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Methanex (MEOH) Renews $400M Revolving Credit Facility

Zacks Equity Research

Methanex Corporation (MEOH) declared that it has renewed its revolving credit facility worth $400 million with a consortium of banks. RBC Capital Markets has arranged the entire facility. This renewed facility, which replaces the existing revolving facility (scheduled to expire in Dec 2016), will now expire in Dec 2019.

According to Ian Cameron, SVP Finance and CFO of Methanex, the company holds a strong financial position and is striving to maintain a strong liquidity with cash balance of $475 million at the end of the third quarter of 2014, cash proceeds from the recent $600 million bond issuances and the $400 million credit facility.

Methanex reported its third-quarter 2014 results on Oct 29. The company saw a 40% fall in profits from the year-ago quarter to $52 million, hurt by lower methanol pricing. The Canada-based methanol producer’s earnings of 54 cents per share (treating stock-based compensation as a normal expense) for the quarter fell well short of the Zacks Consensus Estimate of 65 cents and came in below 90 cents per share, recorded a year ago.

Sales for the reported quarter also saw a dip of roughly 4% year over year to $730 million. Average realized price was $389 per ton in the third quarter, down 11% from $438 per ton a year ago.

Methanex is the world's largest supplier of methanol to major international markets in North America, Asia-Pacific, Europe and Latin America.

Methanex currently carries a Zacks Rank #4 (Sell).

Other stocks worth considering in the diversified chemical space include Innospec Inc. (IOSP), Valhi, Inc. (VHI) and Celanese Corporation (CE). While Innospec and Valhi sport a Zacks Rank #1 (Strong Buy), Celanese carries a Zacks Rank #2 (Buy).

Read the Full Research Report on MEOH
Read the Full Research Report on CE
Read the Full Research Report on VHI
Read the Full Research Report on IOSP


Zacks Investment Research