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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Methanex Corporation | NASDAQ:MEOH | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.07 | -0.15% | 48.05 | 48.01 | 48.05 | 48.77 | 48.00 | 48.10 | 38,151 | 16:21:24 |
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NEWS RELEASE
|
Methanex Corporation
1800 - 200 Burrard St.
Vancouver, BC Canada V6C 3M1
Investor Relations: (604) 661-2600
www.methanex.com
|
|
Three Months Ended
|
|||||
($ millions except per share amounts and where noted)
|
Mar 31
2019 |
|
Dec 31
2018 |
|
Mar 31
2018 |
|
Production (thousands of tonnes) (attributable to Methanex shareholders)
|
1,808
|
|
1,885
|
|
1,943
|
|
Sales volume (thousands of tonnes)
|
|
|
|
|||
Methanex-produced methanol
|
1,921
|
|
1,599
|
|
1,884
|
|
Purchased methanol
|
473
|
|
908
|
|
613
|
|
Commission sales
|
329
|
|
245
|
|
321
|
|
Total sales volume
1
|
2,723
|
|
2,752
|
|
2,818
|
|
|
|
|
|
|||
Methanex average non-discounted posted price ($ per tonne)
2
|
392
|
|
487
|
|
475
|
|
Average realized price ($ per tonne)
3
|
331
|
|
401
|
|
402
|
|
|
|
|
|
|||
Revenue
|
733
|
|
977
|
|
962
|
|
Adjusted revenue
|
800
|
|
1,008
|
|
987
|
|
Adjusted EBITDA
|
194
|
|
197
|
|
306
|
|
Cash flows from operating activities
|
213
|
|
218
|
|
245
|
|
Adjusted net income
|
56
|
|
90
|
|
171
|
|
Net income (attributable to Methanex shareholders)
|
38
|
|
161
|
|
169
|
|
|
|
|
|
|||
Adjusted net income per common share
|
0.73
|
|
1.15
|
|
2.03
|
|
Basic net income per common share
|
0.50
|
|
2.07
|
|
2.02
|
|
Diluted net income per common share
|
0.50
|
|
1.68
|
|
2.00
|
|
|
|
|
|
|||
Common share information (millions of shares)
|
|
|
|
|||
Weighted average number of common shares
|
77
|
|
78
|
|
84
|
|
Diluted weighted average number of common shares
|
77
|
|
78
|
|
84
|
|
Number of common shares outstanding, end of period
|
77
|
|
77
|
|
83
|
|
1
|
Methanex-produced methanol represents our equity share of volume produced at our facilities and excludes volume marketed on a commission basis related to the 36.9% of the Atlas facility and 50% of the Egypt facility that we do not own. Methanex-produced methanol includes any volume produced by Chile using natural gas supplied from Argentina under a tolling arrangement ("Tolling Volume"). There was no Tolling Volume produced in the first quarter of 2019 or the fourth quarter of 2018. There was 40,000 MT of Tolling Volume in the first quarter of 2018.
|
2
|
Methanex average non-discounted posted price represents the average of our non-discounted posted prices in North America, Europe and Asia Pacific weighted by sales volume. Current and historical pricing information is available at
www.methanex.com
.
|
3
|
Average realized price is calculated as revenue, excluding commissions earned and the Egypt non-controlling interest share of revenue, but including an amount representing our share of Atlas revenue, divided by the total sales volume of Methanex-produced and purchased methanol, but excluding Tolling Volume.
|
|
Three Months Ended
|
||||||||
($ millions except number of shares and per share amounts)
|
Mar 31
2019 |
|
Dec 31
2018 |
|
Mar 31
2018 |
|
|||
Net income (attributable to Methanex shareholders)
|
$
|
38
|
|
$
|
161
|
|
$
|
169
|
|
Mark-to-market impact of share-based compensation, net of tax
|
18
|
|
(71
|
)
|
2
|
|
|||
Adjusted net income
|
$
|
56
|
|
$
|
90
|
|
$
|
171
|
|
Diluted weighted average shares outstanding (millions)
|
77
|
|
78
|
|
84
|
|
|||
Adjusted net income per common share
|
$
|
0.73
|
|
$
|
1.15
|
|
$
|
2.03
|
|
▪
|
As at January 1, 2019 we adopted a new accounting standard, IFRS 16
Leases
("IFRS 16"), using the modified retrospective adoption approach. As a result of this method of adoption, the figures for Q1 2019 reflect the adoption of the standard, while the comparable periods presented are not restated. The adoption of IFRS 16 results in higher Adjusted EBITDA for Q1 2019 by $28 million due to changes in the recognition and classification of lease costs from cost of sales to depreciation and amortization ($24 million) and finance costs ($5 million), but has a minimal impact on net income attributable to Methanex shareholders and Adjusted net income. The adoption of IFRS 16 has no net cash impact. Refer to the
Adoption of New Accounting Standards
section on page 14.
|
▪
|
We recorded net income attributable to Methanex shareholders of $
38 million
during the
first
quarter of
2019
compared to net income of $
161 million
in the
fourth
quarter of
2018
.
The decrease in earnings is primarily due to a decrease in our average realized methanol price, partially offset by an increase in sales of Methanex-produced methanol during the first quarter and the change in the mark-to-market impact of share-based compensation.
|
▪
|
We recorded Adjusted EBITDA of
$194 million
for the
first
quarter of
2019
compared with
$197 million
for the
fourth
quarter of
2018
. Adjusted EBITDA for the first quarter of 2019 includes the adoption of IFRS 16 which increased Adjusted EBITDA for the first quarter of 2019 by $28 million. Excluding the impact of the adoption of IFRS 16, Adjusted EBITDA for the first quarter of 2019 would be lower by $31 million compared to the fourth quarter of 2018. The decrease in Adjusted EBITDA excluding the impact of IFRS 16 is primarily due to the decrease in our average realized methanol price, partially offset by an increase in sales of Methanex-produced methanol.
|
▪
|
Adjusted net income was
$56 million
for the
first
quarter of
2019
compared to Adjusted net income of
$90 million
for the
fourth
quarter of
2018
.
The decrease in Adjusted net income is primarily due to a decrease in average realized price to $331 per tonne for the first quarter of 2019 from $401 per tonne for the fourth quarter of 2018, partially offset by an increase in sales of Methanex-produced methanol.
|
▪
|
We produced
1,808,000
tonnes in the
first
quarter of
2019
compared to
1,885,000
tonnes for the
fourth
quarter of
2018
.
|
▪
|
Total sales volume for the first quarter of 2019 was
2,723,000
tonnes compared with
2,752,000
tonnes for the fourth quarter of 2018.
Sales of Methanex-produced methanol were
1,921,000
tonnes in the
first
quarter of
2019
compared with
1,599,000
tonnes
in the
fourth
quarter of
2018
.
|
▪
|
On March 18, 2019 we commenced a normal course issuer bid to purchase up to 3,863,298 common shares. To March 31, 2019, we have repurchased 99,893 common shares for $5.8 million.
|
▪
|
During the
first
quarter of
2019
we paid a
$0.33
per common share quarterly dividend to shareholders for a total of $
25
million.
|
▪
|
We announced today that the Board of Directors has approved a 9% increase to our quarterly dividend to shareholders, from $0.33 per share per quarter to $0.36 per share per quarter.
|
▪
|
We continue to make good progress on a potential Geismar 3 production facility. We continue to expect to spend approximately $50 to $60 million on this project prior to reaching a final investment decision with the remaining approximately $35 million to be spent in the second quarter of 2019. We believe that the potential Geismar 3 project would be advantaged relative to other projects being contemplated or under construction in the US Gulf.
|
|
Q1 2019
|
Q4 2018
|
|
Q1 2018
|
|
|||
(thousands of tonnes)
|
Operating Capacity
1
|
|
Production
|
|
Production
|
|
Production
|
|
New Zealand
2
|
608
|
|
437
|
|
389
|
|
487
|
|
USA (Geismar)
|
500
|
|
405
|
|
527
|
|
513
|
|
Trinidad (Methanex interest)
3
|
500
|
|
429
|
|
448
|
|
459
|
|
Chile
4
|
430
|
|
241
|
|
206
|
|
166
|
|
Egypt (50% interest)
|
158
|
|
141
|
|
155
|
|
165
|
|
Canada (Medicine Hat)
|
150
|
|
155
|
|
160
|
|
153
|
|
|
2,346
|
|
1,808
|
|
1,885
|
|
1,943
|
|
1
|
Operating capacity includes only those facilities which are currently capable of operating, but excludes any portion of an asset that is underutilized due to a lack of natural gas feedstock over a prolonged period of time. The operating capacity of our production facilities may be higher than original nameplate capacity as, over time, these figures have been adjusted to reflect ongoing operating efficiencies at these facilities. Actual production for a facility in any given year may be higher or lower than operating capacity due to a number of factors, including natural gas composition or the age of the facility's catalyst.
|
2
|
The operating capacity of New Zealand is made up of the two Motunui facilities and the Waitara Valley facility
.
|
3
|
The operating capacity of Trinidad is made up of the Titan (100% interest) and Atlas (63.1% interest) facilities
.
|
4
|
The operating capacity of our Chile I and IV facilities is 1.7 million tonnes annually assuming access to natural gas feedstock.
