"These record results enabled us to return $388 million to shareholders in 2017 through our regular dividend and the repurchase of 10% of the public float, or 6.2 million shares. I am pleased to announce that the Board of Directors has approved a 10% increase to the quarterly dividend to shareholders, to $0.33 per share from $0.30 per share. Our cash position and liquidity are strong and it is our intention to initiate a new 10% normal course issuer bid in March 2018, which is the earliest timing allowed under Canadian securities legislation.""We are progressing the restart of our Chile IV plant and expect to complete the project by Q3 2018. We have low capital and financing requirements in the medium term, and have the ability to generate significant free cash flow at a wide range of methanol prices. With $375 million of cash on hand at the end of the fourth quarter, a committed revolving credit facility, robust balance sheet and strong cash generation capability, we believe we are well positioned to meet our financial commitments, pursue our near-term growth opportunities in Chile and deliver on our commitment to return excess cash to shareholders through dividends and share repurchases," Floren said. FURTHER INFORMATIONThe information set forth in this news release summarizes Methanex's key financial and operational data for the fourth quarter of 2017. It is not a complete source of information for readers and is not in any way a substitute for reading the fourth quarter 2017 Management's Discussion and Analysis ("MD&A") dated January 31, 2018 and the unaudited condensed consolidated interim financial statements for the period ended December 31, 2017, both of which are available from the Investor Relations section of our website at www.methanex.com. The MD&A and the unaudited condensed consolidated interim financial statements for the period ended December 31, 2017 are also available on the Canadian Securities Administrators' SEDAR website at www.sedar.com and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov. FINANCIAL AND OPERATIONAL DATA
|Three Months Ended||Years Ended|
|($ millions except per share amounts and where noted)||Dec 31 2017||Sep 30 2017||Dec 31 2016||Dec 31 2017||Dec 31 2016|
|Production (thousands of tonnes) (attributable to Methanex shareholders)||1,942||1,765||1,859||7,187||7,017|
|Sales volume (thousands of tonnes)|
|Total sales volume 1||2,852||2,771||2,521||10,669||9,478|
|Methanex average non-discounted posted price ($ per tonne) 2||403||351||312||396||279|
|Average realized price ($ per tonne) 3||350||307||278||337||242|
|Cash flows from operating activities||206||124||66||788||227|
|Adjusted net income (loss)||143||52||41||409||(15||)|
|Net income (loss) (attributable to Methanex shareholders)||68||32||24||316||(13||)|
|Adjusted net income (loss) per common share||1.70||0.60||0.46||4.71||(0.17||)|
|Basic net income (loss) per common share||0.81||0.38||0.28||3.64||(0.14||)|
|Diluted net income (loss) per common share||0.81||0.38||0.28||3.64||(0.14||)|
|Common share information (millions of shares)|
|Weighted average number of common shares||84||86||90||87||90|
|Diluted weighted average number of common shares||84||86||90||87||90|
|Number of common shares outstanding, end of period||84||85||90||84||90|
|Three Months Ended||Years Ended|
|($ millions except number of shares and per share amounts)||Dec 31 2017||Sep 30 2017||Dec 31 2016||Dec 31 2017||Dec 31 2016|
|Net income (loss) (attributable to Methanex shareholders)||$||68||$||32||$||24||$||316||$||(13||)|
|U.S. tax reform charge||37||—||—||37||—|
|Mark-to-market impact of share-based compensation, net of tax||38||20||17||56||19|
|Argentina gas settlement||—||—||—||—||(21||)|
|Adjusted net income (loss)||$||143||$||52||$||41||$||409||$||(15||)|
|Diluted weighted average shares outstanding (millions)||84||86||90||87||90|
|Adjusted net income (loss) per common share||$||1.70||$||0.60||$||0.46||$||4.71||$||(0.17||)|
- We recorded net income attributable to Methanex shareholders of $68 million during the fourth quarter of 2017 compared to net income of $32 million in the third quarter of 2017. The increase in earnings is primarily due to an increase in our average realized methanol price during the fourth quarter, offset by a $37 million non-cash charge from the revaluation of a net deferred tax asset as a result of tax reform in the United States and a $38 million mark-to-market impact of share-based compensation due to the increase in the Methanex share price.
