VANCOUVER, BRITISH COLUMBIA–(Marketwired – April 27, 2016) – For the first quarter of 2016, Methanex (TSX:MX)(NASDAQ:MEOH) reported Adjusted EBITDA1 of $36 million and Adjusted net loss1 of $24 million ($0.27 Adjusted net loss per common share1). This compares with Adjusted EBITDA of $80 million and Adjusted net income of $15 million ($0.16 Adjusted net income per common share) for the fourth quarter of 2015. Net loss attributable to Methanex shareholders was $23 million in the first quarter of 2016 compared to net income of $10 million in the fourth quarter of 2015.
John Floren, President and CEO of Methanex commented, “Our first quarter Adjusted EBITDA reflects lower average realized methanol pricing compared to the fourth quarter. Our contract pricing stabilized in the quarter and spot prices in Asia are now trending upward leading into the second quarter of 2016, helped by improving oil and olefin prices. Traditional methanol demand was relatively flat in the quarter due to a seasonal decline in China and weaker demand in Brazil. Energy demand continued to grow, with new MTO capacity and improving operating rates leading into Q2.”
Mr. Floren continued, “Our asset portfolio is in excellent shape. We achieved production of 1,639,000 tonnes in the quarter which is a company record. I am pleased to confirm that we safely executed a planned 45-day turnaround of our Atlas plant during the quarter with the plant returning to normal operations at the end of March. Our Geismar 2 facility has ramped up very quickly since the start of commercial production late in December 2015.”
“In April we announced the launch of the world’s first ocean going vessels that can run on methanol. The first three vessels were delivered in April, with the remaining to be delivered over the next few months. These vessels are built with the first-of-their kind 2-stroke dual fuel engines that can run on methanol and other conventional fuels. We are very excited to further our vision of methanol as a clean-burning marine fuel that can play a significant role in reducing smog-causing emissions. This initiative is part of our strategy to promote methanol as a viable, efficient, environmentally friendly and convenient fuel alternative.”
“In the first quarter of 2016 we paid a $25 million dividend to shareholders. With $275 million of cash on hand, an undrawn credit facility and a robust balance sheet, we are well positioned to meet our financial and capital commitments and navigate through this period of challenging industry conditions. Further, with our higher operating capacity yielding record production volume, we believe we are well positioned to leverage a recovery in methanol pricing, allowing us to generate strong future cash flows.”
A conference call is scheduled for April 28, 2016 at 12:00 noon ET (9:00 am PT) to review these first quarter results. To access the call, dial the conferencing operator ten minutes prior to the start of the call at (416) 340-8530, or toll free at (800) 769-8320. Presentation slides summarizing the Q1 2016 results and a simultaneous audio-only webcast of the conference call can be accessed from our website at www.methanex.com. A playback version of the conference call will be available until May 19, 2016 at (905) 694-9451, or toll free at (800) 408-3053. The passcode for the playback version is 5715488. The webcast will be available on the website for three weeks following the call.
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 2016 press release contains forward-looking statements with respect to us and the chemical industry. Refer to Forward-Looking Information Warning in the attached first quarter 2016 Management’s Discussion and Analysis for more information.
|1||The Company has used the terms Adjusted EBITDA, Adjusted net income, Adjusted net income per common share, Adjusted revenue and operating income throughout this document. These items are non-GAAP measures 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 – Supplemental Non-GAAP Measures section of the attached Interim Report for the three months ended March 31, 2016 for reconciliations to the most comparable GAAP measures.|
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