For 2018, our operating capacity in Chile was 0.9 million tonnes. In the fourth quarter of 2018 we restarted our 0.8 million tonne Chile IV plant that had been idle since 2007.
|
▪
|
New Zealand produced
437,000
tonnes compared with
389,000
tonnes in the
fourth
quarter of
2018
.
Production in the first quarter of 2019 is higher than the fourth quarter of 2018 as our Waitara Valley site undertook a scheduled turnaround in the fourth quarter of 2018 and returned to operations in early January. Overall, production for New Zealand continues to experience gas constraints, primarily as a result of natural gas suppliers completing planned and unplanned maintenance activities. We expect these upstream maintenance activities to continue in the second quarter.
|
▪
|
Geismar produced
405,000
tonnes during the
first
quarter of
2019
compared to
527,000
tonnes during the
fourth
quarter of
2018
. Production in Geismar for the first quarter of 2019 is lower than the fourth quarter of 2018 due to a scheduled turnaround of the Geismar 1 plant completed in the quarter.
|
▪
|
Trinidad produced
429,000
tonnes (Methanex interest) compared with
448,000
tonnes in the
fourth
quarter of
2018
.
Production in Trinidad is lower in the first quarter of 2019 compared to the fourth quarter of 2018 primarily as a result of a scheduled turnaround of the Titan plant that commenced in March 2019. The turnaround is scheduled to complete by the end of April 2019. Additionally, we continue to experience gas curtailments in Trinidad.
|
▪
|
The Chile facilities, Chile I and IV, produced
241,000
tonnes during the
first
quarter of
2019
from a combination of Chile and Argentina sourced natural gas with Chile IV production experiencing a few minor technical issues during the quarter. This compares to
206,000
tonnes during the
fourth
quarter of
2018
.
|
▪
|
The Egypt facility produced
282,000
tonnes (Methanex interest -
141,000
tonnes) in the
first
quarter of
2019
compared with 310,000 tonnes (Methanex interest - 155,000 tonnes) in the
fourth
quarter of
2018
.
Mechanical issues experienced during the quarter resulted in lower production for the first quarter of 2019 compared to the fourth quarter of 2018. On April 9th, the Egypt facility experienced an outage and the plant remains off-line. We expect limited production from the Egypt facility for the second quarter of 2019 as repairs are made.
|
▪
|
Medicine Hat produced
155,000
tonnes during the
first
quarter of
2019
compared to
160,000
tonnes in the
fourth
quarter of
2018
.
|
1
|
|
Share Information
Methanex Corporation’s common shares are listed for trading on the Toronto Stock Exchange under the symbol MX and on the Nasdaq Global Market under the symbol MEOH.
Transfer Agents & Registrars
AST Trust Company (Canada)
320 Bay Street
Toronto, Ontario Canada M5H 4A6
Toll free in North America: 1-800-387-0825
|
Investor Information
All financial reports, news releases and corporate information can be accessed on our website at
www.methanex.com
.
Contact Information
Methanex Investor Relations
1800 - 200 Burrard Street
Vancouver, BC Canada V6C 3M1
E-mail: invest@methanex.com
Methanex Toll-Free: 1-800-661-8851
|
Management's Discussion and Analysis for the
Three Months Ended March 31, 2019 |
|||
At April 23, 2019 the Company had 77,006,080 common shares issued and outstanding and stock options exercisable for 1,235,665 additional common shares.
|
▪
|
A reconciliation from net income attributable to Methanex shareholders to Adjusted net income and the calculation of Adjusted net income per common share is as follows:
|
|
Three Months Ended
|
||||||||
($ millions except number of shares and per share amounts)
|
Mar 31
2019 |
|
Dec 31
2018 |
|
Mar 31
2018 |
|
|||
Net income (attributable to Methanex shareholders)
|
$
|
38
|
|
$
|
161
|
|
$
|
169
|
|
Mark-to-market impact of share-based compensation, net of tax
|
18
|
|
(71
|
)
|
2
|
|
|||
Adjusted net income
|
$
|
56
|
|
$
|
90
|
|
$
|
171
|
|
Diluted weighted average shares outstanding (millions)
|
77
|
|
78
|
|
84
|
|
|||
Adjusted net income per common share
|
$
|
0.73
|
|
$
|
1.15
|
|
$
|
2.03
|
|
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
Additional Information - Supplemental Non-GAAP Measures
on page
15
of the MD&A for reconciliations to the most comparable GAAP measures.
|
▪
|
As at January 1, 2019 we adopted a new accounting standard, IFRS 16
Leases
("IFRS 16"), using the modified retrospective adoption approach. As a result of this method of adoption, the figures for Q1 2019 reflect the adoption of the standard, while the comparable periods presented are not restated. The adoption of IFRS 16 results in higher Adjusted EBITDA for Q1 2019 by $28 million due to changes in the recognition and classification of lease costs from cost of sales to depreciation and amortization ($24 million) and finance costs ($5 million), but has a minimal impact on net income attributable to Methanex shareholders and Adjusted net income. The adoption of IFRS 16 has no net cash impact. Refer to the
Adoption of New Accounting Standards
section on page 14.
|
▪
|
We recorded net income attributable to Methanex shareholders of $
38 million
during the
first
quarter of
2019
compared to net income of $
161 million
in the
fourth
quarter of
2019
.
The decrease in earnings is primarily due to a decrease in our average realized methanol price, partially offset by an increase in sales of Methanex-produced methanol during the first quarter and the change in the mark-to-market impact of share-based compensation.
|
▪
|
We recorded Adjusted EBITDA of
$194 million
for the
first
quarter of
2019
compared with
$197 million
for the
fourth
quarter of
2018
. Adjusted EBITDA for the first quarter of 2019 includes the adoption of IFRS 16 which increased Adjusted EBITDA for the first quarter of 2019 by $28 million. Excluding the impact of the adoption of IFRS 16, Adjusted EBITDA for the first quarter of 2019 would be lower by $31 million compared to the fourth quarter of 2018. The decrease in Adjusted EBITDA excluding the impact of IFRS 16 is primarily due to the decrease in our average realized methanol price, partially offset by an increase in sales of Methanex-produced methanol.
|
▪
|
Adjusted net income was
$56 million
for the
first
quarter of
2019
compared to Adjusted net income of
$90 million
for the
fourth
quarter of
2018
.
The decrease in Adjusted net income is primarily due to a decrease in average realized price to $331 per tonne for the first quarter of 2019 from $401 per tonne for the fourth quarter of 2018, partially offset by an increase in sales of Methanex-produced methanol.
|
▪
|
Production for the
first
quarter of
2019
was
1,808,000
tonnes compared with
1,885,000
tonnes for the
fourth
quarter of
2018
. Refer to the
Production Summary
section on page
4
of the MD&A.
|
▪
|
Total sales volume for the first quarter of 2019 was
2,723,000
tonnes compared with
2,752,000
tonnes for the fourth quarter of 2019.
Sales of Methanex-produced methanol were
1,921,000
tonnes in the
first
quarter of
2019
compared with
1,599,000
tonnes
in the
fourth
quarter of
2018
.
|
▪
|
On March 18, 2019 we commenced a normal course issuer bid to purchase up to 3,863,298 common shares. To March 31, 2019, we have repurchased 99,893 common shares for $5.8 million.
|
▪
|
During the
first
quarter of
2019
we paid a
$0.33
per common share quarterly dividend to shareholders for a total of $
25
million.
|
▪
|
We announced today that the Board of Directors has approved a 9% increase to our quarterly dividend to shareholders, from $0.33 per share per quarter to $0.36 per share per quarter.
|
▪
|
We continue to make good progress on a potential Geismar 3 production facility. We continue to expect to spend approximately $50 to $60 million on this project prior to reaching a final investment decision with the remaining approximately $35 million to be spent in the second quarter of 2019. We believe that the potential Geismar 3 project would be advantaged relative to other projects being contemplated or under construction in the US Gulf.
