarter of 2022. Production was higher in the first quarter as the fourth quarter was impacted by a planned turnaround.

Canada

Medicine Hat produced 142,000 tonnes in the first quarter of 2023 compared to 147,000 tonnes in the fourth quarter of 2022.

2023 Production Outlook

Forecasted production for 2023 is approximately 6.5 million equity tonnes, excluding any production from G3. Actual production may vary by quarter based on timing of turnarounds, gas availability, unplanned outages and unanticipated events.

CONFERENCE CALL

A conference call is scheduled for April 27, 2023 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 (646) 960-0479, or toll free at (888) 510-2296. The conference ID for the call is #7014770. 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 2023 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 2023 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 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, the impact of the Egypt gas contract revaluation and the impact of certain items associated with specific identified events. Refer to Additional Information - Non-GAAP Measures on page 12 of the Company's MD&A for the period ended March 31, 2023 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