Methanex Reports Stronger Earnings in the First Quarter of 2013; Increases Dividend 8%

Methanex Reports Stronger Earnings in the First Quarter of 2013; Increases 
Dividend 8% 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/24/13 -- For the
first quarter of 2013, Methanex (TSX:MX)(NASDAQ:MEOH) reported
Adjusted EBITDA(1) of $149 million and Adjusted net income(1) of $88
million ($0.92 per share on a diluted basis(1)). This compares with
Adjusted EBITDA(1) of $119 million and Adjusted net income(1) of $61
million ($0.64 per share on a diluted basis(1)) for the fourth
quarter of 2012. 
Methanex also announced that its Board of Directors has approved an 8
percent increase to its quarterly dividend to shareholders, from
$0.185 to $0.20 per share. The increased dividend will apply
commencing with the dividend payable on June 30, 2013 to holders of
common shares on record on June 16, 2013. 
John Floren, President and CEO of Methanex commented, "Higher
methanol prices in the first quarter contributed to higher Adjusted
EBITDA compared to last quarter. Entering the second quarter,
methanol demand has continued to be healthy and the pricing
environment remains stable. With strong earnings, a positive outlook
for the methanol industry and the quality of the expansion plans
underway, I am pleased to confirm that our Board of Directors has
approved another increase to our regular dividend. This represents
the ninth increase since we implemented a dividend in 2002." 
Mr. Floren added, "We also announced today that we have made the
decision to proceed with the relocation of a second one million tonne
plant from our Chile site to Geismar, Louisiana. Our focus in the
near term remains the successful execution of both plant relocations
and our value-creating growth projects in New Zealand and Medicine
Hat. Combined, these projects represent three million tonnes of
production capacity that are expected to be completed in increments
through early 2016."  
Mr. Floren concluded, "With over US$700 million of cash on hand, an
undrawn credit facility, a robust balance sheet, and strong cash flow
generation, we are well positioned to complete our expansion plans,
pursue other strategic growth opportunities and continue to deliver
on our commitment to return excess cash to shareholders."  
A conference call is scheduled for April 25, 2013 at 12:00 noon ET
(9:00 am PT
) to review these first quarter results. To access the
call, dial the Conferencing operator ten minutes prior to the start
of the call at (416) 340-8527, or toll free at (877) 240-9772. A
playback version of the conference call will be available until June
24, 2013 (905) 694-9451, or toll free at (800) 408-3053. The passcode
for the playback version is 3021008. Presentation slides summarizing
Q1-13 results and a simultaneous audio-only webcast of the conference
call can be accessed from our website at www.methanex.com. The
webcast will be available on the website for four weeks following the
call.  
Methanex is a Vancouver-based, publicly traded company and is the
world's largest 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". 
FORWARD-LOOKING INFORMATION WARNING 
This First Quarter 2013 press release contains forward-looking
statements with respect to us and the chemical industry. Refer to
Forward-Looking Information Warning in the attached First Quarter
2013 Management's Discussion and Analysis for more information. 


 
(1) Adjusted EBITDA, Adjusted net income and Adjusted net income per common 
share are non-GAAP measures which do not have any standardized meaning      
prescribed by GAAP. These measures represent the amounts that are           
attributable to Methanex Corporation shareholders and are calculated by     
excluding the mark-to-market impact of share-based compensation as a result 
of changes in our share price and items considered by management to be non- 
operational, including asset impairment charges. Refer to the Additional    
Information - Supplemental Non-GAAP Measures section of the attached Interim
Report for the three months ended March 31, 2013 for reconciliations to the 
most comparable GAAP measures.                                              

 
Interim Report for the Three Months Ended March 31, 2013 
At April 24, 2013 the Company had 94,942,159 common shares issued and
outstanding and stock options exercisable for 3,418,808 additional
common shares. 
Share Information 
Methanex Corporation's common shares are listed for trading on the
Toronto Stock Exchange under the symbol MX and on the Nasdaq Global
Market under the symbol MEOH. 
Transfer Agents & Registrars 


 
CIBC Mellon Trust Company                                                   
320 Bay Street Toronto, Ontario                                             
Canada M5H 4A6                                                              
Toll free in North America: 1-800-387-0825                                  

 
Investor Information 
All financial reports, news releases and corporate information can be
accessed on our website at www.methanex.com.  
FIRST QUARTER MANAGEMENT'S DISCUSSION AND ANALYSIS 
Except where otherwise noted, all currency amounts are stated in
United States dollars. 
FINANCIAL AND OPERATIONAL HIGHLIGHTS 


 
--  A reconciliation from net income (loss) attributable to Methanex
    shareholders to Adjusted net income(1) and the calculation of Adjusted
    net income per common share(1) is as follows: 
 

 
                                               Three Months Ended           
                                    ----------------------------------------
($ millions except number of shares       Mar 31        Dec 31        Mar 31
 and per share amounts)                      2013         2012          2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Net income (loss) attributable to                                           
 Methanex shareholders                $        60  $      (140)  $        22
  Mark-to-market impact of share-                                           
   based compensation, net of tax              28            8            17
  Asset impairment charge, net of                                           
   tax                                          -          193             -
----------------------------------------------------------------------------
Adjusted net income (1)               $        88  $        61   $        39
----------------------------------------------------------------------------
Diluted weighted average shares                                             
 outstanding (millions)                        96           94            95
Adjusted net income per common share                                        
 (1)                                  $      0.92  $      0.64   $      0.41
----------------------------------------------------------------------------
 
--  We recorded Adjusted EBITDA(1) of $149 million for the first quarter of
    2013 compared with $119 million for the fourth quarter of 2012. The
    increase in Adjusted EBITDA(1) was primarily due to an increase in
    average realized price to $412 per tonne for the first quarter of 2013
    from $389 per tonne for the fourth quarter of 2012. 
    
 
--  Production for the first quarter of 2013 was 1,057,000 tonnes compared
    with 1,067,000 tonnes for the fourth quarter of 2012. Refer to the
    Production Summary section. 
    
--  Sales of Methanex-produced methanol were 1,024,000 tonnes in the first
    quarter of 2013 compared with 1,059,000 in the fourth quarter of 2012. 
    
--  During the first quarter of 2013, we announced our commitment to restart
    the Waitara Valley facility and complete a debottlenecking project at
    the Motunui site. We expect these initiatives will allow our New Zealand
    operations to operate at their full annual production capacity of up to
    2.4 million tonnes, depending on natural gas composition. 
    
--  We continue to make good progress with our project to relocate an idle
    Chile facility to Geismar, Louisiana. During the first quarter of 2013,
    we signed an agreement with Chesapeake Energy to supply the facility's
    natural gas requirements for a ten-year period. 
    
--   We announced today that we have reached a final investment decision to
    proceed with the relocation of a second Chile facility to the Geismar
    site. We expect this project will add a further 1.0 million tonnes of
    annual operating capacity and is expected to be operational in early
    2016. 
    
--  We also announced today that the Board of Directors has approved an 8
    percent increase to our quarterly dividend to shareholders, from $0.185
    per share to $0.20 per share, effective with the dividend payable June
    30, 2013. 
    
 
(1) These items are non-GAAP measures that do not have any standardized     
meaning prescribed by GAAP and therefore are unlikely to be comparable to   
similar measures presented by other companies. Refer to the Additional      
Information - Supplemental Non-GAAP Measures section for a description of   
each non-GAAP measure and reconciliations to the most comparable GAAP       
measures.                                                                   

 
This First Quarter 2013 Management's Discussion and Analysis ("MD&A")
dated April 24, 2013 for Methanex Corporation ("the Company") should
be read in conjunction with the Company's condensed consolidated
interim financial statements for the period ended March 31, 2013 as
well as the 2012 Annual Consolidated Financial Statements and MD&A
included in the Methanex 2012 Annual Report. Unless otherwise
indicated, the financial information presented in this interim report
is prepared in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards
Board (IASB). The Methanex 2012 Annual Report and additional
information relating to Methanex is available on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov. 
Effective January 1, 2013, we adopted new IFRS standards related to
consolidation and joint arrangement accounting. Under these new
standards, our 63.1% interest in the Atlas entity, which was
previously proportionately consolidated in our financial statements,
is accounted for using the equity method. This change has been
applied retrospectively. As a result, amounts related to Atlas are no
longer included in individual line items in our consolidated
financial statements and the net assets and net earnings are
presented separately. For purposes of analyzing our consolidated
financial results in this MD&A, the adjusted EBITDA from our 63.1%
interest in the Atlas entity is included in Adjusted EBITDA. 
FINANCIAL AND OPERATIONAL DATA 


 
                                                     Three Months Ended     
                                                ----------------------------
($ millions, except per share amounts and where    Mar 31    Dec 31   Mar 31
 noted)                                               2013     2012     2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Production (thousands of tonnes) (attributable                              
 to Methanex shareholders)                           1,057    1,067      945
                                                                            
Sales volumes (thousands of tonnes):                                        
  Methanex-produced methanol (attributable to                               
   Methanex shareholders)                            1,024    1,059      926
  Purchased methanol                                   588      664      691
  Commission sales (1)                                 219      176      198
----------------------------------------------------------------------------
Total sales volumes                                  1,831    1,899    1,815
                                                                            
Methanex average non-discounted posted price ($                             
 per tonne) (2)                                        474      450      437
Average realized price ($ per tonne) (3)               412      389      382
                                                                            
Adjusted EBITDA (attributable to Methanex                                   
 shareholders) (4)                                     149      119       93
Adjusted cash flows from operating activities                               
 (attributable to Methanex shareholders) (4)           127      101       89
Cash flows from operating activities                   118       76       74
Adjusted net income (attributable to Methanex                               
 shareholders) (4)                                      88       61       39
Net income (loss) attributable to Methanex                                  
 shareholders                                           60     (140)      22
                                                                            
Adjusted net income per common share                                        
 (attributable to Methanex shareholders) (4, 5)       0.92     0.64     0.41
Basic net income (loss) per common share                                    
 (attributable to Methanex shareholders)              0.64    (1.49)    0.24
Diluted net income (loss) per common share                                  
 (attributable to Methanex shareholders)              0.63    (1.49)    0.23
                                                                            
Common share information (millions of shares):                              
  Weighted average number of common shares              95       94       93
  Diluted weighted average number of common                                 
   shares                                               96       94       95
  Number of common shares outstanding, end of                               
   period                                               95       94       94
----------------------------------------------------------------------------
                                                                            
(1) Commission sales represent volumes marketed on a commission basis       
related to the 36.9% of the Atlas methanol facility and 40% of the Egypt    
methanol facility that we do not own.                                       
(2) Methanex a
verage non-discounted posted price represents the average of  
our non-discounted posted prices in North America, Europe and Asia Pacific  
weighted by sales volume. Current and historical pricing information is     
available at http://www.methanex.com/.                                      
(3) Average realized price is calculated as revenue, excluding commissions  
earned and the Egypt non-controlling interest share of revenue but including
an amount representing our share of Atlas revenue, divided by the total     
sales volumes of Methanex-produced (attributable to Methanex shareholders)  
and purchased methanol.                                                     
(4) These items are non-GAAP measures that do not have any standardized     
meaning prescribed by GAAP and therefore are unlikely to be comparable to   
similar measures presented by other companies. Refer to the Additional      
Information - Supplemental Non-GAAP Measures section for a description of   
each non-GAAP measure and reconciliations to the most comparable GAAP       
measures.                                                                   
(5) For the three month period ended December 31, 2012, stock options have  
been excluded from the calculation of diluted net loss per common share     
(attributable to Methanex shareholders) as their effect would be anti-      
dilutive. However, for the calculation of adjusted net income per common    
share (attributable to Methanex shareholders) stock options have been       
included in the denominator and the diluted weighted average number of      
common shares is 95 million.                                                

 
PRODUCTION SUMMARY 


 
                                     Q1 2013             Q4 2012     Q1 2012
(thousands of tonnes)        Capacity(1)  Production  Production  Production
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
New Zealand (2)                      608         309         378         174
Atlas (Trinidad) (63.1%                                                     
 interest)                           281         248         180         127
Titan (Trinidad)                     218         181         189         215
Egypt (60% interest)                 190         133         129         202
Medicine Hat (Canada)                118         131         132         114
Chile I and IV                       450          55          59         113
Geismar I and II (Louisiana,                                                
 USA) (3)                            500           -           -           -
----------------------------------------------------------------------------
                                   2,365       1,057       1,067         945
----------------------------------------------------------------------------
                                                                            
(1) The production capacity of our facilities may be higher than original   
nameplate capacity as, over time, these figures have been adjusted to       
reflect ongoing operating efficiencies. Actual production for a facility in 
any given year may be higher or lower than annual production capacity due to
a number of factors, including natural gas composition or the age of the    
facility's catalyst.                                                        
(2) The annual production capacity of New Zealand represents the two 0.85   
million tonne facilities at Motunui and the 0.53 million tonne facility at  
Waitara Valley. The current operating capacity of the Motunui facilities is 
1.5 million tonnes due to distillation capacity constraints (refer to New   
Zealand section below).                                                     
(3) We are relocating two idle Chile facilities to Geismar, Louisiana. The  
Geismar I facility is expected to be operational by the end of 2014 and the 
Geismar II facility is expected to be operational in early 2016.            

