Methanex Reports Record Results

Methanex Reports Record Results 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 01/29/14 -- For the
fourth quarter of 2013, Methanex
(TSX:MX)(NASDAQ:MEOH)(SANTIAGO:Methanex) reported Adjusted EBITDA(1)
of $245 million and Adjusted net income(1) of $167 million ($1.72 per
share on a diluted basis(1)). This compares with Adjusted EBITDA(1)
of $184 million and Adjusted net income(1) of $117 million ($1.22 per
share on a diluted basis(1)) for the third quarter of 2013. For the
year ended December 31, 2013, Methanex reported Adjusted EBITDA(1) of
$736 million and Adjusted net income of $471 million ($4.88 per share
on a diluted basis(1)). This compares with Adjusted EBITDA(1) of $429
million and Adjusted net income of $180 million ($1.90 per share on a
diluted basis(1)) for the year ended December 31, 2012. 
John Floren, President and CEO of Methanex commented, "Demand
remained healthy in the fourth quarter, driving methanol pricing
higher amidst industry supply constraints. Increased production from
our plants in New Zealand and Chile, together with strong methanol
pricing, contributed to robust EBITDA and earnings results. We are
pleased to report that 2013 Adjusted net income and annual sales
volume were the highest in the Company's history." 
Mr. Floren added, "2014 will be an exciting time for our business. We
recently added one million tonnes of operating capacity through the
growth projects completed in New Zealand and Medicine Hat. We
continue to progress our Geismar relocation projects and all of the
major equipment pieces for Geismar 1 are now on site in Louisiana. We
are targeting to be producing methanol from Geismar 1 in late 2014
and from Geismar 2 in early 2016. These key projects support the 3
million tonne increase in our operating capacity to 8 million tonnes
by 2016, a time when new market supply is expected to be limited." 
Mr. Floren concluded, "With over $700 million of cash on hand, an
undrawn credit facility, robust balance sheet, and strong cash flow
generation, we are well positioned to deliver on our growth projects,
continue to grow our business and deliver on our commitment to return
excess cash to shareholders." 
A conference call is scheduled for January 30, 2014 at 12:00 noon ET
(9:00 am PT) to review these fourth quarter results. To access the
call, dial the conferencing operator ten minutes prior to the start
of the call at (416) 340-2218, or toll free at (866) 226-1793. A
playback version of the conference call will be available until
February 20, 2014 at (905) 694-9451, or toll free at (800) 408-3053.
The passcode for the playback version is 4459948. Presentation slides
summarizing Q4-13 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
three weeks following the call. 
Methanex is a Vancouver-based, publicly traded company and is the
world's largest producer and supplier of methanol to major
international markets. Methanex shares are listed for trading on the
Toronto Stock Exchange in Canada under the trading symbol "MX" and on
the NASDAQ Global Market in the United States under the trading
symbol "MEOH". 
FORWARD-LOOKING INFORMATION WARNING 
This Fourth 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 Fourth 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. Refer to Additional Information - Supplemental Non-GAAP       
Measures section of the attached Interim Report for the three months ended 
December 31, 2013 for reconciliations to the most comparable GAAP measures.

 
Interim Report for the Three Months Ended December 31, 2013 
At January 29, 2014 the Company had 96,156,491 common shares issued
and outstanding and stock options exercisable for 1,737,606
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.  


 
Contact Information         
Methanex Investor Relations 
1800 - 200 Burrard Street   
Vancouver, BC Canada V6C 3M1
E-mail: invest@methanex.com 
Methanex Toll-Free: 1-800-  
661-8851                    

 
FOURTH 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 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        Years Ended  
                                 ------------------------  ----------------
($ millions except number of       Dec 31  Sep 30  Dec 31    Dec 31  Dec 31
shares and per share amounts)        2013    2013    2012      2013    2012
---------------------------------------------------------  ----------------
                                                                           
Net income (loss) attributable to                                          
 Methanex shareholders              $ 128    $ 87 $ (140)     $ 329  $ (68)
  Mark-to-market impact of share-                                          
   based compensation, net of tax      34      30       8       101      14
  Write-off of oil and gas                                                 
   rights, net of tax                   5       -       -        19       -
  Geismar project relocation                                               
   expenses, net of tax                 -       -       -        22      41
  Asset impairment charge, net of                                          
   tax                                  -       -     193         -     193
---------------------------------------------------------  ----------------
Adjusted net income (1)             $ 167   $ 117    $ 61     $ 471   $ 180
---------------------------------------------------------  ----------------
Diluted weighted average shares                                            
 outstanding (millions)                97      97      94        96      94
Adjusted net income per common                                             
 share (1)                         $ 1.72  $ 1.22  $ 0.64    $ 4.88  $ 1.90
---------------------------------------------------------  ----------------
 
--  We recorded Adjusted EBITDA(1) of $245 million for the fourth quarter of
    2013 compared with $184 million for the third quarter of 2013. The
    increase in Adjusted EBITDA(1) was primarily due to an increase in our
    average realized price to $493 per tonne for the fourth quarter of 2013
    from $438 per tonne for the third quarter of 2013 and an increase in
    sales of Methanex-produced methanol. 
--  Production for the fourth quarter of 2013 was 1,194,000 tonnes compared
    with 1,035,000 tonnes for the third quarter of 2013. Refer to the
    Production Summary section. 
--  Sales of Methanex-produced methanol were 1,190,000 tonnes in the fourth
    quarter of 2013 compared with 1,045,000 in the third quarter of 2013. 
--  During the fourth quarter of 2013, we completed a planned major
    refurbishment at the Motunui 2 facility. Our New Zealand operations are
    now capable of producing at the site's full annual production capacity
    of up to 2.4 million tonnes, depending on natural gas composition. 
--  We continue to progress our Geismar relocation projects and during the
    fourth quarter we reached an important milestone with all of the major
    equipment pieces for Geismar 1 now on site in Louisiana. We are
    targeting to be producing methanol from Geismar 1 in late 2014 and from
    Geismar 2 in early 2016. 
--  In December 2013, we completed an agreement to sell a 10% equity
    interest in the Methanex Egypt facility for $110 million. As we retained
    control of the entity, the $62.9 million gain realized on the sale has
    been recognized as an increase in shareholders' equity. 
--  During the fourth quarter of 2013, we paid a $0.20 per share dividend to
    shareholders for a total of $19 million. 
 
(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 Additional         
Information - Supplemental Non-GAAP Measures section for a description of  
each non-GAAP measure and reconciliations to the most comparable GAAP      
measures.                                                                  

 
This Fourth Quarter 2013 Management's Discussion and Analysis
("MD&A") dated January 29, 2014 for Methanex Corporation ("the
Company") should be read in conjunction with the Company's condensed
consolidated interim financial statements for the period ended
December 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        Years Ended  
                                 ------------------------  ----------------
($ millions, except per share      Dec 31  Sep 30  Dec 31    Dec 31  Dec 31
amounts and where noted)             2013    2013    2012      2013    2012
---------------------------------------------------------  ----------------
                                                                           
Production (thousands of tonnes)                                           
 (attributable to Methanex                                                 
 shareholders)                      1,194   1,035   1,067     4,344   4,071
                                                                           
Sales volumes (thousands of                                                
 tonnes):                                                                  
  Methanex-produced methanol                                               
   (attributable to Methanex                                               
   shareholders)                    1,190   1,045   1,059     4,304   4,039
  Purchased methanol                  663     715     664     2,715   2,565
  Commission sales                    274     237     176       972     855
---------------------------------------------------------  ----------------
  Total sales volumes (1)           2,127   1,997   1,899     7,991   7,459
                                                                           
Methanex average non-discounted                                            
 posted price ($ per tonne) (2)       557     502     450       507     443
Average realized price ($ per                                              
 tonne) (3)                           493     438     389       441     382
                                                                           
Adjusted EBITDA (attributable to                                           
 Methanex shareholders) (4)           245     184     119       736     429
Cash flows from operating                                                  
 activities                           162     181      80       586     416
Adjusted net income (attributable                                          
 to Methanex shareholders) (4)        167     117      61       471     180
Net income (loss) attributable to                                          
 Methanex shareholders                128      87   (140)       329    (68)
                                                                           
Adjusted net income per common                                             
 share (attributable to Methanex                                           
 shareholders) (4)                   1.72    1.22    0.64      4.88    1.90
Basic net income (loss) per                                                
 common share (attributable to                                             
 Methanex shareholders)              1.33    0.91  (1.49)      3.46  (0.73)
Diluted net income (loss) per                                              
 common share (attributable to                                             
 Methanex shareholders)              1.32    0.90  (1.49)      3.41  (0.73)
                                                                           
Common share information                                                   
 (millions of shares):                                                     
  Weighted average number of                                               
   common shares                       96      95      94        95      94
  Diluted weighted average number                                          
   of common shares                    97      97      94        96      94
  Number of common shares                                                  
   outstanding, end of period          96      96      94        96      94
---------------------------------------------------------  ----------------
(1)Methanex-produced methanol includes volumes produced by Chile using      
natural gas supplied from Argentina under a tolling arrangement. Commission 
sales represent volumes marketed on a commission basis related to the 36.9% 
of the Atlas methanol facility and the portion of the Egypt methanol        
facility that we do not own.                                                
(2)Methanex average 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 Additional          
Information - Supplemental Non-GAAP Measures section for a description of   
each non-GAAP measure and reconciliations to the most comparable GAAP       
measures.                                                                   
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
PRODUCTION SUMMARY 


 
                                       Annual           2013           2012
(thousands of tonnes)             Capacity(1)     Production     Production
---------------------------------------------------------------------------
                                                                           
