Mr. Rich Sumner reports

METHANEX REPORTS HIGHER FIRST QUARTER 2024 EARNINGS AS METHANOL PRICES INCREASE

For the first quarter of 2024, Methanex Corp. had net income attributable to Methanex shareholders of $53-million (77 cents net income per common share on a diluted basis) compared with net income of $33-million (50 cents net income per common share on a diluted basis) in the fourth quarter of 2023. Net income in the first quarter of 2024 was higher compared with the prior quarter primarily due to a higher average realized price and the positive impact of the mark-to-market portion of share-based compensation due to changes in Methanex's share price. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the first quarter of 2024 was $160-million and adjusted net income was $44-million (65 cents adjusted net income per common share). This compares with adjusted EBITDA of $148-million and adjusted net income of $35-million (52 cents adjusted net income per common share) for the fourth quarter of 2023. Except where otherwise noted, all currency amounts are stated in United States dollars.

• Net income attributable to Methanex shareholders of $53-million and adjusted EBITDA of $160-million in the first quarter. The company's average realized price in the first quarter was $343 per tonne compared with $322 per tonne in the fourth quarter of 2023.
• Work is progressing to safely repair the Geismar 3 (G3) plant and the company believes that the plant is on track to start up in the third quarter of 2024. Repair costs are expected to be $15-million and the total capital cost for the project is expected to remain at approximately $1.30-billion. The remaining capital cost of $70-million is fully financed with cash on hand. The operating cost impact of the delay is approximately $5-million per month and in the first quarter delay costs were approximately $25-million due to take-or-pay on utilities contracts, the organization buildup of fixed costs and the accounting recognition of overhedged gas costs. These operating costs are included in adjusted EBITDA.
• Successfully completed repairs at the Egypt plant and reached full operating rates in February.
• In April, 2024, the existing $300-million revolving credit facility was renewed to April, 2028, and an additional $200-million tranche was added which expires in April, 2026. This additional financial capacity provides increased flexibility to manage the company's business.
• Returned $12.5-million to shareholders through regular dividends in the first quarter and ended the first quarter with $407-million in cash.

The company's average realized price in the first quarter was $343 per tonne compared with $322 per tonne in the fourth quarter of 2023. In the first quarter, methanol supply was constrained due to the seasonal diversions of natural gas in Iran and China and planned and unplanned outages in the Atlantic leading to lower inventories and increasing methanol prices through the quarter.

In the first quarter, the company returned $12.5-million to shareholders through the regular dividend. The company ended the quarter with $407-million in cash, or approximately $378-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 with a new $200-million tranche that was added to provide additional financial flexibility.

Rich Sumner, president and chief executive officer of Methanex, said: "Our global team responded well to the delay in the start-up of G3, maintaining safe operations and a flexible supply chain while we investigated the root cause of the incident. We will continue to focus on safety and ensuring the G3 plant meets our quality expectations. Our business delivered a strong operational and financial quarter in the midst of a dynamic global landscape."

