Mr. Rich Sumner reports

METHANEX REPORTS HIGHER FOURTH QUARTER 2023 EARNINGS AS METHANOL PRICES STRENGTHEN; GEISMAR 3 IN START UP PROCESS

For the fourth quarter of 2023, Methanex Corp. had net income attributable to Methanex shareholders of $33-million (50 cents net income per common share on a diluted basis) compared with net income of $24-million (36 cents net income per common share on a diluted basis) in the third quarter of 2023. Net income in the fourth quarter of 2023 was higher compared with 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 gas contract settlement recognized in the third quarter of 2023. adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the fourth quarter of 2023 was $148-million and adjusted net income was $35-million (52 cents adjusted net income per common share). This compares with adjusted EBITDA of $105-million and adjusted net income of $1-million (two cents adjusted net income per common share) for the third quarter of 2023.

Except where otherwise noted, all currency amounts are stated in United States dollars.

• Net income attributable to Methanex shareholders of $33-million and adjusted EBITDA of $148-million in the fourth quarter. The average realized price in the fourth quarter was $322 per tonne compared with $303 per tonne in the third quarter of 2023.
• Full year 2023 net income attributable to Methanex shareholders of $174-million and adjusted EBITDA of $622-million.
• Fourth quarter production was higher compared with the third quarter due to higher production in Chile, New Zealand, Geismar and Medicine Hat, which was partially offset by lower production in Egypt.
• The 1.8-million-tonne methanol plant, Geismar 3 (G3), is in the process of starting up and the company expects that commercial production is imminent. The plant is expected to ramp up to full rates over the month of February. G3 will have one of the lowest emission intensity profiles in the industry and will significantly enhance the company's cash flow capability at a range of methanol prices.
• Returned $136-million to shareholders through regular dividends and share purchases in 2023 and ended the fourth quarter with $458-million in cash.

The company's average realized price in the fourth quarter was $322 per tonne compared with $303 per tonne in the third quarter of 2023. Through the fourth quarter, market conditions strengthened, with increased demand primarily in China outpacing an increase in supply. On the supply side, production increased from coal-based producers in China which was offset by planned and unplanned outages in the United States and Asia as well as lower production from natural gas restrictions in Iran and China. This led to a drawdown on inventories and increasing methanol prices through the quarter.

For the year ended Dec. 31, 2023, Methanex reported net income attributable to Methanex shareholders of $174-million ($2.57 net income per common share on a diluted basis), adjusted EBITDA of $622-million and an adjusted net income of $153-million ($2.25 adjusted net income per common share). This compares with a 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 an adjusted net income of $343-million ($4.79 adjusted net income per common share) for the year ended Dec. 31, 2022.

In 2023, the company returned $136-million to shareholders through the regular dividend and share repurchases. The company ended the year with $458-million in cash, or approximately $451-million in cash excluding non-controlling interests and including the company's share of cash in the Atlas joint venture. The company also has an undrawn $300-million revolving credit facility that provides additional financial flexibility.

Rich Sumner, president and chief executive officer of Methanex, said: "I am proud of our G3 team that delivered a high-quality plant with outstanding safety performance. G3 significantly enhances our asset portfolio and we expect it to generate strong shareholder returns. We remain focused on reliably operating our assets so we can deliver shareholder value over a variety of methanol prices."

Further information

The information set forth in this news release summarizes Methanex's key financial and operational data for the fourth quarter of 2023. It is not a complete source of information for readers and is not in any way a substitute for reading the fourth quarter 2023 management's discussion and analysis (MD&A) dated Jan. 31, 2024, and the unaudited condensed consolidated interim financial statements for the period ended Dec. 31, 2023, 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 Dec. 31, 2023, are also available on the Canadian Securities Administrators' SEDAR+ website and on the United States Securities and Exchange Commission's EDGAR website.

• A reconciliation from net income attributable to Methanex shareholders to adjusted EBITDA, adjusted net income and the calculation of adjusted net income per common share is as shown in the attached table.

