Methanex Reports Higher Adjusted EBITDA in the First Quarter of 2014

Methanex Reports Higher Adjusted EBITDA in the First Quarter of 2014 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Methanex Corporation 
TSX SYMBOL:  MX
NASDAQ SYMBOL:  MEOH 
APRIL 29, 2014 
Methanex Reports Higher Adjusted EBITDA in the First Quarter of 2014 
VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 29, 2014) - For the first
quarter of 2014, Methanex (TSX:MX)(NASDAQ:MEOH) reported Adjusted EBITDA(1) of
$255 million and Adjusted net income(1) of $160 million ($1.65 per share on a
diluted basis(1)). These figures compare with Adjusted EBITDA(1) of $245
million and Adjusted net income(1) of $167 million ($1.72 per share on a
diluted basis(1)) for the fourth quarter of 2013.   
John Floren, President and CEO of Methanex commented, "This was another
excellent quarter. Increased production resulting from our 2013 capacity growth
initiatives in New Zealand and Medicine Hat, together with higher methanol
pricing, contributed to robust EBITDA and earnings results this quarter."
Mr. Floren added, "The methanol industry environment remains favorable. In
Q4 2013, we saw methanol prices rise rapidly as a result of industry supply
constraints. Late in Q1 2014, several idle plants resumed operation which
resulted in methanol pricing moderating to levels seen prior to the supply
disruptions. Industry demand remains steady, particularly for methanol into
energy, and limited new supply additions are expected in the near to medium
term."  
Mr. Floren added, "We continue to target methanol production from our
Geismar 1 facility in late 2014 and Geismar 2 in early 2016. These two
facilities are expected to provide a two million tonne increase in our
operating capacity to eight million tonnes by 2016, at a time when new market
supply is expected to be limited."  
Mr. Floren concluded, "With approximately $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.
Our announcement today of a new 5% normal course issuer bid share repurchase
program, along with a 25% increase in our quarterly dividend, reflects that
commitment."  
A conference call is scheduled for April 30, 2014 at 12:00 noon ET (9:00 am PT)
to review these first quarter results. To access the call, dial the
conferencing operator ten minutes prior to the start of the call at (416)
340-2218, or toll free at (866) 226-1793. A playback version of the conference
call will be available until May 21, 2014 at (905) 694-9451, or toll free at
(800) 408-3053. The passcode for the playback version is 3924003. Presentation
slides summarizing Q1-14 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 First Quarter 2014 press release contains forward-looking statements with
respect to us and the chemical industry. Refer to Forward-Looking Information
Warning in the attached First Quarter 2014 Management's Discussion and
Analysis for more information. 
/T/ 
(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 March 31, 2014 for reconciliations to the most comparable   
GAAP measures.                                                           
/T/ 
Interim Report for the Three Months Ended March 31, 2014    
At April 29, 2014 the Company had 96,523,956 common shares issued and
outstanding and stock options exercisable for 1,665,436 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  
/T/ 
CIBC Mellon Trust Company                                                   
320 Bay Street                                                              
Toronto, Ontario Canada M5H 4A6                                             
Toll free in North America: 1-800-387-0825                                   
/T/ 
Investor Information  
All financial reports, news releases and corporate information can be accessed
on our website at www.methanex.com.  
Contact Information  
/T/ 
Methanex Investor Relations                                                 
1800 - 200 Burrard Street                                                   
Vancouver, BC Canada V6C 3M1                                                
E-mail: invest@methanex.com                                                 
Methanex Toll-Free: 1-800-661-8851                                           
/T/ 
FIRST QUARTER MANAGEMENT'S DISCUSSION AND ANALYSIS 
Except where otherwise noted, all currency amounts are stated in United States
dollars. 
FINANCIAL AND OPERATIONAL HIGHLIGHTS 
/T/ 
--  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         
-----------------------------------
($ millions except number of shares and       Mar 31      Dec 31      Mar 31
 per share amounts)                             2014        2013        2013
---------------------------------------------------------------------------- 
Net income attributable to Methanex                                         
 shareholders                               $    145    $    128    $     60
  Mark-to-market impact of share-based                                       
compensation, net of tax                       15          34          28
  Write-off of oil and gas rights, net of                                    
tax                                             -           5           -
----------------------------------------------------------------------------
Adjusted net income (1)                     $    160    $    167    $     88
----------------------------------------------------------------------------
Diluted weighted average shares                                             
 outstanding (millions)                           97          97          96
Adjusted net income per common share (1)    $   1.65    $   1.72    $   0.92
---------------------------------------------------------------------------- 
--  We recorded Adjusted EBITDA(1) of $255 million for the first quarter of 
2014 compared with $245 million for the fourth quarter of 2013. The 
increase in Adjusted EBITDA(1) was primarily due to an increase in our 
average realized price to $524 per tonne for the first quarter of 2014 
from $493 per tonne for the fourth quarter of 2013 and an increase in 
sales of Methanex-produced methanol. 
