NEWS FILE PHOTO The Methanex plant in Medicine Hat is seen in this undated photo.
cgallant@medicinehatnews.com@CollinGallant
Methanex is stressing its record of returning profits to shareholders and the potential upside of facility expansions ahead of board elections next month in which a major investor will push for slowing down plant projects.
Earlier this month, M&G investments, which controls about one-fifth of Methanex shares, stated the company is too focused on building a potential third plant in Louisiana, and has promoted a slate of director candidates.
The company has moved the project to be its top planning priority and recently stated it could approve it by mid-2019 even without a partner to defray the potential US$1.6-billion cost.
“It is clear M&G has developed a short-term focus on share buybacks,” reads a company statement endorsing current board members for re-election.
“Methanex has an established, successful track record of balanced capital allocation … Over the last five years we have returned $1.6 billion to shareholders through our dividend and share buybacks in addition to investing over $2 billion in attractive capital projects.
“We are extremely disappointed in the approach taken by M&G.”
Voting takes place on April 25 at the company’s annual general meeting in Vancouver.
Also this Week, U.K.-based M&G announced its four director candidates for the 12 person board, and said it supports prudent investments.
“Methanex is an excellent example of our approach to long-term value creation,” read a release from the firm, citing its support for several expansion projects.
“We also support the development of Geismar 3, but only if Methanex brings in a financial partner – as we have repeatedly made clear.”
In 2017, M&G stated it opposed expansion, including a proposed C$1.3-billion twinning of Methanex’s Medicine Hat facility. After plant relocations from South America, resulting in the Geismar complex, it said Methanex should focus on boosting dividends and retiring shares.
