Except where otherwise noted, all currency amounts are stated in United States dollars.

Financial and Production Highlights

• Net income attributable to Methanex shareholders of $31 million and Adjusted EBITDA of $216 million in the third quarter. Our average realized price in the third quarter was $356 per tonne compared to $352 per tonne in the second quarter of 2024.
• Announced the signing of a definitive agreement to acquire OCI Global's international methanol business for approximately $2.05 billion, including OCI’s interest in two world class methanol facilities in Beaumont, Texas. The transaction is expected to close in the first half of 2025.
• Geismar 3 ("G3") produced first methanol in July 2024 and has since passed its commercial and technical performance tests. During the third quarter, as the plant was being brought to full rates, two separate shutdowns were taken to calibrate the newly commissioned equipment to ensure reliability of plant operations at sustained full rates, which led to lower operating rates in the third quarter. G3 has been operating at full rates since early October, and in the last thirty days has produced approximately 154,000 tonnes and is running as designed at a 1.8 MMT per annum rate.
• In Chile, we agreed to extend the gas contracts with Chilean gas producer, ENAP, and Argentinean gas producer, YPF, until 2030 and 2027, respectively, on similar economic terms as the previous agreements. These two gas contracts underpin approximately 55% of the site's gas requirements. In addition, we have secured agreements to purchase gas from Argentina on a firm basis for the non-winter months (October-April) which will allow us to produce at full rates through to the end of April 2025.
• In New Zealand, operations were temporarily idled in August as we entered short-term commercial arrangements to provide available natural gas into the New Zealand electricity market until the end of October 2024 as the country’s overall energy balances were very strained. Based on the medium-term gas outlook from our gas suppliers the decision was made to restart one plant and indefinitely idle the other Motunui plant. As a result, a non-cash, non-recurring asset impairment expense of $90 million (net of tax) has been recorded in the third quarter. The site has optimized its operating and capital costs and we expect that these actions will substantially offset the adjusted EBITDA and free cash flow impact from idling one plant.
• Returned $12.5 million to shareholders through regular dividends and ended the third quarter with $511 million in cash.

VANCOUVER, British Columbia, Nov. 06, 2024 (GLOBE NEWSWIRE) -- For the third quarter of 2024, Methanex (TSX:MX) (NASDAQ:MEOH) reported net income attributable to Methanex shareholders of $31 million ($0.35 net income per common share on a diluted basis) compared to net income of $35 million ($0.52 net income per common share on a diluted basis) in the second quarter of 2024. Net income in the third quarter of 2024 was similar compared to the prior quarter. Adjusted EBITDA for the third quarter of 2024 was $216 million and Adjusted net income was $82 million ($1.21 Adjusted net income per common share). This compares with Adjusted EBITDA of $164 million and Adjusted net income of $42 million ($0.62 Adjusted net income per common share) for the second quarter of 2024.

Our average realized price in the third quarter was $356 per tonne compared to $352 per tonne in the second quarter of 2024. The increase in our average realized price was driven by stable global demand, with tight market conditions in the Atlantic from supply outages and decreasing inventories and balanced market conditions in China and Asia Pacific.

In the third quarter, we returned $12.5 million to shareholders through the regular dividend. We ended the quarter with $511 million in cash, or $490 million in cash excluding non-controlling interests and including our share of cash in the Atlas joint venture.

Rich Sumner, President & CEO of Methanex, said, "I am pleased that G3 has passed its commercial and technical performance test and has been operating at full rates since early October. Looking forward to the fourth quarter we expect to see an increase in our production levels with G3 at full rates and Chile receiving full gas supply along with higher pricing as the methanol markets have further tightened. We are focused on delivering strong cash flows from our existing business to de-lever and post close, our priority will be to seamlessly integrate OCI's methanol business."

FURTHER INFORMATION

The information set forth in this news release summarizes Methanex's key financial and operational data for the third quarter of 2024. It is not a complete source of information for readers and is not in any way a substitute for reading the third quarter 2024 Management’s Discussion and Analysis ("MD&A") dated November 6, 2024 and the unaudited condensed consolidated interim financial statements for the period ended September 30, 2024, both of which are available from the Investor Relations section of our website at www.methanex.com. The MD&A and the unaudited condensed consolidated interim financial statements for the period ended September 30, 2024 are also available on the Canadian Securities Administrators' SEDAR+ website at www.sedarplus.ca and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov.