--  Production for the first quarter of 2014 was 1,226,000 tonnes compared 
with 1,194,000 tonnes for the fourth quarter of 2013. Refer to the 
Production Summary section. 
--  Sales of Methanex-produced methanol were 1,228,000 tonnes in the first 
quarter of 2014 compared with 1,190,000 in the fourth quarter of 2013. 
--  We continue to progress our Geismar relocation projects. We are 
targeting to be producing methanol from Geismar 1 in late 2014 and from 
Geismar 2 in early 2016.  
--  During the first quarter of 2014, we paid a $0.20 per share dividend to 
shareholders for a total of $19 million. 
--  We announced today that the Board of Directors has approved a 25% 
increase to our quarterly dividend to shareholders, from $0.20 per share 
per quarter to $0.25 per share per quarter, effective with the dividend 
payable June 30, 2014. 
--  We also announced today that the Board of Directors has approved a 5% 
normal course issuer bid under which the Company may repurchase up to 
4.8 million common shares.  
(1) These items are non-GAAP measures that do not have any standardized      
meaning prescribed by GAAP and therefore are unlikely to be comparable   
to similar measures presented by other companies. Refer to Additional    
Information - Supplemental Non-GAAP Measures section for a description   
of each non-GAAP measure and reconciliations to the most comparable GAAP 
measures.                                                                
/T/ 
This First Quarter 2014 Management's Discussion and Analysis
("MD&A") dated April 29, 2014 for Methanex Corporation ("the
Company") should be read in conjunction with the Company's condensed
consolidated interim financial statements for the period ended March 31, 2014
as well as the 2013 Annual Consolidated Financial Statements and MD&A
included in the Methanex 2013 Annual Report. Unless otherwise indicated, the
financial information presented in this interim report is prepared in
accordance with International Financial Reporting Standards (IFRS) as issued by
the International Accounting Standards Board (IASB). The Methanex 2013 Annual
Report and additional information relating to Methanex is available on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov. 
FINANCIAL AND OPERATIONAL DATA 
/T/ 
Three Months Ended         
----------------------------------
($ millions, except per share amounts and     Mar 31      Dec 31      Mar 31
 where noted)                                   2014        2013        2013
---------------------------------------------------------------------------- 
Production (thousands of tonnes)                                            
 (attributable to Methanex shareholders)       1,226       1,194       1,063 
Sales volumes (thousands of tonnes):                                        
  Methanex-produced methanol (attributable                                   
to Methanex shareholders)                   1,228       1,190       1,030
  Purchased methanol                             654         663         588
  Commission sales                               296         274         219
----------------------------------------------------------------------------
  Total sales volumes (1)                      2,178       2,127       1,837 
Methanex average non-discounted posted                                      
 price ($ per tonne) (2)                         613         557         474
Average realized price ($ per tonne) (3)         524         493         412 
Adjusted EBITDA (attributable to Methanex                                   
 shareholders) (4)                               255         245         149
Cash flows from operating activities             179         162         118
Adjusted net income (attributable to                                        
 Methanex shareholders) (4)                      160         167          88
Net income attributable to Methanex                                         
 shareholders                                    145         128          60 
Adjusted net income per common share                                        
 (attributable to Methanex shareholders)                                    
 (4)                                            1.65        1.72        0.92
Basic net income per common share                                           
 (attributable to Methanex shareholders)        1.51        1.33        0.64
Diluted net income per common share                                         
 (attributable to Methanex shareholders)        1.50        1.32        0.63 
Common share information (millions of                                       
 shares):                                                                   
  Weighted average number of common shares        96          96          95
  Diluted weighted average number of                                         
common shares                                  97          97          96
  Number of common shares outstanding, end                                   
of period                                      97          96          95
----------------------------------------------------------------------------
(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 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 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.                                                               
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
/T/ 
PRODUCTION SUMMARY 
/T/ 
Q1 2014               Q4 2013      Q1 2013
(thousands of tonnes)     Capacity(1)   Production   Production   Production
---------------------------------------------------------------------------- 
New Zealand (2)                   608          500          400          309 
Atlas (Trinidad) (63.1%                                                     
 interest)                        281          249          268          248 
Titan (Trinidad)                  218          149          173          181 
Egypt (50% interest)(3)           158          139          159          133 
Medicine Hat (Canada)             140          122           86          131 
Chile I and IV                    430           67          108           61 
Geismar 1 and 2                                                             
 (Louisiana, USA)(4)                -            -            -            -
---------------------------------------------------------------------------- 
1,835        1,226        1,194        1,063
----------------------------------------------------------------------------
(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 a sale of 10% equity interest in the   
Egypt facility. Production figures prior to December 9, 2013 reflect a   
60% interest.                                                           
(4) We are relocating two 1.0 million tonne 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.                      