New Zealand (2)                         2,430          1,419          1,108
Atlas (Trinidad) (63.1%                                                    
 interest)                              1,125            971            826
Titan (Trinidad)                          875            651            786
Egypt (50% interest)(3)                   630            623            557
Medicine Hat                              560            476            481
Chile I and IV                          1,800            204            313
Geismar 1 and 2 (Louisiana,                                                
 USA) (4)                                   -              -              -
---------------------------------------------------------------------------
                                        7,420          4,344          4,071
---------------------------------------------------------------------------
 
                                      Q4 2013        Q3 2013        Q4 2012
(thousands of tonnes)              Production     Production     Production
---------------------------------------------------------------------------
                                                                           
New Zealand (2)                           400            349            378
Atlas (Trinidad) (63.1%                                                    
 interest)                                268            254            180
Titan (Trinidad)                          173            128            189
Egypt (50% interest)(3)                   159            168            129
Medicine Hat                               86            130            132
Chile I and IV                            108              6             59
Geismar 1 and 2 (Louisiana,                                                
 USA) (4)                                   -              -              -
---------------------------------------------------------------------------
                                        1,194          1,035          1,067
---------------------------------------------------------------------------
(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 Motunui 
facilities and the Waitara Valley facility (refer to New Zealand section    
below).                                                                     
(3)On December 9, 2013, we completed the sale of a 10% equity interest in   
the Egypt facility. Production figures prior to December 9, 2013 reflect a  
60% interest.                                                               
(4)We are relocating two idle Chile facilities to Geismar, Louisiana and are
targeting to be producing methanol from Geismar 1 in late 2014 and Geismar 2
by early 2016.                                                              

 
New Zealand 
Our New Zealand methanol facilities produced 400,000 tonnes of
methanol in the fourth quarter of 2013 compared with 349,000 tonnes
in the third quarter of 2013. We completed a major refurbishment at
the Motunui 2 facility during the fourth quarter of 2013. With all
three facilities now operating, we are able to produce at the New
Zealand site's full annual production capacity of up to 2.4 million
tonnes, depending on natural gas composition. 
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 173,000 tonnes
in the fourth quarter of 2013 compared with 128,000 tonnes in the
third quarter of 2013. The Titan facility underwent a planned
turnaround in the third quarter of 2013 and returned to operation in
early October. The Titan facility also experienced an unplanned
outage during the fourth quarter which resulted in lost production of
approximately 15,000 tonnes. The Atlas facility produced 268,000
tonnes in the fourth quarter of 2013 compared with 254,000 tonnes in
the third quarter of 2013. 
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 gas curtailments to the Trinidad site. 
Egypt 
On December 9, 2013, we completed the sale of a 10% equity interest
in the Egypt methanol facility to Arab Petroleum Investments
Corporation (APICORP) for $110 million. The production from this
facility attributable to Methanex reflects a 50% interest after
December 9, 2013. 
On a 100% basis, the Egypt methanol facility produced 273,000 tonnes
in the fourth quarter of 2013 (Methanex share of 159,000 tonnes)
compared with 280,000 tonnes (Methanex share of 168,000 tonnes) in
the third quarter of 2013. The Egypt facility experienced an
unplanned outage during the fourth quarter of 2013 which resulted in
lost production of approximately 35,000 tonnes (100% basis). 
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 
During the fourth quarter of 2013, we produced 86,000 tonnes at our
Medicine Hat facility compared with 130,000 tonnes during the third
quarter of 2013. The Medicine Hat facility experienced an unplanned
outage which resulted in lost production of approximately 50,000
tonnes during the fourth quarter of 2013. The facility restarted on
January 10, 2014 and is currently operating. 
Chile 
After idling our Chile operations during the southern hemisphere
winter as a result of insufficient natural gas feedstock, we
restarted the Chile I facility in September 2013. During the fourth
quarter of 2013, we produced 108,000 tonnes in Chile operating the
facility at approximately 50% of production capacity, supported by
natural gas supplies from both Chile and Argentina through a tolling
arrangement. 
The future of our Chile operations is primarily dependent on the
level of natural gas 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 continue to progress our two Geismar relocation projects and
during the fourth quarter we reached an important milestone with all
of the major equipment pieces for Geismar 1 now on site in Louisiana.
We are targeting to be producing methanol from the 1.0 million tonne
Geismar 1 facility in late 2014 and from the 1.0 million tonne
Geismar 2 facility in early 2016. During the fourth quarter of 2013,
we incurred $145 million of capital expenditures related to these
projects, excluding capitalized interest. 
FINANCIAL RESULTS 
For the fourth quarter of 2013 we recorded Adjusted EBITDA of $245
million and Adjusted net income of $167 million ($1.72 per share on a
diluted basis). This compares with Adjusted EBITDA of $184 million
and Adjusted net income of $117 million ($1.22 per share on a diluted
basis) for the third quarter of 2013. For the year ended December 31,
2013, we reported Adjusted EBITDA of $736 million and Adjusted net
income of $471 million ($4.88 per share on a diluted basis) compared
with Adjusted EBITDA of $429 million and Adjusted net income of $180
million ($1.90 per share on a diluted basis) for the year ended
December 31, 2012. 
For the fourth quarter of 2013, we reported net income attributable
to Methanex shareholders of $128 million ($1.32 per share on a
diluted basis) compared with net income attributable to Methanex
shareholders for the third quarter of 2013 of $87 million ($0.90
income per share on a diluted basis). 
On December 9, 2013, we completed the sale of a 10% equity interest
in the Egypt methanol facility to APICORP for $110 million. The
transaction decreases Methanex's ownership interest to approximately
50% with Methanex retaining control. As we retain control of the
entity, under IFRS accounting standards, this is considered a
transaction between equity holders and the $62.9 million gain
realized on the sale is recognized as an increase in shareholders'
equity.  
We calculate Adjusted EBITDA and Adjusted net income by including
amounts related to our equity share of the Atlas (63.1% interest) and
Egypt (50% interest as of December 9, 2013) 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 Additional Information
- Supplemental Non-GAAP Measures section for a further discussion on
how we calculate these measures. 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.  
A reconciliation from net income attributable to Methanex
shareholders to Adjusted net income and the calculation of Adjusted
net income per common share is as follows:  


 
                                    Three Months Ended        Years Ended  
                                 ------------------------  ----------------
($ millions except number of       Dec 31  Sep 30  Dec 31    Dec 31  Dec 31
shares and per share amounts)        2013    2013    2012      2013    2012
---------------------------------------------------------  ----------------
                                                                           
Net income (loss) attributable to                                          
 Methanex shareholders              $ 128    $ 87 $ (140)     $ 329  $ (68)
  Mark-to-market impact of share-                                          
   based compensation, net of tax      34      30       8       101      14
  Write-off of oil and gas                                                 
   rights, net of tax                   5       -       -        19       -
  Geismar project relocation                                               
   expenses, net of tax                 -       -       -        22      41
  Asset impairment charge, net of                                          
   tax                                  -       -     193         -     193
---------------------------------------------------------  ----------------
Adjusted net income (1)             $ 167   $ 117    $ 61     $ 471   $ 180
---------------------------------------------------------  ----------------
Diluted weighted average shares                                            
 outstanding (millions)                97      97      94        96      94
Adjusted net income per common                                             
 share (1)                         $ 1.72  $ 1.22  $ 0.64    $ 4.88  $ 1.90
---------------------------------------------------------  ----------------
(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 Additional         
Information - Supplemental Non-GAAP Measures section for a description of  
each non-GAAP measure and reconciliations to the most comparable GAAP      
measures.                                                                  

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


 
                                    Three Months Ended        Years Ended  
                                 ------------------------  ----------------
                                   Dec 31  Sep 30  Dec 31    Dec 31  Dec 31
($ millions)                         2013    2013    2012      2013    2012
---------------------------------------------------------  ----------------
                                                                           
Consolidated statements of                                                 
 income:                                                                   
  Revenue                           $ 881   $ 758   $ 668   $ 3,024 $ 2,543
  Cost of sales and operating                                              
   expenses, excluding mark-to-                                            
   market impact of share-based                                            
   compensation                     (634)   (565)   (546)   (2,267) (2,075)
  Adjusted EBITDA of associate                                             
   (Atlas) (1)                         26      15      10        68      34
---------------------------------------------------------------------------
                                      273     208     132       825     502
Comprised of:                                                              
  Adjusted EBITDA (attributable                                            
   to Methanex shareholders) (2)      245     184     119       736     429
  Attributable to non-controlling                                          
   interests                           28      24      13        89      73
---------------------------------------------------------  ----------------
                                      273     208     132       825     502
  Mark-to-market impact of share-                                          
   based compensation                (37)    (33)     (8)     (110)    (16)
  Depreciation and amortization      (35)    (29)    (35)     (123)   (149)
  Write-off of oil and gas rights     (8)       -       -      (25)       -
  Geismar project relocation                                               
   expenses and charges                 -       -       -      (34)    (65)
  Asset impairment charge               -       -   (297)         -   (297)
  Earnings of associate,                                                   
   excluding amount included in                                            
   Adjusted EBITDA (1)                (9)     (9)    (10)      (38)    (34)
  Finance costs                      (13)    (14)    (13)      (57)    (61)
  Finance income and other                                                 
   expenses                             2       2       3         5       1
  Income tax expense                 (29)    (24)      93      (66)      85
---------------------------------------------------------------------------
  Net income (loss)                 $ 144    $101  $(135)     $ 377  $ (34)
---------------------------------------------------------------------------
  Net income (loss) attributable                                           
   to Methanex shareholders         $ 128    $ 87  $(140)     $ 329  $ (68)
---------------------------------------------------------------------------
(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 Additional         
Information - Supplemental Non-GAAP Measures section for a description of  
the non-GAAP measure and reconciliation 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:  


 
                                    Q4 2013         Q4 2013            2013
                              compared with   compared with   compared with
($ millions)                        Q3 2013         Q4 2012            2012
---------------------------------------------------------------------------
                                                                           
