Mr. John Floren reports

METHANEX REPORTS THIRD QUARTER 2022 RESULTS

For the third quarter of 2022, Methanex Corp. had net income attributable to Methanex shareholders of $69-million (87-cent net income per common share on a diluted basis) compared with net income of $125-million ($1.41 net income per common share on a diluted basis) in the second quarter of 2022. Except where otherwise noted, all currency amounts are stated in U.S. dollars. Net income was lower compared with the prior quarter primarily due to a lower average realized price, lower sales of Methanex-produced methanol attributable to the planned turnarounds in Egypt and New Zealand, and the mark-to-market impact of share-based compensation due to changes in Methanex's share price. This was partially offset by the redirection and sale of natural gas in Egypt. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the third quarter of 2022 was $192-million, and adjusted net income was $49-million (69-cent adjusted net income per common share). This compares with adjusted EBITDA of $243-million and adjusted net income of $84-million ($1.16 adjusted net income per common share) for the second quarter of 2022.

The average realized price in the third quarter was $377 per tonne compared with $422 per tonne in the second quarter of 2022. Methanol pricing moderated from early year highs and stabilized in the third quarter with flat demand coupled with lower industry operating rates due to turnarounds and planned and unplanned outages impacting supply.

The company returned $44-million to shareholders through the regular dividend and share repurchases, and ended the quarter with $962-million in cash, or approximately $890-million in cash excluding non-controlling interests and including its share of cash in the Atlas joint venture. The company also has two undrawn credit facilities, a $300-million construction credit facility specifically related to the Geismar 3 project and a $300-million revolving credit facility providing financial flexibility.

John Floren, president and chief executive officer of Methanex, said: "Heading into the fourth quarter, we are pleased to see stable demand and firm methanol prices. Methanol is an essential chemical building block, and the long-term fundamentals of the methanol industry remain strong. The team is focused on delivering the fully funded G3 project on time and on budget in the fourth quarter of 2023. We remain committed to our disciplined capital allocation strategy, and are well positioned with a strong balance sheet to navigate the current macroeconomic uncertainty, and continue to return excess cash through dividends and share buybacks."

Further information

The information set forth in this news release summarizes Methanex's key financial and operational data for the third quarter of 2022. It is not a complete source of information for readers, and is not in any way a substitute for reading the third quarter 2022 management's discussion and analysis dated Oct. 26, 2022, and the unaudited condensed consolidated interim financial statements for the period ended Sept. 30, 2022, both of which are available from the investor relations section of its website. The MD&A and the unaudited condensed consolidated interim financial statements for the period ended Sept. 30, 2022, are also available on the Canadian Securities Administrators' SEDAR website and on the U.S. Securities and Exchange Commission's EDGAR website.

• Methanex recorded net income attributable to Methanex shareholders of $69-million in the third quarter of 2022 compared with net income of $125-million in the second quarter of 2022. Net income was lower compared with the prior quarter primarily due to a lower average realized price, lower sales of Methanex-produced methanol attributable to the planned turnarounds in Egypt and New Zealand, and the mark-to-market impact of share-based compensation due to changes in Methanex's share price. This was partially offset by redirecting and selling its contracted natural gas in Egypt.
• The company recorded adjusted EBITDA of $192-million for the third quarter of 2022 compared with $243-million for the second quarter of 2022. It recorded adjusted net income of $49-million for the third quarter of 2022 compared with adjusted net income of $84-million for the second quarter of 2022. Adjusted EBITDA and adjusted net income for the third quarter of 2022 were lower than the second quarter of 2022 primarily due to a lower average realized price and lower sales of Methanex-produced methanol, which were partially offset by redirecting and selling its contracted natural gas in Egypt.
• The company sold 2,677,000 tonnes in the third quarter of 2022 compared with 2,692,000 tonnes for the second quarter of 2022. Sales of Methanex-produced methanol were 1.35 million tonnes in the third quarter of 2022 compared with 1,634,000 tonnes in the second quarter of 2022.
• Production for the third quarter of 2022 was 1,252,000 tonnes compared with 1,551,000 tonnes for the second quarter of 2022. Production was lower for the third quarter of 2022 primarily due to planned turnarounds in Egypt and New Zealand, seasonal gas restrictions in Chile, and unplanned outages in Geismar and Medicine Hat.
• The company had lower levels of production from Egypt in the third quarter as it completed an extended planned turnaround. The timing of the turnaround enabled it to enter into an agreement to redirect and sell the plant's contracted natural gas from late July to late October. This was a unique opportunity to utilize excess liquefied natural gas capacity in Egypt during a period of elevated LNG prices in Europe, and was done in collaboration with its Egyptian government partners. It estimates that the sale and redirection of its gas resulted in an incremental benefit to the third quarter of approximately $35-million, compared with using this gas for the production of methanol for the period the plant was not scheduled to be under turnaround. The plant is currently in the process of restarting.
• The highly advantaged Geismar 3 project is progressing well and on budget with first methanol production expected in the fourth quarter of 2023 with an expected total capital cost of $1.25-billion to $1.3-billion. The remaining capital of approximately $450-million to $500-million is fully financed with cash on hand. Geismar 3 has one of the lowest carbon dioxide emission intensity profiles in the industry and will enhance its current asset portfolio and help it meet its commitment to reduce its greenhouse gas emission intensity.
• On July 26, 2022, the company completed the normal course issuer bid initiated on Sept. 24, 2021, repurchasing 6,094,171 common shares for a total cost of $282-million. On Sept. 21, 2022, it announced a new normal course issuer bid to repurchase up to 3,506,405 common shares through Sept. 25, 2023. To Sept. 30, 2022, the company repurchased 58,443 common shares for $2-million under the current bid.
• On July 26, 2022, it completed the normal course issuer bid initiated on Sept. 24, 2021, repurchasing 6,094,171 common shares for a total cost of $282-million. On Sept. 21, 2022, the company announced a new normal course issuer bid to repurchase up to 3,506,405 common shares through Sept. 25, 2023. To Sept. 30, 2022, it repurchased 58,443 common shares for $2-million under the current bid.
• At Sept. 30, 2022, it had a strong liquidity position, including a cash balance of $962-million. It also has two undrawn credit facilities, a $300-million construction credit facility specifically related to the Geismar 3 project and a $300-million revolving credit facility providing financial flexibility.

Conference call

A conference call is scheduled for Oct. 27, 2022, at 11 a.m. ET (8 a.m. PT), to review these third quarter results. To listen to the call, dial the conferencing operator 15 minutes prior to the start of the call at 646-960-0479 or toll-free at 888-510-2296. The conference ID for the call is No. 7014770. A simultaneous audio-only webcast of the conference call will be available from its website 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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