) announced that its wholly-owned subsidiary - Methanex Chile SA
- has inked a settlement deal with Total Austral SA of Argentina
in regards to Total's natural gas delivery obligations under a
long-term natural gas supply agreement signed between the two
Per the deal, Total will make a lump sum payment of $42 million
to Methanex to end the agreement and settle all potential legal
disputes under it. Methanex believes that the settlement is in
the best interest of the shareholders.
Methanex aims to focus its efforts in Chile on realizing full
value from its remaining assets including non-performing natural
gas contracts. Methanex remains optimistic of operating in Chile
supported by gas supplies from both Chile and Argentina.
Recently, Methanex released its first-quarter 2014 results. The
company saw its profit zoom in the quarter as higher methanol
pricing and increased production resulting from its capacity
expansion measures boosted the bottom line. However, the
company's shares dropped as its earnings missed expectations.
Methanex posted earnings of $1.50 per share in the quarter, a
more than two-fold surge from 63 cents per share logged a
year-ago. Profit jumped 142% to $145 million from $60 million in
the prior year. Earnings per share, however, fell well short of
the Zacks Consensus Estimates of $1.84.
Revenues shot up roughly 48% year over year to $968 million in
the reported quarter on better pricing and higher methanol sales
volumes, backed by healthy demand. However, it missed the Zacks
Consensus Estimate of $1,003 million.
Methanex is a Zacks Rank #3 (Hold) stock.
Other chemical stocks worth considering include
Compass Minerals International Inc.
Eastman Chemical Co.
L'Air Liquide SA
). While Compass Minerals International carries a Zacks Rank #1
(Strong Buy), Eastman Chemical and L'Air Liquide retain a Zacks
Rank #2 (Buy).
AIR LIQUIDE-ADR (AIQUY): Get Free Report
COMPASS MINERLS (CMP): Free Stock Analysis
EASTMAN CHEM CO (EMN): Free Stock Analysis
METHANEX CORP (MEOH): Free Stock Analysis
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