Average realized price                 $ 99           $ 188           $ 423
Sales volume                              5               7              32
Total cash costs                       (43)            (69)           (148)
---------------------------------------------------------------------------
Increase in Adjusted EBITDA            $ 61           $ 126           $ 307
---------------------------------------------------------------------------

 
Average realized price 


 
                                    Three Months Ended        Years Ended  
                                 ------------------------  ----------------
                                   Dec 31  Sep 30  Dec 31    Dec 31  Dec 31
($ per tonne)                        2013    2013    2012      2013    2012
---------------------------------------------------------  ----------------
                                                                           
Methanex average non-discounted                                            
 posted price                        557      502     450      507      443
Methanex average realized price      493      438     389      441      382
---------------------------------------------------------  ----------------

 
Methanol market conditions remained healthy during the fourth quarter
and pricing increased amidst industry supply constraints (refer to
Supply/Demand Fundamentals section). Our average non-discounted
posted price for the fourth quarter of 2013 was $557 per tonne
compared with $502 per tonne for the third quarter of 2013 and $450
per tonne for the fourth quarter of 2012. Our average realized price
for the fourth quarter of 2013 was $493 per tonne compared with $438
per tonne for the third quarter of 2013 and $389 per tonne for the
fourth quarter of 2012. The change in average realized price for the
fourth quarter of 2013 increased Adjusted EBITDA by $99 million
compared with the third quarter of 2013 and increased Adjusted EBITDA
by $188 million compared with the fourth quarter of 2012. Our average
realized price for the year ended December 31, 2013 was $441 per
tonne compared with $382 per tonne for the same period in 2012 and
this increased Adjusted EBITDA by $423 million. 
Sales volume 
Methanol sales volumes excluding commission sales volumes were higher
for all periods presented and this increased Adjusted EBITDA by the
amounts noted in the table above. 
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:  


 
($ millions)                        Q4 2013         Q4 2013            2013
                              compared with   compared with   compared with
                                    Q3 2013         Q4 2012            2012
---------------------------------------------------------------------------
                                                                           
Methanex-produced methanol                                                 
 costs                               $ (22)          $ (23)          $ (62)
Proportion of Methanex-                                                    
 produced methanol sales                 13               5             (4)
Purchased methanol costs               (43)            (69)           (138)
Logistics costs                         (3)              14              38
Other, net                               12               4              18
---------------------------------------------------------------------------
                                     $ (43)          $ (69)         $ (148)
---------------------------------------------------------------------------

 
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 fourth quarter of 2013 compared with
the third quarter of 2013, Methanex-produced methanol costs were
higher by $22 million primarily due to the impact of higher realized
methanol prices on the variable portion of our natural gas costs and
changes in the mix of production sold from inventory. For the fourth
quarter and year ended December 31, 2013 compared with the same
periods in 2012, Methanex-produced methanol costs were higher by $23
million and $62 million, respectively, primarily due to the impact of
higher realized methanol prices on the variable portion of our
natural gas costs and changes in the mix of production sold from
inventory. 
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 fourth quarter of 2013
compared with the third quarter of 2013 and the fourth quarter of
2012, a higher proportion of Methanex-produced methanol sales
increased Adjusted EBITDA by $13 million and $5 million,
respectively. Sales of Methanex-produced methanol increased in the
fourth quarter of 2013 primarily as a result of higher production
from New Zealand.  
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. Over the past year, we have completed
several initiatives that have reduced logistics costs and improved
the efficiency of our supply chain. Logistics costs in the fourth
quarter of 2013 were $14 million lower than the fourth quarter of
2012 and logistics costs for the twelve month period were $38 million
lower than in the same period in 2012. 
Other, net 
We have commenced the process of building a manufacturing
organization in Geismar, Louisiana. Under IFRS, costs incurred
related to organizational build-up are not eligible for
capitalization and are charged directly to earnings as incurred.
During 2013, we incurred approximately $7 million of Geismar
organizational build-up costs and the remaining organizational
build-up costs are estimated to be approximately $25 million. The
remaining change in other, net for the periods presented primarily
relates to an insurance settlement recorded in the fourth quarter of
2013 and the impact of a restructuring of our Chile operations
completed in 2012. 
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        Years Ended  
                                 ------------------------  ----------------
                                   Dec 31  Sep 30  Dec 31    Dec 31  Dec 31
($ millions except share price)      2013    2013    2012      2013    2012
---------------------------------------------------------  ----------------
                                                                           
Methanex Corporation share price                                           
 (1)                              $ 59.24 $ 51.27 $ 31.87   $ 59.24 $ 31.87
                                                                           
Grant-date fair value expense                                              
 included in Adjusted EBITDA and                                           
 Adjusted net income                   4       5       3        21      20 
Mark-to-market impact due to                                               
 change in share price                37      33       8       110      16 
---------------------------------------------------------  ----------------
Total share-based compensation                                             
 expense                            $ 41    $ 38    $ 11     $ 131    $ 36 
---------------------------------------------------------  ----------------
(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 $51.27 per share
at September 30, 2013 to $59.24 per share at December 31, 2013. As a
result of the increase in the share price and the resulting impact on
the fair value of the outstanding units, we recorded a $37 million
mark-to-market expense on share-based compensation in the fourth
quarter of 2013. For the year ended December 31, 2013, we recorded a
$110 million mark-to-market share-based compensation expense as a
result of the increase in the share price from $31.87 at December 31,
2012 to $59.24 at December 31, 2013.  
Depreciation and Amortization 
Depreciation and amortization was $35 million for the fourth quarter
of 2013 compared with $29 million for the third quarter of 2013 and
$35 million for the fourth quarter of 2012. Depreciation and
amortization was higher in the fourth quarter of 2013 compared with
the third quarter of 2013 primarily due to high sales volumes of
Methanex-produced methanol. Depreciation and amortization for the
year ended December 31, 2013 was $123 million compared with $149
million for the same period in 2012. Depreciation and amortization is
lower for the year ended December 31, 2013 compared with the year
ended December 31, 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. 
Write-off of Oil and Gas Rights 
Over the past few years, we have participated with international oil
and gas companies in exploration activities in southern Chile. Based
on the outlook for natural gas deliveries under certain of these
arrangements, we have recorded a non-cash $8 million ($5 million
after-tax) charge to earnings in the fourth quarter of 2013 to write
off the carrying value of the assets. The only remaining oil and gas
activity for the Company relates to a producing property, Dorado
Riquelme, in southern Chile. 
Finance Costs 


 
                                    Three Months Ended        Years Ended  
                                 ------------------------  ----------------
                                   Dec 31  Sep 30  Dec 31    Dec 31  Dec 31
($ millions)                         2013    2013    2012      2013    2012
---------------------------------------------------------  ----------------
                                                                           
Finance costs before capitalized                                           
 interest                           $ 16    $ 16    $ 14      $ 65    $ 63 
Less capitalized interest             (3)     (2)     (1)       (8)     (2)
---------------------------------------------------------  ----------------
                                                                           
Finance costs                       $ 13    $ 14    $ 13      $ 57    $ 61 
--------------------
-------------------------------------  ----------------

 
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 projects. 
Finance Income and Other Expenses 


 
                                    Three Months Ended        Years Ended  
                                 ------------------------  ----------------
                                   Dec 31  Sep 30  Dec 31    Dec 31  Dec 31
($ millions)                         2013    2013    2012      2013    2012
---------------------------------------------------------  ----------------
                                                                           
Finance income and other expenses    $ 2     $ 2     $ 3       $ 5     $ 1 
---------------------------------------------------------------------------

 
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 year ended December 31, 2013
compared with 2012 is as follows:  


 
                               Year Ended                 Year Ended       
                            December 31, 2013          December 31, 2012   
                       --------------------------  ------------------------
($ millions, except                  Adjusted Net              Adjusted Net
where noted)              Net Income   Income (1)    Net Income  Income (1)
-------------------------------------------------  ------------------------
                                                                           
Amount before income                                                       
 tax                          $ 443        $ 562        $ (119)      $ 217 
Income tax recovery                                                        
 (expense)                      (66)         (91)           85         (37)
-------------------------------------------------  ------------------------
Amount after income tax       $ 377        $ 471         $ (34)      $ 180 
-------------------------------------------------  ------------------------
                                                                           
Effective tax rate               15%          16%           71%         17%
---------------------------------------------------------------------------
(1)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 Additional         
Information - Supplemental Non-GAAP Measures section for a description of  
the non-GAAP measure and reconciliation to the most comparable GAAP        
measure.                                                                   

 
For the year ended December 31, 2013, the effective tax rate was 15%
compared with 71% for the year ended December 31, 2012. Adjusted net
income represents the amount that is attributable to Methanex
shareholders and excludes the mark-to-market impact of share-based
compensation and items that are considered by management to be
non-operational. The effective tax rate related to Adjusted net
income was 16% for the year ended December 31, 2013 compared with 17%
for the year ended December 31, 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%. As the
Atlas entity is accounted for using the equity method, any income
taxes related to Atlas are included in earnings of associate and
therefore excluded from total income taxes. The statutory rates in
Canada and New Zealand are 25% and 28%, respectively. As of December
31, 2013, we have used substantially all previously unrecognized tax
benefits in Canada and New Zealand and as a result the effective tax
rates expected to be realized in these jurisdictions in the future
will more closely reflect their statutory rates. 
SUPPLY/DEMAND FUNDAMENTALS 
We estimate that methanol demand, excluding methanol demand from
integrated methanol to olefins facilities, is currently approximately
57 million tonnes on an annualized basis. 
The outlook for methanol demand growth continues to be strong.
Traditional chemical derivatives consume about 60% of global methanol
demand and growth is correlated to industrial production. 


