VANCOUVER - Methanex (NASDAQ:MEOH) Corporation (TSX:MX) (NASDAQ:MEOH), the world's largest methanol supplier, announced the temporary shutdown of its Egypt methanol production facility today due to reduced gas supply. The Vancouver-based company, which holds a 50% stake in the 1.26 million tonne plant, cited increased demand for power generation as the reason for the gas curtailments impacting industrial operations.
The facility, representing an annual capacity of 0.63 million tonnes attributable to Methanex, was idled this morning. Methanex is actively engaging with its partner and gas supplier to restore gas supply and resume operations.
Shares of Methanex are traded on both the Toronto Stock Exchange and the NASDAQ Global Market under the symbols MX and MEOH, respectively. As a significant player in the methanol market, Methanex serves various international markets, providing a key ingredient used in products such as adhesives, foams, and plastics.
This operational hiccup comes amidst a period when energy supplies are under pressure due to seasonal factors. The company has not provided a timeline for when the methanol production facility is expected to return to full operation.
The information in this report is based on a press release statement from Methanex Corporation.
InvestingPro Insights
In the wake of Methanex Corporation's recent announcement regarding the temporary shutdown of its Egypt methanol production facility, investors and market watchers are closely monitoring the company's performance metrics and management strategies. According to InvestingPro data, Methanex has a market capitalization of $3.4 billion USD, with a P/E ratio of 20.37 reflecting earnings over the last twelve months as of Q1 2024.
An InvestingPro Tip highlights that Methanex's management has been actively repurchasing shares, signaling confidence in the company's value and future prospects. Additionally, the company has a longstanding history of dividend reliability, having maintained dividend payments for 23 consecutive years. This consistency may offer some reassurance to investors amidst the uncertainty caused by the current operational challenges.
Despite the temporary setback, Methanex's stock has shown strong performance over the recent months, with a 19.49% price total return over the last three months and trading near its 52-week high. This robust return profile could be an indicator of underlying strength in the company's business model and market position.
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