Further information

The information set forth in this news release summarizes Methanex's key financial and operational data for the first quarter of 2024. It is not a complete source of information for readers and is not in any way a substitute for reading the first quarter 2024 management's discussion and analysis (MD&A) dated April 24, 2024, and the unaudited condensed consolidated interim financial statements for the period ended March 31, 2024, 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 March 31, 2024, 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 $53-million in the first quarter of 2024 compared with net income of $33-million in the fourth quarter of 2023. Net income in the first quarter of 2024 was higher compared with the prior quarter primarily due to a higher average realized price and the positive impact of the mark-to-market portion of share-based compensation due to changes in Methanex's share price, offset by the one-time impact of the ineffective portion of natural gas hedges at the company's Geismar site recognized during the first quarter of 2024.
• The company recorded adjusted EBITDA of $160-million for the first quarter of 2024 compared with $148-million for the fourth quarter of 2023. The company recorded adjusted net income of $44-million for the first quarter of 2024 compared with adjusted net income of $35-million for the fourth quarter of 2023. Adjusted EBITDA was higher in the first quarter of 2024 primarily due to a higher average realized price, partially offset by the one-time impact of the ineffective portion of natural gas hedges for its Geismar site.
• The company sold 2.67 million tonnes in the first quarter of 2024 compared with 2,862,000 tonnes in the fourth quarter of 2023. Sales of Methanex-produced methanol were 1,681,000 tonnes in the first quarter of 2024 compared with 1,712,000 tonnes in the fourth quarter of 2023. The restart of Egypt in February led to a slight build in produced inventory in the first quarter.
• Production for the first quarter of 2024 was 1,721,000 tonnes compared with 1,779,000 tonnes for the fourth quarter of 2023. Production was slightly lower in the first quarter of 2024 compared with the fourth quarter of 2023 mainly due to lower production in New Zealand which was partially offset by higher production in Egypt.
• Work is progressing to safely repair the Geismar 3 (G3) plant and the company believes that the plant is on track to start up in the third quarter of 2024. Repair costs are expected to be $15-million and the total capital cost for the project is expected to remain at approximately $1.30-billion. The remaining capital cost is fully financed with cash on hand. The operating cost impact of the delay is approximately $5-million per month and in the first quarter delay costs were approximately $25-million due to take-or-pay on utilities contracts, the organization buildup of fixed costs and the accounting recognition of overhedged gas costs. These operating costs are included in adjusted EBITDA.
• In the first quarter of 2024 the company paid a quarterly dividend of 18.5 cents per common share for a total of $12.5-million.
• At March 31, 2024, the company had a strong liquidity position including a cash balance of $407-million, or approximately $378-million excluding non-controlling interests and including the company's share of cash in the Atlas joint venture. With the renewal of the company's revolving credit facility, along with the addition of the $200-million tranche in April, the company has a total of $500-million of facilities providing financial flexibility.

Key production and operational highlights during the first quarter include:

United States

Geismar produced 571,000 tonnes in the first quarter of 2024 compared with 587,000 tonnes in the fourth quarter of 2023.

New Zealand

New Zealand produced 277,000 tonnes in the first quarter of 2024 compared with 344,000 tonnes in the fourth quarter of 2023. Production in the first quarter was lower compared with the fourth quarter because of lower gas deliveries due to planned natural gas infrastructure maintenance at the company's suppliers' gas fields. The company's production guidance for 2024 is 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 expected and the company is closely monitoring production results in 2024.

Trinidad

Atlas produced 258,000 tonnes (Methanex interest) in the first quarter of 2024 compared with 283,000 tonnes in the fourth quarter of 2023. Production was lower in the first quarter due to an unplanned outage. In October, 2023, 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. The company is planning for the Titan restart with minimal capital required.

Chile

Chile produced 391,000 tonnes in the first quarter of 2024 compared with 403,000 tonnes in the fourth quarter of 2023. Production was similar in the first quarter compared with the fourth quarter with full gas deliveries from Argentina, although the resulting production was at lower than capacity due to catalyst constraints. 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 its requirements with the remaining 65 to 70 per cent being delivered from Argentina during the Southern hemisphere non-winter months. Over the coming months the company will be replacing the catalyst in Chile IV which it expects will improve efficiency and increase production compared with the first quarter of 2024 when it is expected to restart in September, 2024. 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 166,000 tonnes (Methanex interest -- 83,000 tonnes) in the first quarter of 2024 compared with 40,000 tonnes (Methanex interest -- 20,000 tonnes) in the fourth quarter of 2023. The plant restarted and reached full operating rates in February after an unplanned outage in mid-October caused by a mechanical failure in the synthesis gas compressor.

Canada

Medicine Hat produced 141,000 tonnes in the first quarter of 2024 compared with 142,000 tonnes in the fourth quarter of 2023.

2024 production outlook

The company is updating its expected production guidance for 2024 to approximately 7.0 million tonnes (Methanex interest). Its 2024 production guidance has been lowered primarily because of the Geismar 3 start-up delay. This expected production guidance is based on the mid-point of Chile and New Zealand production guidance, G3 starting up in the third quarter and operating at full rates in the fourth quarter, 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 April 25, 2024, at 11 a.m. ET (8 a.m. PT) to review these first quarter results. To access the call, dial the conferencing operator 15 minutes prior to the start of the call at 646-307-1963, or toll-free at 800-715-9871. The conference ID for the call is 9072911. A simultaneous audio-only webcast of the conference call can be accessed 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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