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Methanex (MEOH) Reports In-Line Q1 EPS

April 26, 2017 5:48 PM EDT

Methanex (NASDAQ: MEOH) reported Q1 EPS of $1.56, in-line with the analyst estimate of $1.56. Revenue for the quarter came in at $810 million versus the consensus estimate of $817.42 million.

John Floren, President and CEO of Methanex, commented, "In what is proving to be a volatile methanol pricing environment, our average realized methanol price increased $87 per tonne in the quarter to $365 per tonne, which compares to $278 per tonne achieved in the fourth quarter of 2016. We achieved record sales volume for the fourth consecutive quarter, with sales of 2.6 million tonnes. Production volume in the first quarter of 2017 remained unchanged from the record level set in the fourth quarter of 2016 of 1.9 million tonnes. The significantly higher methanol prices, combined with continued record production and sales volume, contributed to a $128 million increase in Adjusted EBITDA to $267 million for the quarter."

John Floren continued, "I am pleased to announce that our Board of Directors has approved a 9% increase in our quarterly dividend to $0.30 per share. During the quarter we also announced a 5% share repurchase program allowing the Company to purchase for cancellation up to 4,492,141 common shares. To date we have repurchased 1,580,000 shares since commencement of the bid on March 13, 2017 for approximately $73 million. The increased dividend and new share repurchase program illustrate the Company's commitment to return excess cash to shareholders."

Mr. Floren concluded, "We continue to be optimistic that our underutilized 1.7 million tonne Chile facilities represent a very low capital cost growth opportunity for Methanex due to the significant progress in developing natural gas reserves in the area. We have relatively low maintenance capital and financing requirements in the medium term. At current methanol prices we expect to generate significant free cash flow. With $315 million of cash on hand at the end of the first quarter, an undrawn credit facility, a robust balance sheet, and strong future cash generation capability, we believe we are well positioned to meet our financial commitments, pursue our near-term growth opportunities in Chile and deliver on our commitment to return excess cash to shareholders through dividends and share repurchases."

For earnings history and earnings-related data on Methanex (MEOH) click here.



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