|
|
Three Months Ended
|
|||||
($ millions except per share amounts and where noted)
|
Mar 31
2019 |
|
Dec 31
2018 |
|
Mar 31
2018 |
|
Production (thousands of tonnes) (attributable to Methanex shareholders)
|
1,808
|
|
1,885
|
|
1,943
|
|
Sales volume (thousands of tonnes)
|
|
|
|
|||
Methanex-produced methanol
|
1,921
|
|
1,599
|
|
1,884
|
|
Purchased methanol
|
473
|
|
908
|
|
613
|
|
Commission sales
|
329
|
|
245
|
|
321
|
|
Total sales volume
1
|
2,723
|
|
2,752
|
|
2,818
|
|
|
|
|
|
|||
Methanex average non-discounted posted price ($ per tonne)
2
|
392
|
|
487
|
|
475
|
|
Average realized price ($ per tonne)
3
|
331
|
|
401
|
|
402
|
|
|
|
|
|
|||
Revenue
|
733
|
|
977
|
|
962
|
|
Adjusted revenue
|
800
|
|
1,008
|
|
987
|
|
Adjusted EBITDA
|
194
|
|
197
|
|
306
|
|
Cash flows from operating activities
|
213
|
|
218
|
|
245
|
|
Adjusted net income
|
56
|
|
90
|
|
171
|
|
Net income (attributable to Methanex shareholders)
|
38
|
|
161
|
|
169
|
|
|
|
|
|
|||
Adjusted net income per common share
|
0.73
|
|
1.15
|
|
2.03
|
|
Basic net income per common share
|
0.50
|
|
2.07
|
|
2.02
|
|
Diluted net income per common share
|
0.50
|
|
1.68
|
|
2.00
|
|
|
|
|
|
|||
Common share information (millions of shares)
|
|
|
|
|||
Weighted average number of common shares
|
77
|
|
78
|
|
84
|
|
Diluted weighted average number of common shares
|
77
|
|
78
|
|
84
|
|
Number of common shares outstanding, end of period
|
77
|
|
77
|
|
83
|
|
1
|
Methanex-produced methanol represents our equity share of volume produced at our facilities and excludes volume marketed on a commission basis related to the 36.9% of the Atlas facility and 50% of the Egypt facility that we do not own. Methanex-produced methanol includes any volume produced by Chile using natural gas supplied from Argentina under a tolling arrangement ("Tolling Volume"). There was no Tolling Volume produced in the first quarter of 2019 or the fourth quarter of 2018. There was 40,000 MT of Tolling Volume in the first quarter of 2018.
|
2
|
Methanex average non-discounted posted price represents the average of our non-discounted posted prices in North America, Europe and Asia Pacific weighted by sales volume. Current and historical pricing information is available at
www.methanex.com
.
|
3
|
Average realized price is calculated as revenue, excluding commissions earned and the Egypt non-controlling interest share of revenue, but including an amount representing our share of Atlas revenue, divided by the total sales volume of Methanex-produced and purchased methanol, but excluding Tolling Volume.
|
|
Q1 2019
|
Q4 2018
|
|
Q1 2018
|
|
|||
(thousands of tonnes)
|
Operating Capacity
1
|
|
Production
|
|
Production
|
|
Production
|
|
New Zealand
2
|
608
|
|
437
|
|
389
|
|
487
|
|
USA (Geismar)
|
500
|
|
405
|
|
527
|
|
513
|
|
Trinidad (Methanex interest)
3
|
500
|
|
429
|
|
448
|
|
459
|
|
Chile
4
|
430
|
|
241
|
|
206
|
|
166
|
|
Egypt (50% interest)
|
158
|
|
141
|
|
155
|
|
165
|
|
Canada (Medicine Hat)
|
150
|
|
155
|
|
160
|
|
153
|
|
|
2,346
|
|
1,808
|
|
1,885
|
|
1,943
|
|
1
|
Operating capacity includes only those facilities which are currently capable of operating, but excludes any portion of an asset that is underutilized due to a lack of natural gas feedstock over a prolonged period of time. The operating capacity of our production facilities may be higher than original nameplate capacity as, over time, these figures have been adjusted to reflect ongoing operating efficiencies at these facilities. Actual production for a facility in any given year may be higher or lower than operating capacity due to a number of factors, including natural gas composition or the age of the facility's catalyst.
|
2
|
The operating capacity of New Zealand is made up of the two Motunui facilities and the Waitara Valley facility
(refer to the
New Zealand
section below).
|
3
|
The operating capacity of Trinidad is made up of the Titan (100% interest) and Atlas (63.1% interest) facilities
(refer to the
Trinidad
section below).
|
4
|
The operating capacity of our Chile I and IV facilities is 1.7 million tonnes annually assuming access to natural gas feedstock.
For 2018, our operating capacity in Chile was 0.9 million tonnes. In the fourth quarter of 2018 we restarted our 0.8 million tonne Chile IV plant that had been idle since 2007.
|
|
Three Months Ended
|
||||||||
($ millions)
|
Mar 31
2019 |
|
Dec 31
2018 |
|
Mar 31
2018 |
|
|||
Consolidated statements of income:
|
|
|
|
||||||
Revenue
|
$
|
733
|
|
$
|
977
|
|
$
|
962
|
|
Cost of sales and operating expenses
|
(581
|
)
|
(701
|
)
|
(661
|
)
|
|||
Mark-to-market impact of share-based compensation
|
22
|
|
(87
|
)
|
2
|
|
|||
Adjusted EBITDA (attributable to associate)
|
37
|
|
27
|
|
39
|
|
|||
Amounts excluded from Adjusted EBITDA attributable to non-controlling interests
|
(17
|
)
|
(19
|
)
|
(36
|
)
|
|||
Adjusted EBITDA (attributable to Methanex shareholders)
|
194
|
|
197
|
|
306
|
|
|||
|
|
|
|
||||||
Mark-to-market impact of share-based compensation
|
(22
|
)
|
87
|
|
(2
|
)
|
|||
Depreciation and amortization
1
|
(85
|
)
|
(62
|
)
|
(59
|
)
|
|||
Finance costs
1
|
(28
|
)
|
(23
|
)
|
(24
|
)
|
|||
Finance income and other expenses
|
—
|
|
2
|
|
4
|
|
|||
Income tax expense
|
(9
|
)
|
(33
|
)
|
(45
|
)
|
|||
Earnings of associate adjustment
2
|
(19
|
)
|
(10
|
)
|
(19
|
)
|
|||
Non-controlling interests adjustment
2
|
7
|
|
3
|
|
8
|
|
|||
Net income (attributable to Methanex shareholders)
|
$
|
38
|
|
$
|
161
|
|
$
|
169
|
|
Net income
|
$
|
46
|
|
$
|
177
|
|
$
|
197
|
|
1
|
Depreciation and amortization and finance costs for the period ended March 31, 2019 includes the impact of the adoption of IFRS 16 "Leases". The comparative periods have not been restated as the Company has adopted IFRS 16 using the modified retrospective approach.
|
2
|
These adjustments represent depreciation and amortization, finance costs, finance income and other expenses and income taxes associated with our 63.1% interest in the Atlas methanol facility and the non-controlling interests.
|
($ millions)
|
Q1 2019
compared with Q4 2018 |
|
Q1 2019
compared with Q1 2018 |
|
||
Average realized price
|
$
|
(164
|
)
|
$
|
(169
|
)
|
Sales volume
|
(12
|
)
|
(15
|
)
|
||
Total cash costs
|
145
|
|
44
|
|
||
IFRS 16 leasing adoption impact
1
|
28
|
|
28
|
|
||
Decrease in Adjusted EBITDA
|
$
|
(3
|
)
|
$
|
(112
|
)
|
|
Three Months Ended
|
|||||
($ per tonne)
|
Mar 31
2019 |
|
Dec 31
2018 |
|
Mar 31
2018 |
|
Methanex average non-discounted posted price
|
392
|
|
487
|
|
475
|
|
Methanex average realized price
|
331
|
|
401
|
|
402
|
|
($ millions)
|
Q1 2019
compared with Q4 2018 |
|
Q1 2019
compared with Q1 2018 |
|
||
Methanex-produced methanol costs
|
$
|
52
|
|
$
|
15
|
|
Proportion of Methanex-produced methanol sales
|
74
|
|
24
|
|
||
Purchased methanol costs
|
37
|
|
33
|
|
||
Logistics costs
|
(15
|
)
|
(11
|
)
|
||
Other, net
|
(3
|
)
|
(17
|
)
|
||
Increase in Adjusted EBITDA due to changes in total cash costs
|
$
|
145
|
|
$
|
44
|
|
|
Three Months Ended
|
||||||||
($ millions except share price)
|
Mar 31
2019 |
|
Dec 31
2018 |
|
Mar 31
2018 |
|
|||
Methanex Corporation share price
1
|
$
|
56.86
|
|
$
|
48.17
|
|
$
|
60.65
|
|
Grant-date fair value expense included in Adjusted EBITDA and Adjusted net income
|
6
|
|
1
|
|
4
|
|
|||
Mark-to-market impact due to change in share price
2
|
22
|
|
(87
|
)
|
2
|
|
|||
Total share-based compensation expense (recovery), before tax
|
$
|
28
|
|
$
|
(86
|
)
|
$
|
6
|
|
2
|
For all periods presented, the mark-to-market impact on share-based compensation is primarily due to changes in the Methanex Corporation share price.
|
|
Three Months Ended
|
||||||||
($ millions)
|
Mar 31
2019 |
|
Dec 31
2018 |
|
Mar 31
2018 |
|
|||
Finance income and other expenses
|
$
|
—
|
|
$
|
2
|
|
$
|
4
|
|
|
Three months ended
March 31, 2019 |
|
Three months ended
December 31, 2018 |
||||||||||
($ millions except where noted)
|
Net Income
|
|
Adjusted
Net Income |
|
|
Net Income
|
|
Adjusted
Net Income |
|
||||
Amount before income tax
|
$
|
55
|
|
$
|
78
|
|
|
$
|
210
|
|
$
|
117
|
|
Income tax expense
|
(9
|
)
|
(22
|
)
|
|
(33
|
)
|
(27
|
)
|
||||
|
$
|
46
|
|
$
|
56
|
|
|
$
|
177
|
|
$
|
90
|
|
Effective tax rate
|
17
|
%
|
28
|
%
|
|
16
|
%
|
24
|
%
|
2
|
€360 for Q2 2019 (Q1 2019 – €360) converted to United States dollars.
