Methanex Forecasts $525 to $550 Per Tonne for October-November Methanol Sales

Methanex expects realized methanol sales to bring in $525 to $550 per tonne across October and November. The outlook is above the company’s third-quarter average of $510 per tonne. Its new normal course issuer bid permits repurchases of up to 5% of shares.

Methanex recorded 2.3 million tonnes in produced methanol sales during the third quarter. Adjusted EBITDA was $543 million, and adjusted net income was $284 million.

The company expects fourth-quarter adjusted EBITDA to surpass the third-quarter result if current prices hold through December and sales volumes remain similar. Methanex management cautioned that the duration of current market conditions is uncertain.

Methanex plans to direct most of its free cash flow toward debt reduction. It has repaid $300 million of its 2027 notes and expects to redeem the remaining $400 million in the fourth quarter.

Methanex management said conflict in the Middle East has affected 30% to 35% of internationally traded methanol. It also cited lower demand, including the shutdown of 9 million to 10 million tonnes of Chinese coastal MTO demand.