BRITISH COLUMBIA

Methanex reports 3Q net loss of $3 million; lower average realized prices

10/25/2012 06:52 EDT | Updated 12/25/2012 05:12 EST
VANCOUVER - Methanex Corp. (TSX:MX), the world's largest supplier of methanol, is reporting a net loss in the third quarter.

The Vancouver-based company said early Thursday that the net loss attributable to shareholders was $3 million before adjustments, compared with a $62-million profit in the third quarter of 2011.

On an adjusted basis, the company reports a net income of $36 million, or 38 cents per share on a diluted basis, compared with $40 million, or 43 cents a share on a diluted basis, a year ago.

Methanex says that during the quarter it recorded a $21 million after-tax cash expense related to moving an idle facility in Chile to Geismar, La., as well as an $18 million after-tax non-cash expense related to the facility in Chile.

Methanex say there was a decrease in the average realized price to $373 per tonne, compared with $377 a year ago and $384 in the second quarter.

However, president and CEO Bruce Aitken said in a statement that there has been upward pressure on spot methanol prices.

"Longer term, the outlook for the industry and pricing environment looks very attractive, as demand growth is expected to significantly outpace new capacity additions over the next few years," Aitken said.