The Methanex plant site in Medicine Hat is pictured. -- NEWS FILE PHOTO
Methanex reversed a net loss in the fourth quarter of 2019 compared to the summer as the global methanol maker recorded all-time high production, but had yearly results dragged down by lower prices.
The Vancouver-based company that has major operations in Medicine Hat released its year-end financial statements on Wednesday, stating a whole year net income of $88 million, down from $569 million for 2018.
Discussing the year-end results that were released Wednesday, managers also said the company was pleased with production and early execution on an expansion plan for its Louisiana complex.
At the same time, the are “aggressively” and more broadly pursuing a strategic partner for the 1.8-million tonne project.Â
“Our balanced approach to capital allocation remains unchanged,” said CEO John Floren in a statement. “We believe we are well positioned to meet our financial commitments, execute our growth projects in Louisiana, and deliver on our commitment to return excess cash to shareholders through dividends and share repurchases.”
Methanol price in the final three months of the year was $256, about $16 lower than the summer.
The company produced 7.6 million tonnes of methanol for the whole of 2019, compared to 7.2 million in 2018, thanks to restarting a Chilean plant on a limited basis and production process increases at two existing Louisiana plants. A third plant there would produce 1.8 million tonnes annually, cost $1.3 billion and be complete in mid-2022.
Production in Medicine Hat was steady through all quarters at or near full capacity. The company expects to spend $150 million in 2020 on maintenance activities.
Floren also told analysts on a conference call discussing results that Methanex has engaged a financial services firm to head hunt potential partners in the Louisiana project. The company sought out suppliers, customers or related industries to join in building on the land located in the Gulf Coast area.