- We recorded Adjusted EBITDA of $254 million for the fourth quarter of 2017 compared with $143 million for the third quarter of 2017. Adjusted net income was $143 million for the fourth quarter of 2017 compared to Adjusted net income of $52 million for the third quarter of 2017. The increase in Adjusted EBITDA and Adjusted net income is primarily due to an increase in our average realized methanol price to $350 per tonne for the fourth quarter of 2017 from $307 per tonne for the third quarter of 2017.
- Production for the fourth quarter of 2017 was a record 1,942,000 tonnes compared with 1,765,000 tonnes for the third quarter of 2017.
- Total sales volume for the fourth quarter of 2017 was a record 2,852,000 tonnes compared with 2,771,000 tonnes for the third quarter of 2017. Sales of Methanex-produced methanol were 1,930,000 tonnes in the fourth quarter of 2017 compared with 1,753,000 tonnes in the third quarter of 2017.
- Cash flows from operating activities in the fourth quarter of 2017 increased to $206 million compared with $124 million for the third quarter of 2017, an increase of $82 million. The increase is primarily the result of the impact of higher realized methanol prices.
- During the fourth quarter of 2017 we completed the 10% normal course issuer bid initiated in March 2017 repurchasing the maximum 6,152,358 common shares in 2017 for approximately $286 million.
- During the fourth quarter of 2017 we paid a $0.30 per common share dividend to shareholders for a total of $25 million.
- We announced today that the Board of Directors has approved a 10% increase to our quarterly dividend to shareholders, to $0.33 per share per quarter from $0.30 per share per quarter to be effective March 2018.
- Our cash position and liquidity are strong and it is our intention to initiate a new 10% normal course issuer bid on March 2018, which is the earliest timing allowed under Canadian securities legislation.
- In 2017 we achieved record production and sales volume and the highest annual Adjusted EBITDA in the Company's history.
|(thousands of tonnes)||Annual Operating Capacity 1||2017 Production||2016 Production||Q4 2017 Production||Q3 2017 Production||Q4 2016 Production|
|New Zealand 2||2,430||1,943||2,181||558||502||536|
|Trinidad (Methanex interest) 3||2,000||1,768||1,605||466||457||455|
|Egypt (50% interest)||630||534||293||145||71||96|
|Medicine Hat (Canada)||600||593||488||158||158||92|
- New Zealand production increased to 558,000 tonnes compared with 502,000 tonnes in the third quarter of 2017. The New Zealand facilities are capable of producing up to 2.4 million tonnes annually, depending on natural gas composition.
- Geismar production rates continue to be strong, with production of 506,000 tonnes.
- Trinidad produced 466,000 tonnes (Methanex interest) compared with 457,000 tonnes in the third quarter of 2017. We continue to experience gas curtailments in Trinidad.
- Egypt produced 145,000 tonnes (Methanex share). Following the turnaround performed during the third quarter of 2017, the plant has run at high rates.
- Medicine Hat continued to run at high rates with production of 158,000 tonnes.
- Chile produced 109,000 tonnes, produced using only natural gas supply from Chile.
FORWARD-LOOKING INFORMATION WARNINGThis fourth quarter 2017 press release contains forward-looking statements with respect to us and the chemical industry. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond the Company's control. Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Methanex does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law. Refer to Forward-Looking Information Warning in the fourth quarter 2017 Management's Discussion and Analysis for more information which is available from the Investor Relations section of our website at www.methanex.com, the Canadian Securities Administrators' SEDAR website at www.sedar.com and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov. NON-GAAP MEASURES The Company has used the terms Adjusted EBITDA, Adjusted net income (loss), Adjusted net income (loss) per common share, Adjusted revenue and operating income throughout this document. These items are non-GAAP measures that do not have any standardized meaning prescribed by GAAP. These measures represent the amounts that are attributable to Methanex Corporation shareholders and are calculated by excluding the mark-to-market impact of share-based compensation as a result of changes in our share price and the impact of certain items associated with specific identified events. Refer to Additional Information - Supplemental Non-GAAP measures on page 13 of the Company's MD&A for the period ended December 31, 2017 for reconciliations to the most comparable GAAP measures. Unless otherwise indicated, the financial information presented in this release is prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). For further information, contact: Dean RichardsonVice President, Treasury and Investor RelationsMethanex Corporation604-661-2600