 
             Methanex Non-Discounted Regional Posted Prices (1)            
                                    Jan         Dec         Nov         Oct
(US$ per tonne)                    2014        2013        2013        2013
---------------------------------------------------------------------------
                                                                           
United States                       632         632         599         549
Europe (2)                          610         539         539         539
Asia Pacific                        590         550         520         490
---------------------------------------------------------------------------
(1)Discounts from our posted prices are offered to customers based on       
various factors.                                                            
(2)EUR450 for Q1 2014 (Q4 2013 - EUR408) converted to United States dollars.
----------------------------------------------------------------------------

 
Energy-related applications consume the remaining 40% 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 three methanol-to-olefins (MTO) plants operating in China
which are dependent on merchant methanol supply and which have the
capacity to consume over 3 million tonnes of methanol annually. There
are other MTO plants which are integrated and purchase methanol to
supplement their production when required. We believe demand
potential into energy-related applications and olefins production
will continue to grow. 
During the fourth quarter of 2013, demand remained healthy and prices
increased amidst industry supply constraints. Our average
non-discounted price in the fourth quarter was $557 per tonne
compared with $502 per tonne in the third quarter. We recently
announced rolls in our North American and Asia Pacific non-discounted
prices for February at $632 per tonne and $590 per tonne,
respectively. 
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. Over the next few
years, there is a modest level of new capacity expected to come
on-stream relative to demand growth expectations. A 0.8 million tonne
plant in Channelview, Texas was recently restarted and a 0.7 million
tonne plant in Azerbaijan is expected to start exporting methanol in
2014. We are relocating two idle Chile facilities to Geismar,
Louisiana and are targeting to be producing methanol from the first
1.0 million tonne facility by late 2014 and the second 1.0 million
tonne facility 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 in the fourth quarter of 2013
decreased by $19 million to $162 million compared with $181 million
for the third quarter of 2013 and increased by $82 million compared
to $80 million for the fourth quarter of 2012. Cash flows from
operating activities for the year ended December 31, 2013 increased
by $170 million to $586 million compared with $416 million for the
same period in 2012. The changes in cash flows from operating
activities resulted from changes in the following:  


 
                                    Q4 2013         Q4 2013            2013
                              compared with   compared with   compared with
($ millions)                        Q3 2013         Q4 2012            2012
---------------------------------------------------------------------------
            
                                                               
Change in Adjusted EBITDA                                                  
 (attributable to Methanex                                                 
 shareholders)                         $ 61           $ 126           $ 307
Exclude change in Adjusted                                                 
 EBITDA of associate                                                       
 (Atlas)                               (11)            (16)            (34)
Cash flows attributable to                                                 
 non-controlling interests                4              15              16
Non-cash working capital               (51)            (29)            (79)
Income taxes paid                       (3)               1            (15)
Share-based payments                   (15)            (20)            (31)
Other                                   (4)               5               6
---------------------------------------------------------------------------
Increase in cash flows from                                                
 operating activities                $ (19)            $ 82           $ 170
---------------------------------------------------------------------------

 
During the fourth quarter of 2013, we paid a quarterly dividend of
$0.20 per share, or $19 million. 
We operate in a highly competitive commodity industry and believe it
is appropriate to maintain a conservative balance sheet and retain
financial flexibility. Our cash generation is strong in the current
methanol price environment and we recently completed the sale of a
10% equity interest in the Egypt methanol facility for $110 million.
At December 31, 2013, our cash balance was $733 million, including
$59 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 $70 million to the end
of 2014. Capital expenditures during the fourth quarter, excluding
the Geismar projects, were $72 million, primarily related to the
major refurbishment of the Motunui 2 facility in New Zealand. We are
relocating two methanol plants from our Chile site to Geismar,
Louisiana. During the fourth quarter of 2013, capital expenditures
related to the Geismar projects were $145 million, excluding
capitalized interest. The remaining budgeted capital expenditures
related to the Geismar projects are $635 million, excluding
capitalized interest. 
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 first quarter, market conditions remain healthy and
methanol 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 December 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 and
operating income. 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, mark-to-market impact of
share-based compensation, Geismar project relocation expenses and
charges and write-off of oil and gas rights. Adjusted EBITDA includes
an amount representing our 63.1% interest in the Atlas facility and
our 50% 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
attributable to Methanex shareholders to Adjusted EBITDA: 


 
                                    Three Months Ended        Years Ended  
                                 ------------------------  ----------------
                                   Dec 31  Sep 30  Dec 31    Dec 31  Dec 31
($ millions)                         2013    2013    2012      2013    2012
---------------------------------------------------------  ----------------
                                                                           
Net income (loss) attributable to                                          
 Methanex shareholders              $ 128    $ 87  $(140)     $ 329  $ (68)
  Mark-to-market impact of share-                                          
   based compensation                  37      33       8       110      16
  Depreciation and amortization        35      29      35       123     149
  Write-off of oil and gas rights       8       -       -        25       -
  Geismar project relocation                                               
   expenses and charges                 -       -       -        34      65
  Asset impairment charges              -       -     297         -     297
  Finance costs                        13      14      13        57      61
  Finance income and other                                                 
   expenses                           (2)     (2)     (3)       (5)     (1)
  Income tax expense (recovery)        29      24    (93)        66    (85)
  Earnings of associate,                                                   
   excluding amount included in             
                               
   Adjusted EBITDA (1)                  9       9      10        38      34
  Non-controlling interests                                                
   adjustment (1)                    (12)    (10)     (8)      (41)    (39)
---------------------------------------------------------  ----------------
Adjusted EBITDA (attributable to                                           
 Methanex shareholders)             $ 245   $ 184   $ 119     $ 736   $ 429
---------------------------------------------------------  ----------------
(1)These adjustments represent depreciation and amortization, finance      
costs, finance income and other expenses and income tax expense associated 
with the non-controlling interest in the methanol facility in Egypt and our
63.1% interest in the Atlas methanol facility.                             

 
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 Geismar project relocation expenses
and charges and write-off of oil and gas rights. The following table
shows a reconciliation of net income attributable to Methanex
shareholders to Adjusted net income and the calculation of Adjusted
net income per common share:  


 
                                    Three Months Ended        Years Ended  
                                 ------------------------  ----------------
($ millions except number of       Dec 31  Sep 30  Dec 31    Dec 31  Dec 31
shares and per share amounts)        2013    2013    2012      2013    2012
---------------------------------------------------------  ----------------
                                                                           
Net income (loss) attributable to                                          
 Methanex shareholders              $ 128    $ 87 $ (140)     $ 329  $ (68)
  Mark-to-market impact of share-                                          
   based compensation                  37      33       8       110      16
  Write-off of oil and gas rights       8       -       -        25       -
  Geismar project relocation                                               
   expenses and charges                 -       -       -        34      65
  Asset impairment charge               -       -     297         -     297
  Income tax recovery related to                                           
   above items                        (6)     (3)   (104)      (27)   (130)
---------------------------------------------------------  ----------------
Adjusted net income                 $ 167   $ 117    $ 61     $ 471   $ 180
---------------------------------------------------------  ----------------
Diluted weighted average shares                                            
 outstanding (millions)                97      97      94        96      94
Adjusted net income per common                                             
 share                             $ 1.72  $ 1.22  $ 0.64    $ 4.88  $ 1.90
---------------------------------------------------------  ----------------

 
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           
                                   ----------------------------------------
($ millions, except per share          Dec 31    Sep 30    Jun 30    Mar 31
amounts)                                 2013      2013      2013      2013
---------------------------------------------------------------------------
                                                                           
Revenue                                 $ 881     $ 758     $ 733     $ 652
Adjusted EBITDA (1,2)                     245       184       157       149
Net income (1)                            128        87        54        60
Adjusted net income (1,2)                 167       117        99        88
Basic net income per common share                                          
 (1)                                     1.33      0.91      0.57      0.64
Diluted net income per common share                                        
 (1)                                     1.32      0.90      0.56      0.63
Adjusted net income per share (1,2)      1.72      1.22      1.02      0.92
---------------------------------------------------------------------------
                                                                           
                                              Three Months Ended           
                                   ----------------------------------------
($ millions, except per share          Dec 31    Sep 30    Jun 30    Mar 31
amounts)                                 2012      2012      2012      2012
---------------------------------------------------------------------------
                                                                           