/T/ 
New Zealand  
Our New Zealand methanol facilities produced 500,000 tonnes of methanol in the
first quarter of 2014 compared with 400,000 tonnes in the fourth quarter of
2013. With all three facilities now operating, we are able to produce up to 2.4
million tonnes annually, depending on natural gas composition. During the first
quarter 2014, production was primarily impacted by an upstream supplier who
performed major maintenance on an offshore gas platform resulting in losses of
50,000 tonnes. We continue to work with suppliers in New Zealand to secure gas
that will allow our New Zealand facilities to operate at full capacity.  
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). Production
in Trinidad during the quarter was impacted by a combination of minor unplanned
outages and gas curtailments. The Titan facility produced 149,000 tonnes in the
first quarter of 2014 compared with 173,000 tonnes in the fourth quarter of
2013. The Atlas facility produced 249,000 tonnes in the first quarter of 2014
compared with 268,000 tonnes in the fourth 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 a 100% basis, the Egypt methanol facility produced 278,000 tonnes in the
first quarter of 2014 (Methanex share of 139,000 tonnes) compared with 273,000
tonnes (Methanex share of 159,000 tonnes) in the fourth quarter of 2013.
Production during the first quarter of 2014 and the fourth quarter of 2013
continued to be impacted by natural gas supply restrictions.  
The Egypt facility has experienced periodic natural gas supply restrictions
since mid-2012 which have resulted in production below full capacity. This
situation may persist in the future and become more acute during the summer
months when electricity demand is at its peak. Refer to page 23 of the Risk
Factors and Risk Management section of our 2013 Annual Report for further
details. 
Medicine Hat, Canada  
During the first quarter of 2014, we produced 122,000 tonnes at our Medicine
Hat facility compared with 86,000 tonnes during the fourth quarter of 2013. The
Medicine Hat facility experienced an unplanned outage in the fourth quarter of
2013 and restarted on January 10, 2014. 
Chile  
During the first quarter of 2014, we produced 67,000 tonnes in Chile operating
one plant at approximately 30% of production capacity, supported by natural gas
supplies from Chile and from Argentina through a tolling arrangement.  
As a result of the short-term outlook for gas supply in Chile and Argentina, we
anticipate idling our Chile operations in early May due to insufficient natural
gas feedstock to keep our plant operating through the southern hemisphere
winter. We are continuing to work with Empresa Nacional del Petroleo (ENAP) and
others to secure sufficient natural gas to sustain our operations and while a
restart of a Chile plant is possible later in 2014, the restart is dependent on
securing a sustainable natural gas supply to our facilities on economic terms
from Chile and Argentina to operate over the medium term.  
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. 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 first quarter of 2014, we incurred $130 million of capital expenditures
related to these projects, excluding capitalized interest. 
FINANCIAL RESULTS  
For the first quarter of 2014 we recorded Adjusted EBITDA of $255 million and
Adjusted net income of $160 million ($1.65 per share on a diluted basis). This
compares with Adjusted EBITDA of $245 million and Adjusted net income of $167
million ($1.72 per share on a diluted basis) for the fourth quarter of 2013.  
For the first quarter of 2014, we reported net income attributable to Methanex
shareholders of $145 million ($1.50 per share on a diluted basis) compared with
net income attributable to Methanex shareholders for the fourth quarter of 2013
of $128 million ($1.32 income per share on a diluted basis).  
We calculate Adjusted EBITDA and Adjusted net income by including amounts
related to our equity share of the Atlas (63.1% interest) and Egypt (50%
interest) facilities and by excluding the mark-to-market impact of share-based
compensation as a result of changes in our share price and items which are
considered by management to be non-operational. Refer to Additional Information
- Supplemental Non-GAAP Measures section for a further discussion on how we
calculate these measures. Our analysis of depreciation and amortization,
finance costs, finance income and other expenses and income taxes is consistent
with the presentation of our consolidated statements of income and excludes
amounts related to Atlas.   
