Methanex Reports Strong Q2 Earnings Amid Middle East Supply Disruptions
Methanex Corporation (NASDAQ:MEOH) reported strong second-quarter financial results in 2026, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reaching $577 million and an adjusted net income of $300 million. These figures were driven by higher methanol prices and record production levels from its North American operations. The company also repaid the remaining balance on a $290 million Term Loan A facility, ending Q2 with over $380 million in cash. The ongoing conflict in the Middle East has significantly disrupted global methanol supply chains by affecting 15 to 20 million tons of annualized production that typically transit through the Strait of Hormuz. This disruption led to a depletion of inventories and increased pressure on demand, particularly from China's methanol-to-olefins sector. Methanex expects third-quarter realized prices to fall between $460 and $485 per ton due to lower pricing trends and elevated shipping costs that could cost the company up to $40 million quarterly. Despite these challenges, Methanex maintained its 2026 equity production forecast at around 9 million tons. The CEO emphasized a strategy of cash accumulation and debt reduction amid market volatility.
Tickers: $MEOH
Topics: debt_repayment ebitda methanol net_income supply_chain_disruption