 
New Zealand 
Our New Zealand methanol facilities produced 309,000 tonnes of
methanol in the first quarter of 2013 compared with 378,000 tonnes in
the fourth quarter of 2012. During the first quarter of 2013, the
Motunui facilities suffered an equipment failure which resulted in an
unplanned outage and lost production of approximately 60,000 tonnes.
The equipment was repaired and the Motunui facilities returned to
operation at the end of March 2013. We are in the process of
refurbishing the Waitara Valley facility and debottlenecking the
Motunui facilities which we expect will allow us to produce at the
site's full annual production capacity of up to 2.4 million tonnes,
depending on natural gas composition, by the end of 2013. 
Trinidad 
In Trinidad, we own 100% of the Titan facility with an annual
production capacity of 875,000 tonnes and have a 63.1% interest in
the Atlas facility with an annual production capacity of 1,125,000
tonnes (63.1% interest). The Titan facility produced 181,000 tonnes
in the first quarter of 2013 compared with 189,000 tonnes in the
fourth quarter of 2012. Production in the first quarter of 2013 was
impacted by periodic natural gas curtailments and minor unplanned
outages.  
The Atlas facility produced 248,000 tonnes in the first quarter of
2013 compared with 180,000 tonnes in the fourth quarter of 2012. The
Atlas facility was shut down at the end of September 2012 for repairs
and returned to production at the end of October 2012. 
We continue to experience some natural gas curtailments to our
Trinidad facilities due to a mismatch between upstream commitments to
supply the Natural Gas Company of Trinidad and Tobago (NGC) and
downstream demand from NGC's customers, which becomes apparent when
an upstream supplier has a technical issue or planned maintenance
that reduces gas delivery. We are engaged with key stakeholders to
find a solution to this issue, but in the meantime expect to continue
to experience some gas curtailments to the Trinidad site. 
Egypt 
The Egypt methanol facility produced 133,000 tonnes (60% interest) in
the first quarter of 2013 compared with 129,000 tonnes in the fourth
quarter of 2012. Production during the first quarter of 2013 and the
fourth quarter of 2012 was impacted by natural gas supply
restrictions. 
The Egypt facility has experienced periodic natural gas supply
restrictions since mid-2012 which have resulted in production below
full capacity. This situation may persist in the future and become
more acute during the summer months when electricity demand is at its
peak. Refer to page 25 of our 2012 Annual Report for further details. 
Medicine Hat, Canada 
Our 470,000 tonne per year facility in Medicine Hat, Alberta produced
131,000 tonnes in the first quarter of 2013 compared with 132,000
tonnes during the fourth quarter of 2012. The Medicine Hat facility
is currently able to produce above stated production capacity due to
the age of its catalyst and the composition of the natural gas
feedstock. We are currently debottlenecking the Medicine Hat facility
which we expect will add a further 90,000 tonnes of annual production
capacity by the end of the third quarter of 2013. 
Chile 
During the first quarter of 2013 we produced 55,000 tonnes in Chile
operating one plant at approximately 20% of production capacity. In
addition, in March 2013, we began receiving natural gas from
Argentina under an arrangement whereby we process the natural gas
received and return the methanol produced to Argentina. We produced
an additional 6,000 tonnes under this arrangement during the first
quarter of 2013 and have continued receiving some natural gas from
Argentina in April 2013. 
While investments have been made by us and others to accelerate the
exploration and development of natural gas in southern Chile, the
potential for a significant increase in gas production is more
challenging than we had originally anticipated. As a result of the
short-term outlook for gas supply in Chile and Argentina, we
anticipate idling our Chile operations shortly due to insufficient
natural gas feedstock to keep our plant operating through the
southern hemisphere winter. We are continuing to work with Empresa
Nacional del Petroleo (ENAP) and others to secure sufficient natural
gas to sustain our operations and while the restart of a Chile plant
is possible later in 2013, the restart is dependent on securing a
sustainable natural gas position to operate over the medium term.  
The future of our Chile operations is primarily dependent on the
level of exploration and development in southern Chile and our
ability to secure a sustainable natural gas supply to our facilities
on economic terms from Chile and Argentina. 
Geismar, Louisiana 
We are in the process of relocating the idle Chile II facility to
Geismar, Louisiana (Geismar I). The 1.0 million tonne Geismar I
facility is expected to be operational by the end of 2014. During the
first quarter of 2013 we spent $43 million on this project and
remaining expenditures at March 31, 2013 are estimated to be $420
million.  
We announced today that we have made a final investment decision to
proceed with the relocation of the Chile III facility to the Geismar
site (Geismar II). We expect the 1.0 million tonne Geismar II plant
to be operational in early 2016. Estimated project costs are $550
million.  
FINANCIAL RESULTS 
For the first quarter of 2013 we recorded Adjusted EBITDA of $149
million and Adjusted net income of $88 million ($0.92 per share on a
diluted basis). This compares with Adjusted EBITDA of $119 million
and Adjusted net income of $61 million ($0.64 per share on a diluted
basis) for the fourth quarter of 2012.  
For the first quarter of 2013, we reported net income attributable to
Methanex shareholders of $60 million ($0.63 per share on a diluted
basis) compared with a net loss attributable to Methanex shareholders
for the fourth quarter of 2012 of $140 million ($1.49 loss per share
on a diluted basis). Our results for the fourth quarter of 2012 were
impacted by a non-cash before-tax asset impairment charge of $297
million related to the carrying value of our Chile assets. 
Effective January 1, 2013, we adopted new IFRS standards related to
consolidation and joint arrangement accounting. Under these new
standards, our 63.1% interest in the Atlas entity, which was
previously proportionately consolidated in our financial statements,
is accounted for using the equity method. This change has been
applied retrospectively. As a result, amounts related to Atlas are no
longer included in individual line items in our consolidated
financial statements and the net assets and net earnings are
presented separately. For purposes of analyzing our consolidated
financial results in this MD&A, the adjusted EBITDA from our 63.1%
interest in the Atlas entity is included in Adjusted EBITDA. Our
analysis of depreciation and amortization, finance costs, finance
income and other expenses and income taxes is consistent with the
presentation of our consolidated statements of income and excludes
amounts related to Atlas. 
We calculate Adjusted EBITDA and Adjusted net income by including
amounts related to our equity share of the Atlas (63.1% interest) and
Egypt (60% interest) facilities and by excluding the mark-to-market
impact of share-based compensation as a result of changes in our
share price and items which are considered by management to be
non-operational. Refer to the Additional Information - Supplemental
Non-GAAP Measures section for a further discussion on how we
calculate these measures. 
A reconciliation from net income (loss) attributable to Methanex
shareholders to Adjusted net income and the calculation of Adjusted
net income per common share is as follows:  


 
                                               Three Months Ended           
                                    ----------------------------------------
($ millions except number of shares       Mar 31        Dec 31        Mar 31
 and per share amounts)                      2013         2012          2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Net income (loss) attributable to                                           
 Methanex shareholders                $        60  $      (140)  $        22
  Mark-to-market impact of share-                                           
   based compensation, net of tax              28            8            17
  Asset impairment charge, net of                                           
   tax                                          -          193             -
----------------------------------------------------------------------------
Adjusted net income (1)               $        88  $        61   $        39
----------------------------------------------------------------------------
Diluted weighted average shares                                             
 outstanding (millions)                        96           94            95
Adjusted net income per common share                                        
 (1,2)                                $      0.92  $      0.64   $      0.41
----------------------------------------------------------------------------
                                                                            
(1) These items are non-GAAP measures that do not have any standardized     
meaning prescribed by GAAP and therefore are unlikely to be comparable to   
similar measures presented by other companies. Refer to the Additional      
Information - Supplemental Non-GAAP Measures section for a description of   
each non-GAAP measure and reconciliations to the most comparable GAAP       
measures.                                                                   
(2) For the three months ended December 31, 2012, stock options have been   
excluded from the calculation of diluted net loss per common share          
(attributable to Methanex shareholders) as their effect would be anti-      
dilutive. However, for the calculation of adjusted net income per common    
share (attributable to Methanex shareholders) stock options have been       
included in the denominator and the diluted weighted average number of      
common shares is 95 million.                                                

 
We review our financial results by analyzing changes in Adjusted
EBITDA, mark-to-market impact of share-based compensation,
depreciation and amortization, finance costs, finance income and
other expenses and income taxes. A summary of our consolidated
statements of income is as follows: 


 
                                                   Three Months Ended       
                                            --------------------------------
                                               Mar 31      Dec 31    Mar 31 
($ millions)                                      2013       2012      2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Consolidated statements of income:                                          
  Revenue                                     $    652   $    668   $   654 
  Cost of sales and operating expenses,                                     
   excluding mark-to-market impact of share-                                
   based compensation                             (497)      (546)     (535)
  Adjusted EBITDA of associate (Atlas) (1)           9         10        (3)
----------------------------------------------------------------------------
                                                   164        132       116 
Comprised of:                                                               
  Adjusted EBITDA (attributable to Methanex                                 
   shareholders) (2)                               149        119        93 
  Attributable to non-controlling interests         15         13        23 
----------------------------------------------------------------------------
                                                   164        132       116 
  Mark-to-market impact of share-based                                      
   compensation                                    (31)        (8)      (18)
  Depreciation and amortization                    (30)       (35)      (36)
  Asset impairment charge                            -       (297)        - 
  Earnings of associate, excluding amount                                   
   included in Adjusted EBITDA (1)                  (8)       (10)       (4)
  Finance costs                                    (15)       (13)      (16)
  Finance income and other expenses                 (2)         3         2 
  Income tax recovery (expense)                    (12)        93       (11)
----------------------------------------------------------------------------
  Net income (loss)                           $     66   $   (135)  $    33 
----------------------------------------------------------------------------
  Net income (loss) attributable to Methanex                                
   shareholders                               $     60   $   (140)  $    22 
----------------------------------------------------------------------------
                                                                            
(1) Earnings of associate has been divided into an amount included in       
Adjusted EBITDA and an amount excluded from Adjusted EBITDA. The amount     
excluded from Adjusted EBITDA represents depreciation and amortization,     
finance costs, finance income and other expenses and income tax expense     
relating to earnings of associate.                                          
(2) This item is a non-GAAP measure that does not have any standardized     
meaning prescribed by GAAP and therefore is unlikely to be comparable to    
similar measures presented by other companies. Refer to the Additional      
Information - Supplemental Non-GAAP Measures section for a description of   
the non-GAAP measure and reconciliations to the most comparable GAAP        
measure.                                                                    

 
Adjusted EBITDA (Attributable to Methanex Shareholders) 
Our operations consist of a single operating segment - the production
and sale of methanol. We review the results of operations by
analyzing changes in the components of Adjusted EBITDA. For a
discussion of the definitions used in our Adjusted EBITDA analysis,
refer to the How We Analyze Our Business section. 
The changes in Adjusted EBITDA resulted from changes in the
following:  


 
                                                    Q1 2013         Q1 2013 
                                              compared with   compared with 
($ millions)                                        Q4 2012         Q1 2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Average realized price                        $          36   $          49 
Sales volume                                            (10)             (1)
Total cash costs                                          4               8 
----------------------------------------------------------------------------
Increase in Adjusted EBITDA                   $          30   $          56 
----------------------------------------------------------------------------

 
Average realized price 


 
                                                       Three Months Ended   
                                                    ------------------------
                                                     Mar 31   Dec 31  Mar 31
($ per tonne)                                           2013    2012    2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Methanex average non-discounted posted price             474     450     437
Methanex average realized price                          412     389     382
----------------------------------------------------------------------------

 
Methanol market conditions remained healthy and pricing increased
during the first quarter of 2013 (refer to the Supply/Demand
Fundamentals section for more information). Our average
non-discounted posted price for the first quarter of 2013 was $474
per tonne compared with $450 per tonne for the fourth quarter of 2012
and $437 per tonne for the first quarter of 2012. Our average
realized price for the first quarter of 2013 was $412 per tonne
compared with $389 per tonne for the fourth quarter of 2012 and $382
per tonne for the first quarter of 2012. The change in average
realized price for the first quarter of 2013 increased Adjusted
EBITDA by $36 million compared with the fourth quarter of 2012 and
increased Adjusted EBITDA by $49 million compared with the first
quarter of 2012. 
Sales volume 
Methanol sales volumes excluding commission sales volumes were lower
in the first quarter of 2013 compared with the fourth quarter of 2012
by 111,000 tonnes and this resulted in lower Adjusted EBITDA by $10
million.  
Total cash costs  
The primary drivers of changes in our total cash costs are changes in
the cost of methanol we produce at our facilities (Methanex-produced
methanol) and changes in the cost of methanol we purchase from others
(purchased methanol). All of our production facilities except
Medicine Hat are underpinned by natural gas purchase agreements with
pricing terms that include base and variable price components. We
supplement our production with methanol produced by others through
methanol offtake contracts and purchases on the spot market to meet
customer needs and support our marketing efforts within the major
global markets. 
We have adopted the first-in, first-out method of accounting for
inventories and it generally takes between 30 and 60 days to sell the
methanol we produce or purchase. Accordingly, the changes in Adjusted
EBITDA as a result of changes in Methanex-produced and purchased
methanol costs primarily depend on changes in methanol pricing and
the timing of inventory flows.  
The impact on Adjusted EBITDA from changes in our cash costs are
explained below:  


 
                                                    Q1 2013         Q1 2013 
                                              compared with   compared with 
($ millions)                             
           Q4 2012         Q1 2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Methanex-produced methanol costs              $           -   $          (9)
Insurance recovery                                       (9)             (2)
Proportion of Methanex-produced methanol                                    
 sales                                                    5              17 
Purchased methanol costs                                (12)            (19)
Logistics costs                                          12              12 
Other, net                                                8               9 
----------------------------------------------------------------------------
                                              $           4   $           8 
----------------------------------------------------------------------------

