Methanex Corporation (MEOH) announced that it has restarted its Chile I plant at its site in Punta Arenas. The plant had been idled since May 2014 due to insufficient natural gas supply.
Methanex stated that the plant will be provided with gas supplies from both Chile and Argentina through a tolling arrangement. The company aims to realize full value from its remaining assets in Chile and is positive that it will be able to maintain its presence in the region over the next few years.
In Jun 2014, Methanex announced that it will temporarily idle its joint venture operation, Egyptian Methanex Methanol Company S.A.E. (EMethanex), in which it owns a 50% stake, due to gas availability. The plant has the capacity to produce 1.3 million tons of methanol per year, and is located on the Mediterranean Sea in Damietta, Egypt.
Methanex released its second-quarter 2014 results in Jul 2014. The company reported profit of $125 million or $1.24 per share in the quarter, a more than two-fold year-over-year rise from $54 million or 56 cents per share a year ago.
Barring one-time items other than stock-based compensation expenses, earnings were $1.01 per share, missing the Zacks Consensus Estimates of $1.02. Adjusted earnings fell sequentially in the reported quarter due to lower methanol prices.
Methanex’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $160 million in the quarter, a roughly 1.9% increase from $157 million recorded a year ago and a decline of 37.3% from the first quarter of 2014. The sequential decline in adjusted EBITDA was due to a decrease in average realized price and sales of Methanex-produced methanol in the second quarter.
Revenues rose roughly 8% year over year to $792 million in the reported quarter and declined 18.2% sequentially. Revenues missed the Zacks Consensus Estimate of $822 million.
Methanex is a Zacks Rank #3 (Hold) stock.
Other chemical stocks worth considering include LyondellBasell Industries NV (LYB) Celanese Corporation (CE), and Valhi, Inc. (VHI). While LyondellBasell sports a Zacks Rank #1 (Strong Buy), both Celanese and Valhi hold a Zacks Rank #2 (Buy).
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