|
($ millions)
|
Q1 2019
compared with Q4 2018 |
|
Q1 2019
compared with Q1 2018 |
|
||
Change in Adjusted EBITDA (attributable to Methanex shareholders)
1
|
$
|
(3
|
)
|
$
|
(112
|
)
|
Deduct change in Adjusted EBITDA of associate
|
(6
|
)
|
2
|
|
||
Dividends received from associate
|
36
|
|
17
|
|
||
Cash flows attributable to non-controlling interests
|
(6
|
)
|
(19
|
)
|
||
Non-cash working capital
|
(21
|
)
|
101
|
|
||
Income taxes paid
|
7
|
|
(13
|
)
|
||
Share-based payments
|
(17
|
)
|
(9
|
)
|
||
Other
|
5
|
|
1
|
|
||
Increase (Decrease) in cash flows from operating activities
|
$
|
(5
|
)
|
$
|
(32
|
)
|
•
|
updated our policies and procedures related to how we account for leases; and
|
•
|
implemented controls surrounding contract review and new lease accounting system to ensure the inputs, processes, and outputs are accurate and complete.
|
|
Three Months Ended
|
||||||||
|
March 31, 2019
|
||||||||
($ millions except per share amounts)
|
Excluding IFRS 16
|
IFRS 16 impact
|
Including IFRS 16
|
||||||
Adjusted EBITDA
|
$
|
166
|
|
$
|
28
|
|
$
|
194
|
|
Less:
|
|
|
|
||||||
Depreciation and amortization
|
61
|
|
24
|
|
85
|
|
|||
Finance costs
|
23
|
|
5
|
|
28
|
|
|||
Other
|
3
|
|
—
|
|
3
|
|
|||
Adjusted net income - before tax
|
$
|
79
|
|
$
|
(1
|
)
|
$
|
78
|
|
|
Three Months Ended
|
||||||||
($ millions)
|
Mar 31
2019 |
|
Dec 31
2018 |
|
Mar 31
2018 |
|
|||
Net income (attributable to Methanex shareholders)
|
$
|
38
|
|
$
|
161
|
|
$
|
169
|
|
Mark-to-market impact of share-based compensation
|
22
|
|
(87
|
)
|
2
|
|
|||
Depreciation and amortization
1
|
85
|
|
62
|
|
59
|
|
|||
Finance costs
1
|
28
|
|
23
|
|
24
|
|
|||
Finance income and other expenses
|
—
|
|
(2
|
)
|
(4
|
)
|
|||
Income tax expense
|
9
|
|
33
|
|
45
|
|
|||
Earnings of associate adjustment
2
|
19
|
|
10
|
|
19
|
|
|||
Non-controlling interests adjustment
2
|
(7
|
)
|
(3
|
)
|
(8
|
)
|
|||
Adjusted EBITDA (attributable to Methanex shareholders)
|
$
|
194
|
|
$
|
197
|
|
$
|
306
|
|
1
|
Depreciation and amortization and finance costs for the period ended March 31, 2019 includes the impact of the adoption of IFRS 16 "Leases". The comparative periods have not been restated as the Company has adopted IFRS 16 using the modified retrospective approach.
|
2
|
These adjustments represent depreciation and amortization, finance costs, finance income and other expenses and income taxes associated with our 63.1% interest in the Atlas methanol facility and the non-controlling interests.
|
|
Three Months Ended
|
||||||||
($ millions except number of shares and per share amounts)
|
Mar 31
2019 |
|
Dec 31
2018 |
|
Mar 31
2018 |
|
|||
Net income (attributable to Methanex shareholders)
|
$
|
38
|
|
$
|
161
|
|
$
|
169
|
|
Mark-to-market impact of share-based compensation, net of tax
|
18
|
|
(71
|
)
|
2
|
|
|||
Adjusted net income
|
$
|
56
|
|
$
|
90
|
|
$
|
171
|
|
Diluted weighted average shares outstanding (millions)
|
77
|
|
78
|
|
84
|
|
|||
Adjusted net income per common share
|
$
|
0.73
|
|
$
|
1.15
|
|
$
|
2.03
|
|
|
Three Months Ended
|
||||||||
($ millions)
|
Mar 31
2019 |
|
Dec 31
2018 |
|
Mar 31
2018 |
|
|||
Revenue
|
$
|
733
|
|
$
|
977
|
|
$
|
962
|
|
Methanex share of Atlas revenue
1
|
116
|
|
81
|
|
93
|
|
|||
Non-controlling interests' share of revenue
1
|
(47
|
)
|
(49
|
)
|
(67
|
)
|
|||
Other adjustments
|
(2
|
)
|
(1
|
)
|
(1
|
)
|
|||
Adjusted revenue (attributable to Methanex shareholders)
|
$
|
800
|
|
$
|
1,008
|
|
$
|
987
|
|
1
|
Excludes intercompany transactions with the Company.
|
|
Three Months Ended
|
|||||||||||
($ millions except per share amounts)
|
Mar 31
2019 |
|
Dec 31
2018 |
|
Sep 30
2018 |
|
Jun 30
2018 |
|
||||
Revenue
|
$
|
733
|
|
$
|
977
|
|
$
|
1,044
|
|
$
|
950
|
|
Adjusted EBITDA
|
194
|
|
197
|
|
293
|
|
275
|
|
||||
Net income (attributable to Methanex shareholders)
|
38
|
|
161
|
|
128
|
|
111
|
|
||||
Adjusted net income
|
56
|
|
90
|
|
152
|
|
143
|
|
||||
Basic net income per common share
|
0.50
|
|
2.07
|
|
1.62
|
|
1.36
|
|
||||
Diluted net income per common share
|
0.50
|
|
1.68
|
|
1.61
|
|
1.36
|
|
||||
Adjusted net income per common share
|
0.73
|
|
1.15
|
|
1.92
|
|
1.75
|
|
|
Three Months Ended
|
|||||||||||
($ millions except per share amounts)
|
Mar 31
2018 |
|
Dec 31
2017 |
|
Sep 30
2017 |
|
Jun 30
2017 |
|
||||
Revenue
|
$
|
962
|
|
$
|
861
|
|
$
|
720
|
|
$
|
669
|
|
Adjusted EBITDA
|
306
|
|
254
|
|
143
|
|
174
|
|
||||
Net income (attributable to Methanex shareholders)
|
169
|
|
68
|
|
32
|
|
84
|
|
||||
Adjusted net income
|
171
|
|
143
|
|
52
|
|
74
|
|
||||
Basic net income per common share
|
2.02
|
|
0.81
|
|
0.38
|
|
0.96
|
|
||||
Diluted net income per common share
|
2.00
|
|
0.81
|
|
0.38
|
|
0.89
|
|
||||
Adjusted net income per common share
|
2.03
|
|
1.70
|
|
0.60
|
|
0.85
|
|
•
|
expected demand for methanol and its derivatives,
|
•
|
expected new methanol supply or restart of idled capacity and timing for start-up of the same,
|
•
|
expected shutdowns (either temporary or permanent) or restarts of existing methanol supply (including our own facilities), including, without limitation, the timing and length of planned maintenance outages,
|
•
|
expected methanol and energy prices,
|
•
|
expected levels of methanol purchases from traders or other third parties,
|
•
|
expected levels, timing and availability of economically priced natural gas supply to each of our plants,
|
•
|
capital committed by third parties towards future natural gas exploration and development in the vicinity of our plants,
|
•
|
our expected capital expenditures,
|
•
|
anticipated operating rates of our plants,
|
•
|
expected operating costs, including natural gas feedstock costs and logistics costs,
|
•
|
expected tax rates or resolutions to tax disputes,
|
•
|
expected cash flows, earnings capability and share price,
|
•
|
availability of committed credit facilities and other financing,
|
•
|
our ability to meet covenants or obtain or continue to obtain waivers associated with our long-term debt obligations, including, without limitation, the Egypt limited recourse debt facilities that have conditions associated with the payment of cash or other distributions and the finalization of certain land title registrations and related mortgages which require actions by Egyptian governmental entities,
|
•
|
expected impact on our results of operations in Egypt or our financial condition as a consequence of actions taken or inaction by Egyptian governmental entities,
|
•
|
our shareholder distribution strategy and anticipated distributions to shareholders,
|
•
|
commercial viability and timing of, or our ability to execute future projects, plant restarts, capacity expansions, plant relocations or other business initiatives or opportunities,
|
•
|
our financial strength and ability to meet future financial commitments,
|
•
|
expected global or regional economic activity (including industrial production levels),
|
•
|
expected outcomes of litigation or other disputes, claims and assessments, and
|
•
|
expected actions of governments, governmental agencies, gas suppliers, courts, tribunals or other third parties.