 
Methanex-produced methanol costs 
We purchase natural gas for the New Zealand, Trinidad, Egypt and
Chile methanol facilities under natural gas purchase agreements where
the unique terms of each contract include a base price and a variable
price component linked to the price of methanol to reduce our
commodity price risk exposure. The variable price component of each
gas contract is adjusted by a formula related to methanol prices
above a certain level. For the first quarter of 2013 compared with
the same period in 2012, Methanex-produced methanol costs were higher
by $9 million primarily due to a change in the mix of production sold
from inventory. 
Insurance recovery 
We experienced an equipment failure at our Atlas facility in July
2011. Our operations are covered by business interruption insurance
and we finalized our claim and recorded a recovery of $9 million in
the fourth quarter of 2012. 
Proportion of Methanex-produced methanol sales 
The cost of purchased methanol is directly linked to the selling
price for methanol at the time of purchase and the cost of purchased
methanol is generally higher than the cost of Methanex-produced
methanol. Accordingly, an increase in the proportion of
Methanex-produced methanol sales results in a decrease in our overall
cost structure for a given period. For the first quarter of 2013
compared with the fourth quarter of 2012 and the first quarter of
2012, Methanex-produced methanol sales made up a higher proportion of
our total sales and this increased Adjusted EBITDA by $5 million and
$17 million, respectively.  
Purchased methanol costs 
Changes in purchased methanol costs for all periods presented are
primarily as a result of changes in methanol pricing. 
Logistics costs 
Logistics costs vary from period to period depending on the levels of
production from each of our production facilities and the resulting
impact on our supply chain. Logistics costs were $12 million lower in
the first quarter of 2013 compared with each of the fourth quarter of
2012 and the first quarter of 2012. As a result of improvements in
our asset portfolio over the past year, we have recently completed
several initiatives that have reduced logistics costs and improved
the efficiency of our supply chain. 
Other, net 
In October 2012, we completed a restructuring of our Chile operations
which reduced the size of our workforce and resulted in a $5 million
charge in the fourth quarter of 2012. During the first quarter of
2012, we incurred a one-time $7 million charge to earnings to
terminate a time charter vessel lease contract. 
Mark-to-Market Impact of Share-based Compensation  
We grant share-based awards as an element of compensation.
Share-based awards granted include stock options, share appreciation
rights, tandem share appreciation rights, deferred share units,
restricted share units and performance share units. For all the
share-based awards, share-based compensation is recognized over the
related vesting period for the proportion of the service that has
been rendered at each reporting date. Share-based compensation
includes an amount related to the grant-date value and a
mark-to-market impact as a result of subsequent changes in the
Company's share price. The grant-date value amount is included in
Adjusted EBITDA and Adjusted net income. The mark-to-market impact of
share-based compensation as a result of changes in our share price is
excluded from Adjusted EBITDA and Adjusted net income and analyzed
separately.  


 
                                                   Three Months Ended       
                                           ---------------------------------
                                                Mar 31     Dec 31     Mar 31
                                                  2013       2012       2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Methanex Corporation share price (1)         $   40.63  $   31.87  $   32.43
                                                                            
Grant-date fair value expense included in                                   
 Adjusted EBITDA and Adjusted net income     $       6  $       3  $       7
Mark-to-market impact due to change in                                      
 share price                                        31          8         18
----------------------------------------------------------------------------
Total share-based compensation expense       $      37  $      11  $      25
----------------------------------------------------------------------------
                                                                            
(1) US dollar share price of Methanex Corporation as quoted on NASDAQ Global
Market on the last trading day of the respective period.                    

 
The Methanex Corporation share price increased from $31.87 per share
at December 31, 2012 to $40.63 per share at March 31, 2013. As a
result of the increase in the share price and the impact on the fair
value of the outstanding units, we recorded a $31 million
mark-to-market expense on share-based compensation in the first
quarter of 2013 compared with an $8 million mark-to-market expense in
the fourth quarter of 2012 and an $18 million expense in the first
quarter of 2012. 
Depreciation and Amortization  
Depreciation and amortization was $30 million for the first quarter
of 2013 compared with $35 million for the fourth quarter of 2012 and
$36 million for the first quarter of 2012. Depreciation and
amortization was lower in the first quarter of 2013 compared with the
fourth quarter of 2012 and the first quarter of 2012 primarily as a
result of the lower carrying value of our Chile assets due to the
asset impairment charge recorded in the fourth quarter of 2012. 
Finance Costs 


 
                                                  Three Months Ended        
                                         -----------------------------------
                                              Mar 31      Dec 31      Mar 31
($ millions)                                    2013        2012        2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Finance costs before capitalized interest  $      16   $      14   $      16
Less capitalized interest                         (1)         (1)          -
----------------------------------------------------------------------------
                                                                            
Finance costs                              $      15   $      13   $      16
----------------------------------------------------------------------------

 
Finance costs before capitalized interest primarily relate to
interest expense on the unsecured notes and limited recourse debt
facilities. Capitalized interest relates to interest costs
capitalized for the Geismar I project. 
Finance Income and Other Expenses 


 
                                                  Three Months Ended        
                                          ----------------------------------
                                               Mar 31      Dec 31     Mar 31
($ millions)                                     2013        2012       2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Finance income and other expenses           $      (2)  $       3  $       2
----------------------------------------------------------------------------

 
The change in finance income and other expenses for all periods
presented was primarily due to the impact of changes in foreign
exchange rates. 
Income Taxes 
A summary of our income taxes for the first quarter of 2013 compared
with the fourth quarter of 2012 is as follows:  


 
                   Three Months Ended          Three Months Ended           
                          Mar 31 2013              Dec 31 2012              
----------------------------------------------------------------------------
                                            Amounts                         
                                          excluding                         
                                              Asset         Asset           
                                         Impairment    Impairment           
($ millions)                    Total        Charge        Charge     Total 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Profit (loss) before income                                                 
 tax expense                  $    78   $        69   $      (297)  $  (228)
Income tax recovery                                                         
 (expense)                        (12)          (11)          104        93 
----------------------------------------------------------------------------
Net income (loss)             $    66   $        58   $      (193)  $  (135)
----------------------------------------------------------------------------
                                                                            
Effective tax rate                 15%           16%           35%       41%
----------------------------------------------------------------------------

 
For the first quarter of 2013, the effective tax rate was 15%
compared with 16% for the fourth quarter of 2012, excluding the
impact of the asset impairment charge recorded in 2012. 
We earn the majority of our pre-tax earnings in Trinidad, Egypt,
Chile, Canada and New Zealand. In Trinidad and Chile, the statutory
tax rate is 35% and in Egypt, the statutory tax rate is 25%. We have
significant loss carryforwards in Canada and New Zealand which have
not been recognized for accounting purposes and this had an impact on
the effective tax rate for the first quarter of 2013 of approximately
10%.  
SUPPLY/DEMAND FUNDAMENTALS  


 
             Methanex Non-Discounted Regional Posted Prices (1)             
                                                 Apr     Mar     Feb     Jan
(US$ per tonne)                                 2013    2013    2013    2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
United States                                    516     516     482     482
Europe (2)                                       505     476     476     476
Asia                                             450     450     435     435
----------------------------------------------------------------------------
                                                                            
(1) Discounts from our posted prices are offered to customers based on      
various factors.                                                            
(2) EUR390 for Q2 2013 (Q1 2013 - EUR370) converted to United States        
dollars.                                                                    
----------------------------------------------------------------------------

 
We estimate that methanol demand, excluding methanol demand from
integrated methanol to olefins facilities, is currently approximately
53 million tonnes on an annualized basis.  
The outlook for methanol demand growth continues to be strong.
Traditional chemical derivatives consume about two-thirds of global
methanol demand and growth is correlated to industrial production.  
Energy-related applications consume the remaining one third of global
methanol demand, and the wide disparity between the price of crude
oil and that of natural gas and coal has resulted in an increased use
of methanol in energy-related applications, such as direct methanol
blending into gasoline and DME and biodiesel production. Growth of
direct methanol blending into gasoline in China has been particularly
strong and we believe that future growth in this application is
supported by numerous provincial and national fuel-blending
standards, such as M15 or M85 (15% methanol and 85% methanol,
respectively). 
China is also leading the commercialization of methanol's use as a
feedstock to manufacture olefins. The use of methanol to produce
olefins, at current energy prices, is proving to be cost competitive
relative to the traditional production of olefins from naphtha. There
are now five methanol-to-olefins (MTO) plants operating in China with
the capacity to consume approximately seven million tonnes of
methanol annually. While three of these plants are integrated and
purchase methanol only to supplement their production, two of these
plants are dependent on merchant methanol supply. We believe demand
potential into energy-related applications and olefins production
will continue to grow.  
During the first quarter of 2013, steady demand and planned and
unplanned industry outages contributed to upward pressure on pricing
in Europe and North America, while pricing in Asia was relatively
stable. Our average non-discounted price in the first quarter was
$474 per tonne. Entering the second quarter, market conditions remain
healthy and prices are stable. Our European non-discounted price for
the second quarter of 2013 increased to EUR390 per tonne ($505 per
tonne). 
Over the next few years, there is a modest level of new capacity
expected to come on-stream relative to demand growth expectations.
There is a 0.8 mil
lion tonne plant expected to restart in
Channelview, Texas in 2013 and a 0.7 million tonne plant expected to
start up in Azerbaijan in 2013. We are in the process of refurbishing
the Waitara Valley facility and debottlenecking our Motunui
facilities in New Zealand and these initiatives are expected to add
up to 0.9 million tonnes of additional operating capacity by the end
of 2013. We are relocating two idle Chile facilities to Geismar,
Louisiana with the first 1.0 million tonne facility expected to start
up by the end of 2014 and the second 1.0 million tonne facility
expected to start up in early 2016. We expect that production from
new capacity in China will be consumed in that country and that
higher cost production capacity in China will need to operate in
order to satisfy demand growth. 
LIQUIDITY AND CAPITAL RESOURCES 
Cash flows from operating activities 
Cash flows from operating activities in the first quarter of 2013
were $118 million compared with $76 million for the fourth quarter of
2012 and $74 million for the first quarter of 2012. The changes in
cash flows from operating activities resulted from changes in the
following: 


 
                                                    Q1 2013         Q1 2013 
                                              compared with   compared with 
($ millions)                                        Q4 2012         Q1 2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Change in Adjusted EBITDA (attributable to                                  
 Methanex shareholders)                       $          30   $          56 
Exclude change in Adjusted EBITDA of                                        
 associate (Atlas)                                        1             (12)
Change in cash flows attributable to non-                                   
 controlling interests                                    2              (8)
Changes in non-cash working capital                      13              26 
Income taxes paid                                         7              (2)
Other                                                   (11)            (16)
----------------------------------------------------------------------------
Increase in cash flows from operating                                       
 activities                                   $          42   $          44 
----------------------------------------------------------------------------

 
Adjusted cash flows from operating activities 
Adjusted cash flows from operating activities, which includes an
amount representing the cash flows associated with our 63.1% share of
the Atlas facility and excludes the amount associated with the 40%
non-controlling interest in the methanol facility in Egypt and
changes in non-cash working capital, were $127 million in the first
quarter of 2013 compared with $101 million for the fourth quarter of
2012 and $89 million for the first quarter of 2012. The changes in
Adjusted cash flows from operating activities resulted from changes
in the following: 


 
                                                    Q1 2013         Q1 2013 
                                              compared with   compared with 
($ millions)                                        Q4 2012         Q1 2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Change in Adjusted EBITDA (attributable to                                  
 Methanex shareholders)                       $          30   $          56 
Income taxes paid                                         7              (2)
Other                                                   (11)            (16)
----------------------------------------------------------------------------
Increase in Adjusted cash flows from                                        
 operating activities                         $          26   $          38 
----------------------------------------------------------------------------