A reconciliation from net income attributable to Methanex shareholders to
Adjusted net income and the calculation of Adjusted net income per common share
is as follows:  
/T/ 
Three Months Ended         
----------------------------------
($ millions except number of shares and       Mar 31      Dec 31      Mar 31
 per share amounts)                             2014        2013        2013
---------------------------------------------------------------------------- 
Net income attributable to Methanex                                         
 shareholders                               $    145    $    128    $     60
  Mark-to-market impact of share-based                                       
compensation, net of tax                       15          34          28
  Write-off of oil and gas rights, net of                                    
tax                                             -           5           -
----------------------------------------------------------------------------
Adjusted net income (1)                     $    160    $    167    $     88
----------------------------------------------------------------------------
Diluted weighted average shares                                             
 outstanding (millions)                           97          97          96
Adjusted net income per common share (1)    $   1.65    $   1.72    $   0.92
---------------------------------------------------------------------------- 
(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.                                                                
/T/ 
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: 
/T/ 
Three Months Ended           
-------------------------------------- 
Mar 31       Dec 31       Mar 31 
($ millions)                                 2014         2013         2013 
---------------------------------------------------------------------------- 
Consolidated statements of income:                                          
  Revenue                               $     968    $     881    $     652 
  Cost of sales and operating                                                
expenses, excluding mark-to-market                                        
impact of share-based compensation        (692)        (634)        (497)
  Adjusted EBITDA of associate (Atlas)                                       
(1)                                         17           26            9 
---------------------------------------------------------------------------- 
293          273          164 
Comprised of:                                                               
  Adjusted EBITDA (attributable to                                           
Methanex shareholders) (2)                 255          245          149 
  Attributable to non-controlling                                            
interests                                   38           28           15 
---------------------------------------------------------------------------- 
293          273          164 
Mark-to-market impact of share-based                                        
 compensation                                 (18)         (37)         (31)
Depreciation and amortization                 (35)         (35)         (30)
Write-off of oil and gas rights                 -           (8)           - 
Earnings of associate, excluding                                            
 amount included in Adjusted EBITDA                                         
 (1)                                           (9)          (9)          (8)
Finance costs                                 (11)         (13)         (15)
Finance income and other expenses               -            2           (2)
Income tax expense                            (52)         (29)         (12)
----------------------------------------------------------------------------
Net income                              $     168    $     144    $      66 
----------------------------------------------------------------------------
Net income attributable to Methanex                                         
 shareholders                           $     145    $     128    $      60 
---------------------------------------------------------------------------- 
(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.                                                                 
/T/ 
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 How We Analyze Our Business section.  
The changes in Adjusted EBITDA resulted from changes in the following:  
/T/ 
Q1 2014            Q1 2014  
compared with      compared with 
($ millions)                                     Q4 2013            Q1 2013 
---------------------------------------------------------------------------- 
Average realized price                     $          58      $         209 
Sales volume                                           7                 27 
Total cash costs                                     (55)              (130)
----------------------------------------------------------------------------
Increase in Adjusted EBITDA                $          10      $         106 
---------------------------------------------------------------------------- 
/T/ 
Average realized price 
/T/ 
Three Months Ended       
------------------------------- 
Mar 31     Dec 31     Mar 31
($ per tonne)                                     2014       2013       2013
---------------------------------------------------------------------------- 
Methanex average non-discounted posted price       613        557        474
Methanex average realized price                    524        493        412
---------------------------------------------------------------------------- 
/T/ 
Entering the first quarter of 2014, methanol prices were higher as a result of
strong demand and industry supply issues, primarily in Asia Pacific. Late in
the first quarter, several plants returned to operation and pricing began to
moderate (refer to Supply/Demand Fundamentals section). Our average
non-discounted posted price for the first quarter of 2014 was $613 per tonne
compared with $557 per tonne for the fourth quarter of 2013 and $474 per tonne
for the first quarter of 2013. Our average realized price for the first quarter
of 2014 was $524 per tonne compared with $493 per tonne for the fourth quarter
of 2013 and $412 per tonne for the first quarter of 2013. The change in average
realized price for the first quarter of 2014 increased Adjusted EBITDA by $58
million compared with the fourth quarter of 2013 and increased Adjusted EBITDA
by $209 million compared with the first quarter of 2013.  
Sales volume  
Methanol sales volumes excluding commission sales volumes were higher for all
periods presented and this increased Adjusted EBITDA by the amounts noted in
the table above. 
