• Net income attributable to Methanex shareholders of $33 million and Adjusted EBITDA of $148 million in the fourth quarter. The average realized price in the fourth quarter was $322 per tonne compared to $303 per tonne in the third quarter of 2023.
• Full year 2023 net income attributable to Methanex shareholders of $174 million and Adjusted EBITDA of $622 million.
• Fourth quarter production was higher compared to the third quarter due to higher production in Chile, New Zealand, Geismar and Medicine Hat, which was partially offset by lower production in Egypt.
• The 1.8 million tonne methanol plant, Geismar 3 ("G3"), is in the process of starting up and we expect that commercial production is imminent. The plant is expected to ramp up to full rates over the month of February. G3 will have one of the lowest emission intensity profiles in the industry and will significantly enhance our cash flow capability at a range of methanol prices.
• Returned $136 million to shareholders through regular dividends and share purchases in 2023 and ended the fourth quarter with $458 million in cash.

VANCOUVER, British Columbia, Jan. 31, 2024 (GLOBE NEWSWIRE) -- For the fourth quarter of 2023, Methanex (TSX:MX) (NASDAQ:MEOH) reported net income attributable to Methanex shareholders of $33 million ($0.50 net income per common share on a diluted basis) compared to net income of $24 million ($0.36 net income per common share on a diluted basis) in the third quarter of 2023. Net income in the fourth quarter of 2023 was higher compared to the prior quarter primarily due to a higher average realized price, higher sales of Methanex-produced methanol and lower mark-to-market impact of share-based compensation due to changes in Methanex's share price, offset by lower income from gas contract settlement recognized in the third quarter of 2023. Adjusted EBITDA for the fourth quarter of 2023 was $148 million and Adjusted net income was $35 million ($0.52 Adjusted net income per common share). This compares with Adjusted EBITDA of $105 million and Adjusted net income of $1 million ($0.02 Adjusted net income per common share) for the third quarter of 2023.

Our average realized price in the fourth quarter was $322 per tonne compared to $303 per tonne in the third quarter of 2023. Through the fourth quarter, market conditions strengthened, with increased demand primarily in China outpacing an increase in supply. On the supply side, production increased from coal-based producers in China which was offset by planned and unplanned outages in the US and Asia as well as lower production from natural gas restrictions in Iran and China. This led to a drawdown on inventories and increasing methanol prices through the quarter.

For the year ended December 31, 2023, Methanex reported 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). This compares with a net income attributable to Methanex shareholders of $354 million ($4.86 net income per common share on a diluted basis), Adjusted EBITDA of $932 million and an Adjusted net income of $343 million ($4.79 Adjusted net income per common share) for the year ended December 31, 2022.

In 2023, we returned $136 million to shareholders through the regular dividend and share repurchases. We ended the year with $458 million in cash, or approximately $451 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 our G3 team that delivered a high quality plant with outstanding safety performance. G3 significantly enhances our asset portfolio and we expect it to generate strong shareholder returns. We remain focused on reliably operating our assets so we can deliver shareholder value over a variety of methanol prices."

FURTHER INFORMATION

The information set forth in this news release summarizes Methanex's key financial and operational data for the fourth quarter of 2023. It is not a complete source of information for readers and is not in any way a substitute for reading the fourth quarter 2023 Management’s Discussion and Analysis ("MD&A") dated January 31, 2024 and the unaudited condensed consolidated interim financial statements for the period ended December 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 December 31, 2023 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

