Chemical maker Methanex Corporation
(MEOH - Free Report
) recorded net profit (attributable to Methanex shareholders) of $84 million or 89 cents per share in the second quarter of 2017 against a loss of $3 million or 8 cents logged a year ago and a profit of $132 million or $1.46 per share in the first quarter of 2017.
Earnings declined on a sequential basis due to a decrease in average realized methanol price during the second quarter.
Adjusted (barring one-time items) earnings per share for the reported quarter was 85 cents per share, missing the Zacks Consensus Estimate of $1.19 per share.
Adjusted EBITDA in the quarter was $174 million compared with $38 million in the prior-year quarter.
Production for the second quarter was 1,614,000 tons compared with 1,770,000 tons in the year-ago period.
Revenues rose roughly 42.9% year over year to $669 million in the reported quarter.
Methanex Corporation Price, Consensus and EPS Surprise
Cash flows from operating activities in the second quarter were $250 million compared with $34 million for the prior-year quarter. Cash and cash equivalents were $361.3 million in the second quarter of 2017, up 34.3% year over year. Long-term debt was around $1.53 billion, up roughly 2% year over year.
Methanex expects global methanol prices to stabilize in the third quarter. The company expects EBITDA to decline sequentially in the third quarter.
Methanex’s shares lost 1.4% in the last three months, outperforming the industry
’s gain of 4.2%.
Zacks Rank & Key Picks
Methanex currently carries a Zacks Rank #5 (Strong Sell).
Akzo Nobel has expected long-term earnings growth of 11.1%.
Arkema has expected long-term earnings growth of 12.4%.
Hitachi Chemical has expected long-term earnings growth of 5%.
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