We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Methanex to Idle New Zealand Production Facilities Amid Gas Shortage
Read MoreHide Full Article
Key Takeaways
Methanex will indefinitely idle its New Zealand facilities in the first quarter of 2027.
The move follows declining New Zealand gas availability and no clear path to new supply.
Methanex plans to preserve the assets, retaining the option to restart if gas conditions improve.
Methanex Corporation (MEOH - Free Report) has announced an agreement to sell substantially all of its New Zealand natural gas contractual entitlements beginning in the first quarter of 2027 and continuing through the end of the decade, when the entitlements expire. The decision follows a prolonged decline in domestic natural gas availability in New Zealand and the lack of a clear pathway for meaningful new supply.
The company plans to work with employees, contractors, suppliers, customers and government stakeholders throughout the transition
Per MEOH, the facilities have operated for more than four decades and have historically contributed to its global production network. The company had been preparing for the eventual decline in New Zealand gas availability for several years and had actively managed its operations to match available supply.
Methanex added that the immediate focus is on supporting employees and other stakeholders, safely operating the facilities over the coming months and then safely idling and preserving the assets. Methanex intends to maintain long-term optionality for a potential restart should future gas supply conditions improve sufficiently to support economically viable operations.
The decision is expected to have limited near-term cash cost implications, as Methanex does not expect to incur material cash costs from idling the facilities. However, the shutdown will reduce the company's production footprint and remove New Zealand as a source of methanol production from 2027 onward.
Price Performance of MEOH
Shares of MEOH are up 70.3% over the past year compared with the industry’s 3.2% rise.
The Zacks Consensus Estimate for WS’ current-year earnings is $3.4 per share, implying a 52.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the negative average surprise being 13.8%.
The Zacks Consensus Estimate for CRS’ fiscal current-year earnings is pegged at $13.28 per share, implying a 23.4% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 8.4%.
The Zacks Consensus Estimate for AVNT’s current-year earnings is pegged at $3.2 per share, indicating a 13.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 3.4%.
View the Zacks #1 Rank List
Image: Bigstock
Methanex to Idle New Zealand Production Facilities Amid Gas Shortage
Key Takeaways
Methanex Corporation (MEOH - Free Report) has announced an agreement to sell substantially all of its New Zealand natural gas contractual entitlements beginning in the first quarter of 2027 and continuing through the end of the decade, when the entitlements expire. The decision follows a prolonged decline in domestic natural gas availability in New Zealand and the lack of a clear pathway for meaningful new supply.
The company plans to work with employees, contractors, suppliers, customers and government stakeholders throughout the transition
Per MEOH, the facilities have operated for more than four decades and have historically contributed to its global production network. The company had been preparing for the eventual decline in New Zealand gas availability for several years and had actively managed its operations to match available supply.
Methanex added that the immediate focus is on supporting employees and other stakeholders, safely operating the facilities over the coming months and then safely idling and preserving the assets. Methanex intends to maintain long-term optionality for a potential restart should future gas supply conditions improve sufficiently to support economically viable operations.
The decision is expected to have limited near-term cash cost implications, as Methanex does not expect to incur material cash costs from idling the facilities. However, the shutdown will reduce the company's production footprint and remove New Zealand as a source of methanol production from 2027 onward.
Price Performance of MEOH
Shares of MEOH are up 70.3% over the past year compared with the industry’s 3.2% rise.
MEOH’s Zacks Rank & Key Picks
MEOH carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Worthington Steel, Inc. (WS - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Avient Corporation (AVNT - Free Report) . WS currently sports a Zacks Rank #1 (Strong Buy), while CRS and AVNT carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for WS’ current-year earnings is $3.4 per share, implying a 52.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the negative average surprise being 13.8%.
The Zacks Consensus Estimate for CRS’ fiscal current-year earnings is pegged at $13.28 per share, implying a 23.4% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 8.4%.
The Zacks Consensus Estimate for AVNT’s current-year earnings is pegged at $3.2 per share, indicating a 13.5% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 3.4%.