Canada's Methanex recorded net income of C$36 million ($36.1 million) for third quarter 2012, compared with C$40 million for the same period last year, a decline the company attributed to low methanol prices.
The company said late Wednesday it expects better prices in the last part of the year.
"Entering the fourth quarter, steady methanol demand and supply outages across the industry have resulted in upward pressure on spot methanol prices, and today, we announced an increase of $43/ton to our North-American non-discounted price," President Bruce Aitken said in a statement.
"Longer term, the outlook for the industry and pricing environment looks very attractive, as demand growth is expected to significantly outpace new capacity additions over the next few years."
The company's production from its global facilities stood at 1.025 million mt in third quarter 2012, compared with 1.035 million mt in the same period last year. Also, methanol sales were 1.053 million mt, compared with 983,000 mt in the same period of 2011.
"We continue to progress on the initiatives to increase production in New Zealand and Medicine Hat, Alberta, which could add up to 1 million metric tons of annual capacity by end 2013. Besides, the Louisiana project is also progressing well and in total, these projects have the potential to increase our operating capacity by nearly 2 million metric tons over the next couple of years and improve cash generation significantly," he said.
In July, Methanex took a final investment decision to proceed with the project to relocate an idle facility in Chile to Geismar, Louisiana.
The company has started dismantling of the Chile plant and expects to receive all key construction-related permits by end 2012, Aitken said, adding the project will add 1 million mt of annual production capacity and is expected to be operational by the end of 2014.
"With over $400 million of cash on hand, an undrawn credit facility, a robust balance sheet, and strong cash flow generation, we are well positioned to invest in the Louisiana project and other strategic growth opportunities," he noted.
