Vancouver-based methanol producer Methanex (TSX:MX; NYSE:MEOH) reported earnings that beat analyst expectations after markets closed yesterday, but its share price was down more than four per cent in trading today.
B.C.'s 89th largest company, ranked by revenue, reported that it generated US$57 million on US$939.37 million in revenue in its second quarter, ended June 30.
Its US$0.60-per-share profit beat the Zacks consensus estimate of US$0.55 per share, but is down from US$1.16 per share earned in the same quarter in 2022.
In the past four quarters Methanex surpassed Zacks' consensus estimates for earnings per share three times, and for revenue each time.
"Our key strategic priority is completing the G3 project safely, on time and on budget in the fourth quarter of this year," Methanex CEO Rich Sumner said in a release, referring to the company's US$1.3-billion Geismar 3 project at its Geismar, Louisiana site.
Once commissioned, the Methanex' G3 facility is expected to be able to produce 1.8 million tonnes of methanol per year. When that is combined with two other Methanex-owned methanol plants in the area, the site will be one of the largest methanol complexes in the world, according to Methanex.
Methanex is returning capital to shareholders via share buybacks and dividends. In the past quarter it returned about US$51 worth of capital to shareholders, it said.
Methanex has stakes in methanol production in the U.S., New Zealand, Trinidad, Chile, Egypt and Canada. It employs more than 1,400 people.
Methanex shares are up in value by about 9.7 per cent in the past year, while the Toronto Stock Exchange index is up nearly six per cent.
