New Methanex Plants Ramp Up

Methanex Corporation (MEOH - Analyst Report), the world’s largest supplier of methanol, earned $40.5 million or 43 cents per share in the second quarter of 2011 versus last year’s net income of $14.8 million or 15 cents per share. Earnings missed the Zacks Consensus Estimate of 44 cents per share.

Revenues:
Quarterly revenues of $622.8 million outshone the Zacks Consensus Estimate of $592 million and exceeded year-ago revenues of $448.5 million.

Total methanol sales volumes excluding commission sales volumes for the second quarter of 2011 were higher compared with the second quarter of 2010 by 56,000 tons. The higher sales volumes resulted in higher Adjusted EBITDA by $3 million.

Total production climbed to 1.05 million tons in the second quarter of 2011 from 765 thousand tons in the second quarter of 2010. Production gains reflected the opening of plants in Egypt and Medicine Hat, Alberta in the current year. The Egyptian facility started commercial operations in March 2011, while the Medicine Hat plant began production in April 2011.