Methanex sees profits soar in first quarter, despite lower production

By Medicine Hat News on May 6, 2025.

@MedicineHatNews

Profits were higher for Methanex to start 2025, as higher prices for methanol were recorded and the Canadian company reported separately it has restarted its new production plant at Geismar, La.

First-quarter financial reports released Wednesday stated net income in the first three months at US$111 million, double that of the same period in 2024, while production slumped but prices rose.

That was due to a shutdown as Geismar in late February, though the company said on May 1 the 1.8-million tonne per year plant was operating again.

Production at Medicine Hat was stable at 140,000 tonnes for the three months, close to maximum capacity.

Methanol in the quarter averaged US$404 per tonne, up from US$378 in late 2024.

“We are closely monitoring the macro-economic environment and are proactively managing the business,” said president and CEO Rich Sumner. “Our priorities are the safe restart of Geismar 3, the reliable and cost efficient operation of our assets and supply chain, and effectively integrating the OCI assets post closing.”

The company also expects a purchase of two OCI production facilities in Beaumont, Texas to close this spring.

Later in a conference call, officials outlined that they “anticipate significant growth capital over the next few years.”

Earnings season will continue next week for several other companies with major interests in southeast Alberta.

CF Industries is expected to release its next earnings report May 7. Suffield Block oil and gas operator International Petroleum Corp. will report May 6.

[Editor’s note: This article correct the volume of methanol produced at the Medicine Hat facility to 140,000 tonnes, rather than 140 million, as previously stated.]

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