Total cash costs  
The primary drivers of changes in our total cash costs are changes in the cost
of methanol we produce at our facilities (Methanex-produced methanol) and
changes in the cost of methanol we purchase from others (purchased methanol).
All of our production facilities except Medicine Hat and Chile are underpinned
by natural gas purchase agreements with pricing terms that include base and
variable price components. We supplement our production with methanol produced
by others through methanol offtake contracts and purchases on the spot market
to meet customer needs and support our marketing efforts within the major
global markets.  
We have adopted the first-in, first-out method of accounting for inventories
and it generally takes between 30 and 60 days to sell the methanol we produce
or purchase. Accordingly, the changes in Adjusted EBITDA as a result of changes
in Methanex-produced and purchased methanol costs primarily depend on changes
in methanol pricing and the timing of inventory flows.  
The impact on Adjusted EBITDA from changes in our cash costs are explained
below:  
/T/ 
Q1 2014              Q1 2014  
compared with        compared with 
($ millions)                                   Q4 2013              Q1 2013 
---------------------------------------------------------------------------- 
Methanex-produced methanol costs       $           (25)     $           (50)
Proportion of Methanex-produced                                             
 methanol sales                                      6                    3 
Purchased methanol costs                           (27)                 (78)
Other, net                                          (9)                  (5)
---------------------------------------------------------------------------- 
$           (55)     $          (130)
---------------------------------------------------------------------------- 
/T/ 
Methanex-produced methanol costs  
We purchase natural gas for the New Zealand, Trinidad and Egypt methanol
facilities under natural gas purchase agreements where the unique terms of each
contract include a base price and a variable price component linked to the
price of methanol to reduce our commodity price risk exposure. The variable
price component of each gas contract is adjusted by a formula related to
methanol prices above a certain level. For the first quarter of 2014 compared
with the fourth quarter of 2013 and the first quarter of 2013,
Methanex-produced methanol costs were higher by $25 million and $50 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 first
quarter of 2014 compared with the fourth quarter of 2013 and the first quarter
of 2013, a higher proportion of Methanex-produced methanol sales increased
Adjusted EBITDA by $6 million and $3 million, respectively. Sales of
Methanex-produced methanol increased in the first quarter of 2014 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. 
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 the first quarter of 2014, we incurred
approximately $3 million of Geismar organizational build-up costs compared to
$2 million in the fourth quarter of 2013 and nil in the first quarter of 2013.
The remaining organizational build-up costs are estimated to be approximately
$25 million. The remaining change in other, net compared to the fourth quarter
of 2013 primarily relates to an insurance settlement recorded in the fourth
quarter of 2013.  
Mark-to-Market Impact of Share-based Compensation  
We grant share-based awards as an element of compensation. Share-based awards
granted include stock options, share appreciation rights, tandem share
appreciation rights, deferred share units, restricted share units and
performance share units. For all the share-based awards, share-based
compensation is recognized over the related vesting period for the proportion
of the service that has been rendered at each reporting date. Share-based
compensation includes an amount related to the grant-date value and a
mark-to-market impact as a result of subsequent changes in the Company's
share price. The grant-date value amount is included in Adjusted EBITDA and
Adjusted net income. The mark-to-market impact of share-based compensation as a
result of changes in our share price is excluded from Adjusted EBITDA and
Adjusted net income and analyzed separately.  
/T/ 
Three Months Ended            
---------------------------------------- 
Mar 31        Dec 31        Mar 31
($ millions except share price)             2014          2013          2013
---------------------------------------------------------------------------- 
Methanex Corporation share price                                            
 (1 )                                 $    63.94    $    59.24    $    40.63 
Grant-date fair value expense                                               
 included in Adjusted EBITDA and                                            
 Adjusted net income                           7             4             6
Mark-to-market impact due to change                                         
 in share price                               18            37            31
----------------------------------------------------------------------------
Total share-based compensation                                              
 expense                              $       25    $       41    $       37
---------------------------------------------------------------------------- 
(1) US dollar share price of Methanex Corporation as quoted on NASDAQ Global 
Market on the last trading day of the respective period.                 
/T/ 
The Methanex Corporation share price increased from US $59.24 per share at
December 31, 2013 to US $63.94 per share at March 31, 2014. As a result of the
increase in the share price and the resulting impact on the fair value of the
outstanding units, we recorded an $18 million mark-to-market expense on
share-based compensation in the first quarter of 2014 compared with a $37
million mark-to-market share-based compensation expense in the fourth quarter
of 2013 and a $31 million expense in the first quarter of 2013.  
