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

• Net income attributable to Methanex shareholders of $53 million and Adjusted EBITDA of $160 million in the first quarter. Our average realized price in the first quarter was $343 per tonne compared to $322 per tonne in the fourth quarter of 2023.
• Work is progressing to safely repair the Geismar 3 ("G3") plant and we believe that the plant is on track to start up in the third quarter of 2024. Repair costs are expected to be $15 million and the total capital cost for the project is expected to remain at approximately $1.30 billion. The remaining capital cost of $70 million is fully funded with cash on hand. The operating cost impact of the delay is approximately $5 million per month and in the first quarter delay costs were approximately $25 million due to take-or-pay on utilities contracts, the organization build-up of fixed costs, and the accounting recognition of over-hedged gas costs. These operating costs are included in Adjusted EBITDA.
• Successfully completed repairs at the Egypt plant and reached full operating rates in February.
• In April 2024, the existing $300 million revolving credit facility was renewed to April 2028 and an additional $200 million tranche was added which expires in April 2026. This additional financial capacity provides increased flexibility to manage our business.
• Returned $12.5 million to shareholders through regular dividends in the first quarter and ended the first quarter with $407 million in cash.

VANCOUVER, British Columbia, April 24, 2024 (GLOBE NEWSWIRE) -- For the first quarter of 2024, Methanex (TSX:MX) (NASDAQ:MEOH) reported net income attributable to Methanex shareholders of $53 million ($0.77 net income per common share on a diluted basis) compared to net income of $33 million ($0.50 net income per common share on a diluted basis) in the fourth quarter of 2023. Net income in the first quarter of 2024 was higher compared to the prior quarter primarily due to a higher average realized price and the positive impact of the mark-to-market portion of share-based compensation due to changes in Methanex's share price. Adjusted EBITDA for the first quarter of 2024 was $160 million and Adjusted net income was $44 million ($0.65 Adjusted net income per common share). This compares with Adjusted EBITDA of $148 million and Adjusted net income of $35 million ($0.52 Adjusted net income per common share) for the fourth quarter of 2023.

Our average realized price in the first quarter was $343 per tonne compared to $322 per tonne in the fourth quarter of 2023. In the first quarter, methanol supply was constrained due to the seasonal diversions of natural gas in Iran and China and planned and unplanned outages in the Atlantic leading to lower inventories and increasing methanol prices through the quarter.

In the first quarter, we returned $12.5 million to shareholders through the regular dividend. We ended the quarter with $407 million in cash, or approximately $378 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 with a new $200 million tranche that was added to provide additional financial flexibility.

Rich Sumner, President & CEO of Methanex, said, “Our global team responded well to the delay in the start-up of G3, maintaining safe operations and a flexible supply chain while we investigated the root cause of the incident. We will continue to focus on safety and ensuring the G3 plant meets our quality expectations. Our business delivered a strong operational and financial quarter in the midst of a dynamic global landscape."

FURTHER INFORMATION

The information set forth in this news release summarizes Methanex's key financial and operational data for the first quarter of 2024. It is not a complete source of information for readers and is not in any way a substitute for reading the first quarter 2024 Management’s Discussion and Analysis ("MD&A") dated April 24, 2024 and the unaudited condensed consolidated interim financial statements for the period ended March 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 March 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

• 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 $53 million in the first quarter of 2024 compared to net income of $33 million in the fourth quarter of 2023. Net income in the first quarter of 2024 was higher compared to the prior quarter primarily due to a higher average realized price and the positive impact of the mark-to-market portion of share-based compensation due to changes in Methanex's share price, offset by the one-time impact of the ineffective portion of natural gas hedges at our Geismar site recognized during the first quarter of 2024.
• We recorded Adjusted EBITDA of $160 million for the first quarter of 2024 compared to $148 million for the fourth quarter of 2023. We recorded Adjusted net income of $44 million for the first quarter of 2024 compared to Adjusted net income of $35 million for the fourth quarter of 2023. Adjusted EBITDA was higher in the first quarter of 2024 primarily due to a higher average realized price, partially offset by the one-time impact of the ineffective portion of natural gas hedges for our Geismar site.
• We sold 2,670,000 tonnes in the first quarter of 2024 compared to 2,862,000 tonnes in the fourth quarter of 2023. Sales of Methanex-produced methanol were 1,681,000 tonnes in the first quarter of 2024 compared to 1,712,000 tonnes in the fourth quarter of 2023. The restart of Egypt in February led to a slight build in produced inventory in the first quarter.
• Production for the first quarter of 2024 was 1,721,000 tonnes compared to 1,779,000 tonnes for the fourth quarter of 2023. Production was slightly lower in the first quarter of 2024 compared to the fourth quarter of 2023 mainly due to lower production in New Zealand which was partially offset by higher production in Egypt.
• Work is progressing to safely repair the Geismar 3 ("G3") plant and we believe that the plant is on track to start up in the third quarter of 2024. Repair costs are expected to be $15 million and the total capital cost for the project is expected to remain at approximately $1.30 billion. The remaining capital cost is fully funded with cash on hand. The operating cost impact of the delay is approximately $5 million per month and in the first quarter delay costs were approximately $25 million due to take-or-pay on utilities contracts, the organization build-up of fixed costs, and the accounting recognition of over-hedged gas costs. These operating costs are included in Adjusted EBITDA.
• In the first quarter of 2024 we paid a quarterly dividend of $0.185 per common share for a total of $12.5 million.
• At March 31, 2024, we had a strong liquidity position including a cash balance of $407 million, or approximately $378 million excluding non-controlling interests and including our share of cash in the Atlas joint venture. With the renewal of our revolving credit facility, along with the addition of the $200 million tranche in April, we have a total of $500 million of facilities providing financial flexibility.
  
