) announced that it will temporarily idle its joint venture
operation, Egyptian Methanex Methanol Company S.A.E. (EMethanex),
in which it owns 50% stake, due to gas availability. The plant has
the capacity to produce 1.3 million tons of methanol per year, and
is located in Damietta, Egypt on the Mediterranean Sea.
Methanex's shares went down as much as around 3% in the trading
session following the news.
Another shareholder in EMethanex informed Methanex that the latter
will not be able to resume operations at the plant before end-Jul
2014 as the available natural gas will be allotted to meet peak
summer electricity demand. The plant had been temporarily shut down
in June with the expectation of resuming soon. However, due to
ongoing gas constraints mostly related to increased seasonal
electricity demand, the shut down has been extended.
Methanex released its first-quarter 2014 results in Apr 2014.
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 companies in the chemical space worth considering include
Compass Minerals International Inc.
). While both Compass Minerals and PetroLogistics sport a Zacks
Rank #1 (Strong Buy), Celanese carries a Zacks Rank #2 (Buy).
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METHANEX CORP (MEOH): Free Stock Analysis
PETROLOGISTICS (PDH): Free Stock Analysis
CELANESE CP-A (CE): Free Stock Analysis Report
COMPASS MINERLS (CMP): Free Stock Analysis
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