Methanex (NASDAQ: MEOH) reported Q4 EPS of $0.12, $0.15 better than the analyst estimate of ($0.03). Revenue for the quarter came in at $690 million versus the consensus estimate of $734.18 million.

John Floren, President and CEO of Methanex, commented, “The higher Adjusted EBITDA we recorded in the fourth quarter of 2019 compared to the third quarter reflects higher sales volume of Methanex-produced methanol and improved costs, as well as the insurance recovery associated with our Egypt facility, which were partially offset by a decline in our average realized price. Our average realized price declined by $16 per tonne to $256 dollars per tonne in the fourth quarter of 2019 from $272 dollars per tonne that we realized in the third quarter.

"For the full year in 2019, we achieved record production results which was overshadowed by the impact of lower average realized pricing compared to 2018. We were very pleased to achieve production of 7.6 million tonnes of methanol in 2019, compared to 7.2 million tonnes in 2018, reflecting the significant improvement we have seen in our Chile production capability with both plants operating at high rates. These results reflect the investments we have made over the past few years to substantially increase our production capability and enhance our ability to service our customers.”

“Also in 2019, we began the construction of our Geismar 3 project, a 1.8 million tonne methanol plant located adjacent to our existing facilities. We expect this project will deliver outstanding returns based on its substantial capital and operating cost advantages. We also continue to make progress on the debottlenecking opportunities at our existing Geismar 1 and Geismar 2 facilities to increase production by approximately 10% over the next couple of years."

"We returned $161 million to shareholders in 2019, including $27 million in the fourth quarter through our regular quarterly dividend. We have $417 million of cash on the balance sheet at the end of the fourth quarter. We continue to prudently manage our business by maintaining a strong balance sheet and sufficient liquidity to navigate the cyclical nature of our industry."

"Our balanced approach to capital allocation remains unchanged. We believe we are well positioned to meet our financial commitments, execute our growth projects in Louisiana, and deliver on our commitment to return excess cash to shareholders through dividends and share repurchases," Floren said.

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