Methanex Reports Second Quarter 2025 Results

Executive Summary

• Methanex reported Q2 2025 net income of $64 million ($0.93 diluted EPS), a decrease from $111 million in Q1 2025, driven by lower average realized prices and reduced sales of produced product.
• The company closed the acquisition of OCI Global's international methanol business on June 27, 2025, including interests in two world-scale facilities in Beaumont, Texas, which have operated at 100% capacity since acquisition.
• Total Q2 production was 1,621,000 tonnes, with significant operational variances across global sites due to planned turnarounds, gas supply constraints, and commercial idling.

Key Details

• Financial Performance (Q2 2025):
  • Net income attributable to shareholders: $64 million ($0.93 diluted EPS).
  • Adjusted EBITDA: $183 million.
  • Adjusted net income: $66 million ($0.97 diluted EPS).
  • Average realized price: $374 per tonne (down from $404 in Q1 2025).
  • Cash balance: $485 million ($459 million excluding non-controlling interests).
  • Dividends paid: $12.5 million ($0.185 per share).
• M&A Activity (OCI Acquisition):
  • Closed June 27, 2025.
  • Assets include interests in two methanol facilities and one ammonia facility in Beaumont, Texas, a low-carbon methanol business, and an idled facility in the Netherlands.
  • Funded via cash and issued shares.
  • Post-close operations (4 days) included in Q2 results; Beaumont plants operating at 100% rates.
• Production & Operations:
  • Total Methanol Production: 1,621,000 tonnes (vs. 1,619,000 in Q1).
  • Total Sales Volume: 2,133,000 tonnes (vs. 2,217,000 in Q1).
  • Geismar (USA): 829,000 tonnes (up from 617,000 in Q1); G3 restarted in May; experienced late-June power outages, now back to full rates.
  • Beaumont (USA): 11,000 tonnes methanol and 4,000 tonnes ammonia produced in 4 days post-acquisition.
  • Chile: 295,000 tonnes (down from 429,000 in Q1) due to planned idling of Chile 4 plant for maintenance; Chile 1 running at 100%.
  • Trinidad: 216,000 tonnes (up from 137,000 in Q1); Titan plant operated at full rates after Q1 outage.
  • New Zealand: 53,000 tonnes (down from 160,000 in Q1) due to temporary idling (mid-May to end-June) to redirect gas to electricity market; restarted early July. 2025 forecast adjusted to ~400,000 tonnes.
  • Egypt: 124,000 tonnes (Methanex interest) (down from 136,000 in Q1) due to gas import disruptions.
  • Medicine Hat (Canada): 83,000 tonnes (down from 140,000 in Q1) due to planned turnaround completed in May.
• Outlook:
  • 2025 Production Expectation: ~8.0 million tonnes (Methanex interest).
  • Q3 2025 Expectation: Higher Adjusted EBITDA than Q2, but lower average realized price expected in the range of $335–$345 per tonne for July/August.

Notable Quotes

• "This quarter represents an important milestone for the business with the closing of the OCI Acquisition. This expands our production footprint and strengthens our position in North America where we benefit from access to a stable and economic supply of natural gas feedstock. Our focus is now on completing a seamless integration and capturing the full strategic value of the acquisition." — Rich Sumner, President & CEO