Mr. Rich Sumner reports

METHANEX REPORTS FOURTH QUARTER 2022 RESULTS

For the fourth quarter of 2022, Methanex Corp. had net income attributable to Methanex shareholders of $41-million (59-cent net income per common share on a diluted basis) compared with net income of $69-million (87-cent net income per common share on a diluted basis) in the third quarter of 2022. Net income was lower compared with the prior quarter primarily due to lower recognized proceeds from the redirection and sale of natural gas in Egypt, partially offset by the benefit of a decline in gas and logistics costs. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the fourth quarter of 2022 was $160-million, and adjusted net income was $51-million (73-cent adjusted net income per common share). This compares with adjusted EBITDA of $192-million and adjusted net income of $49-million (69-cent adjusted net income per common share) for the third quarter of 2022. (Except where otherwise noted, all currency amounts are stated in U.S. dollars.)

For the year ended Dec. 31, 2022, Methanex reported net income attributable to Methanex shareholders of $354-million ($4.86 net income per common share on a diluted basis), adjusted EBITDA of $932-million and adjusted net income of $343-million ($4.79 adjusted net income per common share). This compares with net income attributable to Methanex shareholders of $482-million ($6.13 net income per common share on a diluted basis), adjusted EBITDA of $1,108-million and adjusted net income of $460-million ($6.03 adjusted net income per common share) for the year ended Dec. 31, 2021.

In the fourth quarter, methanol pricing remained relatively stable. The average realized price in the fourth quarter was $373 per tonne compared with $377 per tonne in the third quarter of 2022.

During the quarter, Methanex returned $43-million to shareholders through the regular dividend and share repurchases, and ended the quarter with $858-million in cash, or approximately $806-million in cash, excluding non-controlling interests and including its share of cash in the Atlas joint venture. Methanex 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.

Rich Sumner, president and chief executive officer of Methanex, said: "I am excited to be taking over as Methanex's president and CEO heading into 2023. As a team, we have an opportunity to create significant shareholder value by bringing G3 on-line safely, on time and on budget. Looking forward to 2023, we see continued balanced supply/demand fundamentals with a high-energy-price environment supporting the methanol cost curve and demand. We are well positioned with our strong balance sheet and high level of liquidity to navigate any macroeconomic uncertainty. I look forward to continuing to advance our strategy of market leadership and unlocking additional value with the team in the coming years."

