- “We expect our future cash generation capability will be enhanced by Geismar 3, a unique project with significant capital and operating cost advantages. Geismar 3 is our only major growth capital project expected over the next few years..." says John Floren, President & CEO of Methanex (NASDAQ:MEOH).
- The Company lately completed deleveraging initiatives and credit facility amendments to strengthen its balance sheet and improve financial flexibility.
- MEOH says that the Geismar 3 is de-risked, on budget and on-track for commercial operations by late 2023/early 2024.
- The Company estimates the total capital costs for the Geismar 3 project to be $1.25 to $1.35 billion, lower than its prior estimate of $1.3 to $1.4 billion.
- Methanex plans to fund construction with cash on hand and future cash flow (without incurring incremental debt) at methanol prices of ~$275 per tonne and higher.
- "We reset our regular quarterly dividend to $0.125 per share from $0.0375 per share".
- Press Release
- Previously (July 16): Methanex, Mitsui O.S.K. Lines outline commercial terms for strategic partnership.