|
•
|
the supply of, demand for and price of methanol, methanol derivatives, natural gas, coal, oil and oil derivatives,
|
•
|
our ability to procure natural gas feedstock on commercially acceptable terms,
|
•
|
operating rates of our facilities,
|
•
|
receipt or issuance of third-party consents or approvals, including, without limitation, governmental registrations of land title and related mortgages in Egypt and governmental approvals related to rights to purchase natural gas,
|
•
|
the establishment of new fuel standards,
|
•
|
operating costs, including natural gas feedstock and logistics costs, capital costs, tax rates, cash flows, foreign exchange rates and interest rates,
|
•
|
the availability of committed credit facilities and other financing,
|
•
|
global and regional economic activity (including industrial production levels),
|
•
|
absence of a material negative impact from major natural disasters,
|
•
|
absence of a material negative impact from changes in laws or regulations,
|
•
|
absence of a material negative impact from political instability in the countries in which we operate, and
|
•
|
enforcement of contractual arrangements and ability to perform contractual obligations by customers, natural gas and other suppliers and other third parties.
|
•
|
conditions in the methanol and other industries including fluctuations in the supply, demand and price for methanol and its derivatives, including demand for methanol for energy uses,
|
•
|
the price of natural gas, coal, oil and oil derivatives,
|
•
|
our ability to obtain natural gas feedstock on commercially acceptable terms to underpin current operations and future production growth opportunities,
|
•
|
the ability to carry out corporate initiatives and strategies,
|
•
|
actions of competitors, suppliers and financial institutions,
|
•
|
conditions within the natural gas delivery systems that may prevent delivery of our natural gas supply requirements,
|
•
|
competing demand for natural gas, especially with respect to domestic needs for gas and electricity in Chile and Egypt,
|
•
|
actions of governments and governmental authorities, including, without limitation, implementation of policies or other measures that could impact the supply of or demand for methanol or its derivatives,
|
•
|
changes in laws or regulations,
|
•
|
import or export restrictions, anti-dumping measures, increases in duties, taxes and government royalties and other actions by governments that may adversely affect our operations or existing contractual arrangements,
|
•
|
world-wide economic conditions, and
|
•
|
other risks described in our 2018 Annual Management’s Discussion and Analysis and this
First
Quarter
2019
Management’s Discussion and Analysis.
|
|
Three Months Ended
|
|||||
|
Mar 31
2019 |
|
Mar 31
2018 |
|
||
Revenue
|
$
|
732,697
|
|
$
|
961,825
|
|
Cost of sales and operating expenses
|
(581,258
|
)
|
(660,565
|
)
|
||
Depreciation and amortization
|
(85,319
|
)
|
(59,172
|
)
|
||
Operating income
|
66,120
|
|
242,088
|
|
||
Earnings of associate (note 5)
|
18,054
|
|
20,462
|
|
||
Finance costs
|
(28,420
|
)
|
(24,180
|
)
|
||
Finance income and other expenses
|
(82
|
)
|
3,649
|
|
||
Income before income taxes
|
55,672
|
|
242,019
|
|
||
Income tax (expense) recovery:
|
|
|
||||
Current
|
(20,463
|
)
|
(32,988
|
)
|
||
Deferred
|
11,142
|
|
(11,724
|
)
|
||
|
(9,321
|
)
|
(44,712
|
)
|
||
Net income
|
$
|
46,351
|
|
$
|
197,307
|
|
Attributable to:
|
|
|
||||
Methanex Corporation shareholders
|
$
|
38,464
|
|
$
|
168,683
|
|
Non-controlling interests
|
7,887
|
|
28,624
|
|
||
|
$
|
46,351
|
|
$
|
197,307
|
|
|
|
|
||||
Income per common share for the period attributable to Methanex Corporation shareholders
|
|
|
||||
Basic net income per common share
|
$
|
0.50
|
|
$
|
2.02
|
|
Diluted net income per common share (note 7)
|
$
|
0.50
|
|
$
|
2.00
|
|
|
|
|
||||
Weighted average number of common shares outstanding (note 7)
|
77,254,680
|
|
83,698,173
|
|
||
Diluted weighted average number of common shares outstanding (note 7)
|
77,287,094
|
|
84,139,075
|
|
|
Three Months Ended
|
|||||
|
Mar 31
2019 |
|
Mar 31
2018 |
|
||
Net income
|
$
|
46,351
|
|
$
|
197,307
|
|
Other comprehensive income (loss):
|
|
|
||||
Items that may be reclassified to income:
|
|
|
||||
Change in fair value of cash flow hedges (note 10)
|
(40,157
|
)
|
(25,011
|
)
|
||
Forward element excluded from hedging relationships (note 10)
|
44,553
|
|
26,131
|
|
||
Items that will not be reclassified to income:
|
|
|
||||
Actuarial gain on defined benefit pension plans
|
—
|
|
845
|
|
||
Taxes on above items
|
(1,101
|
)
|
(516
|
)
|
||
|
3,295
|
|
1,449
|
|
||
Comprehensive income
|
$
|
49,646
|
|
$
|
198,756
|
|
Attributable to:
|
|
|
||||
Methanex Corporation shareholders
|
$
|
41,759
|
|
$
|
170,132
|
|
Non-controlling interests
|
7,887
|
|
28,624
|
|
||
|
$
|
49,646
|
|
$
|
198,756
|
|
AS AT
|
Mar 31
2019 |
|
Dec 31
2018 |
|
||
ASSETS
|
|
|
||||
Current assets:
|
|
|
||||
Cash and cash equivalents
|
$
|
285,108
|
|
$
|
256,077
|
|
Trade and other receivables
|
476,123
|
|
514,568
|
|
||
Inventories (note 2)
|
336,272
|
|
387,959
|
|
||
Prepaid expenses
|
28,126
|
|
32,541
|
|
||
Other assets (note 3)
|
54,861
|
|
60,931
|
|
||
|
1,180,490
|
|
1,252,076
|
|
||
Non-current assets:
|
|
|
||||
Property, plant and equipment (note 4)
|
3,469,695
|
|
3,025,095
|
|
||
Investment in associate (note 5)
|
179,283
|
|
197,821
|
|
||
Deferred income tax assets
|
66,656
|
|
59,532
|
|
||
Other assets (note 3)
|
73,560
|
|
74,475
|
|
||
|
3,789,194
|
|
3,356,923
|
|
||
|
$
|
4,969,684
|
|
$
|
4,608,999
|
|
LIABILITIES AND EQUITY
|
|
|
||||
Current liabilities:
|
|
|
||||
Trade, other payables and accrued liabilities
|
$
|
570,522
|
|
$
|
617,414
|
|
Current maturities on long-term debt (note 6)
|
386,121
|
|
383,793
|
|
||
Current maturities on lease liabilities
|
99,238
|
|
12,347
|
|
||
Current maturities on other long-term liabilities
|
37,293
|
|
33,799
|
|
||
|
1,093,174
|
|
1,047,353
|
|
||
Non-current liabilities:
|
|
|
||||
Long-term debt (note 6)
|
1,057,767
|
|
1,074,493
|
|
||
Lease liabilities
|
552,459
|
|
187,413
|
|
||
Other long-term liabilities
|
210,084
|
|
210,685
|
|
||
Deferred income tax liabilities
|
273,144
|
|
281,214
|
|
||
|
2,093,454
|
|
1,753,805
|
|
||
Equity:
|
|
|
||||
Capital stock
|
446,079
|
|
446,544
|
|
||
Contributed surplus
|
1,641
|
|
1,597
|
|
||
Retained earnings
|
1,117,209
|
|
1,145,476
|
|
||
Accumulated other comprehensive loss
|
(77,568
|
)
|
(82,404
|
)
|
||
Shareholders' equity
|
1,487,361
|
|
1,511,213
|
|
||
Non-controlling interests
|
295,695
|
|
296,628
|
|
||
Total equity
|
1,783,056
|
|
1,807,841
|
|
||
|
$
|
4,969,684
|
|
$
|
4,608,999
|
|
|
Number of
Common Shares |
|
Capital
Stock |
|
Contributed
Surplus |
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Loss |
|
Shareholders
Equity |
|
Non-