Further information

The information set forth in this news release summarizes Methanex's key financial and operational data for the fourth quarter of 2022. It is not a complete source of information for readers, and is not in any way a substitute for reading the fourth quarter 2022 management's discussion and analysis dated Feb. 2, 2023, and the unaudited condensed consolidated interim financial statements for the period ended Dec. 31, 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 Dec. 31, 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 $41-million in the fourth quarter of 2022 compared with net income of $69-million in the third quarter of 2022. Net income was lower compared with the prior quarter primarily due to lower recognized proceeds from the redirection and sale of natural gas in Egypt, partially offset by the benefit of a decline in gas and logistics costs.
• Methanex recorded adjusted EBITDA of $160-million for the fourth quarter of 2022 compared with $192-million for the third quarter of 2022. It recorded adjusted net income of $51-million for the fourth quarter of 2022 compared with adjusted net income of $49-million for the third quarter of 2022. Adjusted EBITDA was lower than the third quarter of 2022 primarily due to lower recognized proceeds from the redirection and sale of natural gas in Egypt, partially offset by the benefit of a decline in gas and logistics costs. Adjusted net income for the fourth quarter of 2022, as compared with the third quarter of 2022, benefited from lower depreciation charges due to the mix of product sold and higher finance income due to foreign exchange gains and higher interest income.
• Methanex sold 2,647,000 tonnes in the fourth quarter of 2022 compared with 2,677,000 tonnes for the third quarter of 2022. Sales of Methanex-produced methanol were 1.36 million tonnes in the fourth quarter of 2022 compared with 1.35 million tonnes in the third quarter of 2022.
• Production for the fourth quarter of 2022 was 1,526,000 tonnes compared with 1,252,000 tonnes for the third quarter of 2022. Production was higher for the fourth quarter of 2022 primarily due to planned turnarounds in Egypt and New Zealand, as well as seasonal gas restrictions in Chile that occurred during the third quarter.
• In the third quarter, Methanex completed an extended planned turnaround in Egypt that 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. The Egypt plant restarted upon completion of the diversion period.
• The highly advantaged Geismar 3 project is progressing well and on budget with 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 cash expenditure of approximately $415-million to $465-million, including approximately $75-million of spending accrued in accounts payable, is fully financed with cash on hand. Geismar 3 has one of the lowest carbon dioxide emission intensity profiles in the industry and helps it meet its commitment to reduce its greenhouse gas emission intensity, as well as significantly enhancing cash generation capability.
• To Dec. 31, 2022, Methanex has repurchased 892,773 common shares of 3,506,405 permitted under its current normal course issuer bid for $33-million. During the fourth quarter, Methanex repurchased 834,330 shares for $31-million.
• In the fourth quarter, Methanex paid a quarterly dividend of 17.5 cents per common share for a total of $12.1-million.
• At Dec. 31, 2022, Methanex had a strong liquidity position, including a cash balance of $858-million, or approximately $806-million, excluding non-controlling interests and including its share of cash in the Atlas joint venture. Methanex 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.

Key production and operational highlights during the fourth quarter and production outlook for 2023 include:

• New Zealand produced 395,000 tonnes compared with 205,000 tonnes in the third quarter of 2022. In New Zealand, its production was higher in the fourth quarter as Methanex had no planned turnarounds and had higher gas availability. Methanex estimates production for 2023 to be between 1.3 million to 1.4 million tonnes.
• The Geismar facilities produced 437,000 tonnes in the fourth quarter compared with 492,000 tonnes in the third quarter of 2022. Lower production was due to an unplanned outage in late September that continued into mid-October as the utility supplier for the Geismar site experienced a loss of power due to a failed transformer.
• Atlas produced 225,000 tonnes (Methanex interest) in the fourth quarter of 2022 compared with 249,000 tonnes in the third quarter of 2022. Titan remains idled indefinitely.
• Chile produced 226,000 tonnes in the fourth quarter of 2022 compared with 141,000 tonnes in the third quarter of 2022. Production for the fourth quarter of 2022 was higher than the third quarter of 2022 as Methanex restarted the Chile IV plant in October, when the southern hemisphere winter months ended and seasonal demand for natural gas in the region decreased, allowing its gas suppliers to deliver higher volumes. Production was lower in the fourth quarter of 2022 compared with the fourth quarter of 2021 due to two unplanned outages and lower gas deliveries from Argentina. Methanex estimates Chile production in 2023 to be between 800,000 to 900,000 tonnes.
• Egypt produced 192,000 tonnes (Methanex interest: 96,000 tonnes) in the fourth quarter of 2022 compared with 70,000 tonnes (Methanex interest: 35,000 tonnes) in the third quarter of 2022. Methanex had higher levels of production from Egypt in the fourth quarter as it restarted the plant in early November following an extended planned turnaround.
• Medicine Hat produced 147,000 tonnes in the fourth quarter of 2022 compared with 130,000 tonnes in the third quarter of 2022. Production was higher than in the third quarter primarily due to the weather-related outages that impacted production in the third quarter.
• Forecasted production for 2023 is approximately 6.5 million equity tonnes, excluding any production from G3. Actual production may vary by quarter based on timing of turnarounds, gas availability, unplanned outages and unanticipated events.

Conference call

A conference call is scheduled for Feb. 3, 2023, at 11 a.m. ET (8 a.m. PT) to review these fourth 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 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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