VANCOUVER, BRITISH COLUMBIA–(Marketwired – April 26, 2017) – For the first quarter of 2017, Methanex (TSX:MX)(NASDAQ:MEOH) reported net income attributable to Methanex shareholders of $132 million ($1.46 per common share on a diluted basis) compared to net income of $24 million ($0.28 per common share on a diluted basis) in the fourth quarter of 2016. Adjusted EBITDA for the first quarter of 2017 was $267 million and Adjusted net income was $140 million ($1.56 per common share). This compares with Adjusted EBITDA of $139 million and Adjusted net income of $41 million ($0.46 per common share) for the fourth quarter of 2016.
John Floren, President and CEO of Methanex, commented, “In what is proving to be a volatile methanol pricing environment, our average realized methanol price increased $87 per tonne in the quarter to $365 per tonne, which compares to $278 per tonne achieved in the fourth quarter of 2016. We achieved record sales volume for the fourth consecutive quarter, with sales of 2.6 million tonnes. Production volume in the first quarter of 2017 remained unchanged from the record level set in the fourth quarter of 2016 of 1.9 million tonnes. The significantly higher methanol prices, combined with continued record production and sales volume, contributed to a $128 million increase in Adjusted EBITDA to $267 million for the quarter.”
John Floren continued, “I am pleased to announce that our Board of Directors has approved a 9% increase in our quarterly dividend to $0.30 per share. During the quarter we also announced a 5% share repurchase program allowing the Company to purchase for cancellation up to 4,492,141 common shares. To date we have repurchased 1,580,000 shares since commencement of the bid on March 13, 2017 for approximately $73 million. The increased dividend and new share repurchase program illustrate the Company’s commitment to return excess cash to shareholders.”
Mr. Floren concluded, “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 relatively low maintenance capital and financing requirements in the medium term. At current methanol prices we expect to generate significant free cash flow. With $315 million of cash on hand at the end of the first quarter, an undrawn credit facility, a robust balance sheet, and strong future 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.”
The information set forth in this news release summarizes Methanex’s key financial and operational data for the first quarter of 2017. It is not a complete source of information for readers and is not in any way a substitute for reading the first quarter 2017 Management’s Discussion and Analysis (“MD&A”) dated April 26, 2017 and the unaudited condensed consolidated interim financial statements for the period ended March 31, 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 March 31, 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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