 
Refer to the Additional Information - Supplemental Non-GAAP Measures
section for a reconciliation of Adjusted cash flows from operating
activities to the most comparable GAAP measure. 
During the first quarter of 2013, we paid a quarterly dividend of
$0.185 per share, or $18 million. Additionally, on April 24, 2013,
the Board of Directors approved an 8 percent increase to our
quarterly dividend to shareholders, from $0.185 to $0.20 per share.
The increased dividend will apply commencing with the dividend
payable June 30, 2013 to holders of common shares of record on June
16, 2013. 
We operate in a highly competitive commodity industry and believe it
is appropriate to maintain a conservative balance sheet and retain
financial flexibility. At March 31, 2013, our cash balance was $727
million, including $25 million related to the non-controlling
interest in Egypt. We invest our cash only in highly rated
instruments that have maturities of three months or less to ensure
preservation of capital and appropriate liquidity. We have a strong
balance sheet and an undrawn $400 million credit facility provided by
highly rated financial institutions that expires in mid-2016. 
Our planned capital maintenance expenditure program directed towards
maintenance, turnarounds and catalyst changes for existing operations
is currently estimated to total approximately $50 million to the end
of 2013, excluding the New Zealand operations. We are making good
progress with our project to relocate the Chile II facility to
Geismar, Louisiana with plant start-up expected by the end of 2014.
During the first quarter of 2013, we spent $43 million on the project
and the remaining project expenditures are approximately $420
million. We are also making good progress with our initiatives to
increase production capacity in Medicine Hat and New Zealand.
Remaining capital expenditures for these projects to the end of 2013
is approximately $230 million. We have also committed to relocate a
second idle Chile facility to the Geismar site with estimated project
costs of $550 million. The second Geismar facility is expected to
commence operations in early 2016. We believe that we have the
financial capacity to fund these growth initiatives with cash on
hand, cash generated from operations and the undrawn bank facility. 
We believe we are well positioned to meet our financial commitments,
invest to grow the Company and continue to deliver on our commitment
to return excess cash to shareholders. 
SHORT-TERM OUTLOOK  
Entering the second quarter, market conditions remain healthy and
prices are stable.  
The methanol price will ultimately depend on the strength of the
global economy, industry operating rates, global energy prices, new
supply additions and the strength of global demand. We believe that
our financial position and financial flexibility, outstanding global
supply network and competitive-cost position will provide a sound
basis for Methanex to continue to be the leader in the methanol
industry and to invest to grow the Company. 
CONTROLS AND PROCEDURES 
For the three months ended March 31, 2013, no changes were made in
our internal control over financial reporting that have materially
affected, or are reasonably likely to materially affect, our internal
control over financial reporting. 
ADDITIONAL INFORMATION - SUPPLEMENTAL NON-GAAP MEASURES 
In addition to providing measures prepared in accordance with
International Financial Reporting Standards (IFRS), we present
certain supplemental non-GAAP measures. These are Adjusted EBITDA,
Adjusted net income, Adjusted net income per common share, operating
income and Adjusted cash flows from operating activities. These
measures do not have any standardized meaning prescribed by generally
accepted accounting principles (GAAP) and therefore are unlikely to
be comparable to similar measures presented by other companies. These
supplemental non-GAAP measures are provided to assist readers in
determining our ability to generate cash from operations and improve
the comparability of our results from one period to another. We
believe these measures are useful in assessing operating performance
and liquidity of the Company's ongoing business on an overall basis.
We also believe Adjusted EBITDA is frequently used by securities
analysts and investors when comparing our results with those of other
companies. 
Adjusted EBITDA (attributable to Methanex shareholders) 
Adjusted EBITDA differs from the most comparable GAAP measure, net
income attributable to Methanex shareholders, because it excludes
depreciation and amortization, finance costs, finance income and
other expenses, income tax expense (recovery), mark-to-market impact
of share-based compensation and asset impairment charges. Adjusted
EBITDA includes an amount representing our 63.1% interest in the
Atlas facility and our 60% interest in the methanol facility in
Egypt.  
Adjusted EBITDA and Adjusted net income exclude the mark-to-market
impact of share-based compensation related to the impact of changes
in our share price on share appreciation rights, tandem share
appreciation rights, deferred share units, restricted share units and
performance share units. The mark-to-market impact related to
performance share units that is excluded from Adjusted EBITDA and
Adjusted net income is calculated as the difference between the grant
date value determined using a Methanex total shareholder return
factor of 100% and the fair value recorded at each period end. As
share-based awards will be settled in future periods, the ultimate
value of the units is unknown at the date of grant and therefore the
grant date value recognized in Adjusted EBITDA and Adjusted net
income may differ from the total settlement cost.  
The following table shows a reconciliation from net income (loss)
attributable to Methanex shareholders to Adjusted EBITDA: 


 
                                                  Three Months Ended        
                                           ---------------------------------
                                               Mar 31     Dec 31     Mar 31 
($ millions)                                     2013       2012       2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Net income (loss) attributable to Methanex                                  
 shareholders                                $     60   $   (140)  $     22 
  Finance costs                                    15         13         16 
  Finance income and other expenses                 2         (3)        (2)
  Income tax expense (recovery)                    12        (93)        11 
  Depreciation and amortization                    30         35         36 
  Mark-to-market impact of share-based                                      
   compensation                                    31          8         18 
  Asset impairment charge                           -        297          - 
  Earnings of associate, excluding amount                                   
   included in Adjusted EBITDA (1)                  8         10          4 
  Non-controlling interests adjustment (1)         (9)        (7)       (12)
----------------------------------------------------------------------------
Adjusted EBITDA (attributable to Methanex                                   
 shareholders)                               $    149   $    119   $     93 
----------------------------------------------------------------------------
                                                                            
(1) These adjustments represent depreciation and amortization, finance      
costs, finance income and other expenses and income tax expense associated  
with the 40% non-controlling interest in the methanol facility in Egypt and 
our 63.1% interest in the Atlas methanol facility which is accounted for    
using equity accounting.                                                    

 
Adjusted Net Income and Adjusted Net Income per Common Share 
Adjusted net income and Adjusted net income per common share are
non-GAAP measures because they exclude the mark-to-market impact of
share-based compensation and items that are considered by management
to be non-operational, including asset impairment charges. The
following table shows a reconciliation of net income (loss)
attributable to Methanex shareholders to Adjusted net income and the
calculation of Adjusted net income per common share:  


 
                                                  Three Months Ended        
                                           ---------------------------------
($ millions except number of shares and per   Mar 31      Dec 31     Mar 31 
 share amounts)                                  2013       2012       2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Net income (loss) attributable to Methanex                                  
 shareholders                                $     60   $   (140)  $     22 
  Mark-to-market impact of share-based                                      
   compensation                                    31          8         18 
  Asset impairment charge                           -        297          - 
  Income tax expense (recovery) related to                                  
   above items                                     (3)      (104)        (1)
----------------------------------------------------------------------------
Adjusted net income                          $     88   $     61   $     39 
----------------------------------------------------------------------------
Diluted weighted average shares outstanding        96         94         95 
Adjusted net income per common share (1)     $   0.92   $   0.64   $   0.41 
----------------------------------------------------------------------------
                                                                            
(1) For the three months ended December 31, 2012, stock options have been   
excluded from the calculation of diluted net loss per common share          
(attributable to Methanex shareholders) as their effect would be anti-      
dilutive. However, for the calculation of adjusted net income per common    
share (attributable to Methanex shareholders) stock options have been       
included in the denominator and the diluted weighted average number of      
common shares is 95 million.                                                

 
Adjusted Cash Flows from Operating Activities (attributable to
Methanex shareholders) 
Adjusted cash flows from operating activities differs from the most
comparable GAAP measure, cash flows from operating activities,
because it includes cash flows associated with our 63.1% equity share
of the Atlas facility and does not include cash flows associated with
the 40% non-controlling interest in the methanol facility in Egypt or
changes in non-cash working capital.  
The following table shows a reconciliation of cash flows from
operating activities to adjusted cash flows from operating
activities:  


 
                                                    Three Months Ended      
                                              ------------------------------
                                                Mar 31     Dec 31    Mar 31 
($ millions)                                       2013      2012      2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Cash flows from operating activities            $   118   $    76   $    74 
Add (deduct):                                                               
  Cash flows related to associate (Atlas) (1)         9        10        (3)
  Cash flows related to non-controlling                                     
   interests (2)                                    (15)      (13)      (23)
  Changes in non-cash working capital                15        28        41 
----------------------------------------------------------------------------
Adjusted cash flows from operating activities                               
 (attributable to Methanex shareholders)        $   127   $   101   $    89 
----------------------------------------------------------------------------
                                                                            
(1) Cash flows related to associate represents the amount related to our    
63.1% equity share of the Atlas facility that is accounted for using the    
equity method.                                                              
(2) Cash flows related to non-controlling interests represents the amount   
attributable to non-controlling interests that are consolidated in the      
financial statements.                                                       

 
Operating Income 
Operating income is reconciled directly to a GAAP measure in our
consolidated statements of income. 
QUARTERLY FINANCIAL DATA (UNAUDITED) 
A summary of selected financial information for the prior eight
quarters is as follows: 


 
                                                    Three Months Ended      
                                              ------------------------------
                                               Mar 31 Dec 31  Sep 30  Jun 30
($ millions, except per share amounts)           2013   2012    2012    2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Revenue                                        $  652 $  668  $  608  $  613
Adjusted EBITDA (1,2)                             149    119     104     113
Net income (loss) (1)                              60   (140)     (3)     52
Adjusted net income (1,2)                          88     61      36      44
Basic net income (loss) per common share (1)     0.64  (1.49)  (0.03)   0.56
Diluted net income (loss) per common share (1)   0.63  (1.49)  (0.03)   0.50
Adjusted net income per share (1,2)              0.92   0.64    0.38    0.47
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                     Three Months Ended     
                                                ----------------------------
                                                 Mar 31 Dec 31 Sep 30 Jun 30
($ millions, except per share amounts)             2012   2011   2011   2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Revenue                                          $  654 $  696 $  670 $  623
Adjusted EBITDA (1,2)                                93    133    111    102
Net income (1)                                       22     64     62     41
Adjusted net income (1,2)                            39     65     40     39
Basic net income per common share (1)              0.24   0.69   0.67   0.44
Diluted net income per common share (1)            0.23   0.68   0.59   0.43
Adjusted net income per share (1,2)                0.41   0.69   0.43   0.41
----------------------------------------------------------------------------
                                                                            
(1) Attributable to Methanex Corporation shareholders.                      
(2) These items are non-GAAP measures that do not have any standardized     
meaning prescribed by GAAP and therefore are unlikely to be comparable to   
similar measures presented by other companies. Refer to the Additional      
Information - Supplemental Non-GAAP Measures section for a description of   
each non-GAAP measure and reconciliations to the most comparable GAAP       
measures.                                                                   

 
FORWARD-LOOKING INFORMATION WARNING 
This First Quarter 2013 Management's Discussion and Analysis ("MD&A")
as well as comments made during the First Quarter 2013 investor
conference call contain forward-looking statements with respect to us
and our industry. These statements relate to future events or our
future performance. All statements other than statements of
historical fact are forward-looking statements. Statements that
include the words "believes," "expects," "may," "will," "should,"
"potential," "estimates," "anticipates," "aim," "goal" or other
comparable terminology and similar statements of a future or
forward-looking nature identify forward-looking statements. 
More particularly and without limitation, any statements regarding
the following are forward-looking statements: 


 
--  expected demand for methanol and its derivatives, 
    
--  expected new methanol supply or restart of idled capacity and timing for
    start-up of the same, 
    
--  expected shutdowns (either temporary or permanent) or restarts of
    existing methanol supply (including our own facilities), including,
    without limitation, the timing and length of planned maintenance
    outages, 
    
--  expected methanol and energy prices, 
    
--  expected levels of methanol purchases from traders or other third
    parties, 
    
--  expected levels, timing and availability of economically priced natural
    gas supply to each of our plants, 
    
--  capital committed by third parties towards future natural gas
    exploration and development in the vicinity of our plants, 
    
--  our expected capital expenditures, including, without limitation, those
    to support natural gas exploration and development for our plants and
    the restart of our idled methanol facilities, 
    
--  anticipated production rates of our plants, 
    
--  expected operating costs, including natural gas feedstock costs and
    logistics costs, 
    
--  expected tax rates or resolutions to tax disputes, 
    
--  expected cash flows, earnings capability and share price, 
    
--  ability to meet covenants or obtain waivers associated with our long-
    term debt obligations, including, without limitation, the Egypt limited
    recourse debt facilities that have conditions associated with
    finalization of certain land title registration and related mortgages
    that require action by Egyptian governmental entities, 
    
--  availability of committed credit facilities and other financing, 
    
--  our shareholder distribution strategy and anticipated distributions to
    shareholders, 
    
--  commercial viability and timing of, or our ability to execute, future
    projects, plant restarts, capacity expansions, plant relocations, or
    other business initiatives or opportunities, including the planned
    relocation of idle Chile methanol plants to Geismar, Louisiana
    ("Geismar") and certain initiatives in New Zealand and Canada, 
    
--  our financial strength and ability to meet future financial commitments,
    
--  expected global or regional economic activity (including industrial
    production levels), 
    
--  expected outcomes of litigation or other disputes, claims and
    assessments, 
    
--  expected actions of governments, government agencies, gas suppliers,
    courts, tribunals or other third parties, and 
    
--  expected impact on our operations in Egypt or our financial condition as
    a consequence of civil unrest or actions taken or inaction by the
    Government of Egypt and its agencies. 

 
We believe that we have a reasonable basis for making such
forward-looking statements. The forward-looking statements in this
document are based on our experience, our perception of trends,
current conditions and expected future developments as well as other
factors. Certain material factors or assumptions were applied in
drawing the conclusions or making the forecasts or projections that
are included in these forward-looking statements, including, without
limitation, future expectations and assumptions concerning the
following: 


 
--  the supply of, demand for, and price of methanol, methanol derivatives,
    natural gas, coal, oil and oil derivatives, 
    
--  the success of our natural gas exploration and development in Chile and
    New Zealand and our ability to procure economically priced natural gas
    in Chile, New Zealand, Trinidad, Canada and the United States, 
    
--  receipt of governmental approvals related to natural gas exploration
    rights, 
    
--  the establishment of new fuel standards, 
    
--  operating costs including natural gas feedstock and logistics costs,
    capital costs, tax rates, cash flows, foreign exchange rates and
    interest rates, 
    
--  the availability of committed credit facilities and other financing, 
    
--  timing of completion and cost of our Geismar projects and our
    initiatives to increase production in New Zealand and Canada, 
    
    
--  production rates of our facilities, 
    
--  receipt of remaining required permits in connection with our Geismar
    projects, 
    
--  receipt or issuance of third-party consents or approvals, including,
    without limitation, governmental registrations of land title and related
    mortgages in Egypt, governmental approvals related to natural gas
    exploration rights or rights to purchase natural gas, 
    
--  global and regional economic activity (including industrial production
    levels), 
    
--  absence of a material negative impact from major natural disasters, 
    
--  absence of a material negative impact from changes in laws or
    regulations, 
    
--  absence of a material negative impact from political instability in the
    countries in which we operate, 
    
--  enforcement of contractual arrangements and ability to perform
    contractual obligations by customers, natural gas and other suppliers
    and other third parties, and 
    
--  satisfaction of conditions precedent contained in the Geismar I natural
    gas supply agreement. 