Revenue                                 $ 668     $ 608     $ 613     $ 654
Adjusted EBITDA (1,2)                     119       104       113        93
Net income (loss) (1)                   (140)       (3)        52        22
Adjusted net income (1,2)                  61        36        44        39
Basic net income (loss) per common                                         
 share (1)                             (1.49)    (0.03)      0.56      0.24
Diluted net income (loss) per                                              
 common share (1)                      (1.49)    (0.03)      0.50      0.23
Adjusted net income per share (1,2)      0.64      0.38      0.47      0.41
---------------------------------------------------------------------------
(1)Attributable t
o 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 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 Fourth Quarter 2013 Management's Discussion and Analysis
("MD&A") as well as comments made during the Fourth 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 natura
l 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, 
--  anticipated operating 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, 
--  availability of committed credit facilities and other financing, 
--  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 upstream
    natural gas development and the finalization of certain land title
    registration and related mortgages that require action by Egyptian
    governmental entities, 
--  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"), 
--  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, 
--  our ability to procure natural gas feedstock on commercially acceptable
    terms, 
--  operating 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, 
--  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, 
--  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 1 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, 
--  our ability to obtain natural gas feedstock on commercially acceptable
    terms to underpin current operations and future production growth
    opportunities, 
--  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, 
--  our ability to meet timeline and budget targets for our Geismar
    projects, including cost pressures arising from labour costs, 
--  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 1 natural
    gas supply agreement, and 
--  other risks described in our 2012 Management's Discussion and Analysis
    and this Fourth 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
changes 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 net
income per common share include an amount representing our 63.1%
equity share in Atlas. 
On December 9, 2013, we completed the sale of a 10% equity interest
in the Egypt methanol facility. At December 31, 2013, we own 50% of
the 1.26 million tonne per year Egypt methanol facility and market
the remaining 50% 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 net income per
common share exclude the amount asso
ciated with the other investors'
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            Years Ended      
                         ------------------------  ------------------------
                               Dec 31      Dec 31        Dec 31      Dec 31
                                 2013        2012          2013        2012
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                     (As adjusted              (As adjusted
                                       - note 13)                - note 13)
Revenue                     $ 880,900   $ 667,407   $ 3,024,047 $ 2,542,664
Cost of sales and                                                          
 operating expenses         (671,460)   (555,430)   (2,378,204) (2,090,969)
Depreciation and                                                           
 amortization                (35,594)    (34,636)     (123,335)   (149,411)
Write-off of oil and gas                                                   
 rights (note 4)              (7,939)           -      (24,798)           -
Geismar project                                                            
 relocation expenses and                                                   
 charges                            -           -      (33,867)    (64,543)
Asset impairment charge             -   (296,976)             -   (296,976)
---------------------------------------------------------------------------
Operating income (loss)       165,907   (219,635)       463,843    (59,235)
Earnings (loss) of                                                         
 associate (note 6)            17,528         (1)        30,799       (214)
Finance costs (note 8)       (12,582)    (12,495)      (56,407)    (61,464)
Finance income and other                                                   
 expenses                       1,776       2,962         4,446       1,068
---------------------------------------------------------------------------
Income (loss) before                                                       
 income taxes                 172,629   (229,169)       442,681   (119,845)
Income tax recovery                                                        
 (expense):                                                                
  Current                    (43,812)     (8,489)      (83,618)    (29,770)
  Deferred                     15,086     102,682        17,937     115,040
---------------------------------------------------------------------------
                             (28,726)      94,193      (65,681)      85,270
---------------------------------------------------------------------------
Net income (loss)           $ 143,903 $ (134,976)     $ 377,000  $ (34,575)
---------------------------------------------------------------------------
Attributable to:                                                           
  Methanex Corporation                                                     
   shareholders               127,795   (139,853)       329,167    (68,105)
  Non-controlling                                                          
   interests                   16,108       4,877        47,833      33,530
---------------------------------------------------------------------------
                            $ 143,903 $ (134,976)     $ 377,000  $ (34,575)
---------------------------------------------------------------------------
                                                                           
Income per share for the                                                   
 period attributable to                                                    
 Methanex Corporation                                                      
 shareholders    
                                                          
  Basic net income (loss)                                                  
   per common share            $ 1.33    $ (1.49)        $ 3.46    $ (0.73)
  Diluted net income                                                       
   (loss) per common                                                       
   share                       $ 1.32    $ (1.49)        $ 3.41    $ (0.73)
                                                                           
  Weighted average number                                                  
   of common shares                                                        
   outstanding (note 9)    95,890,700  94,092,591    95,259,066  93,755,509
  Diluted weighted                                                         
   average number of                                                       
   common shares                                                           
   outstanding (note 9)    96,824,404  94,092,591    96,430,842  93,755,509
                                                                           
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            Years Ended      
                         ------------------------  ------------------------
                               Dec 31      Dec 31        Dec 31      Dec 31
                                 2013        2012          2013        2012
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                                           
Net income (loss)           $ 143,903 $ (134,976)     $ 377,000  $ (34,575)
  Other comprehensive                                                      
   income, net of taxes:                                                   
  Items that may be                                                        
   reclassified to                                                         
   income:                                                                 
  Change in fair value of                                                  
   forward exchange                                                        
   contracts                  (1,348)          23          (57)       (320)
  Change in fair value of                                                  
   interest rate swap                                                      
   contracts                     (34)       (690)         (936)     (5,794)
  Realized loss on                                                         
   interest rate swap                                                      
   contracts reclassified                                                  
   to finance costs             2,680       2,777        10,808      11,198
  Actuarial gains                                                          
   (losses) on defined                                                     
   benefit pension plans        5,362     (1,135)         5,362     (1,135)
---------------------------------------------------------------------------
                                6,660         975        15,177       3,949
---------------------------------------------------------------------------
Comprehensive income                                                       
 (loss)                     $ 150,563 $ (134,001)     $ 392,177  $ (30,626)
---------------------------------------------------------------------------
Attributable to:                                                           
  Methanex Corporation                                                     
   shareholders               133,579   (139,712)       340,577    (66,317)
  Non-controlling                                                          
   interests                   16,984       5,711        51,600      35,691
---------------------------------------------------------------------------
                            $ 150,563 $ (134,001)     $ 392,177  $ (30,626)
---------------------------------------------------------------------------
                                                                           
See accompanying notes to condensed consolidated interim financial         
statements.                                                                

 
Methanex Corporation 
Consolidated Statements of Financial Position (unaudited) 
(thousands of U.S. dollars) 


 
                                                 Dec 31              Dec 31
AS AT                                              2013                2012
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                        (As adjusted - note
                                                                        13)
ASSETS                                                                     
Current assets:                                                            
  Cash and cash equivalents                   $ 732,736           $ 727,385
  Trade and other receivables                   534,130             417,156
  Inventories (note 2)                          313,809             256,340
  Prepaid expenses                               20,533              25,588
---------------------------------------------------------------------------
                                              1,601,208           1,426,469
Non-current assets:                                                        
  Property, plant and equipment                                            
   (note 3)                                   2,230,938           1,762,873
  Investment in associate (note 6)              216,095             184,665
  Other assets                                   65,253              68,554
---------------------------------------------------------------------------
                                              2,512,286           2,016,092
---------------------------------------------------------------------------
                                            $ 4,113,494         $ 3,442,561
---------------------------------------------------------------------------
                                                                           
LIABILITIES AND EQUITY                                                     
Current liabilities:                                                       
  Trade, other payables and accrued                                        
   liabilities                                $ 618,181           $ 377,666
  Current maturities on long-term                                          
   debt (note 7)                                 41,504              38,290
  Current maturities on other long-                                        
   term liabilities                              85,648              30,322
---------------------------------------------------------------------------
                                                745,333             446,278
Non-current liabilities:                                                   
  Long-term debt (note 7)                     1,126,802           1,156,081
  Other long-term liabilities                   188,520             200,212
  Deferred income tax liabilities               147,506             162,253
---------------------------------------------------------------------------
                                              1,462,828           1,518,546
Equity:                                                                    
  Capital stock                                 531,573             481,779
  Contributed surplus                             4,994              15,481
  Retained earnings                           1,126,700             805,661
  Accumulated other comprehensive                                          
   loss                                         (5,544)            (13,045)
---------------------------------------------------------------------------
  Shareholders' equity                        1,657,723           1,289,876
  Non-controlling interests                     247,610             187,861
---------------------------------------------------------------------------
  Total equity                                1,905,333           1,477,737
---------------------------------------------------------------------------
                                            $ 4,113,494         $ 3,442,561
---------------------------------------------------------------------------
                                                                           
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 (loss)               -          -          -     (68,105)
 Other comprehensive                                                 
  income (loss)                  -          -          -      (1,135)
 Compensation expense                                                
  recorded for stock                                                 
  options                        -          -        726           - 
 Issue of shares on                                                  
  exercise of stock                                                  
  options                1,062,215     18,819          -           - 
 Reclassification of                                                 
  grant date fair value                                              
  on exercise of stock                                               
  options                        -      7,526     (7,526)          - 
 Dividend payments to                                                
  Methanex Corporation                                               
  shareholders                   -          -          -     (68,077)
 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                      -          -          -     329,167 
 Other comprehensive                                                 
  income                         -          -          -       5,362 
 Compensation expense                                                
  recorded for stock                                                 
  options                        -          -        722           - 
 Sale of interest in                                                 
  subsidiary                     -          -          -      61,447 
 Issue of shares on                                                  
  exercise of stock                                                  
  options                1,790,999     38,585          -           - 
 Reclassification of                                                 
  grant date fair value                                              
  on exercise of stock                                               
  options                        -     11,209    (11,209)          - 
 Dividend payments to                                                
  Methanex Corporation                                               
  shareholders                   -          -          -     (74,937)
 Distributions to non-                                               
  controlling interests          -          -          -           - 
 Equity contributions                                                
  by non-controlling                                                 
  interests                      -          -          -           - 
---------------------------------------------------------------------
Balance, December 31,                                                
 2013                   96,100,969$   531,573$     4,994 $ 1,126,700 
---------------------------------------------------------------------
 