Controlling Interests |
|
Total
Equity |
|
Balance, December 31, 2017
|
83,770,254
|
|
$480,331
|
$2,124
|
$1,088,150
|
$(69,841)
|
1,500,764
|
|
$244,347
|
$1,745,111
|
||||||
Net income
|
—
|
|
—
|
|
—
|
|
168,683
|
|
—
|
|
168,683
|
|
28,624
|
|
197,307
|
|
Other comprehensive income
|
—
|
|
—
|
|
—
|
|
549
|
|
900
|
1,449
|
|
—
|
|
1,449
|
|
|
Compensation expense recorded for stock options
|
—
|
|
—
|
|
86
|
|
—
|
|
—
|
|
86
|
|
—
|
|
86
|
|
Issue of shares on exercise of stock options
|
15,550
|
|
463
|
|
—
|
|
—
|
|
—
|
|
463
|
|
—
|
|
463
|
|
Reclassification of grant date fair value on exercise of stock options
|
—
|
|
152
|
|
(152
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Payments for repurchase of shares
|
(650,000
|
)
|
(3,727
|
)
|
—
|
|
(34,229
|
)
|
—
|
|
(37,956
|
)
|
—
|
|
(37,956
|
)
|
Dividend payments to Methanex Corporation shareholders
|
—
|
|
—
|
|
—
|
|
(27,611
|
)
|
—
|
|
(27,611
|
)
|
—
|
|
(27,611
|
)
|
Distributions made and accrued to non-controlling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(7,222
|
)
|
(7,222
|
)
|
Equity contributions by non-controlling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Balance, March 31, 2018
|
83,135,804
|
|
$477,219
|
$2,058
|
$1,195,542
|
$(68,941)
|
$1,605,878
|
$265,749
|
$1,871,627
|
|||||||
Net income
|
—
|
|
—
|
|
—
|
|
400,299
|
|
—
|
|
400,299
|
|
60,378
|
|
460,677
|
|
Other comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
(13,463)
|
(13,463
|
)
|
—
|
|
(13,463
|
)
|
|
Compensation expense recorded for stock options
|
—
|
|
—
|
|
276
|
|
—
|
|
—
|
|
276
|
|
—
|
|
276
|
|
Issue of shares on exercise of stock options
|
67,564
|
|
2,747
|
|
—
|
|
—
|
|
0
|
2,747
|
|
—
|
|
2,747
|
|
|
Reclassification of grant date fair value on exercise of stock options
|
—
|
|
737
|
|
(737
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Payments for repurchase of shares
|
(5,940,095
|
)
|
(34,159
|
)
|
—
|
|
(372,300
|
)
|
0
|
(406,459
|
)
|
—
|
|
(406,459
|
)
|
|
Dividend payments to Methanex Corporation shareholders
|
—
|
|
—
|
|
—
|
|
(78,065
|
)
|
—
|
|
(78,065
|
)
|
—
|
|
(78,065
|
)
|
Distributions made and accrued to non-controlling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
0
|
—
|
|
(29,499
|
)
|
(29,499
|
)
|
|
Equity contributions by non-controlling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Balance, December 31, 2018
|
77,263,273
|
|
$446,544
|
$1,597
|
$1,145,476
|
$(82,404)
|
$1,511,213
|
$296,628
|
$1,807,841
|
|||||||
Net income
|
—
|
|
—
|
|
—
|
|
38,464
|
|
—
|
|
38,464
|
|
7,887
|
|
46,351
|
|
Other comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
(1,541
|
)
|
4,836
|
3,295
|
|
—
|
|
3,295
|
|
|
Compensation expense recorded for stock options
|
—
|
|
—
|
|
70
|
|
—
|
|
—
|
|
70
|
|
—
|
|
70
|
|
Issue of shares on exercise of stock options
|
2,700
|
|
86
|
|
—
|
|
—
|
|
—
|
|
86
|
|
—
|
|
86
|
|
Reclassification of grant date fair value on exercise of stock options
|
—
|
|
26
|
|
(26
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Payment for shares repurchased
|
(99,893
|
)
|
(577
|
)
|
—
|
|
(5,179
|
)
|
—
|
|
(5,756
|
)
|
—
|
|
(5,756
|
)
|
Dividend payments to Methanex Corporation shareholders
|
—
|
|
—
|
|
—
|
|
(25,498
|
)
|
—
|
|
(25,498
|
)
|
—
|
|
(25,498
|
)
|
Distributions made and accrued to non-controlling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(5,465
|
)
|
(5,465
|
)
|
Impact of adoption of IFRS 16
|
—
|
|
—
|
|
—
|
|
(34,513
|
)
|
—
|
|
(34,513
|
)
|
(3,355
|
)
|
(37,868
|
)
|
Balance, March 31, 2019
|
77,166,080
|
|
$446,079
|
$1,641
|
$1,117,209
|
$(77,568)
|
$1,487,361
|
|
$295,695
|
$1,783,056
|
|
Three Months Ended
|
|||||
|
Mar 31
2019 |
|
Mar 31
2018 |
|
||
CASH FLOWS FROM / (USED IN) OPERATING ACTIVITIES
|
|
|
||||
Net income
|
$
|
46,351
|
|
$
|
197,307
|
|
Deduct earnings of associate
|
(18,054
|
)
|
(20,462
|
)
|
||
Dividends received from associate
|
35,967
|
|
18,932
|
|
||
Add (deduct) non-cash items:
|
|
|
||||
Depreciation and amortization
|
85,319
|
|
59,172
|
|
||
Income tax expense
|
9,321
|
|
44,712
|
|
||
Share-based compensation expense
|
27,802
|
|
5,865
|
|
||
Finance costs
|
28,420
|
|
24,180
|
|
||
Other
|
514
|
|
1,114
|
|
||
Income taxes paid
|
(26,123
|
)
|
(13,322
|
)
|
||
Other cash payments, including share-based compensation
|
(21,105
|
)
|
(16,889
|
)
|
||
Cash flows from operating activities before undernoted
|
168,412
|
|
300,609
|
|
||
Changes in non-cash working capital (note 9)
|
44,825
|
|
(55,986
|
)
|
||
|
213,237
|
|
244,623
|
|
||
|
|
|
||||
CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES
|
|
|
||||
Payments for repurchase of shares
|
(5,756
|
)
|
(37,956
|
)
|
||
Dividend payments to Methanex Corporation shareholders
|
(25,498
|
)
|
(27,611
|
)
|
||
Interest paid
|
(18,252
|
)
|
(14,571
|
)
|
||
Repayment of long-term debt and financing fees
|
(15,137
|
)
|
(88,551
|
)
|
||
Repayment of lease obligation
|
(24,934
|
)
|
(2,188
|
)
|
||
Restricted cash for debt service accounts
|
(100
|
)
|
(295
|
)
|
||
Distributions to non-controlling interests
|
(21,300
|
)
|
(31,250
|
)
|
||
Proceeds on issue of shares on exercise of stock options
|
86
|
|
463
|
|
||
Proceeds from other limited recourse debt
|
—
|
|
86,000
|
|
||
Changes in non-cash working capital related to financing activities (note 9)
|
—
|
|
5,983
|
|
||
|
(110,891
|
)
|
(109,976
|
)
|
||
|
|
|
||||
CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES
|
|
|
||||
Property, plant and equipment
|
(88,647
|
)
|
(55,821
|
)
|
||
Restricted cash for capital projects
|
3,087
|
|
(86,000
|
)
|
||
Changes in non-cash working capital related to investing activities (note 9)
|
12,245
|
|
2,734
|
|
||
|
(73,315
|
)
|
(139,087
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
29,031
|
|
(4,440
|
)
|
||
Cash and cash equivalents, beginning of period
|
256,077
|
|
375,479
|
|
||
Cash and cash equivalents, end of period
|
$
|
285,108
|
|
$
|
371,039
|
|
1.
|
Basis of presentation:
|
|
Jan 1
2019 |
|
|
Operating lease commitments at December 31, 2018
|
$
|
427,289
|
|
Discounted using the incremental borrowing rate at January 1, 2019
|
4.4
|
%
|
|
Finance lease liabilities recognized as at December 31, 2018
|
$
|
358,440
|
|
Recognition exemption for:
|
|
|
|
Short-term leases
|
(777
|
)
|
|
Leases of low-value assets
|
(8
|
)
|
|
Extension and termination options reasonably certain to be exercised
|
75,753
|
|
|
Scope changes due to IFRS 16
|
18,880
|
|
|
Other
|
594
|
|
|
Lease liabilities at January 1, 2019
|
$
|
452,882
|
|
•
|
the contract involves the use of an identified asset - this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;
|
•
|
the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and
|
•
|
the Company has the right to direct the use of the asset. The Company has the right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used.
|
2.
|
Inventories:
|
3.
|
Other assets:
|
4.