Depreciation and Amortization   
Depreciation and amortization was $35 million for the first quarter of 2014
compared with $35 million for the fourth quarter of 2013 and $30 million for
the first quarter of 2013. Depreciation and amortization was higher in the
first quarter of 2014 compared with the first quarter of 2013 primarily due to
higher sales volumes of Methanex-produced methanol.  
Finance Costs 
/T/ 
Three Months Ended            
---------------------------------------- 
Mar 31        Dec 31        Mar 31 
($ millions)                               2014          2013          2013 
---------------------------------------------------------------------------- 
Finance costs before capitalized                                            
 interest                             $      16     $      16     $      16 
Less capitalized interest                    (5)           (3)           (1)
---------------------------------------------------------------------------- 
Finance costs                         $      11     $      13     $      15 
---------------------------------------------------------------------------- 
/T/ 
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 
/T/ 
Three Months Ended           
-------------------------------------- 
Mar 31       Dec 31       Mar 31 
($ millions)                                 2014         2013         2013 
---------------------------------------------------------------------------- 
Finance income and other expenses       $       -    $       2    $      (2)
---------------------------------------------------------------------------- 
/T/ 
The change in finance income and other expenses for all periods presented was
primarily due to the impact of changes in foreign exchange rates. 
Income Taxes  
A summary of our income taxes for the first quarter of 2014 compared with the
fourth quarter of 2013 is as follows:  
/T/ 
Three Months Ended        Three Months Ended      
March 31, 2014           December 31, 2013      
------------------------- -------------------------- 
Adjusted                   Adjusted 
($ millions, except             Net          Net           Net          Net 
 where noted)                Income    Income(1)        Income    Income(1) 
------------------------------------------------- -------------------------- 
Amount before income tax  $     220    $     210     $     173    $     203 
Income tax expense              (52)         (50)          (29)         (36)
------------------------------------------------- --------------------------
Amount after income tax   $     168    $     160     $     144    $     167 
------------------------------------------------- -------------------------- 
Effective tax rate               24%          24%           17%          18%
---------------------------------------------------------------------------- 
(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.                                                                 
/T/ 
For the first quarter of 2014, the effective tax rate was 24% compared with 17%
for the fourth quarter of 2013. 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 24%
for the first quarter of 2014 compared with 18% for the fourth quarter of 2013.
Entering the first quarter of 2014, all previously unrecognized tax benefits in
Canada and New Zealand were fully utilized, which contributed to an increase in
the effective tax rate.  
We earn the majority of our 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%. The statutory rates in Canada and New Zealand are
25% and 28%, respectively. 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.  
SUPPLY/DEMAND FUNDAMENTALS  
/T/ 
Methanex Non-Discounted Regional Posted Prices (1)              
Apr          Mar          Feb          Jan
(US$ per tonne)                  2014         2014         2014         2014
---------------------------------------------------------------------------- 
United States                     599          632          632          632
Europe (2)                        565          610          610          610
Asia Pacific                      480          590          590          590
----------------------------------------------------------------------------
(1) Discounts from our posted prices are offered to customers based on       
various factors.                                                        
(2) EUR412 for Q2 2014 (Q1 2014 - EUR450) converted to United States         
dollars.                                                                
---------------------------------------------------------------------------- 
/T/ 
We estimate that methanol demand, excluding methanol demand from integrated
methanol to olefins facilities, is currently approximately 57 million tonnes on
an annualized basis.  
Entering the first quarter of 2014, we experienced rising methanol prices due
to continued supply constraints, primarily in Asia Pacific. During the quarter,
several plants returned to operation and pricing began to moderate. Our average
non-discounted price in the first quarter of 2014 was $613 per tonne compared
with $557 per tonne in the fourth quarter of 2013. We recently announced our
North American non-discounted price for May at $565 per tonne and our Asia
Pacific price at $460 per tonne.  
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.  
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,
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 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.  
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. 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.
