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Methanex's CEO Discusses Q2 2012 Results - Earnings Call Transcript

We expect this will make our analysis of our results more straightforward and for consistency we encourage analysts covering the company to report the results in this manner.

I'd now like to turn the call over to Methanex' President and CEO, Mr. Bruce Aitken, for his comments.

Bruce Aitken

Good. Thank you Jason, and good morning, everyone, and welcome to our second quarter investor conference call. I have got a number of colleagues with me here in the room, and they will be available to answer questions a little later on.

I will first give some comments on our second quarter results. We reported adjusted EBITDA of $113 million which is a 22% improvement over the last quarter. Adjusted net income was $44 million or $0.44 per share. The average realized price in Q2 was similar to Q1. However, we achieved higher production in produced methanol sales and lower logistics cost and these factors drove the higher EBITDA.

With the recent start up of our second plant in New Zealand, we now have annual operating capacity of over 5 million tonnes and our cash generation capability has improved. I will be commenting more on the expectations for the third quarter and the industry impressing outlook a little later in the call, but before I do that I will make some comments regarding our operations for the quarter.

In Trinidad, our plants operated at 90% capacity and produced about 460,000 tons of methanol. As I've mentioned on previous occasions, we and other downstream users in Trinidad have continued to experience some gas curtailments as a result of supply disruptions from upstream gas producers.

We are engaged with key stakeholders to find a solution to this issue, however at least during the next quarter we expect to continue to see some shortfalls in gas supply as we understand there are more outages planned by upstream producers.

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