|
Property, plant and equipment:
|
|
Owned Assets
(a)
|
Right-of-use assets
(b)
|
Total
|
|
|||||
Net book value at March 31, 2019
|
$
|
2,895,343
|
|
$
|
574,352
|
|
$
|
3,469,695
|
|
Net book value at December 31, 2018
|
$
|
2,857,266
|
|
$
|
167,829
|
|
$
|
3,025,095
|
|
a)
|
Owned assets
|
|
Buildings, Plant
Installations & Machinery |
|
Ocean Going Vessels
|
|
Other
|
|
Total
|
|
||||
Cost at March 31, 2019
|
$
|
4,737,294
|
|
$
|
202,682
|
|
$
|
195,529
|
|
$
|
5,135,505
|
|
Accumulated depreciation at March 31, 2019
|
2,072,182
|
|
50,209
|
|
117,771
|
|
2,240,162
|
|
||||
Net book value at March 31, 2019
|
$
|
2,665,112
|
|
$
|
152,473
|
|
$
|
77,758
|
|
$
|
2,895,343
|
|
Cost at December 31, 2018
|
$
|
4,698,142
|
|
$
|
183,419
|
|
$
|
189,058
|
|
$
|
5,070,619
|
|
Accumulated depreciation at December 31, 2018
|
2,047,735
|
|
48,426
|
|
117,192
|
|
2,213,353
|
|
||||
Net book value at December 31, 2018
|
$
|
2,650,407
|
|
$
|
134,993
|
|
$
|
71,866
|
|
$
|
2,857,266
|
|
b)
|
Right-of-use (leased) assets
|
|
Ocean Going Vessels
|
|
Terminals and Tanks
|
|
Plant Installations and Machinery
|
|
Other
|
|
Total
|
|
|||||
Cost at March 31, 2019
|
$
|
392,012
|
|
$
|
208,320
|
|
$
|
19,705
|
|
$
|
31,366
|
|
$
|
651,403
|
|
Accumulated depreciation at March 31, 2019
|
33,604
|
|
35,957
|
|
6,031
|
|
1,459
|
|
77,051
|
|
|||||
Net book value at March 31, 2019
|
$
|
358,408
|
|
$
|
172,363
|
|
$
|
13,674
|
|
$
|
29,907
|
|
$
|
574,352
|
|
Cost at December 31, 2018
|
$
|
87,800
|
|
$
|
113,978
|
|
$
|
16,032
|
|
$
|
—
|
|
$
|
217,810
|
|
Accumulated depreciation at December 31, 2018
|
15,204
|
|
29,333
|
|
5,444
|
|
—
|
|
49,981
|
|
|||||
Net book value at December 31, 2018
|
$
|
72,596
|
|
$
|
84,645
|
|
$
|
10,588
|
|
$
|
—
|
|
$
|
167,829
|
|
Cost at January 1, 2019
|
$
|
370,654
|
|
$
|
207,721
|
|
$
|
19,705
|
|
$
|
30,399
|
|
$
|
628,479
|
|
Accumulated depreciation at January 1, 2019
|
15,204
|
|
29,333
|
|
5,344
|
|
—
|
|
49,881
|
|
|||||
Net book value at January 1, 2019
|
$
|
355,450
|
|
$
|
178,388
|
|
$
|
14,361
|
|
$
|
30,399
|
|
$
|
578,598
|
|
5.
|
Interest in Atlas joint venture:
|
a)
|
The Company has a
63.1%
equity interest in Atlas Methanol Company Unlimited ("Atlas"). Atlas owns a
1.8 million
tonne per year methanol production facility in Trinidad. The Company accounts for its interest in Atlas using the equity method. Summarized financial information of Atlas (100% basis) is as follows:
|
Statements of financial position
|
Mar 31
2019 |
|
Dec 31
2018 |
|
||
Cash and cash equivalents
|
$
|
5,421
|
|
$
|
9,367
|
|
Other current assets
|
89,673
|
|
104,742
|
|
||
Non-current assets
|
249,165
|
|
255,822
|
|
||
Current liabilities
|
(35,969
|
)
|
(32,022
|
)
|
||
Other long-term liabilities, including current maturities
|
(145,119
|
)
|
(145,359
|
)
|
||
Net assets at 100%
|
$
|
163,171
|
|
$
|
192,550
|
|
Net assets at 63.1%
|
$
|
102,961
|
|
$
|
121,499
|
|
Long-term receivable from Atlas
|
76,322
|
|
76,322
|
|
||
Investment in associate
|
$
|
179,283
|
|
$
|
197,821
|
|
|
Three Months Ended
|
|||||
Statements of income
|
Mar 31
2019 |
|
Mar 31
2018 |
|
||
Revenue
|
$
|
102,567
|
|
$
|
132,723
|
|
Cost of sales and depreciation and amortization
|
(55,076
|
)
|
(79,916
|
)
|
||
Operating income
|
47,491
|
|
52,807
|
|
||
Finance costs, finance income and other expenses
|
(2,548
|
)
|
(2,591
|
)
|
||
Income tax expense
|
(16,332
|
)
|
(17,788
|
)
|
||
Net earnings at 100%
|
$
|
28,611
|
|
$
|
32,428
|
|
Earnings of associate at 63.1%
|
$
|
18,054
|
|
$
|
20,462
|
|
|
|
|
||||
Dividends received from associate
|
$
|
35,967
|
|
$
|
18,932
|
|
b)
|
Contingent liability:
|
6.
|
Long-term debt:
|
As at
|
Mar 31
2019 |
|
Dec 31
2018 |
|
||
Unsecured notes
|
|
|
||||
$350 million at 3.25% due December 15, 2019
|
$
|
349,273
|
|
$
|
349,026
|
|
$250 million at 5.25% due March 1, 2022
|
248,586
|
|
248,480
|
|
||
$300 million at 4.25% due December 1, 2024
|
297,324
|
|
297,232
|
|
||
$300 million at 5.65% due December 1, 2044
|
295,258
|
|
295,238
|
|
||
|
1,190,441
|
|
1,189,976
|
|
||
Egypt limited recourse debt facilities
|
87,906
|
|
101,226
|
|
||
Other limited recourse debt facilities
|
165,541
|
|
167,084
|
|
||
Total long-term debt
1
|
1,443,888
|
|
1,458,286
|
|
||
Less current maturities
1
|
(386,121
|
)
|
(383,793
|
)
|
||
|
$
|
1,057,767
|
|
$
|
1,074,493
|
|
1
|
Long-term debt and current maturities are presented net of deferred financing fees.
|
7.
|
Net income per common share:
|
|
Three Months Ended
|
|||
|
Mar 31
2019 |
|
Mar 31
2018 |
|
Numerator for basic net income per common share
|
38,464
|
|
168,683
|
|
Adjustment for the effect of TSARs:
|
|
|
||
Cash-settled recovery included in net income
|
—
|
|
1,699
|
|
Equity-settled expense
|
—
|
|
(1,776
|
)
|
Numerator for basic and diluted net income per common share
|
38,464
|
|
168,606
|
|
8.
|
Share-based compensation:
|
a)
|
Share appreciation rights ("SARs"), TSARs and stock options:
|
(i)
|
Outstanding units:
|
|
SARs
|
|
TSARs
|
||||||||
(per share amounts in USD)
|
Number of Units
|
|
Weighted Average Exercise Price
|
|
|
Number of Units
|
|
Weighted Average Exercise Price
|
|
||
Outstanding at December 31, 2018
|
896,883
|
|
$
|
51.27
|
|
|
1,447,301
|
|
$
|
51.24
|
|
Granted
|
29,320
|
|
57.60
|
|
|
272,860
|
|
57.60
|
|
||
Exercised
|
(32,361
|
)
|
38.33
|
|
|
(41,602
|
)
|
36.66
|
|
||
Cancelled
|
(9,834
|
)
|
64.08
|
|
|
(12,734
|
)
|
48.66
|
|
||
Outstanding at March 31, 2019
|
884,008
|
|
$
|
51.81
|
|
|
1,665,825
|
|
$
|
52.66
|
|
|
Stock Options
|
||||
(per share amounts in USD)
|
Number of Units
|
|
Weighted Average Exercise Price
|
|
|
Outstanding at December 31, 2018
|
198,221
|
|
$48.55
|
||
Granted
|
7,410
|
|
57.60
|
|
|
Exercised
|
(2,700
|
)
|
31.73
|
|
|
Outstanding at March 31, 2019
|
202,931
|
|
$
|
49.11
|
|
|
Units Outstanding at March 31, 2019
|
|
Units Exercisable at March 31, 2019
|
||||||||
Range of Exercise Prices
(per share amounts in USD) |
Weighted Average
Remaining Contractual Life (Years) |
|
Number
of Units Outstanding |
|
Weighted
Average Exercise Price |
|
|
Number of Units
Exercisable |
|
Weighted
Average Exercise Price |
|
SARs:
|
|
|
|
|
|
|
|||||
$25.97 to $35.51
|
3.88
|
|
197,381
|
|
$34.51
|
|
197,381
|
|
$34.51
|
||
$38.24 to $50.17
|
3.67
|
|
199,584
|
|
46.40
|
|
|
147,663
|
|
45.08
|
|
$54.65 to $78.59
|
3.67
|
|
487,043
|
|
61.04
|
|
|
366,126
|
|
62.67
|
|
|
3.72
|
|
884,008
|
|
$51.81
|
|
711,170
|
|
$51.20
|
||
TSARs:
|
|
|
|
|
|
|
|||||
$25.97 to $35.51
|
3.92
|
|
311,404
|
|
$34.59
|
|
311,404
|
|
$34.59
|
||
$38.24 to $50.17
|
4.14
|
|
375,119
|
|
47.82
|
|
|
264,503
|
|
46.83
|
|
$54.65 to $78.59
|
4.79
|
|
979,302
|
|
60.27
|
|
|
488,540
|
|
63.78
|
|
|
4.48
|
|
1,665,825
|
|
$52.66
|
|
1,064,447
|
|
$51.03
|
||
Stock options:
|
|
|
|
|
|
|
|||||
$25.97 to $35.51
|
3.92
|
|
53,767
|
|
$34.59
|
|
53,767
|
|
$34.59
|
||
$38.24 to $50.17
|
2.76
|
|
57,754
|
|
43.70
|
|
|
48,551
|
|
42.47
|
|
$54.65 to $78.59
|
3.66
|
|
91,410
|
|
61.06
|
|
|
69,400
|
|
62.78
|
|
|
3.47
|
|
202,931
|
|
$49.11
|
|
171,718
|
|
$48.21
|
(ii)
|
Compensation expense related to SARs and TSARs:
|
(iii)
|
Compensation expense related to stock options:
|
b)
|
Deferred, restricted and performance share units (old plan and new plan):
|
|
Number of Deferred
Share Units |
|
Number of Restricted
Share Units |
|
Number of Performance
Share Units (old plan) |
|
Number of
Performance
Share Units (new plan) |
|
Outstanding at December 31, 2018
|
209,092
|
|
17,361
|
|
579,778
|
|
—
|
|
Granted
|
8,577
|
|
74,520
|
|
—
|
|
134,930
|
|
Performance factor impact on redemption
1
|
—
|
|
—
|
|
132,215
|
|
—
|
|
Granted in-lieu of dividends
|
985
|
|
529
|
|
1,784
|
|
777
|
|
Redeemed
|
(47,083
|
)
|
—
|
|
(396,635
|
)
|
—
|
|
Cancelled
|
—
|
|
—
|
|
(5,989
|
)
|
—
|
|
Outstanding at March 31, 2019
|
171,571
|
|
92,410
|
|
311,153
|
|
135,707
|
|
1
|
Performance share units granted prior to 2019 have a feature where the ultimate number of units that vest are adjusted by a performance factor of the original grant as determined by the Company’s total shareholder return in relation to a predetermined target over the period to vesting. These units relate to performance share units redeemed in the quarter ended March 31, 2019.