FINANCIAL AND OPERATIONAL DATA

• A reconciliation from net income attributable to Methanex shareholders to Adjusted EBITDA, Adjusted net income and the calculation of Adjusted net income per common share is as follows:

• We recorded net income attributable to Methanex shareholders of $31 million in the third quarter of 2024 compared to net income of $35 million in the second quarter of 2024. Net income in the third quarter of 2024 was similar compared to the prior quarter as a non-recurring asset impairment charge was offset by the recognition in the quarter of gas sale net proceeds in New Zealand and the non-recurring impact of the Egypt insurance recovery. Also, lower sales of Methanex-produced methanol was offset by a higher average realized price and the impact of the mark-to-market changes in fair-value of assets and share-based compensation.
• We sold 2,623,000 tonnes in the third quarter of 2024 compared to 2,612,000 tonnes in the second quarter of 2024. Sales of Methanex-produced methanol were 1,378,000 tonnes in the third quarter of 2024 compared to 1,580,000 tonnes in the second quarter of 2024.
• Production for the third quarter of 2024 was 1,347,000 tonnes compared to 1,422,000 tonnes for the second quarter of 2024. Production was lower in the third quarter of 2024 compared to the second quarter of 2024 mainly due to lower production in New Zealand, Chile and Egypt which was partially offset by higher production in Geismar.
• Geismar 3 ("G3") produced first methanol in July 2024 and has since passed its commercial and technical performance tests. During the third quarter, as the plant was being brought to full rates, two separate shutdowns were taken to calibrate the newly commissioned equipment to ensure reliability of plant operations at sustained full rates, which led to lower operating rates in the third quarter. G3 has been operating at full rates since early October, and in the last thirty days has produced approximately 154,000 tonnes and is running as designed at a 1.8 MMT per annum rate.
• In the third quarter of 2024 we paid a quarterly dividend of $0.185 per common share for a total of $12.5 million.
• At September 30, 2024, we had a strong liquidity position including a cash balance of $511 million, or $490 million excluding non-controlling interests and including our share of cash in the Atlas joint venture. In addition, the majority of the New Zealand gas sales ($45 million) and the Egypt insurance recovery ($30 million) will be received in cash in the fourth quarter of 2024. As at the end of the third quarter, we also have undrawn revolving credit facilities of $500 million, which we subsequently extended to $600 million, to provide additional financial flexibility. The extension is subject to the closing of the OCI acquisition.

PRODUCTION HIGHLIGHTS

Key production and operational highlights during the third quarter include:

United States

Geismar produced 605,000 tonnes in the third quarter of 2024 compared to 514,000 tonnes in the second quarter of 2024. Production was higher in the third quarter with the start up of the Geismar 3 plant. The plant produced first methanol at the end of July and successfully passed its commercial and technical performance test in early October. During Q3, as the plant was being brought to full rates, two separate shutdowns were taken to calibrate the newly commissioned equipment to ensure reliability of plant operations at sustained full rates, which led to lower operating rates in the third quarter. G3 has been operating at full rates since early October, and in the last thirty days has produced approximately 154,0000 tonnes and is running as designed at a 1.8 MMT per annum rate.

Trinidad

Trinidad produced 262,000 tonnes (Methanex interest) in the third quarter of 2024 compared to 231,000 tonnes in the second quarter of 2024. Production was higher in the third quarter compared to the second quarter due to two unplanned outages during the second quarter. In mid-September the Atlas plant (Methanex interest 63.1% or 1,085,000 tonnes per year capacity) was idled, as its legacy 20-year natural gas supply agreement expired, and the Titan plant (875,000 tonnes per year capacity) was successfully re-started, on a two-year natural gas supply agreement with the National Gas Company of Trinidad and Tobago (NGC).

New Zealand

New Zealand produced 72,000 tonnes in the third quarter of 2024 compared to 178,000 tonnes in the second quarter of 2024. Production in the third quarter was lower compared to the second quarter as operations were temporarily idled in August as we entered short-term commercial arrangements to provide contracted natural gas into the New Zealand electricity market until the end of October 2024 as the country’s overall energy balances were very strained. Based on the medium-term gas outlook from our gas suppliers for the next few years, the decision was made in September to indefinitely idle one of the two Motunui plants. The site has optimized its operating and capital costs and we expect that these actions will substantially offset the adjusted EBITDA and free cash flow impact from idling one plant. Future production will be dependent on gas availability and any on-selling of gas into the electricity market to support New Zealand’s energy needs. We are in continuing discussions with our gas suppliers to ensure our contractual entitlements, which are in place until 2029, are being respected as well as engaging with our gas suppliers and government agencies in supporting efforts to improve energy balances in the country. Based on production year to date and expectations for the fourth quarter, we expect 2024 production will be approximately 600,000 tonnes.

