Methanex is the methanol industry leader and is well-positioned to create value for shareholders.
Global Market Leader
Methanol is our core business. We are the world’s largest producer and supplier of methanol, and the only supplier of methanol with a well-established global market presence and production base. At 14 per cent, our market share is roughly double that of the next largest supplier. Our leadership position enables us to play a pivotal role in the industry in areas such as product stewardship and global market development.
- World’s largest producer and supplier
- Global market presence
- Pivotal industry leadership role
A global supply chain
We have a dedicated methanol tanker fleet and a globally integrated network of production sites, marketing offices and terminals. This means we have the ability to respond quickly when market conditions change to ensure a reliable, secure supply of methanol to our global customer base. We do what it takes to deliver our product to our customers safely and as promised.
- Integrated network of plants, marketing offices and terminals
- Dedicated tanker fleet
- Secure reliable supply
Strong industry fundamentals, driven by energy-related demand growth
Methanol contains energy, and represents a competitively priced and clean burning alternative to many petroleum-based products and fuels. Energy-related demand segments include methanol-to-olefins (MTO), dimethyl ether (DME), biodiesel and methyl tertiary butyl ether (MTBE), and is also used as a fuel for motor vehicles, shipping, and industrial boilers. New applications continue to emerge in the energy sector, and demand for methanol from energy applications is the leading source of industry demand growth. For more information click here.
- Methanol contains energy and is an innovative, clean-burning alternative fuel
- Methanol is an attractive petroleum product substitute
- Demand for methanol from energy-related applications is leading growth
Barriers to entry
Key barriers to entry in the methanol industry today include access to secure low-cost natural gas feedstock, a challenging capital cost environment (stemming from high equipment and labour costs), political risk in many jurisdictions where natural gas is available, availability of financing, and acess to markets for new entrants. The demand growth outlook is healthy compared to supply expectations in the next few years.
- Methanol industry barriers to entry include a challenging capital cost environment, access to feedstock, political risk, financing availability and access to markets
- Demand growth outlook is healthy compared to supply expectations
In the last several years we have been focused on growing the company’s production capacity through disciplined and highly value accretive investments in low-risk jurisdictions. Since 2011 we have invested approximately $1.7 billion to restart, refurbish, expand or relocate existing assets to underpin their operating capability for years to come. As a result, our share of 2017 methanol production was 7.2 million tonnes, more than double the 3.5 million tonnes achieved in 2010. This production growth positions Methanex well to capture the benefit of growing methanol demand. We are also optimistic that our underutilized 1.7 million tonne Chile facilities represent a very low capital cost growth opportunity due to significant progress in developing natural gas reserves in the area.
- Production more than doubled in 2017 compared to 2010
- Capacity growth achieved through disciplined and highly value accretive investments including plant restarts, expansions and relocations in low-risk jurisdictions
- Low cost growth opportunity in Chile
Solid financial position
We believe in maintaining our financial flexibility and we take a prudent approach to financial management. Our competitive cost position is underpinned by long-term natural gas contracts that include a variable price component that is linked to the price of methanol. This protects our competitiveness even at low methanol prices. Our strong balance sheet, cash on hand and undrawn credit facilities are essential in maintaining the company's solid financial position.
- Low cost
- Strong balance sheet
- Undrawn liquidity lines
- Prudent financial management
Commitment to responsible capital stewardship
We take a balanced approach between growing the company and returning cash to shareholders. While we continually seek new growth opportunities, we have stringent project return targets. Methanex also has a strong track record of returning excess cash to shareholders. Since 2013, we have returned approximately $1 billion to shareholders through dividends and share repurchases and repurchased approximately 14 per cent of shares outstanding. We aim to deliver a dividend that is meaningful, sustainable and growing.
- Balanced approach to capital allocation
- Stringent return targets
- Track record of share repurchases and growing dividends
Rigorous and effective corporate governance
Rigorous and effective corporate governance is essential to our long-term success and critical to effective, efficient and prudent operations. Our policies maintain an independent Board of Directors, which ensures that Methanex is managed for the long-term benefit of our shareholders and other major stakeholders. We also have a strong and experienced senior management team. We believe the alignment of Board members and management with shareholder interests promotes good governance. Read more at Board & Governance
- Strong and experienced management team
- Independent Board of Directors
- Board and management alignment with shareholders
We live by our values
Our core values of trust, respect, integrity and professionalism guide our decision-making across every element of our business. In addition, we are committed to the principles of Responsible Care, the umbrella under which we manage health, safety, the environment, social responsibility, sustainability, security and emergency preparedness at each of our facilities and locations. Read more about these key elements of Methanex’s global culture.
- Core values of trust, respect, integrity and professionalism
- Commitment to Responsible Care