Methanex Reports Second Quarter 2017 Earnings
VANCOUVER, British Columbia, July 26, 2017 (GLOBE NEWSWIRE) -- For the second quarter of 2017, Methanex (TSX:MX) (NASDAQ:MEOH) reported net income attributable to Methanex shareholders of $84 million ($0.89 per common share on a diluted basis) compared to net income of $132 million ($1.46 per common share on a diluted basis) in the first quarter of 2017. Adjusted EBITDA for the second quarter of 2017 was $174 million and Adjusted net income was $74 million ($0.85 per common share). This compares with Adjusted EBITDA of $267 million and Adjusted net income of $140 million ($1.56 per common share) for the first quarter of 2017.
John Floren, President and CEO of Methanex commented, "The lower Adjusted EBITDA and earnings in the second quarter reflects primarily the decline in methanol prices we saw during the quarter. Our average realized methanol price decreased $38 per tonne in the quarter to $327 per tonne, which compares to $365 per tonne realized in the first quarter of 2017. Sales of produced methanol in the second quarter were 1.79 million tonnes, relatively unchanged compared to the first quarter. Heading into the third quarter, we are encouraged to see some stability in global methanol prices."
"During the quarter we returned $141 million to shareholders through dividends and share repurchases. To date we have repurchased 3,755,000 common shares for approximately $168 million since commencement of our normal course issuer bid on March 13, 2017. We announced today that the Board of Directors approved an amendment to the normal course issuer bid which increases the number of common shares that may be purchased from 4,492,141 to 6,152,358 common shares, representing 10% of the public float at the time of the announcement of the bid and the maximum number of common shares that may be purchased under this bid. The increased bid illustrates the Company's commitment to return excess cash to shareholders."
"We continue to be optimistic that our underutilized 1.7 million tonne Chile facilities represent a very low capital cost growth opportunity for Methanex due to the significant progress in developing natural gas reserves in the area. We have low capital and financing requirements in the medium term, and we have the ability to generate significant free cash flow at a wide range of methanol prices. With $361 million of cash on hand at the end of the second quarter, a revolving credit facility, a robust balance sheet, and strong cash generation capability, we believe we are well positioned to meet our financial commitments, pursue our near-term growth opportunities in Chile and deliver on our commitment to return excess cash to shareholders through dividends and share repurchases," Floren said.
The information set forth in this news release summarizes Methanex's key financial and operational data for the second quarter of 2017. It is not a complete source of information for readers and is not in any way a substitute for reading the second quarter 2017 Management’s Discussion and Analysis ("MD&A") dated July 26, 2017 and the unaudited condensed consolidated interim financial statements for the period ended June 30, 2017, 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, 2017 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.
Additional Financial and Operational Data can be found on our Financial Reports page
Director, Investor Relations
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