 
However, forward-looking statements, by their nature, involve risks
and uncertainties that could cause actual results to differ
materially from those contemplated by the forward-looking statements.
The risks and uncertainties primarily include those attendant with
producing and marketing methanol and successfully carrying out major
capital expenditure projects in various jurisdictions, including,
without limitation: 


 
--  conditions in the methanol and other industries including fluctuations
    in the supply, demand for and price of methanol and its derivatives,
    including demand for methanol for energy uses, 
    
--  the price of natural gas, coal, oil and oil derivatives, 
    
--  the success of natural gas exploration and development activities in
    southern Chile and New Zealand and our ability to obtain any additional
    gas in Chile and New Zealand on commercially acceptable terms, 
    
--  the ability to successfully carry out corporate initiatives and
    strategies, 
    
--  actions of competitors, suppliers and financial institutions, 
    
--  conditions within the natural gas delivery systems that may prevent
    delivery of our natural gas supply requirements, 
    
--  competing demand for natural gas, especially with respect to domestic
    needs for gas and electricity in Chile and Egypt, 
    
--  actions of governments and governmental authorities, including, without
    limitation, the implementation of policies or other measures that could
    impact the supply of or demand for methanol or its derivatives, 
    
--  changes in laws or regulations, 
    
--  import or export restrictions, anti-dumping measures, increases in
    duties, taxes and government royalties, and other actions by governments
    that may adversely affect our operations or existing contractual
    arrangements, 
    
--  world-wide economic conditions, 
    
--  satisfaction of conditions precedent contained in the Geismar I natural
    gas supply agreement, and 
    
--  other risks described in our 2012 Management's Discussion and Analysis
    and this First Quarter 2013 Management's Discussion and Analysis. 

 
Having in mind these and other factors, investors and other readers
are cautioned not to place undue reliance on forward-looking
statements. They are not a substitute for the exercise of one's own
due diligence and judgment. The outcomes anticipated in
forward-looking statements may not occur and we do not undertake to
update forward-looking statements except as required by applicable
securities laws.  
HOW WE ANALYZE OUR BUSINESS 
Our operations consist of a single operating segment - the production
and sale of methanol. We review our results of operations by
analyzing changes in the components of Adjusted EBITDA (refer to the
Additional Information - Supplemental Non-GAAP Measures section for a
description of each non-GAAP measure and reconciliations to the most
comparable GAAP measures).  
In addition to the methanol that we produce at our facilities
("Methanex-produced methanol"), we also purchase and re-sell methanol
produced by others ("purchased methanol") and we sell methanol on a
commission basis. We analyze the results of all methanol sales
together, excluding commission sales volumes. The key drivers of
change in Adjusted EBITDA are average realized price, cash costs and
sales volume which are defined and calculated as follows:  
PRICE 
The change in Adjusted EBITDA as a result of changes in average
realized price is calculated as the difference from period to period
in the selling price of methanol multiplied by the current period
total methanol sales volume excluding commission sales volume plus
the difference from period to period in commission revenue. 
CASH COST 
The change in Adjusted EBITDA as a result of changes in cash costs is
calculated as the difference from period to period in cash costs per
tonne multiplied by the current period total methanol sales volume
excluding commission sales volume in the current period. The cash
costs per tonne is the weighted average of the cash cost per tonne of
Methanex-produced methanol and the cash cost per tonne of purchased
methanol. The cash cost per tonne of Methanex-produced methanol
includes absorbed fixed cash costs per tonne and variable cash costs
per tonne. The cash cost per tonne of purchased methanol consists
principally of the cost of methanol itself. In addition, the change
in Adjusted EBITDA as a result of changes in cash costs includes the
changes from period to period in unabsorbed fixed production costs,
consolidated selling, general and administrative expenses and fixed
storage and handling costs. 
VOLUME 
The change in Adjusted EBITDA as a result of changes in sales volume
is calculated as the difference from period to period in total
methanol sales volume excluding commission sales volumes multiplied
by the margin per tonne for the prior period. The margin per tonne
for the prior period is the weighted average margin per tonne of
Methanex-produced methanol and margin per tonne of purchased
methanol. The margin per tonne for Methanex-produced methanol is
calculated as the selling price per tonne of methanol less absorbed
fixed cash costs per tonne and variable cash costs per tonne. The
margin per tonne for purchased methanol is calculated as the selling
price per tonne of methanol less the cost of purchased methanol per
tonne. 
We own 63.1% of the Atlas methanol facility and market the remaining
36.9% of its production through a commission offtake agreement. A
contractual agreement between us and our partners establishes joint
control over Atlas. As a result, we account for this investment using
the equity method of accounting, which results in 63.1% of the net
assets and net earnings of Atlas being presented separately in the
consolidated statements of financial position and consolidated
statements of income, respectively. For purposes of analyzing our
business, Adjusted EBITDA, Adjusted net income and Adjusted cash
flows from operating activities include an amount representing our
63.1% equity share in Atlas. 
We own 60% of the 1.26 million tonne per year Egypt methanol facility
and market the remaining 40% of its production through a commission
offtake agreement. We account for this investment using consolidation
accounting, which results in 100% of the revenues and expenses being
included in our financial statements with the other investors'
interests in the methanol facility being presented as
"non-controlling interests". For purposes of analyzing our business,
Adjusted EBITDA, Adjusted net income and Adjusted cash flows from
operating activities exclude the amount associated with the other
investors' 40% non-controlling interests. 


 
Methanex Corporation                                                        
Consolidated Statements of Income (unaudited)                               
(thousands of U.S. dollars, except number of common shares and per share    
 amounts)                                                                   
                                                                            
                                                         Three Months Ended 
                                              ------------------------------
                                                      Mar 31         Mar 31 
                                                        2013           2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                               (As adjusted 
                                                                  - note 11)
Revenue                                        $     651,899  $     653,538 
Cost of sales and operating expenses                (527,995)      (552,964)
Depreciation and amortization                        (29,817)       (35,401)
----------------------------------------------------------------------------
Operating income                                      94,087         65,173 
Earnings (loss) of associate (note 4)                  1,286         (7,328)
Finance costs (note 6)                               (15,451)       (16,033)
Finance income and other expenses                     (1,627)         1,838 
----------------------------------------------------------------------------
Income before income tax expense                      78,295         43,650 
Income tax expense:                                                         
  Current                                             (4,391)        (5,297)
  Deferred                                            (7,671)        (5,542)
----------------------------------------------------------------------------
                                                     (12,062)       (10,839)
----------------------------------------------------------------------------
Net income                                     $      66,233  $      32,811 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to:                                                            
  Methanex Corporation shareholders                   60,267         22,081 
  Non-controlling interests                            5,966         10,730 
----------------------------------------------------------------------------
                                               $      66,233  $      32,811 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Income for the period attributable to Methanex                              
 Corporation shareholders                                                   
  Basic net income per common share            $        0.64  $        0.24 
  Diluted net income per common share          $        0.63  $        0.23 
                                                                            
Weighted average number of common shares                                    
 outstanding (note 7)                             94,514,188     93,407,866 
Diluted weighted average number of common                                   
 shares outstanding (note 7)                      95,717,869     94,714,364 
                                                                            
See accompanying notes to condensed consolidated interim financial          
 statements.                                                                
                                                                            
                                                                            
Methanex Corporation                                                        
Consolidated Statements of Comprehensive Income (unaudited)                 
(thousands of U.S. dollars)                                                 
                                                                            
                                                         Three Months Ended 
                                                      ----------------------
                                                          Mar 31     Mar 31 
                                                            2013       2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Net income                                             $  66,233  $  32,811 
Other comprehensive income, net of taxes:                                   
  Items that may be reclassified to income:                                 
    Change in fair value of forward exchange contracts      (184)      (305)
    Change in fair value of interest rate swap                              
     contracts                                              (296)    (2,613)
    Realized loss on interest rate swap contracts                           
     reclassified to interest expense                      2,591      2,936 
----------------------------------------------------------------------------
                                                           2,111         18 
----------------------------------------------------------------------------
Comprehensive income                                   $  68,344  $  32,829 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to:                                                            
  Methanex Corporation shareholders                       61,460     21,970 
  Non-controlling interests                                6,884     10,859 
----------------------------------------------------------------------------
                                                       $  68,344  $  32,829 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
See accompanying notes to condensed consolidated interim financial          
 statements.                                                                
                                                                            
                                                                            
Methanex Corporation                                                        
Consolidated Statements of Financial Position (unaudited)                   
(thousands of U.S. dollars)                                                 
                                                                            
                                           Mar 31       Dec 31        Jan 1 
AS AT                                        2013         2012         2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                           (As          (As 
                                                    adjusted -   adjusted - 
                                                       note 11)     note 11)
ASSETS                                                                      
Current assets:                                                             
  Cash and cash equivalents           $   726,851  $   727,385  $   341,445 
  Trade and other receivables             441,584      417,156      374,287 
  Inventories (note 2)                    289,467      256,340      274,276 
  Prepaid expenses                         21,697       25,588       22,614 
----------------------------------------------------------------------------
                                        1,479,599    1,426,469    1,012,622 
Non-current assets:                                                         
  Property, plant and equipment (note                                       
   3)                                   1,813,520    1,762,873    1,976,693 
  Investment in associate (note 4)        185,990      184,665      171,707 
  Other assets                             71,813       68,554      122,627 
----------------------------------------------------------------------------
                                        2,071,323    2,016,092    2,271,027 
----------------------------------------------------------------------------
                                      $ 3,550,922  $ 3,442,561  $ 3,283,649 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
LIABILITIES AND EQUITY                                                      
Current liabilities:                                                        
  Trade, other payables and accrued                                         
   liabilities                        $   437,807  $   377,666  $   360,712 
  Current maturities on long-term                                           
   debt (note 5)                           40,444       38,290      236,063 
  Current maturities on other long-                                         
   term liabilities                        40,517       30,322       21,441 
----------------------------------------------------------------------------
                                          518,768      446,278      618,216 
Non-current liabilities:                                                    
  Long-term debt (note 5)               1,146,443    1,156,081      601,293 
  Other long-term liabilities             177,495      200,212      188,149 
  Deferred income tax liabilities         170,623      162,253      274,028 
----------------------------------------------------------------------------
                                        1,494,561    1,518,546    1,063,470 
Equity:                                                                     
  Capital stock                           498,999      481,779      455,434 
  Contributed surplus                      11,572       15,481       22,281 
  Retained earnings                       848,394      805,661      942,978 
  Accumulated other comprehensive                                           
   loss                                   (11,852)     (13,045)     (15,968)
----------------------------------------------------------------------------
  Shareholders' equity                  1,347,113    1,289,876    1,404,725 
  Non-controlling interests               190,480      187,861      197,238 
----------------------------------------------------------------------------
  Total equity                          1,537,593    1,477,737    1,601,963 
----------------------------------------------------------------------------
                                      $ 3,550,922  $ 3,442,561  $ 3,283,649 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
See accompanying notes to condensed consolidated interim financial          
 statements.                                                                
                                                                            
                                                                            
Methanex Corporation                                                        
Consolidated Statements of Changes in Equity (unaudited)                    
(thousands of U.S. dollars, except number of common shares)                 
                                                                            
                                                                            
                       Number of                                            
                          Common       Capital   Contributed       Retained 
                          Shares         Stock       Surplus       Earnings 
----------------------------------------------------------------------------
Balance, December                                                           
 31, 2011             93,247,755 $     455,434 $      22,281  $     942,978 
  Net income                   -             -             -         22,081 
  Other                                                                     
   comprehensive                                                            
   income (loss)               -             -             -              - 
  Compensation                                                              
   expense recorded                                                         
   for stock options           -             -           227              - 
  Issue of shares on                                                        
   exercise of stock                                                        
   options               458,920         8,068             -              - 
  Reclassification                                                          
   of grant date                                                            
   fair value on                                                            
   exercise of stock                                                        
   options                     -         3,083        (3,083)             - 
  Dividend payments                                                         
   to Methanex                                                              
   Corporation                                                              
   shareholders                -             -             -        (15,908)
  Distributions to                                                          
   non-controlling                                                          
   interests                   -             -             -              - 
  Equity                                                                    
   contributions by                                                         
   non-controlling                                                          
   interests                   -             -             -              - 
----------------------------------------------------------------------------
Balance, March 31,                                                          
 2012                 93,706,675       466,585        19,425        949,151 
  Net income (loss)                                                 (90,186)
  Other                                                                     
   comprehensive                                                            
   income (loss)                                                     (1,135)
  Compensation                                                              
   expense recorded                                                         
   for stock options           -             -           499              - 
  Issue of shares on                                                        
   exercise of stock                                                        
   options               603,295        10,751             -              - 
  Reclassification                                                          
   of grant date                                                            
   fair value on                                                            
   exercise of stock                                                        
   options                     -         4,443        (4,443)             - 
  Dividend payments                                                         
   to Methanex                                                              
   Corporation                                                              
   shareholders                -             -             -        (52,169)
  Distributions to                                                          
   non-controlling                                                          
   interests                   -             -             -              - 
  Equity                                                                    
   contributions by                                                         
   non-controlling                                                          
   interests                   -             -             -              - 
----------------------------------------------------------------------------
Balance, December                                                           
 31, 2012             94,309,970       481,779        15,481        805,661 
  Net income                   -             -             -         60,267 
  Other                                                                     
   comprehensive                                                            
   income                      -             -             -              - 
  Compensation                                                              
   expense recorded                                                         
   for stock options           -             -           223              - 
  Issue of shares on                                                        
   exercise of stock                                                        
   options               587,689        13,088             -              - 
  Reclassification                                                          
   of grant date                                                            
   fair value on                                                            
   exercise of stock                                                        
   options                     -         4,132        (4,132)             - 
  Dividend payments                                                         
   to Methanex                                                              
   Corporation                                                              
   shareholders                -             -             -        (17,534)
  Distributions to                                                          
   non-controlling                                                          
   interests                   -             -             -              - 
  Equity                                                                    
   contributions by                                                         
   non-controlling                                                          
   interests                   -             -             -              - 
----------------------------------------------------------------------------
Balance, March 31,                                                          
 2013                 94,897,659 $     498,999 $      11,572  $     848,394 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
See accompanying notes to condensed consolidated interim financial          
 statements.                                                                
                                                                            
