) has received the necessary air permits from the State of
Louisiana and the Environmental Protection Agency (EPA) to build
and operate its one million ton-methanol project in Geismar,
The construction of the site will start soon and the project is
expected to be completed in less time and will involve
significantly less capital compared with a similar greenfield
methanol plant. Methanex expects that the project will also
create significant value for shareholders. Methanol production
from the Geismar site is expected by the end of 2014.
Last month, Methanex released its third-quarter 2012 results. The
company reported adjusted earnings of 38 cents per share in the
quarter compared with 43 cents per share registered in the same
period last year. The results surpassed the Zacks Consensus
Estimate of 30 cents, reflecting a positive surprise of around
Revenues dipped 2.1% year over year to $655.3 million, missing
the Zacks Consensus Estimate of $659 million. Sales volumes in
the quarter totaled 1,899 million tons, up 0.5% from the year-ago
Methanex feels that the methanol industry and its pricing
environment appear attractive in the longer term as global demand
is expected to surpass new capacity additions. The company,
however, sees upward pressure on methanol prices in the fourth
quarter stemming from steady demand and industry outages. It
further noted that methanol price will depend on a number of
factors such as economic health, operating rates, global energy
prices and demand.
CELANESE CP-A (CE): Free Stock Analysis
EASTMAN CHEM CO (EMN): Free Stock Analysis
METHANEX CORP (MEOH): Free Stock Analysis
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The company believes that its healthy financial position, strong
global supply network and competitive-cost position will
strengthen its position as the global leader in the methanol
industry and enable it to continue to deliver incremental returns
Methanex, which faces stiff competition from
Eastman Chemical Co.
), retains a short-term (1 to 3 months) Zacks #3 Rank (Hold). We
currently have a long-term (more than 6 months) Underperform
recommendation on the stock.