                          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 (loss)                 -       (68,105)      33,530     (34,575)
 Other comprehensive   
                                                     
  income (loss)                2,923         1,788        2,161       3,949 
 Compensation expense                                                       
  recorded for stock                                                        
  options                          -           726            -         726 
 Issue of shares on                                                         
  exercise of stock                                                         
  options                          -        18,819            -      18,819 
 Reclassification of                                                        
  grant date fair value                                                     
  on exercise of stock                                                      
  options                          -             -            -           - 
 Dividend payments to                                                       
  Methanex Corporation                                                      
  shareholders                     -       (68,077)           -     (68,077)
 Distributions to non-                                                      
  controlling interests            -             -      (46,068)    (46,068)
 Equity contributions                                                       
  by non-controlling                                                        
  interests                        -             -        1,000       1,000 
----------------------------------------------------------------------------
Balance, December 31,                                                       
 2012                        (13,045)    1,289,876      187,861   1,477,737 
 Net income                        -       329,167       47,833     377,000 
 Other comprehensive                                                        
  income                       6,048        11,410        3,767      15,177 
 Compensation expense                                                       
  recorded for stock                                                        
  options                          -           722            -         722 
 Sale of interest in                                                        
  subsidiary                   1,453        62,900       47,100     110,000 
 Issue of shares on                                                         
  exercise of stock                                                         
  options                          -        38,585            -      38,585 
 Reclassification of                                                        
  grant date fair value                                                     
  on exercise of stock                                                      
  options                          -             -            -           - 
 Dividend payments to                                                       
  Methanex Corporation                                                      
  shareholders                     -       (74,937)           -     (74,937)
 Distributions to non-                                                      
  controlling interests            -             -      (39,951)    (39,951)
 Equity contributions                                                       
  by non-controlling                                                        
  interests                        -             -        1,000       1,000 
----------------------------------------------------------------------------
Balance, December 31,                                                       
 2013                   $     (5,544) $  1,657,723  $   247,610  $1,905,333 
----------------------------------------------------------------------------
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            Years Ended      
                         ------------------------  ------------------------
                               Dec 31      Dec 31        Dec 31      Dec 31
                                 2013        2012          2013        2012
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                     (As adjusted              (As adjusted
                                       - note 13)                - note 13)
CASH FLOWS FROM OPERATING                                                  
 ACTIVITIES                                                                
  Net income (loss)         $ 143,903 $ (134,976)     $ 377,000  $ (34,575)
  Add (deduct) loss                                                        
   (earnings) of                                                           
   associate                 (17,528)           1      (30,799)         214
  Add (deduct) non-cash                                                    
   items:                                                                  
    Depreciation and                                                       
     amortization              35,594      34,636       123,335     149,411
    Write-off of oil and                                                   
     gas rights                 7,939           -        24,798           -
    Geismar project                                                        
     relocation non-cash                                                   
     charges                        -           -             -      25,688
    Asset impairment                                                       
     charge                         -     296,976             -     296,976
    Income tax expense                                                     
     (recovery)                28,726    (94,193)        65,681    (85,270)
    Share based                                                            
     compensation expense      40,844      11,027       130,873      35,907
    Finance costs              12,582      12,495        56,407      61,464
    Other                         569       6,165         1,364      16,201
  Income taxes paid          (15,246)    (13,815)      (42,739)    (28,254)
  Other cash payments,                                                     
   including share-based                                                   
   compensation              (25,841)    (14,615)      (52,596)    (33,774)
---------------------------------------------------------------------------
  Cash flows from                                                          
   operating activities                                                    
   before undernoted          211,542     103,701       653,324     403,988
  Changes in non-cash                                                      
   working capital (note                                                   
   11)                       (49,786)    (23,394)      (67,527)      11,750
---------------------------------------------------------------------------
                              161,756      80,307       585,797     415,738
---------------------------------------------------------------------------
                                                                           
CASH FLOWS FROM FINANCING                                                  
 ACTIVITIES                                                                
  Dividend payments to                                                     
   Methanex Corporation                                                    
   shareholders              (19,205)    (17,428)      (74,937)    (68,077)
  Interest paid,                                                           
   including interest         
                                             
   rate swap settlements      (6,586)     (4,673)      (55,446)    (60,226)
  Net proceeds on issue                                                    
   of long-term debt and                                                   
   limited recourse debt            -     343,796        10,000     590,344
  Repayment of long-term                                                   
   debt and limited                                                        
   recourse debt                (912)       (613)      (39,491)   (236,061)
  Cash distributions to                                                    
   non-controlling                                                         
   interests                 (14,232)     (3,777)      (39,951)    (49,409)
  Proceeds on issue of                                                     
   shares on exercise of                                                   
   stock options                9,885       5,552        38,585      18,819
  Sale of interest in                                                      
   subsidiary                 110,000           -       110,000           -
  Other                         (969)     (3,546)       (2,777)    (17,702)
                         --------------------------------------------------
                               77,981     319,311      (54,017)     177,688
---------------------------------------------------------------------------
                                                                           
CASH FLOWS FROM INVESTING                                                  
 ACTIVITIES                                                                
  Property, plant and                                                      
   equipment                 (71,726)    (18,974)     (269,367)   (113,794)
  Geismar plants under                                                     
   construction             (144,976)    (35,308)     (309,469)    (73,912)
  Other assets                (4,659)    (15,218)      (15,608)    (22,853)
  Changes in non-cash                                                      
   working capital                                                         
   related to investing                                                    
   activities (note 11)        28,122      11,928        68,015       3,073
---------------------------------------------------------------------------
                            (193,239)    (57,572)     (526,429)   (207,486)
---------------------------------------------------------------------------
  Increase in cash and                                                     
   cash equivalents            46,498     342,046         5,351     385,940
  Cash and cash                                                            
   equivalents, beginning                                                  
   of period                  686,238     385,339       727,385     341,445
---------------------------------------------------------------------------
  Cash and cash                                                            
   equivalents, end of                                                     
   period                   $ 732,736   $ 727,385     $ 732,736   $ 727,385
---------------------------------------------------------------------------
                                                                           
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 13 below. As described in note 13, the
Company has adopted new International Financial Reporting Standards
(IFRS) 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 January 29,
2014. 
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 and year ended
December 31, 2013 is $595 million (2012 - $482 million) and $2,114
million (2012 - $1,871 million), respectively. 
3. Property, plant and equipment:  


 
                  Buildings,                                               
                       Plant                                               
               Installations Plants Under   Oil & Gas                      
                 & Machinery Construction  Properties     Other       Total
---------------------------------------------------------------------------
                                                                           
Cost at                                                                    
 December 31,                                                              
 2013            $ 3,100,597    $ 393,044    $ 86,312   $82,556  $3,662,509
Accumulated                                                                
 depreciation                                                              
 at December                                                               
 31, 2013          1,317,329            -      78,228    36,014   1,431,571
---------------------------------------------------------------------------
Net book value                                                             
 at December                                                               
 31, 2013        $ 1,783,268    $ 393,044     $ 8,084   $46,542  $2,230,938
---------------------------------------------------------------------------
                                                                           
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
---------------------------------------------------------------------------

 
The Company is relocating two idle Chile facilities to Geismar,
Louisiana with Geismar 1 targeted to be producing methanol by late
2014 and Geismar 2 in early 2016. During the three months ended
December 31, 2013, the Company incurred capital expenditures related
to the Geismar projects of $145 million, excluding capitalized
interest. The remaining budgeted capital expenditures for these
projects are $635 million, excluding capitalized interest. 
4. Write-off of oil and gas rights:  
The Company has participated with international oil and gas companies
in exploration activities in southern Chile. Based on the outlook for
natural gas deliveries under certain of these arrangements, the
Company recorded a non-cash $8 million ($5 million after-tax) charge
to earnings in the fourth quarter of 2013 to write off the carrying
value of the assets. 
5. Sale of interest in subsidiary:  
In December 2013, the Company completed the sale of a 10% equity
interest in Egyptian Methanex Methanol Company S.A.E. (EMethanex) for
cash proceeds of $110 million. The sale reduces the Company's
interest in EMethanex to approximately 50% while retaining control of
the entity. The sale has been accounted for as a transaction between
equity holders as Methanex controls EMethanex before and after the
transaction and the $62.9 million gain on sale has been reflected as
an increase in shareholders' equity. 
6. 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 13). Summarized financial information of Atlas (100%
basis) is as follows:  


 
                                                      Dec 31         Dec 31
Summarized Financial Information as at                  2013           2012
---------------------------------------------------------------------------
                                                                           
Cash and cash equivalents                           $ 20,776       $ 28,883
Other current assets                                 161,765        104,933
Non-current assets                                   378,890        407,362
Current liabilities                                 (47,359)       (65,005)
Long-term debt, including current maturities        (56,752)       (80,594)
Other long-term liabilities, including                                     
 current maturities                                (136,730)      (123,801)
---------------------------------------------------------------------------
Net assets at 100%                                 $ 320,590      $ 271,778
---------------------------------------------------------------------------
                                                                           
Net assets at 63.1%                                $ 202,292      $ 171,492
Long-term receivable from Atlas                       13,803         13,173
---------------------------------------------------------------------------
                                                                           
Investment in associate                            $ 216,095      $ 184,665
---------------------------------------------------------------------------
                                                                           
                                                                           
                            Three Months Ended            Years Ended      
                         ------------------------  ------------------------
Summarized Financial          Dec 31      Dec 31        Dec 31      Dec 31 
Information                      2013        2012          2013        2012
-------------------------------------------------  ------------------------
                                                                           
Revenue                      $114,973    $ 47,657      $379,411   $ 247,434
Cost of sales and                                                          
 depreciation and                                                          
 amortization                (75,459)    (40,743)     (301,479)   (228,818)
---------------------------------------------------------------------------
Operating income               39,514       6,914        77,932      18,616
Finance costs, finance                                                     
 income and other                                                          
 expenses                     (3,132)     (5,369)      (12,899)    (16,496)
Income tax expense            (8,604)     (1,546)      (16,223)     (2,459)
---------------------------------------------------------------------------
Net earnings (loss) at                                                     
 100%                        $ 27,778       $ (1)      $ 48,810     $ (339)
---------------------------------------------------------------------------
Earnings (loss) of                                                         
 associate at 63.1%           $17,528       $ (1)      $ 30,799     $ (214)
---------------------------------------------------------------------------

 
b. Contingent liability:  
The Board of Inland Revenue of Trinidad and Tobago has issued
assessments against Atlas in respect of the 2005, 2006 and 2007
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. 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. 
7. Long-term debt:  


 
                                                      Dec 31         Dec 31
As at                                                   2013           2012
---------------------------------------------------------------------------
                                                                           
Unsecured notes                                                            
                                                                           
$350 million at 3.25% due December 15, 2019        $ 344,530      $ 343,828
$250 million at 5.25% due March 1, 2022              246,650        246,326
$150 million at 6.00% due August 15, 2015            149,581        149,344
---------------------------------------------------------------------------
                                                     740,761        739,498
Egypt limited recourse debt facilities               404,722        438,631
Other limited recourse debt facilities                22,823         16,242
---------------------------------------------------------------------------
Total long-term debt (1)                           1,168,306      1,194,371
Less current maturities                             (41,504)       (38,290)
---------------------------------------------------------------------------
                                                 $ 1,126,802    $ 1,156,081
---------------------------------------------------------------------------
(1) Long-term debt is presented net of deferred financing fees.            

