Q2 2024 Methanex Corp Earnings Call Transcript
Key Points
- Methanex Corp (MEOH) reported a higher adjusted EBITDA of $164 million for Q2 2024, up from the previous quarter due to higher average realized prices.
- The G3 plant has successfully restarted and is expected to ramp up to full production in the coming weeks, significantly increasing cash flow generation capability.
- Global methanol demand increased by over 3% compared to the prior quarter, driven by traditional chemical applications and energy-related demand.
- Methanex Corp (MEOH) has secured additional gas supplies from Argentina outside the winter period, providing more than their operational needs.
- The company ended Q2 2024 with approximately $390 million in cash and plans to repay a $300 million bond due in December, indicating a strong financial position.
- The G3 plant restart incurred $13 million in delay costs, impacting adjusted EBITDA negatively.
- Methanex Corp (MEOH) faced gas constraints in Chile, Egypt, and New Zealand, leading to lower production compared to the first quarter.
- The New Zealand operations continue to face challenges with lower-than-expected gas deliveries and redirection of contractual gas to the broader energy sector.
- Adjusted EBITDA for Q3 2024 is expected to be lower than Q2 due to lower produced sales from Chile and New Zealand and initial inventory build post-G3 startup.
- Methanex Corp (MEOH) anticipates continued limitations on gas supply in Egypt through Q3, affecting production rates.
Good morning. My name is Aaron, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Methanex Corporation 2024 second-quarter results conference call. (Operator Instructions)
I would now like to turn our call over to the Director of Investor Relations at Methanex, Ms. Sarah Herriott. Please go ahead, Ms. Herriott.
Good morning, everyone. Welcome to our second-quarter 2024 results conference call. Our 2024 second-quarter news release, management's discussion and analysis, and financial statements can be accessed from the Financial Reports tab of the Investor Relations page on our website at methanex.com.
I would like to remind our listeners that our comments and answers to your questions today may contain forward-looking information. This information, by its nature, is subject to risks and uncertainties that may cause the stated outcome to differ materially from the actual outcome. Certain material factors or assumptions were applied
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