• The company recorded net income attributable to Methanex shareholders of $33-million in the fourth quarter of 2023 compared with net income of $24-million in the third quarter of 2023. Net income in the fourth quarter of 2023 was higher compared with 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 the third quarter of 2023.
• The company recorded adjusted EBITDA of $148-million for the fourth quarter of 2023 compared with $105-million for the third quarter of 2023. The company recorded adjusted net income of $35-million for the fourth quarter of 2023 compared with adjusted net income of $1-million for the third quarter of 2023. Adjusted EBITDA was higher in the fourth quarter of 2023 primarily due to a higher average realized price and higher sales of Methanex-produced methanol.
• The company sold 2,862,000 tonnes in the fourth quarter of 2023 compared with 2.72 million tonnes for the third quarter of 2023. Sales of Methanex-produced methanol were 1,712,000 tonnes in the fourth quarter of 2023 compared with 1,473,000 tonnes in the third quarter of 2023.
• Production for the fourth quarter of 2023 was 1,779,000 tonnes compared with 1,545,000 tonnes for the third quarter of 2023. Fourth quarter production was higher compared with the third quarter due to higher production in Chile, New Zealand, Geismar and Medicine Hat which was partially offset by lower production in Egypt.
• The Geismar 3 plant is in the process of starting up, with total capital costs expected to come within budget of $1.25-billion to $1.3-billion. The remaining cash expenditure of approximately $60-million to $110-million, including approximately $20-million of spending accrued in accounts payable, is fully financed with cash on hand. Geismar 3 has one of the lowest CO2 (carbon dioxide) emissions intensity profiles in the industry and significantly enhances the company's cash generation capability. The company expects the plant to ramp up to full rates over the month of February.
• In the fourth quarter of 2023 the company paid a quarterly dividend of 18.5 cents per common share for a total of $12.5-million.
• At Dec. 31, 2023, the company had a strong liquidity position including a cash balance of $458-million, or approximately $451-million excluding non-controlling interests and including the company's share of cash in the Atlas joint venture. The company also has access to an undrawn $300-million revolving credit facility providing financial flexibility.

Key production and operational highlights during the fourth quarter include that shown herein.

United States

Geismar produced 587,000 tonnes in the fourth quarter compared with 574,000 tonnes in the third quarter of 2023.

New Zealand

New Zealand produced 344,000 tonnes in the fourth quarter of 2023 compared with 226,000 tonnes in the third quarter of 2023. Production in the fourth quarter was higher compared with the third quarter due to the restart of Motunui 2 after the scheduled turnaround. Waitara Valley remains idled indefinitely. The company estimates production for 2024 to be between 1.0 million to 1.1 million tonnes. Two thousand twenty-four natural gas supply is expected to be impacted by a combination of the company's suppliers' planned natural gas infrastructure maintenance outages as well as lower-than-expected output from existing wells. While upstream investment has been made by the company's gas suppliers in New Zealand over the past two years, recent gas production results have been lower than originally expected which has contributed to the revised forecast for lower production in 2024.

Trinidad

Atlas produced 283,000 tonnes (Methanex interest) in the fourth quarter of 2023 compared with 287,000 tonnes in the third quarter of 2023. In October, Methanex signed a two-year natural gas supply agreement with the National Gas Company of Trinidad and Tobago (NGC) for its currently idled, wholly owned, Titan methanol plant (875,000 tonnes per year capacity) to restart operations in September, 2024. Simultaneously, the Atlas plant (Methanex interest 63.1 per cent or 1,085,000 tonnes per year capacity) will be idled in September, 2024, when its legacy 20-year natural gas supply agreement expires.

Chile

Chile produced 403,000 tonnes in the fourth quarter of 2023 compared with 168,000 tonnes in the third quarter of 2023. Production was higher in the fourth quarter compared with the third quarter as both plants ran at full rates with full gas deliveries from Argentina. Both plants are expected to run at full rates from the end of September, 2023, through April, 2024, the southern hemisphere summer months. The company estimates production for 2024 will be between 1.1 million to 1.2 million tonnes which is underpinned by year-round natural gas supply from Chile for about 30 to 35 per cent of the company's requirements with the remaining 65 to 70 per cent from Argentina during the non-winter period allowing the company to operate both plants at full rates. Natural gas development and related infrastructure investments in Argentina continue to progress and the company is working with its natural gas suppliers on extending the period of full gas availability to its plants.

Egypt

Egypt produced 40,000 tonnes (Methanex interest -- 20,000 tonnes) in the fourth quarter of 2023 compared with 320,000 tonnes (Methanex interest -- 160,000 tonnes) in the third quarter of 2023. Production was lower in Egypt due an unplanned outage in mid-October caused by a mechanical failure in the synthesis gas compressor. The unit was removed from service and repaired on an expedited schedule at the manufacturer overseas. The repairs were completed and the unit has now arrived back on site and the company expects to be able to start up the plant in the first half of February.

Canada

Medicine Hat produced 142,000 tonnes in the fourth quarter of 2023 compared with 130,000 tonnes in the third quarter of 2023.

2024 production outlook

The company expects production for 2024 to be higher than 2023 with the Geismar 3 start-up and to be approximately 8.1 million tonnes (Methanex interest). Two thousand twenty-four production guidance is based on the mid-point of Chile and New Zealand production guidance, G3 ramp-up through February, Egypt restart in the first half of February, and all other plants operating at full rates. 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. 1, 2024, at 11 a.m. ET (8 a.m. PT) to review these fourth quarter results. To access 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 7014770. A simultaneous audio-only webcast of the conference call can be accessed from the company's 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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