Canada's Methanex Q2 revenue and adjusted EPS rise less than expected

Overview

• Canada methanol producer's Q2 revenue, adjusted EPS and EBITDA missed analyst expectations

• Record adjusted EBITDA driven by higher realized prices and strong North American output

• Company indefinitely idled Titan plant in Trinidad, recording $115 mln asset impairment charge

Outlook

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

• Company expects July-Aug average realized price between $460 and $485 per tonne

• Methanex expects lower Adjusted EBITDA in Q3 due to lower realized price and similar sales

Result Drivers

• HIGHER REALIZED PRICES - Co said record adjusted EBITDA was largely due to higher methanol prices following significant industry supply losses

• NORTH AMERICAN OUTPUT - Strong production at Geismar and Medicine Hat supported results, offsetting declines elsewhere

• REGIONAL PRODUCTION DECLINES - Output fell in Chile, New Zealand and Trinidad due to gas constraints, planned outages and unplanned disruptions

Company press release: ID:nGNX8KVfgc

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 8 times the next 12-month earnings vs. a P/E of 13 three months ago

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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.)