Methanex currently has significant liquidity of approximately $700 million, including cash on hand and an undrawn committed revolving credit facility
Methanex has idled its Titan plant in Trinidad. (Credit: Frauke Feind/Pixabay.)
Methanex Corporation (TSX:MX) (NASDAQ:MEOH) announced today that it has idled its Titan plant in Trinidad effective today and will idle its Chile IV plant effective April 1, 2020. These changes are being made for an indefinite period.
John Floren, President and CEO of Methanex, commented, “We anticipate that methanol demand could be impacted in the second quarter of 2020 as there has been a substantial reduction in manufacturing activity in countries that have had significant outbreaks of COVID-19. As a result, we are reducing production at our methanol facilities, where we have flexibility in our gas agreements, to prepare for lower demand for methanol. We do not expect this production change to have a significant impact on our cash flows in the current price environment.”
“Given the uncertainty in the global economy and challenging commodity price environment, we are taking steps to strengthen our balance sheet while maintaining financial flexibility. We are evaluating all capital and operating spending, including our advantaged Geismar 3 project.”
Methanex currently has significant liquidity of approximately $700 million, including cash on hand and an undrawn committed revolving credit facility, as well as an $800 million undrawn construction facility for the Geismar 3 project.
Methanex is a Vancouver-based, publicly traded company and is the world’s largest producer and supplier of methanol to major international markets. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol “MX” and on the NASDAQ Global Market in the United States under the trading symbol “MEOH”.
Source: Company Press Release