_{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 31, 2024 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 $33 million in the fourth quarter of 2023 compared to net income of $24 million in the third quarter of 2023. Net income in the fourth quarter of 2023 was higher compared to the prior quarter primarily due to a higher average realized price, higher sales of Methanex-produced methanol and lower mark-to-market impact of share-based compensation due to changes in Methanex's share price, offset by lower income from the gas contract settlement recognized in the third quarter of 2023. Income from gas contract settlement was excluded from Adjusted EBITDA and Adjusted net income in the third quarter of 2023.
• We recorded Adjusted EBITDA of $148 million for the fourth quarter of 2023 compared to $105 million for the third quarter of 2023. We recorded Adjusted net income of $35 million for the fourth quarter of 2023 compared to Adjusted net income of $1 million for the third quarter of 2023. Adjusted EBITDA was higher in the fourth quarter of 2023 primarily due to a higher average realized price and higher sales of Methanex-produced methanol.
• We sold 2,862,000 tonnes in the fourth quarter of 2023 compared to 2,720,000 tonnes for the third quarter of 2023. Sales of Methanex-produced methanol were 1,712,000 tonnes in the fourth quarter of 2023 compared to 1,473,000 tonnes in the third quarter of 2023.
• Production for the fourth quarter of 2023 was 1,779,000 tonnes compared to 1,545,000 tonnes for the third quarter of 2023. Fourth quarter production was higher compared to the third quarter due to higher production in Chile, New Zealand, Geismar and Medicine Hat which was partially offset by lower production in Egypt.
• The Geismar 3 plant is in the process of starting up, with total capital costs expected to come within budget of $1.25 - 1.3 billion. The remaining cash expenditure of approximately $60 to $110 million, including approximately $20 million of spending accrued in accounts payable, is fully funded with cash on hand. Geismar 3 has one of the lowest CO2 emissions intensity profiles in the industry and significantly enhances our cash generation capability. We expect the plant to ramp up to full rates over the month of February.
• In the fourth quarter of 2023 we paid a quarterly dividend of $0.185 per common share for a total of $12.5 million.
• At December 31, 2023, we had a strong liquidity position including a cash balance of $458 million, or approximately $451 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

^{1  The operating capacity of our production facilities may be higher or lower 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 availability, feedstock composition, the age of the facility's catalyst, turnarounds and access to CO2 from external suppliers for certain facilities. 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 Waitara Valley plant is idled indefinitely due to natural gas constraints.  
3  The operating capacity of Trinidad is made up of the Titan (100% interest) and Atlas (63.1% interest) facilities. Refer to the Trinidad section below.}  

Key production and operational highlights during the fourth quarter include:

United States

Geismar produced 587,000 tonnes in the fourth quarter compared to 574,000 tonnes in the third quarter of 2023.

New Zealand

New Zealand produced 344,000 tonnes in the fourth quarter of 2023 compared to 226,000 tonnes in the third quarter of 2023. Production in the fourth quarter was higher compared to the third quarter due to the restart of Motunui 2 after the scheduled turnaround. Waitara Valley remains idled indefinitely. We estimate production for 2024 to be 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 originally expected which has contributed to the revised forecast for lower production in 2024.

Trinidad

Atlas produced 283,000 tonnes (Methanex interest) in the fourth quarter of 2023 compared to 287,000 tonnes in the third quarter of 2023. In October, 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.

Chile

Chile produced 403,000 tonnes in the fourth quarter of 2023 compared to 168,000 tonnes in the third quarter of 2023. Production was higher in the fourth quarter compared to the third quarter as both plants ran at full rates with full gas deliveries from Argentina. Both plants are expected to run at full rates from the end of September 2023 through April 2024, the Southern hemisphere summer months. 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% from Argentina during the non-winter period allowing us to operate both plants at full rates. 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 40,000 tonnes (Methanex interest - 20,000 tonnes) in the fourth quarter of 2023 compared to 320,000 tonnes (Methanex interest - 160,000 tonnes) in the third quarter of 2023. Production was lower in Egypt due an unplanned outage in mid-October caused by a mechanical failure in the synthesis gas compressor. The unit was removed from service and repaired on an expedited schedule at the manufacturer overseas. The repairs were completed and the unit has now arrived back on site and we expect to be able to start up the plant in the first half of February.

Canada

Medicine Hat produced 142,000 tonnes in the fourth quarter of 2023 compared to 130,000 tonnes in the third quarter of 2023.

2024 Production Outlook

We expect production for 2024 to be higher than 2023 with the Geismar 3 start-up and to be approximately 8.1 million tonnes (Methanex interest). 2024 production guidance is based on the mid-point of Chile and New Zealand production guidance, G3 ramp up through February, 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 February 1, 2024 at 11:00 am ET (8:00 am PT) to review these fourth 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 fourth 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 fourth 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.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 14 of the Company's MD&A for the period ended December 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