|
9.
|
Changes in non-cash working capital:
|
|
Three Months Ended
|
|||||
|
Mar 31
2019 |
|
Mar 31
2018 |
|
||
Changes in non-cash working capital:
|
|
|
||||
Trade and other receivables
|
$
|
38,445
|
|
$
|
(26,893
|
)
|
Inventories
|
51,687
|
|
(52,462
|
)
|
||
Prepaid expenses
|
4,415
|
|
(106
|
)
|
||
Trade, other payables and accrued liabilities
|
(46,892
|
)
|
29,239
|
|
||
|
47,655
|
|
(50,222
|
)
|
||
Adjustments for items not having a cash effect and working capital changes relating to taxes and interest paid
|
9,415
|
|
2,953
|
|
||
Changes in non-cash working capital having a cash effect
|
$
|
57,070
|
|
$
|
(47,269
|
)
|
|
|
|
||||
These changes relate to the following activities:
|
|
|
||||
Operating
|
$
|
44,825
|
|
$
|
(55,986
|
)
|
Financing
|
—
|
|
5,983
|
|
||
Investing
|
12,245
|
|
2,734
|
|
||
Changes in non-cash working capital
|
$
|
57,070
|
|
$
|
(47,269
|
)
|
|
Cash inflows (outflows) by term to maturity
|
||||||||||
|
1 year or less
|
|
1-3 years
|
|
3-5 years
|
|
More than
5 years |
|
Total
|
|
|
Natural gas forward contracts
|
(7,593
|
)
|
(35,204
|
)
|
(38,342
|
)
|
(34,861
|
)
|
$
|
(116,000
|
)
|
Euro forward exchange contracts
|
791
|
|
—
|
|
—
|
|
—
|
|
$
|
791
|
|
|
March 31, 2019
|
|||||
As at
|
Carrying Value
|
|
Fair Value
|
|
||
Long-term debt excluding deferred financing fees
|
$
|
1,457,170
|
|
$
|
1,457,963
|
|
|
Q1 2019
|
|
2018
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
2017
|
|
Q4
|
|
Q3
|
|
Q2
|
|
Q1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
METHANOL SALES VOLUME
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
(thousands of tonnes)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Methanex-produced
1
|
1,921
|
|
7,002
|
|
1,599
|
|
1,790
|
|
1,729
|
|
1,884
|
|
7,229
|
|
1,930
|
|
1,753
|
|
1,790
|
|
1,756
|
|
Purchased methanol
|
473
|
|
3,032
|
|
908
|
|
802
|
|
709
|
|
613
|
|
2,289
|
|
633
|
|
757
|
|
387
|
|
512
|
|
Commission sales
1
|
329
|
|
1,174
|
|
245
|
|
279
|
|
329
|
|
321
|
|
1,151
|
|
289
|
|
261
|
|
297
|
|
304
|
|
|
2,723
|
|
11,208
|
|
2,752
|
|
2,871
|
|
2,767
|
|
2,818
|
|
10,669
|
|
2,852
|
|
2,771
|
|
2,474
|
|
2,572
|
|
METHANOL PRODUCTION
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
(thousands of tonnes)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
New Zealand
|
437
|
|
1,606
|
|
389
|
|
478
|
|
252
|
|
487
|
|
1,943
|
|
558
|
|
502
|
|
350
|
|
533
|
|
Geismar (Louisiana, USA)
|
405
|
|
2,078
|
|
527
|
|
520
|
|
518
|
|
513
|
|
1,935
|
|
506
|
|
499
|
|
437
|
|
493
|
|
Trinidad (Methanex interest)
|
429
|
|
1,702
|
|
448
|
|
353
|
|
442
|
|
459
|
|
1,768
|
|
466
|
|
457
|
|
449
|
|
396
|
|
Egypt (50% interest)
|
141
|
|
613
|
|
155
|
|
128
|
|
165
|
|
165
|
|
534
|
|
145
|
|
71
|
|
159
|
|
159
|
|
Medicine Hat (Canada)
|
155
|
|
600
|
|
160
|
|
144
|
|
143
|
|
153
|
|
593
|
|
158
|
|
158
|
|
159
|
|
118
|
|
Chile
|
241
|
|
612
|
|
206
|
|
112
|
|
128
|
|
166
|
|
414
|
|
109
|
|
78
|
|
60
|
|
167
|
|
|
1,808
|
|
7,211
|
|
1,885
|
|
1,735
|
|
1,648
|
|
1,943
|
|
7,187
|
|
1,942
|
|
1,765
|
|
1,614
|
|
1,866
|
|
AVERAGE REALIZED METHANOL PRICE
2
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
($/tonne)
|
331
|
|
405
|
|
401
|
|
413
|
|
405
|
|
402
|
|
337
|
|
350
|
|
307
|
|
327
|
|
365
|
|
($/gallon)
|
1.00
|
|
1.22
|
|
1.21
|
|
1.24
|
|
1.22
|
|
1.21
|
|
1.01
|
|
1.05
|
|
0.92
|
|
0.98
|
|
1.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
ADJUSTED EBITDA
3
|
194
|
|
1,071
|
|
197
|
|
293
|
|
275
|
|
306
|
|
838
|
|
254
|
|
143
|
|
174
|
|
267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
PER SHARE INFORMATION
3
($ per common share attributable to Methanex shareholders) |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted net income
|
0.73
|
|
6.86
|
|
1.15
|
|
1.92
|
|
1.75
|
|
2.03
|
|
4.71
|
|
1.70
|
|
0.60
|
|
0.85
|
|
1.56
|
|
Basic net income
|
0.50
|
|
7.07
|
|
2.07
|
|
1.62
|
|
1.36
|
|
2.02
|
|
3.64
|
|
0.81
|
|
0.38
|
|
0.96
|
|
1.47
|
|
Diluted net income
|
0.50
|
|
6.92
|
|
1.68
|
|
1.61
|
|
1.36
|
|
2.00
|
|
3.64
|
|
0.81
|
|
0.38
|
|
0.89
|
|
1.46
|
|
1
|
Methanex-produced methanol represents our equity share of volume produced at our facilities and excludes volume marketed on a commission basis related to the 36.9% of the Atlas facility and 50% of the Egypt facility that we do not own. Methanex-produced methanol includes any volume produced by Chile using natural gas supplied from Argentina under a tolling arrangement ("Tolling Volume"). There was no Tolling Volume produced in the first quarter of 2019 or the fourth quarter of 2018. There was 40,000 MT of Tolling Volume in the first quarter of 2018.
|
2
|
Average realized price is calculated as revenue, excluding commissions earned and the Egypt non-controlling interest share of revenue, but including an amount representing our share of Atlas revenue, divided by the total sales volume of Methanex-produced and purchased methanol, but excluding Tolling Volume.
|
3
|
The first quarter of 2019 reflects the adoption of IFRS 16. Financial information in all comparative periods do not reflect the impact of IFRS 16. Refer to the Adoption of New Accounting Standards section on page 14.
|
|
METHANEX CORPORATION
|
|||
Date: April 24, 2019
|
By:
|
/s/ KEVIN PRICE
|
||
|
|
Name:
|
|
Kevin Price
|
|
|
Title:
|
|
General Counsel
and Corporate Secretary
|
1 Year Methanex Chart |
1 Month Methanex Chart |
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