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Methanex Corporation was incorporated in 1968 and is a Canadian company, the world’s largest producer and supplier of methanol to the major international markets in Asia Pacific, North America, Europe and South America. The total annual production capacity of the company, including Methanex interests in jointly owned plants, is currently 9.4 million tonnes and is located in New Zealand, the United States, Trinidad, Egypt, Canada and Chile. Methanex also purchases methanol produced by others under methanol offtake contracts. Methanex has marketing rights for 100% of the production from the jointly-owned plants in Trinidad and Egypt, which provides the company with an additional 1.3 million tonnes per year of methanol offtake supply when the plants are operating at full capacity. As of December 31^st, 2018, the company had 1,426 employees (including all employees at the joint venture facilities in Egypt and Trinidad).

Methanex has three plants in New Zealand with a total production capacity of up to 2.4 million tonnes of methanol per year, two plants in the United States with a total production capacity of 2.0 million tonnes, and two methanol production facilities in Trinidad with a total production capacity of 2.0 million tonnes per year. In Canada the company has fixed price contracts to supply all of its natural gas requirements for the Medicine Hat facility through to 2031. In Egypt Methanex has a 25-year natural gas supply agreement expiring in 2036 for the 1.26 million tonne per year methanol plant in Egypt, in which the Company has a 50% equity interest. Natural gas for two Company´s plants in Chile is supplied by various producers in Chile and Argentina.

According to the Company´s Annual Financial Report, Methanex produced 1.6 million tonnes of methanol in 2018 in New Zeeland compared with 1.9 million tonnes in 2017. Planned maintenance activities and repairs impacted production in 2018. The plants are able to produce at an annual production capacity of up to 2.4 million tonnes of methanol, depending on natural gas composition. The facilities in the United States produced 2.1 million tonnes of methanol in 2018 compared with 1.9 million tonnes in 2017. Higher production in 2018 compared with 2017 was the result of planned maintenance activities undertaken. The Trinidad facilities produced a total of 1.7 million tonnes of methanol (Methanex share) in 2018 compared with 1.8 million tonnes in 2017. Production in Trinidad was lower in 2018 compared to 2017 primarily as a result of interruptions to the electricity supply to the site during 2018. In Egypt the company produced 1.2 million tonnes of methanol (Methanex share of 0.6 million) at the plant during 2018, compared to 1.1 million tonnes (Methanex share of 0.5 million) in 2017. Production in 2017 was impacted by a planned turnaround. The Medicine Hat facility produced 600,000 tonnes of methanol in 2018 compared to 593,000 tonnes in 2017. The Chile facilities produced 612,000 tonnes of methanol in 2018. This compares to 414,000 tonnes for Chile I in 2017. Production increased for 2018 as compared to 2017 as a result of improved natural gas availability from Chilean and Argentine suppliers and due to the restart of the company´s Chile IV plant in the fourth quarter of 2018 which had been idle since 2007.

According to the Annual Financial Report, revenue of the company increased by 26% or from $3.1 billion in 2017 to $3.9 billion in 2018. The higher revenue reflects an increase in the average realized price and higher sales volume in 2018. The average non-discounted published reference price in 2018 was $481 per tonne compared with $396 per tonne in 2017. The average realized price in 2018 increased to $405 per tonne from $337 per tonne in 2017.

Net income of the company amounted to $569 million ($6.92 income per common share) in 2018, compared to $316 million ($3.64 income per common share) for the year ended December 31^st, 2017.

For the year ended December 31^st, 2018 the company reported adjusted EBITDA of $1,071 million compared with adjusted EBITDA of $838 million for the year ended December 31^st, 2017, an increase of 27% or $233 million over the year. This increase is due to the increase of average realized price, sales volume and cash costs.

Methanol sales volume, excluding commission sales volume, increased by 0.5 million tonnes to 10.0 million  tonnes in 2018 from 9.5 million tonnes in 2017, and this increased adjusted EBITDA by $44 million. Including commission sales volume from the Atlas and Egypt facilities, the total methanol sales volume was 11.2 million tonnes in 2018 compared with 10.7 million tonnes in 2017.

In 2018 adjusted net income amounted to $556 million and corresponded with $6.86 Adjusted net income per common share. This represented an increase of 35% compared to adjusted net income of $409 million or $4.71 Adjusted net income per common share in 2017.

Methanex-produced methanol costs were higher in 2018 compared with 2017 by $123 million, primarily due to the impact of higher realized methanol prices natural gas costs. As a result of higher methanol prices in 2018 and the timing of inventory flows and purchases, the cost of purchased methanol per tonne increased and this decreased adjusted EBITDA by $210 million compared with 2017. Logistics costs in 2018 were $21 million higher than in 2017, decreasing adjusted EBITDA. Logistics costs were primarily higher due to increased bunker fuel prices.

Cash flows from operating activities for the year ended December 31^st, 2018 were $980 million compared with $780 million for the year ended December 31^st, 2017. The increase in cash flows from operating activities of 26% is primarily due to higher net income resulting from a higher realized methanol price.

During 2018, the company had capital expenditures of $244 million, primarily related to regular maintenance projects in New Zealand, Geismar and Trinidad, and project work for the restart of the Chile IV plant. The Chile IV project was completed on time and on budget. In addition, $61 million has been set aside for use for two ocean going vessels currently under construction with anticipated delivery in 2019. As of December 31^st, 2018, Methanex had a cash balance of $256 million.

In 2018, the company announced it had reached long-term agreements for natural gas supply to its New Zealand operations, which are expected to supply gas underpin over half of Methanex’s 2.4 million tonnes of annual production capacity in New Zealand for a period of 11 years through to 2029.

In 2018, the company announced that it has successfully restarted and produced the first methanol from its 0.8 million tonne Chile IV plant that has been stopped since 2007. The company also announced that the Argentine Government granted permits to allow the export of natural gas from Argentina to Chile and the company has begun to receive natural gas from Argentinean suppliers.