Methanex Q4 Earnings Up: $33M Net Income, Geismar 3 Startup

TL;DR

**Methanex just crushed Q4 with $33M net income and Geismar 3 coming online, expect good things!**

AI Summary

Methanex Corporation reported a strong fourth quarter in 2023, with net income attributable to shareholders rising to $33 million and Adjusted EBITDA reaching $148 million. This improvement was driven by a strengthening average realized methanol price of $322 per tonne, up from $303 per tonne in Q3 2023. The company also announced that its Geismar 3 facility is in the startup process, signaling potential future production increases. This matters to investors because higher earnings and the operationalization of new facilities suggest improved profitability and growth prospects for Methanex.

Why It Matters

Higher earnings and the startup of a new production facility indicate improved financial performance and future growth potential for Methanex, which could positively impact its stock value.

Risk Assessment

Risk Level: low — The filing reports positive financial results and operational progress, indicating a lower immediate risk to investors.

Analyst Insight

A smart investor would view these strong Q4 results and the Geismar 3 startup as positive indicators, potentially considering a deeper dive into Methanex's future growth prospects and market position.

Key Numbers

• $33 million — Q4 2023 Net Income (Indicates strong quarterly profitability for Methanex shareholders.)
• $148 million — Q4 2023 Adjusted EBITDA (Shows robust operational cash flow before non-cash items.)
• $322 per tonne — Q4 2023 Average Realized Methanol Price (Highlights the increase in methanol prices, driving revenue growth.)
• $174 million — Full Year 2023 Net Income (Provides an overview of annual profitability for Methanex shareholders.)
• $622 million — Full Year 2023 Adjusted EBITDA (Reflects the company's overall operational performance for the entire year.)

Key Players & Entities

• Methanex Corporation (company) — the registrant reporting its Q4 2023 earnings
• $33 million (dollar_amount) — net income attributable to Methanex shareholders in Q4 2023
• $148 million (dollar_amount) — Adjusted EBITDA in Q4 2023
• $322 per tonne (dollar_amount) — average realized methanol price in Q4 2023
• $303 per tonne (dollar_amount) — average realized methanol price in Q3 2023
• $174 million (dollar_amount) — full year 2023 net income attributable to Methanex shareholders
• $622 million (dollar_amount) — full year 2023 Adjusted EBITDA
• Geismar 3 (company) — new facility in the startup process
• January 31, 2024 (date) — date of the news release
• December 31, 2023 (date) — conformed period of report end date

Forward-Looking Statements

• Methanex's revenue will continue to benefit from strengthening methanol prices in early 2024. (Methanex Corporation) — medium confidence, target: Q1 2024
• The startup of Geismar 3 will lead to increased production volumes and potentially higher sales for Methanex. (Methanex Corporation) — high confidence, target: Mid-2024

FAQ

Key Financial Figures

• $33 million — ttributable to Methanex shareholders of $33 million and Adjusted EBITDA of $148 million in
• $148 million — s of $33 million and Adjusted EBITDA of $148 million in the fourth quarter. The average real
• $322 — ealized price in the fourth quarter was $322 per tonne compared to $303 per tonne in
• $303 — quarter was $322 per tonne compared to $303 per tonne in the third quarter of 2023.
• $174 million — ttributable to Methanex shareholders of $174 million and Adjusted EBITDA of $622 million .
• $622 million — of $174 million and Adjusted EBITDA of $622 million . Fourth quarter production was higher
• $136 million — t a range of methanol prices. Returned $136 million to shareholders through regular dividen
• $458 million — 2023 and ended the fourth quarter with $458 million in cash. VANCOUVER, BRITISH COLUMBIA -
• $0.50 — o Methanex shareholders of $33 million ($0.50 net income per common share on a dilute
• $24 million — iluted basis) compared to net income of $24 million ($0.36 net income per common share on a
• $0.36 — compared to net income of $24 million ($0.36 net income per common share on a dilute
• $35 million — 148 million and Adjusted net income was $35 million ($0.52 Adjusted net income per common s
• $0.52 — nd Adjusted net income was $35 million ($0.52 Adjusted net income per common share).
• $105 million — . This compares with Adjusted EBITDA of $105 million and Adjusted net income of $1 million (
• $1 million — $105 million and Adjusted net income of $1 million ($0.02 Adjusted net income per common s

Filing Documents

• q42023-xxmdafsnotes.htm (6-K) — 1451KB
• mx_logoa07.jpg (GRAPHIC) — 43KB
• 0001628280-24-002760.txt ( ) — 1506KB

