), the world's largest supplier of methanol, announced that it has
restarted its second methanol plant at its Motunui site in New
Zealand. According to the company, the plant will raise the site
capacity by 650,000 tonnes per year to 1.5 million tonnes per year.
The plant, which will serve the Asian markets, was restarted by
Methanex at optimum costs and is expected to generate strong
supplies. The increased natural gas supply situation in New Zealand
will enable improved production from the Motunui site. Further, the
company also plans to restart another plant near the Waitara Valley
Methanex, in May 2012, posted earnings of 23 cents per share in
the first quarter of 2012, down from 37 cents a year ago. The
results missed the Zacks Consensus Estimate of 36 cents. Earnings
were impacted by lower sales of Methanex-produced methanol.
Revenues of $666 million exceeded the year-ago revenues of $619
million, a roughly 7.6% increase. Sales surpassed the Zacks
Consensus Estimate of $633 million. Sales volumes in the quarter
totaled 1.8 million tons, down 2.2% from the year-ago quarter.
Average realized price per ton amounted to $437 in the quarter,
almost flat versus the year-ago quarter. Total production in the
quarter amounted to 945 thousand tons compared with 801 thousand
tons in the prior-year quarter.
Methanex expects strong methanol demand and an upward pressure
on prices in the second quarter of 2012. However, the company
believes that methanol price will depend on the strength of the
global economy, industry operating rates, global energy prices, new
supply additions and the strength of global demand.
As part of its strategy to strengthen its position as the global
leader in the production and marketing of methanol, Methanex
intends to continue pursuing new opportunities to boost its
strategic position in the methanol industry.
Methanex faces stiff competition from
Eastman Chemical Co.
). Currently the company retains a Zacks #4 Rank, reflecting a
short-term (1 to 3 months) Sell rating.
CELANESE CP-A (CE): Free Stock Analysis Report
EASTMAN CHEM CO (EMN): Free Stock Analysis
METHANEX CORP (MEOH): Free Stock Analysis
To read this article on Zacks.com click here.