A 1.3 million tonne Celanese plant is currently under construction in Bishop,
Texas. 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 first quarter of 2014 increased by
$17 million to $179 million compared with $162 million for the fourth quarter
of 2013 and increased by $61 million compared to $118 million for the first
quarter of 2013. The changes in cash flows from operating activities resulted
from changes in the following:  
/T/ 
Q1 2014           Q1 2014  
compared with     compared with 
($ millions)                                      Q4 2013           Q1 2013 
---------------------------------------------------------------------------- 
Change in Adjusted EBITDA (attributable                                     
 to Methanex shareholders)                  $          10     $         106 
Exclude change in Adjusted EBITDA of                                        
 associate (Atlas)                                      9                (8)
Cash flows attributable to non-                                             
 controlling interests                                 10                23 
Non-cash working capital                               (9)              (44)
Income taxes paid                                       4                (2)
Share-based payments                                  (16)              (19)
Other                                                   9                 5 
----------------------------------------------------------------------------
Increase in cash flows from operating                                       
 activities                                 $          17     $          61 
---------------------------------------------------------------------------- 
/T/ 
During the first quarter of 2014, we paid a quarterly dividend of $0.20 per
share, or $19 million. Additionally, on April 29, 2014, the Board of Directors
approved a 25% increase to our quarterly dividend to shareholders, from $0.20
to $0.25 per share per quarter. The increased dividend will apply commencing
with the dividend payable June 30, 2014 to holders of common shares of record
on June 16, 2014.  
On April 29, 2014, the Board of Directors approved a 5% normal course issuer
bid, which allows us to repurchase for cancellation up to 4.8 million shares. 
We operate in a highly competitive commodity industry and believe it is
appropriate to maintain a conservative balance sheet and retain financial
flexibility. At March 31, 2014, our cash balance was $709 million, including
$52 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 $140 million to the end of 2015.
Capital expenditures during the first quarter, excluding the Geismar projects,
were $15 million. We are relocating two methanol plants from our Chile site to
Geismar, Louisiana. During the first quarter of 2014, capital expenditures
related to the Geismar projects were $130 million, excluding capitalized
interest. The remaining budgeted capital expenditures related to the Geismar
projects are $505 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 second quarter, methanol prices have moderated with additional
supply re-entering the market, primarily in Asia Pacific. The methanol price
will ultimately depend on the strength of the global economy, industry
operating rates, global energy prices, new supply additions and the strength of
global demand. We believe that our financial position and financial
flexibility, outstanding global supply network and competitive-cost position
will provide a sound basis for Methanex to continue to be the leader in the
methanol industry and to invest to grow the Company. 
CONTROLS AND PROCEDURES  
For the three months ended March 31, 2014, 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: 
/T/ 
Three Months Ended           
-------------------------------------- 
Mar 31       Dec 31       Mar 31 
($ millions)                                 2014         2013         2013 
---------------------------------------------------------------------------- 
Net income attributable to Methanex                                         
 shareholders                           $     145    $     128    $      60 
  Mark-to-market impact of share-based                                       
compensation                                18           37           31 
  Depreciation and amortization                35           35           30 
  Write-off of oil and gas rights               -            8            - 
  Finance costs                                11           13           15 
  Finance income and other expenses             -           (2)           2 
  Income tax expense                           52           29           12 
  Earnings of associate, excluding                                           
amount included in Adjusted EBITDA                                        
(1)                                          9            9            8 
  Non-controlling interests adjustment                                       
(1)                                        (15)         (12)          (9)
----------------------------------------------------------------------------
Adjusted EBITDA (attributable to                                            
 Methanex shareholders)                 $     255    $     245    $     149 
---------------------------------------------------------------------------- 
(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.             
/T/ 
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:  
/T/ 
Three Months Ended           
--------------------------------------
($ millions except number of shares        Mar 31       Dec 31       Mar 31 
 and per share amounts)                      2014         2013         2013 
---------------------------------------------------------------------------- 
Net income attributable to Methanex                                         
 shareholders                           $     145    $     128    $      60 
  Mark-to-market impact of share-based                                       
compensation                                18           37           31 
  Write-off of oil and gas rights               -            8            - 
  Income tax recovery related to above                                       
items                                       (3)          (6)          (3)
----------------------------------------------------------------------------
Adjusted net income                     $     160    $     167    $      88 
----------------------------------------------------------------------------
Diluted weighted average shares                                             
 outstanding (millions)                        97           97           96 
Adjusted net income per common share    $    1.65    $    1.72    $    0.92 
---------------------------------------------------------------------------- 
/T/ 
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: 
/T/ 
Three Months Ended             
-------------------------------------------
($ millions, except per share        Mar 31     Dec 31     Sep 30     Jun 30
 amounts)                              2014       2013       2013       2013
---------------------------------------------------------------------------- 
Revenue                            $    968   $    881   $    758   $    733
Adjusted EBITDA (1,2)                   255        245        184        157
Net income (1)                          145        128         87         54
Adjusted net income (1,2)               160        167        117         99
Basic net income per common share                                           
 (1)                                   1.51       1.33       0.91       0.57
Diluted net income per common                                               
 share (1)                             1.50       1.32       0.90       0.56
Adjusted net income per share                                               
 (1,2)                                 1.65       1.72       1.22       1.02
---------------------------------------------------------------------------- 
/T/ 
/T/ 
Three Months Ended             
-------------------------------------------
($ millions, except per share        Mar 31     Dec 31     Sep 30     Jun 30
 amounts)                              2013       2012       2012       2012
---------------------------------------------------------------------------- 
Revenue                            $    652   $    668   $    608   $    613
Adjusted EBITDA (1,2)                   149        119        104        113
Net income (loss) (1)                    60       (140)        (3)        52
Adjusted net income (1,2)                88         61         36         44
Basic net income (loss) per                                                 
 common share (1)                      0.64      (1.49)     (0.03)      0.56
Diluted net income (loss) per                                               
 common share (1)                      0.63      (1.49)     (0.03)      0.50
Adjusted net income per share                                               
 (1,2)                                 0.92       0.64       0.38       0.47
---------------------------------------------------------------------------- 
(1) Attributable to Methanex Corporation shareholders.                      