Management's Discussion and Analysis for the

Management's Discussion and Analysis for the Three Months and Year Ended December 31, 2023 At January 30, 2024 the Company had 67,387,492 common shares issued and outstanding and stock options exercisable for 1,625,585 additional common shares. FOURTH QUARTER MANAGEMENT'S DISCUSSION AND ANALYSIS (MDA) Except where otherwise noted, all currency amounts are stated in United States dollars. This Fourth Quarter 2023 Management's Discussion and Analysis dated January 31, 2024 for Methanex Corporation (the Company) should be read in conjunction with the Company's unaudited condensed consolidated interim financial statements for the period ended December 31, 2023 as well as the 2022 Annual Consolidated Financial Statements and MDA included in the Methanex 2022 Annual Report. Unless otherwise indicated, the financial information presented in this interim report is prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The Methanex 2022 Annual Report and additional information relating to Methanex is available on our website at www.methanex.com, the Canadian Securities Administrators' SEDAR+ website at www.sedarplus.ca and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov . METHANEX CORPORATION 2023 FOURTH QUARTER

MANAGEMENT'S DISCUSSION AND ANALYSIS PAGE 1

MANAGEMENT'S DISCUSSION AND ANALYSIS PAGE 1 FINANCIAL AND OPERATIONAL DATA Three Months Ended Years Ended ($ millions except per share amounts and where noted) Dec 31 2023 Sep 30 2023 Dec 31 2022 Dec 31 2023 Dec 31 2022 Production (thousands of tonnes) (attributable to Methanex shareholders) 1 1,779 1,545 1,526 6,642 6,118 Sales volume (thousands of tonnes) Methanex-produced methanol 1,712 1,473 1,360 6,455 6,141 Purchased methanol 890 905 1,095 3,527 3,688 Commission sales 260 342 192 1,187 945 Total sales volume 1 2,862 2,720 2,647 11,169 10,774 Methanex average non-discounted posted price ($ per tonne) 2 421 395 469 434 503 Average realized price ($ per tonne) 3 322 303 373 333 397 Revenue 922 823 986 3,723 4,311 Net income (attributable to Methanex shareholders) 33 24 41 174 354 Adjusted net income 4 35 1 51 153 343 Adjusted EBITDA 4 148 105 160 622 932 Cash flows from operating activities 195 106 227 660 987 Basic net income per common share 0.50 0.36 0.59 2.57 4.95 Diluted net income per common share 0.50 0.36 0.59 2.57 4.86 Adjusted net income per common share 4 0.52 0.02 0.73 2.25 4.79 Common share information (millions of shares) Weighted average number of common shares 67 67 70 68 71 Diluted weighted average number of common shares 68 67 70 68 72 Number of common shares outstanding, end of period 67 67 69 67 69 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. 2 Methanex average non-discounted posted price represents the average of our non-discounted posted prices in North America, Europe, China and Asia Pacific weighted by sales volume. Current and historical pricing information is available at www.methanex.com . 3 The Company has used Average realized price (ARP) throughout this document. ARP is calculated as revenue divided by

MANAGEMENT'S DISCUSSION AND ANALYSIS PAGE 2

MANAGEMENT'S DISCUSSION AND ANALYSIS PAGE 2 FINANCIAL AND OPERATIONAL HIGHLIGHTS 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 Years Ended ($ millions except number of shares and per share amounts) Dec 31 2023 Sep 30 2023 Dec 31 2022 Dec 31 2023 Dec 31 2022 Net income attributable to Methanex shareholders $ 33 $ 24 $ 41 $ 174 $ 354 Mark-to-market impact of share-based compensation, net of tax 3 6 11 13 (6) Gas contract settlement, net of tax — (31) — (31) — Impact of Egypt gas contract revaluation, net of tax (1) 2 (1) (3) (5) Adjusted net income 1 $ 35 $ 1 $ 51 $ 153 $ 343 Diluted weighted average shares outstanding (millions) 68 67 70 68 72 Adjusted net income per common share 1 $ 0.52 $ 0.02 $ 0.73 $ 2.25 $ 4.79 1 The Company has used the terms Adjusted EBITDA, Adjusted net income and Adjusted net income per common share throughout this document. These items are non-GAAP measures and ratios 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 - Non-GAAP Measures on page 14 of the MDA for reconciliations to the most comparable GAAP measures. We recorded net income attributable to Methanex shareholders of $33 million in the fourth quarter of 2023 compared to net income of $24 million in the third quarter of 2023. Net income in the fourth quarter of 2023 was higher compared to the prior quarter primarily due to a higher average realized price, higher sales of Methanex-produced methanol and lower mark-to-market impact of share-based compensation due to changes in Methanex's share price, offset by lower income from the gas contract settlement recognized in the third quarter of 2023. Income from gas contract settlement was excluded from Adjusted EBITDA and Adjusted net income in

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