Methanex Corporation Q3 FY2025 earnings call

• Update on newly acquired assets: Beaumont plants and Natgasoline plant operated at high rates, with a structured 18-month integration plan across business functions.
• Methanol market conditions: Global demand relatively flat, MTO in China operated at high rates, inventory build in China coastal markets but moderating as MTO rates increased.
• Operations: Geismar production higher after second quarter outages; Chile I plant at full capacity, Chile IV plant restarted; New Zealand production higher but gas supply challenged; Egypt operated at ~80% capacity but now at full rates.
• Financial position: Closed OCI acquisition, repaid $125 million of Term Loan A, ended Q3 with $413 million cash; capital allocation priority is deleveraging via free cash flow.

In the third quarter, Methanex had an average realized price of $345 per tonne, produced methanol sales of approximately 1.9 million tonnes, resulting in adjusted EBITDA of $191 million and adjusted net income of $0.06 per share. The newly acquired Beaumont plants and 50% owned Natgasoline plant operated at high rates, producing a combined 482,000 tonnes of methanol and 92,000 tonnes of ammonia. Revenue contribution details weren't explicitly broken down by segment beyond the overall performance.

• October and November average realized price forecasted between $335 and $345 per tonne.
• Expect meaningfully higher adjusted EBITDA in Q4 2025 compared to Q3.
• Equity production guidance for 2025 is approximately 8 million tonnes, consisting of 7.8 million equity tonnes of methanol and 0.2 million tonnes of ammonia.

• Gas availability challenges in Trinidad, New Zealand, and Egypt.
• Potential recontracting risks for sales as part of OCI book management.
• Market uncertainties affecting methanol pricing and demand, including geopolitical and supply chain issues.
• Impact of IMO deferral on marine methanol demand timeline.

Q: Can you talk about Trinidad's gas situation and OCI book recontracting?

A: Have a contract with NEC for port fees; gas markets tight, discussions with NGC ongoing; sales increased from Q2 to Q3, recontracting for 2026 ongoing.

Q: Could you quantify EBITDA boost in Q3 and impact of Beaumont accounting?

A: Delta of 500,000 to 600,000 tonnes vs Q3, meaningfully increasing EBITDA, with Q4 expected to show higher sales closer to run rate.

Q: Where is methanol from Beaumont and Natgasoline going?

A: Largely to North American and European customers, with commercial team working on 2026 recontracting and diversified customer applications.

Q: How is gas hedging for new assets?

A: Near term hedged closer to 70% level, into 2026-2027 closer to 50-60% hedged, opportunistically entering market for favorable pricing.