Methanex Corporation 's MEOH board of directors approved a Normal Course Issuer Bid, per which the company will purchase for cancellation up to 6,590,095 common shares representing 10% of the public float at the time of the announcement.
The repurchase under the program will start on Mar 13, 2018 and end no later than Mar 12, 2019. Share buybacks will be made from time to time at the then current market price and all shares purchased will be cancelled.
The company has a long track record of returning excess cash to shareholders. Methanex is well positioned to generate strong cash flows at a range of m ethanol prices . Additionally, the company has a solid liquidity position and strong balance sheet. It remains on track with its plans of capitalizing on near-term growth opportunities in Chile.
In the last six months, shares of Methanex have moved up 9.1%, outperforming the industry 's gain of 7%.
In fourth-quarter 2017, the company recorded adjusted (barring one-time items) earnings of $1.70 per share, outpacing the Zacks Consensus Estimate of $1.19. Revenues also increased roughly 47.2% year over year to $861 million.
Methanex generated cash flows from operating activities of $206 million in the fourth quarter compared with $66 million in the prior-year quarter. Cash and cash equivalents were $375.5 million at the end of 2017, a roughly 68% year-over-year increase.
Methanex noted that methanol prices improved in the fourth quarter as well as in the early 2018 courtesy of healthy demand and methanol supply challenges. Meanwhile, the company's Chile IV plant is progressing with its restart process and is expected to be complete by third-quarter 2018.
Methanex Corporation Price and Consensus
Zacks Rank & Other Stocks to Consider
Methanex sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks worth considering from the chemical space are Arkema SA ARKAY , LyondellBasell Industries N.V. LYB and Univar Inc. UNVR . All three stocks flaunt a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
LyondellBasell has an expected long-term earnings growth rate of 9%. The company's shares have moved up 18.5% in a year.
Arkema has an expected long-term earnings growth rate of 8%. The company's shares have moved up 17.2% in six months.
Univar has an expected long-term earnings growth rate of 13.6%. The company's shares have gained 10.7% in six months.
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