Methanex coming out of tough 2020 in better shape
By COLLIN GALLANT on May 1, 2021.
cgallant@medicinehatnews.com@CollinGallant The head of Methanex said the global economy and methanol demand continue to strengthen in 2021 as the company with a major plant in Medicine Hat released first-quarter financials this week at its annual general meeting. “We are cautiously optimistic that manufacturing activity will rebound and the economy will fully recover in the medium term as vaccine rollouts accelerate and as governments announce additional fiscal support measures,” said John Floren, the president of the Vancouver-based global methanol producer. On Thursday, the company reported net income of US$109 million during the first three months of 2021, compared to a net loss of US$27 million in late 2020. That year, hampered by slow down in global industrial activity and demand, the company reported a whole-year loss of US$157 million. The price of methanol in 2020 averaged $247 per tonne, compared to $295 in 2019, but sits at $363 per tonne in early 2021. The report also outlines a return to normal output in Medicine Hat plant, which saw a significant turnaround in late 2020, as did the company’s existing plants in Geismar, Louisiana. The company has not yet restarted its Geismar 3 expansion – paused early in the pandemic slowdown – but will spend $60 over the next six months in “care and maintenance” on the project. 8-7
