Canada's Methanex Q3 results top estimates on strong North American production

Overview

• Canada methanol producer's Q3 adjusted EPS and adjusted net income beat analyst expectations

• Q3 adjusted EBITDA also exceeded analyst expectations

Outlook

• Methanex expects 2026 production of about 9.0 mln tonnes of methanol and 0.3 mln tonnes of ammonia

• Company expects average realized price of $525-$550 per tonne for October and November

• Methanex anticipates higher Q4 Adjusted EBITDA due to higher realized price and similar sales volume

Result Drivers

• SUPPLY DISRUPTIONS - Co said Middle East conflicts led to significant loss of industry supply, supporting methanol pricing strength

• STRONG NORTH AMERICAN PRODUCTION - North American methanol production contributed to results, per CEO Rich Sumner

• REGIONAL PRODUCTION VARIATION - Production was strong in North America and Egypt, but lower in Chile due to seasonal gas constraints and in Trinidad as Titan plant ceased operations

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy"

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Oct 29 - Canada's Teck Resources Q3 revenue beats on higher output, copper prices

• Oct 28 - France's Constellium Q3 revenue rises 22% on higher metal prices

• Oct 29 - Germany's Wacker Chemie Q3 EBITDA nearly doubles on cost savings

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)