                                                                            
 
Methanex Corporation                                                        
Consolidated Statements of Changes in Equity (unaudited)                    
(thousands of U.S. dollars, except number of common shares)                 
                                                                            
                      Accumulated                                           
                            Other                        Non-               
                    Comprehensive Shareholders'   Controlling         Total 
                             Loss        Equity     Interests        Equity 
----------------------------------------------------------------------------
Balance, December                                                           
 31, 2011            $    (15,968) $  1,404,725  $    197,238  $  1,601,963 
  Net income                    -        22,081        10,730        32,811 
  Other                                                                     
   comprehensive                                                            
   income (loss)             (111)         (111)          129            18 
  Compensation                                                              
   expense recorded                                                         
   for stock options            -           227             -           227 
  Issue of shares on                                                        
   exercise of stock                                                        
   options                      -         8,068             -         8,068 
  Reclassification                                                          
   of grant date                                                            
   fair value on                                                            
   exercise of stock                                                        
   options                      -             -             -             - 
  Dividend payments                                                         
   to Methanex                                                              
   Corporation                                                              
   shareholders                 -       (15,908)            -       (15,908)
  Distributions to                                                         
 
   non-controlling                                                          
   interests                    -             -        (9,405)       (9,405)
  Equity                                                                    
   contributions by                                                         
   non-controlling                                                          
   interests                    -             -         1,000         1,000 
----------------------------------------------------------------------------
Balance, March 31,                                                          
 2012                     (16,079)    1,419,082       199,692     1,618,774 
  Net income (loss)             -       (90,186)       22,800       (67,386)
  Other                                                                     
   comprehensive                                                            
   income (loss)            3,034         1,899         2,032         3,931 
  Compensation                                                              
   expense recorded                                                         
   for stock options            -           499             -           499 
  Issue of shares on                                                        
   exercise of stock                                                        
   options                      -        10,751             -        10,751 
  Reclassification                                                          
   of grant date                                                            
   fair value on                                                            
   exercise of stock                                                        
   options                      -             -             -             - 
  Dividend payments                                                         
   to Methanex                                                              
   Corporation                                                              
   shareholders                 -       (52,169)            -       (52,169)
  Distributions to                                                          
   non-controlling                                                          
   interests                    -             -       (36,663)      (36,663)
  Equity                                                                    
   contributions by                                                         
   non-controlling                                                          
   interests                    -             -             -             - 
----------------------------------------------------------------------------
Balance, December                                                           
 31, 2012                 (13,045)    1,289,876       187,861     1,477,737 
  Net income                    -        60,267         5,966        66,233 
  Other                                                                     
   comprehensive                                                            
   income                   1,193         1,193           918         2,111 
  Compensation                                                              
   expense recorded                                                         
   for stock options            -           223             -           223 
  Issue of shares on                                                        
   exercise of stock                                                        
   options                      -        13,088             -        13,088 
  Reclassification                                                          
   of grant date                                                            
   fair value on                                                            
   exercise of stock                                                        
   options                      -             -             -             - 
  Dividend payments                                                         
   to Methanex                                                              
   Corporation                                                              
   shareholders                 -       (17,534)            -       (17,534)
  Distributions to                                                          
   non-controlling                                                          
   interests                    -             -        (5,265)       (5,265)
  Equity                                                                    
   contributions by                                                         
   non-controlling                                                          
   interests                    -             -         1,000         1,000 
----------------------------------------------------------------------------
Balance, March 31,                                                          
 2013                $    (11,852) $  1,347,113  $    190,480  $  1,537,593 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
See accompanying notes to condensed consolidated interim financial          
 statements.                                                                
                                                                            
                                                                            
Methanex Corporation                                                        
Consolidated Statements of Cash Flows (unaudited)                           
(thousands of U.S. dollars)                                                 
                                                                            
                                                         Three Months Ended 
                                                    ------------------------
                                                         Mar 31      Mar 31 
                                                           2013        2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                              (As adjusted -
                                                                    note 11)
CASH FLOWS FROM OPERATING ACTIVITIES                                        
  Net income                                          $  66,233   $  32,811 
  Add (deduct) loss (earnings) of associate              (1,286)      7,328 
  Add non-cash items:                                                       
    Depreciation and amortization                        29,817      35,401 
    Income tax expense                                   12,062      10,839 
    Share based compensation expense                     36,313      25,058 
    Finance costs                                        15,451      16,033 
    Other                                                   464       5,786 
  Income taxes paid                                      (8,783)     (7,074)
  Other cash payments, including share-based                                
   compensation                                         (17,555)    (12,030)
----------------------------------------------------------------------------
  Cash flows from operating activities before                               
   undernoted                                           132,716     114,152 
  Changes in non-cash working capital (note 9)          (15,037)    (40,194)
----------------------------------------------------------------------------
                                                        117,679      73,958 
----------------------------------------------------------------------------
                                                                            
CASH FLOWS FROM FINANCING ACTIVITIES                                        
  Dividend payments to Methanex Corporation                                 
   shareholders                                         (17,534)    (15,908)
  Interest paid, including interest rate swap                               
   settlements                                          (21,211)    (24,249)
  Net proceeds on issue of long-term debt                     -     246,548 
  Repayment of long-term debt and limited recourse                          
   debt                                                 (18,267)    (17,154)
  Equity contributions by non-controlling interests       1,000       1,000 
  Cash distributions to non-controlling interests        (5,265)    (12,745)
  Proceeds from limited recourse debt                    10,000           - 
  Proceeds on issue of shares on exercise of stock                          
   options                                               13,088       8,068 
  Other                                                    (919)    (13,450)
----------------------------------------------------------------------------
                                                        (39,108)    172,110 
----------------------------------------------------------------------------
                                                                            
CASH FLOWS FROM INVESTING ACTIVITIES                                        
  Property, plant and equipment                         (33,619)    (42,551)
  Louisiana project expenditures                        (43,398)          - 
  Oil and gas assets                                     (7,656)     (6,801)
  GeoPark repayments                                      6,864       6,630 
  Changes in non-cash working capital related to                            
   investing activities (note 9)                         (1,296)     12,832 
----------------------------------------------------------------------------
                                                        (79,105)    (29,890)
----------------------------------------------------------------------------
  Increase (decrease) in cash and cash equivalents         (534)    216,178 
  Cash and cash equivalents, beginning of period        727,385     341,445 
----------------------------------------------------------------------------
  Cash and cash equivalents, end of period            $ 726,851   $ 557,623 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
See accompanying notes to condensed consolidated interim financial          
 statements.                                                                

 
Methanex Corporation  
Notes to Condensed Consolidated Interim Financial Statements
(unaudited)  
Except where otherwise noted, tabular dollar amounts are stated in
thousands of U.S. dollars. 
1. Basis of presentation:  
Methanex Corporation (the Company) is an incorporated entity with
corporate offices in Vancouver, Canada. The Company's operations
consist of the production and sale of methanol, a commodity chemical.
The Company is the world's largest supplier of methanol to major
international markets in Asia Pacific, North America, Europe and
Latin America.  
These condensed consolidated interim financial statements are
prepared in accordance with International Accounting Standards (IAS)
34, Interim Financial Reporting, as issued by the International
Accounting Standards Board (IASB) on a basis consistent with those
followed in the most recent annual consolidated financial statements,
except as described in note 11 below. As described in note 11, the
Company has adopted new IFRS standards effective January 1, 2013 with
retrospective application and as a result the comparative periods
have been restated.  
These condensed consolidated interim financial statements do not
include all of the information required for full annual financial
statements and were approved and authorized for issue by the Audit,
Finance & Risk Committee of the Board of Directors on April 24, 2013. 
2. Inventories:  
Inventories are valued at the lower of cost, determined on a first-in
first-out basis, and estimated net realizable value. The amount of
inventories included in cost of sales and operating expenses and
depreciation and amortization for the three months ended March 31,
2013 is $469 million (2012 - $495 million). 
3. Property, plant and equipment:  


 
                     Buildings,                                             
                          Plant                                             
                  Installations Plants Under  Oil & Gas                     
                    & Machinery Construction Properties    Other       Total
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Cost at March 31,                                                           
 2013              $  2,887,814 $    120,104 $   82,436 $ 80,379 $ 3,170,733
Accumulated                                                                 
 depreciation at                                                            
 March 31, 2013       1,251,572            -     75,448   30,193   1,357,213
----------------------------------------------------------------------------
Net book value at                                                           
 March 31, 2013    $  1,636,242 $    120,104 $    6,988 $ 50,186 $ 1,813,520
----------------------------------------------------------------------------
                                                                            
Cost at December                                                            
 31, 2012          $  2,866,013 $     75,238 $   80,368 $ 68,906 $ 3,090,525
Accumulated                                                                 
 depreciation at                                                            
 December 31, 2012    1,225,202            -     74,151   28,299   1,327,652
----------------------------------------------------------------------------
Net book value at                                                           
 December 31, 2012 $  1,640,811 $     75,238 $    6,217 $ 40,607 $ 1,762,873
----------------------------------------------------------------------------
                                                                            
Cost at January 1,                                                          
 2012              $  2,816,808 $      1,326 $   77,486 $ 88,642 $ 2,984,262
Accumulated                                                                 
 depreciation at                                                            
 January 1, 2012        933,808            -     32,990   40,771   1,007,569
----------------------------------------------------------------------------
Net book value at                                                           
 January 1, 2012   $  1,883,000 $      1,326 $   44,496 $ 47,871 $ 1,976,693
----------------------------------------------------------------------------

 
The Company is in the process of relocating an idle Chile facility to
Geismar, Louisiana. During the three months ended March 31, 2013, the
Company incurred $43 million in relation to this project under
construction, excluding capitalized interest. Remaining capital costs
to complete the project are estimated to be $420 million, excluding
capitalized interest.  
In April 2013, the Company made a final investment decision to
relocate a second idle Chile facility to Geismar, Louisiana. The
Company estimates total project costs, excluding capitalized
interest, of $550 million w
ith plant start-up expected in early 2016. 
4. Investment in Atlas methanol facility:  
a) The Company has a 63.1% equity interest in Atlas Methanol Company
Unlimited (Atlas). Atlas owns a 1.8 million tonne per year methanol
production facility in Trinidad. Effective January 1, 2013, the
Company accounts for its interest in Atlas using the equity method
(refer to note 11). Summarized financial information of Atlas (100%
basis) is as follows:  


 
                                             Mar 31      Dec 31       Jan 1 
Summarized Financial Information as at         2013        2012        2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Cash and cash equivalents                    10,781      28,883      14,685 
Other current assets                        134,630     104,933     102,872 
Non-current assets                          398,494     407,362     411,465 
Current liabilities                         (58,218)    (65,005)    (29,473)
Non-current liabilities, including                                          
 current maturities                        (212,054)   (204,395)   (227,430)
----------------------------------------------------------------------------
Net assets at 100%                        $ 273,633   $ 271,778   $ 272,119 
----------------------------------------------------------------------------
                                                                            
Net assests at 63.1%                      $ 172,662   $ 171,492   $ 171,707 
Long-term receivable from Atlas              13,328      13,173           - 
----------------------------------------------------------------------------
                                                                            
Investment in associate                   $ 185,990   $ 184,665   $ 171,707 
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                         Three Months Ended 
                                                    ------------------------
                                                        Mar 31      Mar 31  
Summarized Financial Information                           2013        2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Revenue                                               $  85,366   $  26,884 
Cost of sales and depreciation and amortization         (79,298)    (36,122)
----------------------------------------------------------------------------
Operating income (loss)                                   6,068      (9,238)
Finance costs, finance income and other expenses         (3,421)     (4,214)
Income tax (expense) recovery                              (609)      1,839 
----------------------------------------------------------------------------
Net earnings (loss) at 100%                           $   2,038   $ (11,613)
----------------------------------------------------------------------------
Earnings (loss) of associate at 63.1%                 $   1,286   $  (7,328)
----------------------------------------------------------------------------

 
b) Contingent liability:  
The Board of Inland Revenue of Trinidad and Tobago has issued
assessments against Atlas in respect of the 2005 and 2006 financial
years. All subsequent tax years remain open to assessment. The
assessments relate to the pricing arrangements of certain long-term
fixed price sales contracts that extend to 2014 and 2019 related to
methanol produced by Atlas. The impact of the amounts in dispute for
the 2005 and 2006 financial years is not significant. Atlas has
partial relief from corporation income tax until 2014.  
The Company has lodged objections to the assessments. Based on the
merits of the cases and legal interpretation, management believes its
position should be sustained. 
5. Long-term debt:  