 
During the three months and year ended December 31, 2013, the Company
made repayments on its other limited recourse debt facilities of $0.9
million and $3.6 million, respectively. The Company has also made
repayments on its Egypt limited recourse debt facilities of $35.8
million and issued $10.0 million of other limited recourse debt
during the year ended December 31, 2013.  
At December 31, 2013, management believes the Company was in
compliance with all significant terms and default provisions related
to long-term debt obligations. 
8. Finance costs:  


 
                            Three Months Ended            Years Ended      
                         ------------------------  ------------------------
                               Dec 31      Dec 31        Dec 31      Dec 31
                                 2013        2012          2013        2012
-------------------------------------------------  ------------------------
                                                                           
Finance costs                $ 15,908    $ 13,404      $ 64,742     $63,047
Less capitalized interest                                                  
 related to Geismar                                                        
 plants under                                                              
 construction                 (3,326)       (909)       (8,335)     (1,583)
---------------------------------------------------------------------------
                             $ 12,582    $ 12,495      $ 56,407     $61,464
---------------------------------------------------------------------------

 
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. 
9. 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, if calculated using the equity-settled method,
TSARs 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
denominator used for the purposes of calculating basic and diluted
net income per common share is as follows: 


 
                            Three Months Ended            Years Ended      
                         ------------------------  ------------------------
                               Dec 31      Dec 31        Dec 31      Dec 31
                                 2013        2012          2013        2012
-------------------------------------------------  ------------------------
                                                                           
Denominator for basic net                                                  
 income per common share   95,890,700  94,092,591    95,259,066  93,755,509
Effect of dilutive stock                                                   
 options                      933,704           -     1,171,776           -
---------------------------------------------------------------------------
Denominator for diluted                                                    
 net income per common                                                     
 share                     96,824,404  94,092,591    96,430,842  93,755,509
---------------------------------------------------------------------------

 
For the three months and year ended December 31, 2013 and 2012, basic
and diluted net income (loss) per common share attributable to
Methanex shareholders were as follows: 


 
                            Three Months Ended            Years Ended      
                         ------------------------  ------------------------
                               Dec 31      Dec 31        Dec 31      Dec 31
                                 2013        2012          2013        2012
-------------------------------------------------  ------------------------
                                                                           
Basic net income (loss)                                                    
 per common share             $ 1.33     $ (1.49)       $ 3.46     $ (0.73)
Diluted net income (loss)                                                  
 per common share             $ 1.32     $ (1.49)       $ 3.41     $ (0.73)
---------------------------------------------------------------------------

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


 
                                   SARs                      TSARs         
                         ------------------------  ------------------------
                                         Weighted                  Weighted
                                          Average                   Average
                            Number of    Exercise     Number of    Exercise
                                Units       Price         Units       Price
-------------------------------------------------  ------------------------
                                                                           
Outstanding at December                                                    
 31, 2012                     897,525     $ 28.63     1,815,535     $ 28.45
  Granted                     360,900       38.24       544,200       38.24
  Exercised                 (122,658)       27.13     (271,100)       25.56
  Cancelled                   (5,500)       30.86       (4,900)       31.36
-------------------------------------------------  ------------------------
Outstanding at September                                                   
 30, 2013                   1,130,267     $ 31.85     2,083,735     $ 31.37
-------------------------------------------------  ------------------------
  Exercised                  (37,150)       26.99     (225,150)       27.62
---------------------------------------------------------------------------
Outstanding at December                                                    
 31, 2013                   1,093,117     $ 32.02     1,858,585     $ 31.83
---------------------------------------------------------------------------
                                                                           
                                                         Stock Options     
                                                   ------------------------
                                                                   Weighted
                                                                    Average
                                                      Number of    Exercise
                                                          Units       Price
---------------------------------------------------------------------------
                                                                           
Outstanding at December                                                    
 31, 2012                                             2,982,947     $ 19.97
  Granted                                                75,600       38.24
  Exercised                                         (1,349,824)       21.13
  Cancelled                                            (48,128)       16.13
---------------------------------------------------------------------------
Outstanding at September                                                   
 30, 2013                                             1,660,595     $ 19.97
---------------------------------------------------------------------------
  Exercised                                           (441,175)       22.23
---------------------------------------------------------------------------
Outstanding at December                                                    
 31, 2013                                             1,219,420     $ 19.15
---------------------------------------------------------------------------
                                                                           
                     Units Outstanding at            Units Exercisable at  
                       December 31, 2013               December 31, 2013   
             ------------------------------------  ------------------------
                 Weighted                                                  
                  Average                Weighted                  Weighted
Range of        Remaining   Number of     Average     Number of     Average
Exercise      Contractual       Units    Exercise         Units    Exercise
Prices       Life (Years) Outstanding       Price   Exercisable       Price
-------------------------------------------------  ------------------------
                                                                           
                                                                           
SARs:                                                                      
  $23.36 to                                                                
   29.18              3.7     423,337     $ 26.93       333,359     $ 26.47
  $31.73 to                                                                
   38.24              5.7     669,780       35.24        86,820       31.73
---------------------------------------------------------------------------
                      4.9   1,093,117     $ 32.02       420,179     $ 27.55
---------------------------------------------------------------------------
        
                                                                   
TSARs:                                                                     
  $23.36 to                                                                
   29.18              3.7     702,395     $ 26.94       539,314     $ 26.39
  $31.73 to                                                                
   38.24              5.6   1,156,190       34.79       189,760       31.73
---------------------------------------------------------------------------
                      4.9   1,858,585     $ 31.83       729,074     $ 27.78
---------------------------------------------------------------------------
Stock                                                                      
 options:                                                                  
  $6.33 to                                                                 
   11.56              2.1     532,715      $ 6.41       532,715      $ 6.41
  $23.92 to                                                                
   38.24              2.4     686,705       29.03       534,055       27.46
---------------------------------------------------------------------------
                      2.3   1,219,420     $ 19.15     1,066,770     $ 16.95
---------------------------------------------------------------------------

 
10. Share-based compensation (continued):  
a. Share appreciation rights (SARs), tandem share appreciation rights
(TSARs) and stock options (continued):  
(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 December 31, 2013 was $78.5 million compared with the
recorded liability of $69.7 million. The difference between the fair
value and the recorded liability of $8.8 million will be recognized
over the weighted average remaining vesting period of approximately
1.6 years. The weighted average fair value was estimated at December
31, 2013 using the Black-Scholes option pricing model. 
For the three months and year ended December 31, 2013, compensation
expense related to SARs and TSARs included an expense in cost of
sales and operating expenses of $24.5 million (2012 - expense of $3.6
million) and an expense of $70.7 million (2012 - expense of $10.8
million), respectively. This included an expense of $21.8 million
(2012 - expense of $2.8 million) and an expense of $61.2 million
(2012 - expense of $3.1 million) related to the effect of the change
in the Company's share price for the three months and year ended
December 31, 2013.  
(iii) Compensation expense related to stock options: 
For the three months and year ended December 31, 2013, compensation
expense related to stock options included in cost of sales and
operating expenses was $0.1 million (2012 - $0.1 million) and $0.7
million (2012 - $0.7 million), respectively. The fair value of each
stock option grant was estimated on the grant date using the
Black-Scholes option pricing model. 
b. Deferred, restricted and performance share units:  
Deferred, restricted and performance share units outstanding at
December 31, 2013 are as follows: 


 
                                    Number of      Number of      Number of
                               Deferred Share     Restricted    Performance
                                        Units    Share Units    Share Units
---------------------------------------------------------------------------
                                                                           
Outstanding at December 31,                                                
 2012                                 566,850         38,883      1,053,869
  Granted                              10,647         22,500        304,600
  Granted in-lieu of dividends          6,934            817         12,536
  Redeemed                           (49,432)              -      (410,177)
  Cancelled                                 -              -        (8,104)
---------------------------------------------------------------------------
Outstanding at September 30,                                               
 2013                                 534,999         62,200        952,724
---------------------------------------------------------------------------
  Granted                                 362              -              -
  Granted in-lieu of dividends          1,169            154          3,299
  Redeemed                          (189,716)       (18,223)              -
  Cancelled                                 -              -        (9,577)
---------------------------------------------------------------------------
Outstanding at December 31,                                                
 2013                                 346,814         44,131        946,446
---------------------------------------------------------------------------

 
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 net income 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
December 31, 2013 was $90.4 million compared with the recorded
liability of $77.3 million. The difference between the fair value and
the recorded liability of $13.1 million will be recognized over the
weighted average remaining vesting period of approximately 1.6 years. 
For the three months and year ended December 31, 2013, compensation
expense related to deferred, restricted and performance share units
included in cost of sales and operating expenses was an expense of
$16.3 million (2012 - expense of $7.3 million) and an expense of
$59.5 million (2012 - expense of $24.4 million), respectively. This
included an expense of $15.3 million (2012 - expense of $5.2 million)
and an expense of $49.2 million (2012 - expense of $12.4 million)
related to the effect of the change in the Company's share price for
the three months and year ended December 31, 2013.  
11. Changes in non-cash working capital:  
Changes in non-cash working capital for the three months and year
ended December 31, 2013 were as follows: 


 
                            Three Months Ended            Years Ended      
                         ------------------------  ------------------------
                               Dec 31      Dec 31        Dec 31      Dec 31
                                 2013        2012          2013        2012
-------------------------------------------------  ------------------------
                                                                           
