Methanex Corporation (NASDAQ:MEOH) Q4 2023 Earnings Conference Call February 1, 2024 11:00 AM ET Company Participants Sarah Herriott - Director of Investor Relations Rich Sumner - President and Chief Executive Officer Conference Call Participants Joel Jackson - BMO Capital Markets Steven Hansen - Raymond James Ltd. Hassan Ahmed - Alembic Global Advisors Ben Isaacson - Scotiabank Joshua Spector - UBS Securities Co., Ltd. Nelson Ng - RBC Capital Markets Matthew Blair - Tudor, Pickering, Holt & Co. Laurence Al ...

Financial Data and Key Metrics - Adjusted EBITDA for Q3 2023 was $105 million, with adjusted net income of $0.02 per share [2] - The average realized price for methanol was $303 per tonne, with produced sales of approximately 1.5 million tonnes [2] - The company entered Q3 with $500 million in cash and $300 million of undrawn backup liquidity [28] - Global average realized price for October and November is estimated at $310 to $320 per metric tonne [27] Business Line Data and Key Metrics - Methanol demand improved in China, driven by stronger demand for MTBE and methanol-to-olefins (MTO) applications [25] - The olefins market showed improvement, but pricing remains below mid-cycle levels, with significant pressure on the sector [20] - The company is exploring opportunities to convert underutilized assets into green methanol production, particularly in the marine industry [21] Market Data and Key Metrics - Coal pricing in China increased from around RMB800 per tonne to above RMB1,000 per tonne during Q3, driven by supply disruptions [26] - Methanol demand outside China remained relatively flat compared to Q2, with high energy pricing and improved supply-demand fundamentals leading to slightly higher pricing [40] - North America, Asia-Pacific, and China posted prices for November were $549, $370, and $360 per metric tonne, respectively, while Europe posted €375 per metric tonne [41] Company Strategy and Industry Competition - The company is focused on completing the Geismar 3 (G3) project, with commercial production expected by the end of 2023 and a budget range of $1.25 billion to $1.3 billion [67] - Methanex is working on green and blue methanol projects, with over 200 ships expected to use methanol as fuel by 2027-2028, representing around 7 million tonnes of demand [105] - The company is also exploring renewable hydrogen and CO2 projects to green existing assets [21] Management Commentary on Operating Environment and Future Outlook - Management highlighted challenges in the Trinidad gas market, with current production at 2.5 to 3 Bcf per day against demand of 4.5 Bcf per day [45] - The company expects higher adjusted EBITDA in Q4 2023 due to higher realized methanol prices and increased produced sales [43] - Methanex is monitoring the global macroeconomic environment, with high operating rates in the MTO sector and improved affordability from higher energy and olefins pricing [40] Other Important Information - The company is committed to repaying the $300 million bond due at the end of 2024, with any excess cash allocated to debt repayment rather than refinancing [28] - Methanex is working on long-term gas supply agreements in Trinidad and Chile, with improved gas availability from Argentina allowing for increased production guidance in Chile [42] Q&A Session Summary Question: Chilean Gas Situation and Pressure Profile - Joel Jackson asked about the Chilean gas situation and its impact on the pressure profile for 2024, particularly during the summer months [6] - Rich Sumner explained that the gas situation in Chile is improving, with both plants expected to run at full rates from September 2023 through April 2024 [42] Question: Underutilized Assets and Green Methanol Opportunities - Hassan Ahmed inquired about opportunities for underutilized assets, including the possibility of relocating the Atlas plant or converting it to green methanol production [18] - Rich Sumner responded that the company is focused on securing long-term gas supply in Trinidad and is exploring green methanol projects but is not currently considering relocating Atlas [98] Question: Trinidad Gas Situation and Short-Term Challenges - Ben Isaacson asked about the short-term challenges in Trinidad's gas market and whether the company expects improvement [44] - Rich Sumner acknowledged the tight gas market in Trinidad but expressed optimism about long-term improvements, citing ongoing developments and incentives to restart capacity [45] Question: G3 Project and Inventory Build - Joel Jackson followed up on the G3 project, asking about the expected inventory build and its impact on cash flow [16] - Rich Sumner clarified that the G3 project is nearing completion, with commercial production expected by year-end, and that the inventory build would likely take 45 to 70 days to flow through earnings [74] Question: Green and Blue Methanol Strategy - Kevin Estok asked for updates on the company's green and blue methanol strategy and the impact of current interest rates on future investments [104] - Rich Sumner highlighted the growing demand for methanol in marine fuels and the company's efforts to produce green methanol using renewable natural gas in North America [105][106] Question: Cash Flow and Capital Allocation in 2024 - Matthew Blair inquired about the company's cash flow and capital allocation plans for 2024, including potential buybacks [99] - Rich Sumner emphasized the focus on repaying the $300 million bond and generating free cash flow, with any excess cash likely allocated to deleveraging and potentially returning cash to shareholders [99]

So a 10% increase is going to be in the 1 million to 1.5 million tons of annualized supply. That certainly was led to part of the shift on – in supply into the market. We would also say there's some risk to them being able to maintain that given the dynamics you just described. And then the further out you get through Q3 and into Q4, thereÂ'll be likely a shift as well away into cooling. So theyÂ're under meaningful pressure and we know that it is difficult for them to keep their gas system supply just beca ...