 
                                             Mar 31      Dec 31       Jan 1 
As at                                          2013        2012        2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Unsecured notes                                                             
                                                                            
   $350 million at 3.25% due December                                       
   15, 2019                              $  343,909  $  343,828  $        - 
   $250 million at 5.25% due March 1,                                       
   2022                                     246,408     246,326           - 
   $150 million at 6.00% due August 15,                                     
   2015                                     149,399     149,344     149,119 
   $200 million at 8.75% due August 15,                                     
   2012                                           -           -     199,643 
----------------------------------------------------------------------------
                                            739,716     739,498     348,762 
Egypt limited recourse debt facilities      421,479     438,631     470,208 
Other limited recourse debt facilities       25,692      16,242      18,386 
----------------------------------------------------------------------------
                                          1,186,887   1,194,371     837,356 
Less current maturities                     (40,444)    (38,290)   (236,063)
----------------------------------------------------------------------------
                                         $1,146,443  $1,156,081  $  601,293 
----------------------------------------------------------------------------

 
During the three months ended March 31, 2013, the Company made
repayments on its Egypt limited recourse debt facilities of $18.3
million. During the three months ended March 31, 2013, the Company
issued $10.0 million of other limited recourse debt.  
The Egypt limited recourse debt facilities are described as limited
recourse as they are secured only by the assets of the Egypt entity.
Accordingly, the lenders to the limited recourse debt facilities have
no recourse to the Company or its other subsidiaries. The Egypt
limited recourse debt facilities have customary covenants and default
provisions that apply only to the Egypt entity, including
restrictions on the incurrence of additional indebtedness, a
requirement to fulfill certain conditions before the payment of cash
or other distributions and a restriction on these distributions if
there is a default subsisting. The Egypt limited recourse debt
facilities also contain a covenant to complete certain land title
registrations and related mortgages that require action by Egyptian
government entities. Under the terms of a waiver received from the
lenders in March 2013, the Company is required to complete the
covenant by March 31, 2014. The Company does not believe that the
finalization of these items is material to the security provided to
the lenders.  
At March 31, 2013, management believes the Company was in compliance
with all of the covenants and default provisions related to long-term
debt obligations. 
6. Finance costs:  


 
                                                          Three Months Ended
                                                     -----------------------
                                                          Mar 31     Mar 31 
                                                            2013        2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Finance costs                                          $  16,518   $  16,033
Less capitalized interest related to Louisiana plant                        
 under construction                                       (1,067)          -
----------------------------------------------------------------------------
                                                       $  15,451   $  16,033
----------------------------------------------------------------------------

 
Finance costs are primarily comprised of interest on borrowings and
finance lease obligations, the effective portion of interest rate
swaps designated as cash flow hedges, amortization of deferred
financing fees, and accretion expense associated with site
restoration costs. Interest during construction is capitalized until
the plant is substantially completed and ready for productive use.  
The Company has interest rate swap contracts on its Egypt limited
recourse debt facilities to swap the LIBOR-based interest payments
for an average aggregated fixed rate of 4.8% plus a spread on
approximately 75% of the Egypt limited recourse debt facilities for
the period to March 31, 2015. 
7. Net income per common share:  
Diluted net income per common share is calculated by considering the
potential dilution that would occur if outstanding stock options and,
under certain circumstances, tandem share appreciation rights (TSARs)
were exercised or converted to common shares.  
Outstanding TSARs may be settled in cash or common shares at the
holder's option and for purposes of calculating diluted net income
per common share, the more dilutive of the cash-settled and
equity-settled method is used, regardless of how the plan is
accounted for. Accordingly, TSARs that are accounted for using the
cash-settled method will require adjustments to the numerator and
denominator if the equity-settled method is determined to have a
dilutive effect on diluted net income per common share.  
Stock options and TSARs, if calculated using the equity-settled
method, are considered dilutive when the average market price of the
Company's common shares during the period disclosed exceeds the
exercise price of the stock option or TSAR. A reconciliation of the
number of common shares used for the purposes of calculating basic
and diluted net income per common share is as follows: 


 
                                                          Three Months Ended
                                                    ------------------------
                                                          Mar 31      Mar 31
                                                            2013        2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Denominator for basic net income per common share     94,514,188  93,407,866
  Effect of dilutive stock options                     1,203,681   1,306,498
                                                                            
----------------------------------------------------------------------------
Denominator for diluted net income per common share   95,717,869  94,714,364
----------------------------------------------------------------------------

 
8. Share-based compensation: 
a) Share appreciation rights (SARs), tandem share appreciation rights
(TSARs) and stock options: 
(i) Outstanding units:  
Information regarding units outstanding at March 31, 2013 is as
follows: 


 
                                          SARs                 TSARs        
                                 -------------------------------------------
                                              Weighted              Weighted
                                               Average               Average
                                  Number of   Exercise  Number of   Exercise
                                      Units      Price      Units      Price
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Outstanding at January 1, 2012      623,547  $   26.72  1,219,735  $   26.65
  Granted                           353,890      31.64    652,000      31.69
  Exercised                         (55,331)     26.07    (15,800)     25.93
  Cancelled                         (24,581)     29.10    (40,400)     27.61
----------------------------------------------------------------------------
Outstanding at December 31, 2012    897,525  $   28.63  1,815,535  $   28.45
----------------------------------------------------------------------------
  Granted                           360,900      38.24    544,200      38.24
  Exercised                         (67,781)     27.43    (23,400)     27.41
  Cancelled                          (5,500)     30.86          -          -
----------------------------------------------------------------------------
Outstanding at March 31, 2013     1,185,144  $   31.62  2,336,335  $   30.74
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                               Stock Options
                                                     -----------------------
                                                                    Weighted
                                                                     Average
                                                        Number of   Exercise
                                                            Units      Price
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Outstanding at January 1, 2012                          4,004,204  $   19.19
  Granted                                                  84,000      31.73
  Exercised                                            (1,062,215)     18.03
  Cancelled                                               (43,042)     18.13
----------------------------------------------------------------------------
Outstanding at December 31, 2012                        2,982,947  $   19.97
----------------------------------------------------------------------------
  Granted                                                  75,600      38.24
  Exercised                                              (587,689)     22.13
  Cancelled                                               (48,128)     16.13
----------------------------------------------------------------------------
Outstanding at March 31, 2013                           2,422,730  $   20.09
----------------------------------------------------------------------------
                                                                            
                                                                            
                          Units Outstanding at         Units Exercisable at 
                             March 31, 2013               March 31, 2013    
                   ---------------------------------------------------------
                      Weighted                                              
                       Average                                              
                     Remaining               Weighted               Weighted
                   Contractual    Number of   Average    Number of   Average
Range of Exercise         Life        Units  Exercise        Units  Exercise
 Prices                (Years)  Outstanding     Price  Exercisable     Price
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
SARs:                                                                       
  $23.36 to 29.18          4.4      503,444 $   26.80      406,800 $   26.39
  $31.73 to 38.24          6.5      681,700     35.18       97,740     31.73
----------------------------------------------------------------------------
                           5.6    1,185,144 $   31.62      504,540 $   27.42
----------------------------------------------------------------------------
                                                                            
TSARs:                                                                      
  $23.36 to 29.18          4.4    1,156,245 $   26.66      985,898 $   26.31
  $31.73 to 38.24          6.4    1,180,090     34.73      208,230     31.73
----------------------------------------------------------------------------
                           5.4    2,336,335 $   30.74    1,194,128 $   27.26
----------------------------------------------------------------------------
Stock options:                                                              
  $6.33 to 11.56           2.9      875,490 $    6.39      875,490 $    6.39
  $20.76 to 38.24          2.2    1,547,240     27.84    1,394,590     27.11
----------------------------------------------------------------------------
                           2.5    2,422,730 $   20.09    2,270,080 $   19.12
----------------------------------------------------------------------------

 
(ii) Compensation expense related to SARs and TSARs: 
Compensation expense for SARs and TSARs is measured based on their
fair value and is recognized over the vesting period. Changes in fair
value each period are recognized in net income for the proportion of
the service that has been rendered at each reporting date. The fair
value at March 31, 2013 was $43.0 million compared with the recorded
liability of $32.0 million. The difference between the fair value and
the recorded liability of $11.0 million will be recognized over the
weighted average remaining vesting period of approximately 2.0 years.
The weighted average fair value of the vested SARs and TSARs was
estimated at March 31, 2013 using the Black-Scholes option pricing
model. 
For the three months ended March 31, 2013, compensation expense
related to SARs and TSARs included an expense in cost of sales and
operating expenses of $17.0 million (2012 - $10.7 million). This
included an expense of $15.0 million (2012 - expense of $7.8 million)
related to the effect of the change in the Company's share price for
the three months ended March 31, 2013.  
(iii) Compensation expense related to stock options: 
For the three months ended March 31, 2013, compensation expense
related to stock options included in cost of sales and operating
expenses was $0.2 million (2012 - $0.2 million). The fair value of
each stock option grant was estimated on the date of grant using the
Black-Scholes option pricing model.  
b) Deferred, restricted and performance share units: 
Deferred, restricted and performance share units outstanding at March
31, 2013 are as follows: 


 
                                        Number of    Number of    Number of 
                                         Deferred   Restricted  Performance 
                                      Share Units  Share Units  Share Units 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Outstanding at January 1, 2012            597,911       48,588    1,103,049 
  Granted                                  21,649       20,400      358,330 
  Granted in-lieu of dividends             13,821        1,502       25,339 
  Redeemed                                (66,531)     (31,607)    (413,138)
  Cancelled                                     -            -      (19,711)
----------------------------------------------------------------------------
Outstanding at December 31, 2012          566,850       38,883    1,053,869 
----------------------------------------------------------------------------
  Granted                                   9,725       22,500      304,600 
  Granted in-lieu of dividends              2,391          280        4,305 
  Redeemed                                (49,432)           -     (410,177)
  Cancelled                                     -            -       (5,810)
----------------------------------------------------------------------------
Outstanding at March 31, 2013             529,534       61,663      946,787 
----------------------------------------------------------------------------

 
Compensation expense for deferred, restricted and performance share
units is measured at fair value based on the market value of the
Company's common shares and is recognized over the vesting period.
Changes in fair value are recognized in earnings for the proportion
of the service that has been rendered at each reporting date. The
fair value of deferred, restricted and performance share units at
March 31, 2013 was $65.4 million compared with the recorded liability
of $48.5 million. The difference between the fair value and the
recorded liability of $16.9 million will be recognized over the
weighted average remaining vesting period of approximately 2.1 years. 
For the three months ended March 31, 2013, compensation expense
related to deferred, restricted and performance share units included
in cost of sales and 
operating expenses was an expense of $19.1
million (2012 -$14.1 million). This included an expense of $15.7
million (2012 - expense of $10.3 million) related to the effect of
the change in the Company's share price for the three months ended
March 31, 2013. 
9. Changes in non-cash working capital:  
Changes in non-cash working capital for the three months ended March
31, 2013 were as follows: 


 
                                                         Three Months Ended 
                                                      ----------------------
                                                          Mar 31     Mar 31 
                                                            2013       2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Decrease (increase) in non-cash working capital:                            
  Trade and other receivables                          $ (24,428) $    (941)
  Inventories                                            (33,127)    13,364 
  Prepaid expenses                                         3,891        921 
  Trade, other payables and accrued liabilities,                            
   including long-term payables included in other                           
   long-term liabilities                                  37,708    (56,777)
----------------------------------------------------------------------------
                                                         (15,956)   (43,433)
Adjustments for items not having a cash effect and                          
 working capital changes relating to taxes and                              
 interest paid                                              (377)    16,071 
----------------------------------------------------------------------------
Changes in non-cash working capital having a cash                           
 effect                                                $ (16,333) $ (27,362)
----------------------------------------------------------------------------
                                                                            
These changes relate to the following activities:                           
  Operating                                            $ (15,037) $ (40,194)
  Investing                                               (1,296)    12,832 
----------------------------------------------------------------------------
Changes in non-cash working capital                    $ (16,333) $ (27,362)
----------------------------------------------------------------------------

