-- Methanex (MX.TO, MEOH) edged down 0.5% in after-hour Nasdaq trade Wednesday as it reported a 74% year-over-year drop in adjusted net income despite higher revenue, with results missing analysts' estimates.
The methanol producer posted adjusted net income, excluding most one-time items, of US$23 million, or US$0.30 per share, down from US$88 million, or US$1.30, a year earlier. The result fell short of FactSet's consensus analyst estimate of US$0.40 per share.
Revenue for the quarter ended March 31 rose 8.7% year over year to US$974 million from US$896 million, but US986.6 million missed FactSet analysts' estimate.
Adjusted EBITDA was US$220 million, compared with US$186 million in the fourth quarter of 2025.
In its outlook, the company reiterated its expectations for 2026 production to be 9.- million tonnes (Methanex interest) of methanol and 0.3 million tonnes of ammonia.
"Based on our April and May posted prices, we expect that our average realized price range will be approximately (US)$500 to (US)$525 per tonne for these two months. Based on a higher realized price and similar sales of produced methanol, we are expecting significantly higher Adjusted EBITDA in the second quarter," Methanex said.
"This quarter saw the continuation of safe and reliable operations across our portfolio, including at the recently acquired assets in Beaumont, Texas. The conflict in the Middle East has meaningfully impacted global petrochemical supply chains, including methanol, and this has resulted in a rapid and significant increase in global methanol pricing into the second quarter," chief executive Rich Sumner said.
"We believe our global asset portfolio will allow us to continue providing unmatched reliability of supply to our customers and we remain focused on delivering on our integration plan, cost-effectively operating our assets and supply chain and continuing our de-leveraging efforts while we navigate an evolving and uncertain macro environment," added Sumner.
The company said in the first quarter of 2026, it paid a quarterly dividend of $0.185 per common share for a total of $14 million and repaid $60 million of the outstanding Term Loan A.
The company's shares were last seen down US$0.31 to US$63.00 after-hours after closing up C$3.95 at C$86.65 on Toronto Stock Exchange.