Methanex Corporation (NASDAQ:MEOH) Q1 2023 Earnings Conference Call April 27, 2023 11:00 AM ET Company Participants Sarah Herriott - Director of Investor Relations Rich Sumner - President and Chief Executive Officer Conference Call Participants Joel Jackson - BMO Capital Markets Ben Isaacson - Scotiabank Hassan Ahmed - Alembic Global Steve Hansen - Raymond James Laurence Alexander - Jefferies Matthew Blair - TPH Nelson Ng - RBC Capital Markets Jacob Bout - CIBC Joshua Spector - UBS Operator Good morning. My ...

Jacob Bout Good morning. Rich Sumner Yes, I wanted to go back to that discussion on China and your thoughts on the low MTO affordability that we're dealing with right now. One, does that improve, because I thought part of the discussion, there was just the overcapacity situation wins for the Chinese olefins market given the ramp and new capacity there? Rich Sumner Yes, so the olefins market has been under pressure for well over a year. That's on the back of both like you said the new capacity that's been co ...

Methanex Corporation (NASDAQ:MEOH) Q3 2022 Earnings Conference Call October 27, 2022 11:00 AM ET Company Participants Sarah Herriott - Director, IR John Floren - President and CEO Rich Sumner - Incoming CEO Conference Call Participants Joel Jackson - BMO Capital Markets Ben Isaacson - Scotiabank Nelson Ng - RBC Capital Markets Steve Hansen - Raymond James Josh Spector - UBS Jacob Bout - CIBC Hassan Ahmed - Alembic Global Matthew Blair - TPH Chris Shaw - Monness Crespi Steve Hansen - Raymond James Operator W ...

Methanex Corporation (NASDAQ:MEOH) Q2 2022 Earnings Conference Call July 28, 2022 11:00 AM ET Company Participants Sarah Herriott - Director, IR John Floren - President and CEO Conference Call Participants Ben Isaacson - Scotiabank Joel Jackson - BMO Capital Markets Steve Hansen - Raymond James Nelson Ng - RBC Capital Markets Matthew Blair - TPH Josh Spector - UBS Laurence Alexander - Jefferies Hassan Ahmed - Alembic Global Charles Neivert - Piper Sandler John Roberts - Credit Suisse Operator Welcome to the ...

Methanex Corporation (NASDAQ:MEOH) Q1 2022 Earnings Conference Call April 28, 2022 11:00 AM ET Company Participants Sarah Herriott ??? Director-Investor Relations John Floren ??? President and Chief Executive Officer Conference Call Participants Ben Isaacson ??? Scotiabank Joel Jackson ??? BMO Capital Markets Nelson Ng ??? RBC Capital Markets Jacob Bout ??? CIBC Steve Hansen ??? Raymond James Mike Leithead ??? Barclays Hassan Ahmed ??? Alembic Global Advisors Roland Rausch ??? Crown Investments Laurence Ale ...

Methanex Corporation (NASDAQ:MEOH) Q4 2021 Earnings Conference Call January 27, 2022 11:00 AM ET Company Participants Sarah Herriott ??? Director, Investor Relations John Floren ??? President and Chief Executive Officer Conference Call Participants Jacob Bout ??? CIBC Hassan Ahmed ??? Alembic Global Advisors Ben Isaacson ??? Scotiabank Nelson Ng ??? RBC Capital Markets Laurence Alexander ??? Jefferies Matthew Blair ??? Tudor, Pickering, Holt Joel Jackson ??? BMO Capital Markets Steve Hansen ??? Raymond Jame ...

Methanex Corporation (NASDAQ:MEOH) Q3 2021 Earnings Conference Call October 28, 2021 11:00 AM ET Company Participants Kim Campbell - Director, Investor Relations John Floren - President & Chief Executive Officer Rich Sumner - Senior Vice President, Global Marketing & Logistics Conference Call Participants Joel Jackson - BMO Capital Markets Nelson Ng - RBC Capital Markets Jacob Bout - CIBC Edlain Rodriguez - Jefferies Mike Leithead - Barclays Hassan Ahmed - Alembic Global Advisors Eric Petrie - Citi Matthew ...