 
10. Financial instruments:  
Financial instruments are either measured at amortized cost or fair
value. Held-to-maturity investments, loans and receivables and other
financial liabilities are measured at amortized cost.
Held-for-trading financial assets and liabilities and
available-for-sale financial assets are measured on the Consolidated
Statement of Financial Position at fair value. Derivative financial
instruments are classified as held-for-trading and are recorded on
the Consolidated Statement of Financial Position at fair value unless
exempted. Changes in fair value of held-for-trading derivative
financial instruments are recorded in earnings unless the instruments
are designated as cash flow hedges.  
The euro hedges and the Egypt interest rate swaps designated as cash
flow hedges are measured at fair value based on industry-accepted
valuation models and inputs obtained from active markets.  
The Egypt limited recourse debt facilities bear interest at LIBOR
plus a spread. The Company has interest rate swap contracts to swap
the LIBOR-based interest payments for an average aggregated fixed
rate of 4.8% plus a spread on approximately 75% of the Egypt limited
recourse debt facilities for the period to March 31, 2015. The
Company has designated these interest rate swaps as cash flow hedges.
These interest rate swaps had an outstanding notional amount of $329
million as at March 31, 2013. The notional amount decreases over the
expected repayment period. At March 31, 2013, these interest rate
swap contracts had a negative fair value of $25.9 million (2012 -
$32.7 million) recorded in other long-term liabilities. The fair
value of these interest rate swap contracts will fluctuate until
maturity.  
The Company also designates as cash flow hedges forward exchange
contracts to sell euro at a fixed USD exchange rate. At March 31,
2013, the Company had outstanding forward exchange contracts
designated as cash flow hedges to sell a notional amount of EUR17.2
million in exchange for US dollars and these euro contracts had a
positive fair value of $0.8 million (2012 - negative fair value of
$0.2 million) recorded in other assets. Changes in fair value of
derivative financial instruments designated as cash flow hedges have
been recorded in other comprehensive income.  
The carrying values of the Company's financial instruments
approximate their fair values, except as follows: 


 
                                                              March 31, 2013
                                                  --------------------------
                                                       Carrying             
As at                                                     Value   Fair Value
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Long-term debt                                      $ 1,186,887  $ 1,240,180
----------------------------------------------------------------------------

 
There is no publicly traded market for the limited recourse debt
facilities, the fair value of which is estimated by reference to
current market prices for debt securities with similar terms and
characteristics. The fair value of the unsecured notes was calculated
by reference to a limited number of small transactions in March 2013.
The fair value of the Company's unsecured notes will fluctuate until
maturity. 
11. Adoption of New Accounting Standards: 
a) Effective January 1, 2013, the Company has adopted the following
new IASB accounting standards related to consolidation and joint
arrangements: IFRS 10, Consolidated Financial Statements; IFRS 11,
Joint Arrangements; and IFRS 12, Disclosure of Interests in Other
Entities.  
As a result of the adoption of these new standards, the Company's
63.1% interest in the Atlas entity is accounted for using the equity
method.  The Company has restated its Consolidated Statement of
Financial Position as at January 1, 2012 and December 31, 2012 and
its Consolidated Statement of Income and Comprehensive Income for the
three months ended March 31, 2012. Reconciliations of the
restatements of the Consolidated Statement of Financial Position as
at December 31, 2012 and Consolidated Statement of Income and
Comprehensive Income for the three months ended March 31, 2012 are as
follows:  


 
Consolidated Statement of Financial Position                                
As at December 31, 2012                                                     
                                               As   Restatement             
                                       Previously   of Atlas to             
                                           Stated Equity Method As Adjusted 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ASSETS                                                                      
Current assets:                                                             
  Cash and cash equivalents            $  745,610  $    (18,225) $  727,385 
  Trade and other receivables             429,203       (12,047)    417,156 
  Inventories                             253,023         3,317     256,340 
  Prepaid expenses                         28,314        (2,726)     25,588 
----------------------------------------------------------------------------
                                        1,456,150       (29,681)  1,426,469 
Non-current assets:                                                         
  Property, plant and equipment         2,014,748      (251,875)  1,762,873 
  Investment in associate                       -       184,665     184,665 
  Other assets                             73,724        (5,170)     68,554 
----------------------------------------------------------------------------
                                        2,088,472       (72,380)  2,016,092 
----------------------------------------------------------------------------
                                       $3,544,622  $   (102,061) $3,442,561 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
LIABILITIES AND EQUITY                                                      
Current liabilities:                                                        
  Trade, other payables and accrued                                         
   liabilities                         $  353,744  $     23,922  $  377,666 
  Current maturities on long-term debt     53,334       (15,044)     38,290 
  Current maturities on other long-                                         
   term liabilities                        33,903        (3,581)     30,322 
----------------------------------------------------------------------------
                                          440,981         5,297     446,278 
Non-current liabilities:                                                    
  Long-term debt                        1,191,891       (35,810)  1,156,081 
  Other long-term liabilities             242
,435       (42,223)    200,212 
  Deferred income tax liabilities         191,578       (29,325)    162,253 
----------------------------------------------------------------------------
                                        1,625,904      (107,358)  1,518,546 
Equity:                                                                     
  Capital stock                           481,779             -     481,779 
  Contributed surplus                      15,481             -      15,481 
  Retained earnings                       805,661             -     805,661 
  Accumulated other comprehensive loss    (13,045)            -     (13,045)
----------------------------------------------------------------------------
  Shareholders' equity                  1,289,876             -   1,289,876 
  Non-controlling interests               187,861             -     187,861 
----------------------------------------------------------------------------
  Total equity                          1,477,737             -   1,477,737 
----------------------------------------------------------------------------
                                       $3,544,622  $   (102,061) $3,442,561 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
 

 
Consolidated Statement of Income                                            
Three months ended March 31, 2012                                           
                                               As   Restatement             
                                       Previously   of Atlas to             
                                           Stated Equity Method As Adjusted 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Revenue                                $  665,867  $    (12,329) $  653,538 
Cost of sales and operating expenses     (568,557)       15,593    (552,964)
Depreciation and amortization             (37,967)        2,566     (35,401)
----------------------------------------------------------------------------
Operating income                           59,343         5,830      65,173 
Earnings of associate                           -        (7,328)     (7,328)
Finance costs                             (18,533)        2,500     (16,033)
Finance income and other expenses           1,679           159       1,838 
----------------------------------------------------------------------------
Profit before income tax expense           42,489         1,161      43,650 
Income tax expense:                                                         
  Current                                  (4,568)         (729)     (5,297)
  Deferred                                 (5,110)         (432)     (5,542)
----------------------------------------------------------------------------
                                           (9,678)       (1,161)    (10,839)
----------------------------------------------------------------------------
Net income                             $   32,811  $          -  $   32,811 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Change in fair value of forward                                             
 exchange contracts, net of tax              (305)            -        (305)
Change in fair value of interest rate                                       
 swap contracts, net of tax                (2,613)            -      (2,613)
Realized loss on interest rate swap                                         
 reclassified to interest expense, net                                      
 of tax                                     2,936             -       2,936 
----------------------------------------------------------------------------
Comprehensive income                   $   32,829  $          -  $   32,829 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to:                                -             -           - 
  Methanex Corporation shareholders        21,970             -      21,970 
  Non-controlling interests                10,859             -      10,859 
----------------------------------------------------------------------------
                                       $   32,829  $          -  $   32,829 
----------------------------------------------------------------------------

 
b) Effective January 1, 2013, the Company adopted IFRS 13, Fair Value
Measurements. As a result of this new standard, incremental
disclosures have been provided in note 10 to these condensed
consolidated interim financial statements. 
c) Effective January 1, 2013, the Company adopted the revised IFRS
19, Employee Benefits. The adoption of this standard has not had a
significant impact on the Company. 
d) Effective January 1, 2013, the Company adopted the revised IAS,
Presentation of Financial Statements. The adoption of this standard
has resulted is a change to the presentation of the Company's
Consolidated Statements of Comprehensive Income. 
12. Subsequent Event: 
In a prior period, the Company made a commitment to fund 50% of the
cost of certain exploratory hydrocarbon wells in New Zealand. As at
March 31, 2013, the Company had incurred approximately $15 million of
costs related to this arrangement which were recorded on the
Consolidated Statement of Financial Position as oil and gas
properties in Other Assets. The Company has no future commitments
under these arrangements. In April 2013 the operator of the drilling
program announced their intention to abandon one of the wells. At the
date of this report the Company has not had the opportunity to
analyze the operator's data from the drilling program. During the
second quarter of 2013, the Company will evaluate whether an event
has occurred which would require a re-assessment of the carrying
value of the investment. 


 
Methanex Corporation                          
Quarterly History (unaudited)                 
                                              
                                       Q1 2013
----------------------------------------------
                                              
                                              
METHANOL SALES VOLUMES                        
(thousands of tonnes)                         
                                              
Methanex-produced                        1,024
Purchased methanol                         588
Commission sales (1)                       219
----------------------------------------------
                                              
                                         1,831
----------------------------------------------
                                              
METHANOL PRODUCTION                           
(thousands of tonnes)                         
                                              
Chile                                       55
New Zealand                                309
Atlas, Trinidad (63.1%)                    248
Titan, Trinidad                            181
Egypt (60%)                                133
Medicine Hat                               131
----------------------------------------------
                                              
                                         1,057
----------------------------------------------
                                              
AVERAGE REALIZED METHANOL                     
 PRICE (2)                                    
  ($/tonne)                                412
  ($/gallon)                              1.24
                                              
PER SHARE INFORMATION ($                      
 per share) (3)                               
Basic net income (loss)                   0.64
Diluted net income (loss)                 0.63
Adjusted diluted net                          
 income (4)                               0.92
 
Methanex Corporation                                                        
Quarterly History (unaudited)                                               
                                                                            
                                                                            
                               2012        Q4        Q3         Q2        Q1
----------------------------------------------------------------------------
                                                                            
                                                                            
METHANOL SALES VOLUMES                                                      
(thousands of tonnes)                                                       
                                                                            
Methanex-produced             4,039     1,059     1,053      1,001       926
Purchased methanol            2,565       664       641        569       691
Commission sales (1)            855       176       205        276       198
----------------------------------------------------------------------------
                                                                            
                              7,459     1,899     1,899      1,846     1,815
----------------------------------------------------------------------------
                                                                            
METHANOL PRODUCTION                                                         
(thousands of tonnes)                                                       
                                                                            
Chile                           313        59        59         82       113
New Zealand                   1,108       378       346        210       174
Atlas, Trinidad (63.1%)         826       180       255        264       127
Titan, Trinidad                 786       189       186        196       215
Egypt (60%)                     557       129        62        164       202
Medicine Hat                    481       132       117        118       114
----------------------------------------------------------------------------
                                                                            
                              4,071     1,067     1,025      1,034       945
----------------------------------------------------------------------------
                                                                            
AVERAGE REALIZED METHANOL                                                   
 PRICE (2)                                                                  
  ($/tonne)                     382       389       373        384       382
  ($/gallon)                   1.15      1.17      1.12       1.15      1.15
                                                                            
PER SHARE INFORMATION ($                                                    
 per share) (3)                                                             
Basic net income (loss)       (0.73)    (1.49)    (0.03)      0.56      0.24
Diluted net income (loss)     (0.73)    (1.49)    (0.03)      0.50      0.23
Adjusted diluted net                                                        
 income (4)                    1.90      0.64      0.38       0.47      0.41
 
Methanex Corporation                                                        
Quarterly History (unaudited)                                               
                                                                            
                                2011        Q4        Q3        Q2        Q1
----------------------------------------------------------------------------
                                                                            
                                                                            
METHANOL SALES VOLUMES                                                      
(thousands of tonnes)                                                       
                                                                            
Methanex-produced              3,853     1,052       983       970       848
Purchased methanol             2,815       644       672       664       835
Commission sales (1)             846       208       235       231       172
----------------------------------------------------------------------------
                                                                            
                               7,514     1,904     1,890     1,865     1,855
----------------------------------------------------------------------------
                                                                            
METHANOL PRODUCTION                                                         
(thousands of tonnes)                                                       
                                                                            
Chile                            554       113       116       142       183
New Zealand                      830       211       209       207       203
Atlas, Trinidad (63.1%)          891       195       170       263       263
Titan, Trinidad                  711       180       224       186       121
Egypt (60%)                      532       132       191       178        31
Medicine Hat                     329       130       125        74         -
----------------------------------------------------------------------------
                                                                            
                               3,847       961     1,035     1,050       801
----------------------------------------------------------------------------
                                                                            
AVERAGE REALIZED METHANOL                                                   
 PRICE (2)                                                                  
  ($/tonne)                      374       388       377       363       367
  ($/gallon)                    1.12      1.17      1.13      1.09      1.10
                                                                            
PER SHARE INFORMATION ($                                                    
 per share) (3)                                                             
Basic net income (loss)         2.16      0.69      0.67      0.44      0.37
Diluted net income (loss)       2.06      0.68      0.59      0.43      0.37
Adjusted diluted net                                                        
 income (4)                     1.93      0.69      0.43      0.41      0.39
                                                                            
(1) Commission sales represent volumes marketed on a commission basis       
related to the 36.9% of the Atlas methanol facility and 40% of the Egypt    
methanol facility that we do not own.                                       
(2) Average realized price is calculated as revenue, excluding commissions  
earned and the Egypt non-controlling interest share of revenue but including
an amount representing our share of Atlas revenue, divided by the total     
sales volumes of Methanex-produced (attributable to Methanex shareholders)  
and purchased methanol.                                                     
(3) Per share information calculated using amounts attributable to Methanex 
shareholders.                                                               
(4) This item is a non-GAAP measure that does not have any standardized     
meaning prescribed by GAAP and therefore is unlikely to be comparable to    
similar measures presented by other companies. Refer to the Additional      
Information - Supplemental Non-GAAP Measures section for a description of   
the non-GAAP measure and reconciliation to the most comparable GAAP measure.

Contacts:
Sandra Daycock
Director, Investor Relations
Methanex Corporation
604 661 2600 or Toll-Free: 1 800 661 8851
invest@methanex.com
www.methanex.com
 
 
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