Methanex Corporation · TSX:MX
Methanex — Q3 2014 Earnings Presentation
10 slides from Methanex's earnings presentation, Oct 29, 2014
Slide 1: Q3-14 Financial Results
Q3-14 Financial Results October 29, 2014 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: Q3-14 Industry Highlights
Q3-14 Industry Highlights • Solid demand growth Q3 versus Q2 • Demand grew approximately 3% quarter over quarter • Methanol-to-olefins (“MTO”) led Q3 demand growth • Two new MTO plants started up in the quarter with combined capacity to consume over 1.5 million tonnes per annum from the merchant mar
Slide 4: Q3-14 Company Highlights
Q3-14 Company Highlights • Returned $110 million in cash to shareholders • $23 million in dividends • $87 million for 1.33 million shares repurchased in Q3 • At September 30, 2014, 56% of approved 5% Normal Course Issuer Bid had been purchased • Geismar project update • Top priority has been on-time
Slide 5: Methanol Price
Q3-14 Methanol Price Methanex non-Discounted Regional Posted Prices1 Nov Oct Sep Aug Jul (US$ per tonne) 2014 2014 2014 2014 2014 United States 499 482 482 482 482 Europe2 450 450 440 440 440 Asia 435 435 420 410 410 1 Discounts from our posted prices are offered to customers based on various factor
Slide 6: Financial & Operational Results
Q3-14 Financial & Operational Results Sales Volumes (000's of tonnes) Q3-14 Q2-14 1 Methanex Produced Methanol 1,258 1,143 Purchased Methanol 694 643 Commission Sales 191 206 Total 2,143 1,992 Average realized price ($/tonne) 389 450 2 Adjusted EBITDA ($millions) 137 160 2 Adjusted net income per co
Slide 7: Production
Q3-14 Production (000's of tonnes) Q3-14 Q2-14 Q3-13 New Zealand 595 559 349 Trinidad (Atlas, 63.1% interest) 234 191 254 Trinidad (Titan) 185 203 128 Egypt (Methanex interest*) 50 99 168 Medicine Hat 130 138 130 Chile 10 26 6 Total 1,204 1,216 1,035 * Methanex’s share of the Egypt facility’s produc
Slide 8: Production
Q3-14 Production • New Zealand continued to achieve a strong operating rate • 2.38 million tonnes per annum annualized, or 99% operating rate • Trinidad operations improved in Q3 (84% combined operating rate) • Production interruptions in Q3 primarily gas related • Q3 gas curtailments were higher th
Slide 9: Summary
Summary • Short term demand outlook remains strong • Stable pricing environment • Geismar on track and poised to generate excellent cash flow in very near term • Excellent operating performance in NZ / MH • Improving production from Trinidad/Egypt • Delivering on commitment to return excess cash 9 9
Slide 10: Forward-looking Statements
Forward-looking Statements FORWARD-LOOKING INFORMATION WARNING This Presentation, the Third Quarter 2014 Management’s Discussion and Analysis (“MD&A”) and comments made during the Third Quarter 2014 investor conference call contain forward-looking statements with respect to us and our industry. Thes