Methanex Corporation · TSX:MX
Methanex — Q4 2014 Earnings Presentation
10 slides from Methanex's earnings presentation, Jan 28, 2015
Slide 1: Q4-14 Financial Results
Q4-14 Financial Results January 28, 2015 1
Slide 2: Forward-looking Statements & Non-GAAP Measures
Forward-looking Statements & Non-GAAP Measures Information contained in these materials or presented orally on the earnings conference call, either in prepared remarks or in response to questions, contains forward-looking statements. Actual results could differ materially from those contemplated by
Slide 3: Q4-14 Industry Highlights
Q4-14 Industry Highlights • Demand grew modestly in Q4, led by chemical demand • Steep oil price decline impacted methanol affordability for some energy applications • Reduced demand for DME, Methanol-to-Propylene (MTP) and Methanol-to-Gasoline (MTG) • Traditional chemical demand buoyant, particular
Slide 4: Q4-14 Company Highlights
Q4-14 Company Highlights • Higher Adjusted EBITDA and Earnings vs. Q3 • Adjusted EBITDA $150 MM (Q3 $137MM); Adjusted Net Income $80 MM (Q3 $66 MM) • Geismar 1 completed on schedule and producing methanol • Excellent progress on Geismar 2, targeted for late Q1 2016 start-up • $600 million in new bon
Slide 5: Q4-14 Methanol Price
Q4-14 Methanol Price Methanex non-Discounted Regional Posted Prices 1 Feb Jan Dec Nov Oct (US$ per tonne) 2015 2015 2014 2014 2014 United States 415 449 475 499 482 2 Europe 430 430 450 450 450 Asia 315 355 415 435 435 1 Discounts from our posted prices are offered to customers 2 €354 for Q1 2015 (Q
Slide 6: Q4-14 Financial & Operational Results
Q4-14 Financial & Operational Results Sales Volumes (000's of tonnes) Q4-14 Q3-14 1 Methanex Produced Methanol 1,249 1,258 Purchased Methanol 694 694 Commission Sales 248 191 Total 2,191 2,143 Average realized price ($/tonne) 390 389 2 Adjusted EBITDA ($millions) 150 137 2 Adjusted net income per co
Slide 7: Q4-14 Production
Q4-14 Production (000's of tonnes) 2014 2013 Q4-14 Q3-14 Q4-13 New Zealand 2,196 1,419 542 595 400 Trinidad (Atlas, 63.1% interest) 907 971 233 234 268 Trinidad (Titan) 664 651 127 185 173 1 Egypt (Methanex interest ) 416 623 128 50 159 Medicine Hat 505 476 115 130 86 Chile2 165 204 62 10 108 Total
Slide 8: Q4-14 Production
Q4-14 Production • Chile produced 62,000 tonnes in Q4 after restarting in Q3 • Egypt production improved versus Q3 (81% operating rate versus Q3 32%) • Plant was idled for a significant portion of Q3, resumed operations in August • New Zealand 53,000 tonnes lower versus Q3 • 5 day pipeline inspectio
Slide 9: Summary
Summary • Geismar 1 operation poised to generate solid cash flows • Methanol pricing declining in response to lower oil environment; modest high cost supply rationalization to date • Strong balance sheet and liquidity to meet financial commitments • Delivering on commitment to return excess cash to
Slide 10: Forward-looking Statements
Forward-looking Statements FORWARD-LOOKING INFORMATION WARNING This Presentation, the Fourth Quarter 2014 Management’s Discussion and Analysis (“MD&A”) and comments made during the Fourth Quarter 2014 investor conference call contain forward-looking statements with respect to us and our industry. Th