Methanex announces closure of Motunui plant

Methanex, a Canadian company and New Zealand's largest gas user, will close its plant and sell its gas contracts due to insufficient supply. The move will impact around 200 employees and the local economy, but the plant may be reactivated if future gas supplies become available. Genesis Energy has secured additional gas supplies, and political parties debate the government's energy policies.

Methanex will sell its New Zealand gas entitlements and indefinitely idle its Taranaki plant by Q1 2027 due to declining gas availability. The company employs 300 people and exports 95% of its methanol production. Genesis Energy secured extra gas supplies through 2029, including 11.4 PJ from a third party and 8.6 PJ from Beach Energy, subject to approval.

Methanex (TSX: MX, Nasdaq: MEOH) announced that Natgasoline LLC, a joint venture, priced $290.95M tax-exempt bonds with a 4.75% coupon rate. Proceeds will refinance existing 2018 bonds, extending maturity to 2046. The CFO stated this refinancing strengthens the venture's financial flexibility.

Methanex reported Q2 2026 adjusted EPS of $3.87, below the $3.99 consensus, and revenue of $1.395 billion versus a $1.459 billion forecast. Net income attributable to shareholders was $198 million, reversing a $14 million net loss in Q1. Results were supported by higher realized methanol prices ($529/tonne). Guidance expects July-August realized prices of $460 to $485/tonne.

Methanex reported Q2 2026 net income attributable to shareholders of $198 million and Adjusted EBITDA of $577 million. Average realized methanol price rose to $529 per tonne from $351 in Q1. Production was 2.213 million tonnes. The company announced indefinite idling of the Titan plant and restructuring in Trinidad, including a $115 million non-cash impairment charge, and ended Q2 with $383 million cash.

Methanex reported Q2 2026 net income attributable to shareholders of $198 million and Adjusted EBITDA of $577 million, versus a Q1 2026 net loss of $14 million and Adjusted EBITDA of $220 million. Average realized methanol price rose to $529 per tonne from $351. The company produced 2.213 million tonnes and announced indefinite idling of its Titan plant in Trinidad, taking a $115 million non-cash impairment charge. Cash from operations was $439 million.