Methanex Reports Strong Q3 2026 Earnings Driven by Middle East Supply Disruptions
Methanex (MEOH) reported a third-quarter adjusted EBITDA of $543 million, bolstered by elevated global methanol prices resulting from geopolitical supply disruptions in the Middle East. These disruptions have reduced annualized industry demand by an estimated 10 to 15 million tonnes as regional exports were restricted. Management is prioritizing balance sheet strength and shareholder returns over capital expansion. The company plans to utilize its strong cash flow to reduce leverage toward a target debt-to-operating profit ratio of 2.0x to 2.5x and has initiated a share repurchase program for up to 5% of outstanding shares. High construction costs in the EPC market are currently deterring new plant investments.
Tickers: $MEOH
Topics: debt reduction earnings report geopolitical supply disruption methanol prices share repurchases
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