  

PRODUCTION HIGHLIGHTS

Key production and operational highlights during the first quarter include:

United States

Geismar produced 571,000 tonnes in the first quarter of 2024 compared to 587,000 tonnes in the fourth quarter of 2023.

New Zealand

New Zealand produced 277,000 tonnes in the first quarter of 2024 compared to 344,000 tonnes in the fourth quarter of 2023. Production in the first quarter was lower compared to the fourth quarter because of lower gas deliveries due to planned natural gas infrastructure maintenance at our suppliers' gas fields. Our production guidance for 2024 is between 1.0 - 1.1 million tonnes. 2024 natural gas supply is expected to be impacted by a combination of our suppliers' planned natural gas infrastructure maintenance outages as well as lower than expected output from existing wells. While upstream investment has been made by our gas suppliers in New Zealand over the past two years, recent gas production results have been lower than expected and we are closely monitoring production results in 2024.

Trinidad

Atlas produced 258,000 tonnes (Methanex interest) in the first quarter of 2024 compared to 283,000 tonnes in the fourth quarter of 2023. Production was lower in the first quarter due to an unplanned outage. In October 2023, Methanex signed a two-year natural gas supply agreement with the National Gas Company of Trinidad and Tobago (NGC) for its currently idled, wholly owned, Titan methanol plant (875,000 tonnes per year capacity) to restart operations in September 2024. Simultaneously, the Atlas plant (Methanex interest 63.1% or 1,085,000 tonnes per year capacity) will be idled in September 2024, when its legacy 20-year natural gas supply agreement expires. We are planning for the Titan restart with minimal capital required.

Chile

Chile produced 391,000 tonnes in the first quarter of 2024 compared to 403,000 tonnes in the fourth quarter of 2023. Production was similar in the first quarter compared to the fourth quarter with full gas deliveries from Argentina, although the resulting production was at lower than capacity due to catalyst constraints. We estimate production for 2024 will be between 1.1 - 1.2 million tonnes which is underpinned by year-round natural gas supply from Chile for about 30 – 35% of our requirements with the remaining 65 – 70% being delivered from Argentina during the Southern hemisphere non-winter months. Over the coming months we will be replacing the catalyst in Chile IV which we expect will improve efficiency and increase production compared to the first quarter of 2024 when it is expected to restart in September 2024. Natural gas development and related infrastructure investments in Argentina continue to progress and we are working with our natural gas suppliers on extending the period of full gas availability to our plants.

Egypt

Egypt produced 166,000 tonnes (Methanex interest - 83,000 tonnes) in the first quarter of 2024 compared to 40,000 tonnes (Methanex interest - 20,000 tonnes) in the fourth quarter of 2023. The plant restarted and reached full operating rates in February after an unplanned outage in mid-October caused by a mechanical failure in the synthesis gas compressor.

Canada

Medicine Hat produced 141,000 tonnes in the first quarter of 2024 compared to 142,000 tonnes in the fourth quarter of 2023.

2024 Production Outlook

We are updating our expected production guidance for 2024 to approximately 7.0 million tonnes (Methanex interest). Our 2024 production guidance has been lowered primarily because of the Geismar 3 start-up delay. This expected production guidance is based on the mid-point of Chile and New Zealand production guidance, G3 starting up in the third quarter and operating at full rates in the fourth quarter, Egypt restart in the first half of February, and all other plants operating at full rates. 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 25, 2024 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) 307-1963, or toll free at (800) 715-9871. The conference ID for the call is #9072911. 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 2024 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 2024 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.sedarplus.ca 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, and Adjusted net income per common share 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 13 of the Company's MD&A for the period ended March 31, 2024 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