Mr. John Floren reports

METHANEX REPORTS SECOND QUARTER 2022 RESULTS

For the second quarter of 2022, Methanex Corp. had net income attributable to Methanex shareholders of $125-million ($1.41 net income per common share on a diluted basis) compared with net income of $119-million ($1.60 net income per common share on a diluted basis) in the first quarter of 2022. Net income was higher compared with the prior quarter primarily due to the change in the mark-to-market impact of share-based compensation due to changes in Methanex's share price. This was offset by the impact of lower sales of Methanex-produced methanol and higher gas and logistics costs. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the second quarter of 2022 was $243-million, and adjusted net income was $84-million ($1.16 adjusted net income per common share). This compares with adjusted EBITDA of $337-million and adjusted net income of $159-million ($2.16 adjusted net income per common share) for the first quarter of 2022. Except where otherwise noted, all currency amounts are stated in U.S. dollars.

Methanol industry operating rates improved slightly in the second quarter of 2022 as a result of Iran increasing production as its seasonal gas availability constraints eased. This increase in production from Iran was partially offset by plant turnarounds in Europe and Asia. Demand increased in the second quarter of 2022 driven by high MTO operating rates and an increase in traditional demand following the seasonal slowdown of manufacturing activities during the lunar new year in China in the first quarter. The average realized price in the second quarter was $422 per tonne compared with $425 per tonne in the first quarter of 2022.

The company ended the quarter with $878-million in cash and returned $109-million to shareholders through the regular dividend and share repurchases.

John Floren, president and chief executive officer of Methanex, said: "Our Geismar 3 project is progressing safely, and I am happy to report the narrowed capital cost range and updated timing for first production. I am proud of the project team's excellent execution to date, which has allowed us to minimize the impact of inflationary pressures and will enable us to deliver significant shareholder value when G3 is operational in the fourth quarter of 2023. The recent 20-per-cent dividend increase, our third dividend increase in the past 12 months, demonstrates our confidence in the cash-flow-generating power of our well-positioned asset portfolio and reinforces our commitment to return excess cash to shareholders."

Further information

The information set forth in this news release summarizes Methanex's key financial and operational data for the second quarter of 2022. It is not a complete source of information for readers and is not in any way a substitute for reading the second quarter 2022 management's discussion and analysis dated July 27, 2022, and the unaudited condensed consolidated interim financial statements for the period ended June 30, 2022, both of which are available from the investor relations section of the company's website. The MD&A and the unaudited condensed consolidated interim financial statements for the period ended June 30, 2022, are also available on the Canadian Securities Administrators' SEDAR website and on the U.S. Securities and Exchange Commission's EDGAR website.

• The company recorded net income attributable to Methanex shareholders of $125-million in the second quarter of 2022 compared with net income of $119-million in the first quarter of 2022. Net income was higher compared with the prior quarter primarily due to the change in the mark-to-market impact of share-based compensation due to changes in Methanex's share price. This was offset by the impact of lower sales of Methanex-produced methanol, higher natural gas costs for unhedged production in North America and higher logistics costs attributable to higher bunker fuel pricing during the second quarter.
• The company recorded adjusted EBITDA of $243-million for the second quarter of 2022 compared with $337-million for the first quarter of 2022. The company recorded adjusted net income of $84-million for the second quarter of 2022 compared with adjusted net income of $159-million for the first quarter of 2022. Adjusted EBITDA and adjusted net income for the second quarter of 2022 were lower than the first quarter of 2022 primarily due to lower sales of Methanex-produced methanol, higher natural gas costs for unhedged production in North America and higher logistics costs attributable to higher bunker fuel pricing.
• The company sold 2,692,000 tonnes in the second quarter of 2022 compared with 2,758,000 tonnes for the first quarter of 2022. Sales of Methanex-produced methanol were 1,634,000 tonnes in the second quarter of 2022 compared with 1,797,000 tonnes in the first quarter of 2022.
• Production for the second quarter of 2022 was 1,551,000 tonnes compared with 1,789,000 tonnes for the first quarter of 2022. Production was lower for the second quarter of 2022 primarily due to lower production in New Zealand and Chile.
• The company has continued construction on its highly advantaged Geismar 3 project and recently completed a review of the capital cost and schedule. Based on the review, first methanol production is now expected in the fourth quarter of 2023, and the upper band of the capital cost range has been lowered by $50-million to $1.3-billion. The remaining capital spend of $525-million to $575-million is fully financed with cash on hand. Geismar 3's world-class carbon dioxide intensity profile will enhance its current asset portfolio and help it meet its commitment to reduce its greenhouse gas emission intensity.
• To June 30, 2022, it has repurchased 5,315,384 common shares of the 6,094,171 permitted under its current normal course issuer bid for $253-million. In the second quarter of 2022, it returned $99-million to shareholders through the normal course issuer bid. The company completed the bid in July, 2022.
• In the second quarter of 2022, it paid a 14.5-cent-per-common-share quarterly dividend to shareholders for a total of $10-million. On July 14, 2022, it announced a 20-per-cent increase in its quarterly dividend to 17.5 cents per common share. The increased dividend will apply to the dividend payable on Sept. 30, 2022.
• At June 30, 2022, it had a strong liquidity position, including a cash balance of $878-million and $600-million of undrawn backup liquidity.

Conference call

A conference call is scheduled for July 28, 2022, at 11 a.m. ET (8 a.m. PT), to review these second quarter results. To listen to the call, dial the conferencing operator 15 minutes prior to the start of the call at 416-340-2217 or toll-free at 800-806-5484. The passcode for the call is 2066193 followed by the number sign. A simultaneous audio-only webcast of the conference call will be available from the Methanex website and will also be available following the call.

About Methanex Corp.

Methanex is a Vancouver-based, publicly traded company, and is the world's largest producer and supplier of methanol to major international markets. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol MX and on the Nasdaq Global Market in the United States under the trading symbol MEOH.

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