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

• Net income attributable to Methanex shareholders of $57 million and Adjusted EBITDA of $160 million in the second quarter. The average realized price in the second quarter was $338 per tonne compared to $371 per tonne in the first quarter of 2023.
• Geismar 3 ("G3") project is approximately 90% complete and is progressing safely, on time and on budget. Production expected in the fourth quarter of 2023. The remaining cash spend of $240 - 290 million is fully funded with cash on hand.
• Returned $51 million to shareholders through dividends and share repurchases and ended the second quarter with $646 million in cash.

VANCOUVER, British Columbia, July 26, 2023 (GLOBE NEWSWIRE) -- For the second quarter of 2023, Methanex (TSX:MX) (NASDAQ:MEOH) reported net income attributable to Methanex shareholders of $57 million ($0.73 net income per common share on a diluted basis) compared to net income of $60 million ($0.87 net income per common share on a diluted basis) in the first quarter of 2023. Net income in the second quarter of 2023 was lower compared to the prior quarter primarily due to a lower average realized price, partially offset by the mark-to-market impact of share-based compensation due to changes in Methanex's share price. Adjusted EBITDA for the second quarter of 2023 was $160 million and Adjusted net income was $41 million ($0.60 Adjusted net income per common share). This compares with Adjusted EBITDA of $209 million and Adjusted net income of $76 million ($1.11 Adjusted net income per common share) for the first quarter of 2023.

Our average realized price in the second quarter was $338 per tonne compared to $371 per tonne in the first quarter of 2023. The decline in the average realized price was driven by global methanol supply outpacing demand growth and lower global energy prices leading to a decrease in the methanol cost curve and MTO affordability.

During the quarter, we returned $51 million to shareholders through the regular dividend and share repurchases. With continued macro uncertainty and the impact of declining methanol prices through the second quarter, we ceased share repurchases under the current normal course issuer bid which expires in September 2023. We ended the quarter with $646 million in cash, or approximately $589 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, “We remain focused on delivering strong operational results from our existing assets and maintaining financial flexibility. Our key strategic priority is completing the G3 project safely, on time and on budget in the fourth quarter of this year. "

FURTHER INFORMATION

The information set forth in this news release summarizes Methanex's key financial and operational data for the second quarter of 2023. It is not a complete source of information for readers and is not in any way a substitute for reading the second quarter 2023 Management’s Discussion and Analysis ("MD&A") dated July 26, 2023 and the unaudited condensed consolidated interim financial statements for the period ended June 30, 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 June 30, 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

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 Non-GAAP Measures section on page 14 of our second quarter MD&A dated July 26, 2023 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 $57 million in the second quarter of 2023 compared to net income of $60 million in the first quarter of 2023. Net income in the second quarter of 2023 was lower compared to the prior quarter primarily due to a lower average realized price, partially offset by the mark-to-market impact of share-based compensation due to changes in Methanex's share price.
• We recorded Adjusted EBITDA of $160 million for the second quarter of 2023 compared to $209 million for the first quarter of 2023. We recorded Adjusted net income of $41 million for the second quarter of 2023 compared to Adjusted net income of $76 million for the first quarter of 2023. Adjusted EBITDA was lower in the second quarter of 2023 primarily due to a lower average realized price.
• We sold 2,782,000 tonnes in the second quarter of 2023 compared to 2,805,000 tonnes for the first quarter of 2023. Sales of Methanex-produced methanol were 1,621,000 tonnes in the second quarter of 2023 compared to 1,649,000 tonnes in the first quarter of 2023.
• Production for the second quarter of 2023 was 1,658,000 tonnes compared to 1,660,000 tonnes for the first quarter of 2023. Production for the second quarter of 2023 was comparable to the first quarter of 2023 as higher production in Geismar was offset by lower production in Chile.
• The Geismar 3 project is progressing safely, on time 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 $240 to $290 million, including approximately $65 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 June 30, 2023, we have repurchased 2,787,484 common shares of 3,506,405 permitted under our current normal course issuer bid for $119 million, an average purchase price of approximately $43 per share. During the second quarter of 2023, we purchased 864,052 shares for $38 million.
• In the second quarter of 2023 we paid a quarterly dividend of $0.185 per common share for a total of $12.5 million.
• At June 30, 2023, we had a strong liquidity position including a cash balance of $646 million, or approximately $589 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. The Titan plant is idled indefinitely due to natural gas constraints.

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

United States

Geismar produced 532,000 tonnes in the second quarter compared to 449,000 tonnes in the first quarter of 2023. Production in the second quarter was impacted by a 10-day outage at G2 for maintenance activities but was higher than the first quarter which was impacted by a planned turnaround at G1.

New Zealand

New Zealand produced 408,000 tonnes in the second quarter of 2023 compared to 403,000 tonnes in the first quarter of 2023. We estimate production for 2023 will be between 1.3 - 1.4 million tonnes as Q3 2023 production will be impacted by a planned turnaround. Waitara Valley remains idled indefinitely.

Trinidad

Atlas produced 248,000 tonnes (Methanex interest) in the second quarter of 2023 compared to 256,000 tonnes in the first quarter of 2023. Production was lower in the second quarter as the second quarter was impacted by an unplanned outage in April. Titan remains idled indefinitely.

Chile

Chile produced 173,000 tonnes in the second quarter of 2023 compared to 249,000 tonnes in the first quarter of 2023. Production was lower in the second quarter as our Chile plants ran at reduced rates or were shut down for a portion of the second quarter due to seasonal gas limitations during the Southern hemisphere winter months, when domestic natural gas demand is high. We are undertaking a planned turnaround at Chile I which is scheduled to be completed in August and expect to operate one plant through the remainder of the Southern hemisphere winter. We estimate Chile production in 2023 will be between 0.8 - 0.9 million tonnes.

Egypt

Egypt produced 326,000 tonnes (Methanex interest - 163,000 tonnes) in the second quarter of 2023 compared to 322,000 tonnes (Methanex interest - 161,000 tonnes) in the first quarter of 2023.

Canada

Medicine Hat produced 134,000 tonnes in the second quarter of 2023 compared to 142,000 tonnes in the first quarter of 2023. Production was lower in the second quarter due to an unplanned outage in April.

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 July 27, 2023 at 11:00 am ET (8:00 am PT) to review these second 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 second 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 second 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, 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 June 30, 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