Decrease (increase) in                                                     
 non-cash working                                                          
 capital:                                                                  
  Trade and other                                                          
   receivables             $ (62,799)  $ (15,909)    $(116,974)  $ (42,869)
  Inventories                (59,289)    (27,324)      (57,469)      17,936
  Prepaid expenses              9,190       (374)         5,055     (2,975)
  Trade, other payables                                                    
   and accrued                                                             
   liabilities, including                                                  
   long-term payables                                                      
   included in other                                                       
   long-term liabilities      127,438      24,530       226,637      36,719
-------------------------------------------------  ------------------------
                               14,540    (19,077)        57,249       8,811
Adjustments for items not                                                  
 having a cash effect and                                                  
 working capital changes                                                   
 relating to taxes and                                                     
 interest paid               (36,204)       7,611      (56,761)       6,012
-------------------------------------------------  ------------------------
Changes in non-cash                                                        
 working capital having a                                                  
 cash effect               $ (21,664)  $ (11,466)         $ 488    $ 14,823
-------------------------------------------------  ------------------------
                                                                           
These changes relate to                                                    
 the following                                                             
 activities:                                                               
  Operating                $ (49,786)  $ (23,394)    $ (67,527)    $ 11,750
  Investing                    28,122      11,928        68,015       3,073
-------------------------------------------------  ------------------------
Changes in non-cash                                                        
 working capital           $ (21,664)  $ (11,466)         $ 488    $ 14,823
-------------------------------------------------  ------------------------

 
12. 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
Statements of Financial Position at fair value. Derivative financial
instruments are classified as held-for-trading and are recorded on
the Consolidated Statements 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, Egypt interest rate swaps, and New Zealand dollar
hedges 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. These
interest rate swaps had an outstanding notional amount of $315
million as at December 31, 2013. The notional amount decreases over
the expected repayment period. At December 31, 2013, these interest
rate swap contracts had a negative fair value of $19.8 million
(December 31, 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 and buy New Zealand dollar at a fixed USD
exchange rate. At December 31, 2013, the Company had outstanding
forward exchange contracts designated as cash flow hedges to sell a
notional amount of EUR106.2 million and buy a notional amount of NZD
$7.1 million in exchange for US dollars. The euro contracts had a
negative fair value of $0.6 million recorded in current liabilities
and the New Zealand dollar contracts had a positive 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: 


 
                                               December 31, 2013           
                                   ----------------------------------------
As at                                    Carrying Value          Fair Value
---------------------------------------------------------------------------
                                                                           
Long-term debt excluding deferred                                          
 financing fees                             $ 1,183,534         $ 1,205,740
---------------------------------------------------------------------------

 
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 December
2013. The fair value of the Company's unsecured notes will fluctuate
until maturity. 
13. 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 and year ended December 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 and year ended December 31,
2012 are as follows:  


 
Consolidated Statement of Financial Position                               
As at December 31, 2012                                                    
                                              Restatement of               
                               As Previously Atlas to Equity               
                                      Stated          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 and Comprehensive Income                  
Three months ended December 31, 2012                                       
                                              Restatement of               
                               As Previously Atlas to Equity               
                                      Stated          Method    As Adjusted
---------------------------------------------------------------------------
Revenue                            $ 695,654      $ (28,247)      $ 667,407
Cost of sales and operating                                                
 expenses                          (572,968)          17,538      (555,430)
Depreciation and amortization       (41,543)           6,907       (34,636)
Asset impairment charge            (296,976)               -      (296,976)
---------------------------------------------------------------------------
Operating loss                     (215,833)         (3,802)      (219,635)
Loss of associate                          -             (1)            (1)
Finance costs                       (14,880)           2,385       (12,495)
Finance income and other                                                   
 expenses                              2,521             441          2,962
---------------------------------------------------------------------------
Loss before income taxes           (228,192)           (977)      (229,169)
Income tax recovery                                                        
 (expense):                                                                
  Current                            (8,301)           (188)        (8,489)
  Deferred                           101,517           1,165        102,682
---------------------------------------------------------------------------
                                      93,216             977         94,193
---------------------------------------------------------------------------
Net loss                         $ (134,976)             $ -    $ (134,976)
---------------------------------------------------------------------------
Change in fair value of                                                    
 forward exchange contracts,                                               
 net of tax                               23               -             23
Change in fair value of                                                    
 interest rate swap                                                        
 contracts, net of tax                 (690)               -          (690)
Realized loss on interest                                                  
 rate swap contracts                                                       
 reclassified to finance                                                   
 costs, net of tax                     2,777               -          2,777
Actuarial losses on defined                                                
 benefit pension plans, net                                                
 of tax                              (1,135)             $ -        (1,135)
---------------------------------------------------------------------------
Comprehensive loss               $ (134,001)             $ -    $ (134,001)
---------------------------------------------------------------------------
Attributable to:                                                           
  Methanex Corporation                                                     
   shareholders                    (139,712)               -      (139,712)
  Non-controlling interests            5,711               -          5,711
---------------------------------------------------------------------------
                                 $ (134,001)             $ -    $ (134,001)
---------------------------------------------------------------------------
                                                                           
                                                                           
Consolidated Statement of Income and Comprehensive Income                  
Year ended December 31, 2012                                               
                                              Restatement of               
                               As Previously Atlas to Equity               
                                      Stated          Method    As Adjusted
---------------------------------------------------------------------------
Revenue                          $ 2,672,954     $ (130,290)    $ 2,542,664
Cost of sales and operating                                                
 expenses                        (2,187,288)          96,319    (2,090,969)
Depreciation and amortization      (171,635)          22,224      (149,411)
Geismar project relocation                                                 
 expenses and changes               (64,543)               -       (64,543)
Asset impairment charge            (296,976)               -      (296,976)
---------------------------------------------------------------------------
Operating loss                      (47,488)        (11,747)       (59,235)
Loss of associate                          -           (214)          (214)
Finance costs                       (71,314)           9,850       (61,464)
Finance income and other                                                   
 expenses                                509             559          1,068
---------------------------------------------------------------------------
Loss before income taxes           (118,293)         (1,552)      (119,845)
Income tax recovery                                                        
 (expense):                                                                
  Current                           (30,302)             532       (29,770)
  Deferred                           114,020           1,020        115,040
---------------------------------------------------------------------------
                                      83,718           1,552         85,270
---------------------------------------------------------------------------
Net loss                          $ (34,575)             $ -     $ (34,575)
---------------------------------------------------------------------------
Change in fair value of                                                    
 forward exchange contracts,                                               
 net of tax                            (320)               -          (320)
Change in fair value of                                                    
 interest 
rate swap                                                        
 contracts, net of tax               (5,794)               -        (5,794)
Realized loss on interest                                                  
 rate swap contracts                                                       
 reclassified to finance                                                   
 costs, net of tax                    11,198               -         11,198
Actuarial losses on defined                                                
 benefit pension plans, net                                                
 of tax                              (1,135)             $ -        (1,135)
---------------------------------------------------------------------------
Comprehensive loss                $ (30,626)             $ -     $ (30,626)
---------------------------------------------------------------------------
Attributable to:                                                           
  Methanex Corporation                                                     
   shareholders                     (66,317)               -       (66,317)
  Non-controlling interests           35,691               -         35,691
---------------------------------------------------------------------------
                                  $ (30,626)             $ -     $ (30,626)
---------------------------------------------------------------------------

 
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 12 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 in a change to the presentation of the Company's
Consolidated Statements of Comprehensive Income. 


 
Methanex Corporation                                                        
Quarterly History (unaudited)                                               
                                                                            
                                        2013 Q4 2013 Q3 2013 Q2 2013 Q1 2013
----------------------------------------------------------------------------
                                                                            
                                                                            
METHANOL SALES VOLUMES                                                      
(thousands of tonnes)                                                       
                                                                            
Methanex-produced                      4,304   1,190   1,045   1,039   1,030
Purchased methanol                     2,715     663     715     749     588
Commission sales(1)                      972     274     237     242     219
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                                       7,991   2,127   1,997   2,030   1,837
----------------------------------------------------------------------------
                                                                            
METHANOL PRODUCTION                                                         
(thousands of tonnes)                                                       
                                                                            
New Zealand                            1,419     400     349     361     309
Atlas, Trinidad (63.1%)                  971     268     254     201     248
Titan, Trinidad                          651     173     128     169     181
Egypt (60%)                              623     159     168     163     133
Medicine Hat                             476      86     130     129     131
Chile                                    204     108       6      29      61
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                                       4,344   1,194   1,035   1,052   1,063
----------------------------------------------------------------------------
                                                                            
AVERAGE REALIZED METHANOL PRICE(2)                                          
($/tonne)                                441     493     438     425     412
($/gallon)                              1.33    1.48    1.32    1.28    1.24
                                                                            
PER SHARE INFORMATION ($ per                                                
 share)(3)                                                                  
Basic net income (loss)                 3.46    1.33    0.91    0.57    0.64
Diluted net income (loss)               3.41    1.32    0.90    0.56    0.63
Adjusted net income(4)                  4.88    1.72    1.22    1.02    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)                                                       
                                                                            
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
Chile                                   313      59      59       82     113
----------------------------------------------------------------------------
                                                                            
                                      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 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)                                                       
                                                                            
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       -
Chile                                    554     113     116     142     183
----------------------------------------------------------------------------
                                                                            
                                       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 net income(4)                  1.93    0.69    0.43    0.41    0.39
                                                                            
----------------------------------------------------------------------------
( 1) Methanex-produced methanol includes volumes produced by Chile using    
     natural gas supplied from Argentina under a tolling arrangement.       
     Commission sales represent volumes marketed on a commission basis      
     related to the 36.9% of the Atlas methanol facility and the portion 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 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
www.methanex.com
 
 
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