As a result of the outlook for gas supply and the idling of one of the Motunui plants, a non-cash before-tax asset impairment charge of $125 million ($90 million after-tax) was recorded to write down the carrying value of our New Zealand assets.

Chile

Chile produced 173,000 tonnes in the third quarter of 2024 compared to 229,000 tonnes in the second quarter of 2024. Production was lower in the third quarter compared to the second quarter primarily due to lower seasonal gas supply from Argentina during the third quarter. Planned maintenance at Chile 1 and a turnaround at Chile 4 were successfully completed which we expect will improve efficiency and production. Based on production year to date and progress we have made securing gas from Argentina for the non-winter period this year, we expect 2024 production will be slightly above the high-end of our guidance of 1.1-1.2 million tonnes.

In Q3, we successfully agreed to extend the gas contracts with Chilean gas producer, ENAP, and Argentinean gas producer, YPF, until 2030 and 2027, respectively on similar economic terms as the previous agreements. These two gas contracts underpin approximately 55% of the sites gas requirements. In addition, we have secured agreements to purchase gas from Argentina on a firm basis for the non-winter months (October-April) which will allow us to produce at full rates through to the end of April 2025. These gas contracts are expected to allow us to continue to incrementally increase our production from Chile as natural gas development and related infrastructure investments in Argentina continue to progress which we believe will allow increased gas availability to our two plants in the coming years.

Egypt

Egypt produced 186,000 tonnes (Methanex interest - 93,000 tonnes) in the third quarter of 2024 compared to 258,000 tonnes (Methanex interest - 129,000 tonnes) in the second quarter of 2024. Production decreased compared to the second quarter due to fluctuating operating rates based on gas availability. In Egypt, industrial plants were impacted by gas curtailments due to increased seasonal demand for power generation due to elevated temperatures coupled with lower domestic supply. The plant is currently operating at full rates. There has been stabilization of gas balances in the country as temperatures have moderated but some continued limitations on supply to industrial plants are expected going forward, particularly during the summer months.

Canada

Medicine Hat produced 142,000 tonnes in the third quarter of 2024 compared to 141,000 tonnes in the second quarter of 2024.

Outlook

Our expected production guidance for Q4 2024 is approximately 1.9 million tonnes (Methanex interest) which will be sold through in the fourth quarter of 2024 and the first quarter of 2025 as produced sales normalize to the increased production. Actual production may vary by quarter based on gas availability in Chile and New Zealand, turnarounds, other gas availability, unplanned outages and unanticipated events.

In the fourth quarter, we expect similar Adjusted EBITDA compared to the third quarter, with higher produced sales and a higher average realized price offset by lower New Zealand gas sales and no contribution from Egypt insurance recovery in the fourth quarter. Based on our October and November posted prices we expect that our average realized price range will be between approximately $365 to $375 per tonne for these two months.

CONFERENCE CALL

A conference call is scheduled for November 7, 2024 at 11:00 am ET (8:00 am PT) to review these third quarter results. To access the call, dial the conferencing operator fifteen minutes prior to the start of the call at (647) 932-3411, or toll free at (800) 715-9871. The conference ID for the call is #2019292. A simultaneous audio-only webcast of the conference call can be accessed from our website at www.methanex.com/investor-relations/events and will also be available following the call.

ABOUT METHANEX

Methanex is a Vancouver-based, publicly traded company and is the world’s largest producer and supplier of methanol to major international markets. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the NASDAQ Global Market in the United States under the trading symbol "MEOH".

FORWARD-LOOKING INFORMATION WARNING

This third quarter 2024 press release contains forward-looking statements with respect to us and the chemical industry. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond the Company's control. Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Methanex does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law. Refer to Forward-Looking Information Warning in the third quarter 2024 Management's Discussion and Analysis for more information which is available from the Investor Relations section of our website at www.methanex.com, the Canadian Securities Administrators' SEDAR+ website at www.sedarplus.ca and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov.

NON-GAAP MEASURES

The Company has used the terms Adjusted EBITDA, Adjusted net income, and Adjusted net income per common share throughout this document. These items are non-GAAP measures and ratios that do not have any standardized meaning prescribed by GAAP. These measures represent the amounts that are attributable to Methanex Corporation shareholders and are calculated by excluding the mark-to-market impact of share-based compensation as a result of changes in our share price, the impact of the Egypt gas contract revaluation and the impact of certain items associated with specific identified events. Refer to Additional Information - Non-GAAP Measures on page 15 of the Company's MD&A for the period ended September 30, 2024 for reconciliations to the most comparable GAAP measures. Unless otherwise indicated, the financial information presented in this release is prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

For further information, contact:
Sarah Herriott
Director, Investor Relations
Methanex Corporation
604-661-2600