(2) These items are non-GAAP measures that do not have any standardized      
meaning prescribed by GAAP and therefore are unlikely to be comparable   
to similar measures presented by other companies. Refer to Additional    
Information - Supplemental Non-GAAP Measures section for a description   
of each non-GAAP measure and reconciliations to the most comparable GAAP 
measures.                                                                
/T/ 
FORWARD-LOOKING INFORMATION WARNING  
This First Quarter 2014 Management's Discussion and Analysis
("MD&A") as well as comments made during the First Quarter 2014
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: 
/T/ 
--  expected demand for methanol and its derivatives, 
--  expected new methanol supply or restart of idled capacity and timing for 
start-up of the same, 
--  expected shutdowns (either temporary or permanent) or restarts of 
existing methanol supply (including our own facilities), including, 
without limitation, the timing and length of planned maintenance 
outages, 
--  expected methanol and energy prices, 
--  expected levels of methanol purchases from traders or other third 
parties, 
--  expected levels, timing and availability of economically priced natural 
gas supply to each of our plants, 
--  capital committed by third parties towards future natural gas 
exploration and development in the vicinity of our plants, 
--  our expected capital expenditures, 
--  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 or continue to obtain waivers 
associated with our long-term debt obligations, including, without 
limitation, the Egypt limited recourse debt facilities that have 
conditions associated with the payment of cash or other distributions 
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.  
/T/ 
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:  
/T/ 
--  the supply of, demand for and price of methanol, methanol derivatives, 
natural gas, coal, oil and oil derivatives, 
--  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 
project, 
--  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 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 project, 
--  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, and  
--  enforcement of contractual arrangements and ability to perform 
contractual obligations by customers, natural gas and other suppliers 
and other third parties.  
/T/ 
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: 
/T/ 
--  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 project, 
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 2013 Management's Discussion and Analysis 
and this First Quarter 2014 Management's Discussion and Analysis.   
/T/ 
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:  
/T/ 
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.                             
/T/ 
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 March 31, 2014, 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 associated with the other investors' non-controlling
interests. 
/T/ 
Methanex Corporation                                                        
Consolidated Statements of Income (unaudited)                               
(thousands of U.S. dollars, except number of common shares and per share    
 amounts)                                                                    
Three Months Ended         
--------------------------------- 
Mar 31           Mar 31  
2014             2013 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Revenue                                      $     968,478    $     651,899 
Cost of sales and operating expenses              (709,872)        (527,995)
Depreciation and amortization                      (34,811)         (29,817)
----------------------------------------------------------------------------
Operating income                                   223,795           94,087 
Earnings of associate (note 4)                       7,411            1,286 
Finance costs (note 6)                             (10,838)         (15,451)
Finance income and other expenses                     (363)          (1,627)
----------------------------------------------------------------------------
Income before income taxes                         220,005           78,295 
Income tax expense:                                                         
  Current                                          (26,378)          (4,391)
  Deferred                                         (25,288)          (7,671)
---------------------------------------------------------------------------- 
(51,666)         (12,062)
----------------------------------------------------------------------------
Net income                                   $     168,339    $      66,233 
----------------------------------------------------------------------------
Attributable to:                                                            
  Methanex Corporation shareholders                145,102           60,267 
  Non-controlling interests                         23,237            5,966 
---------------------------------------------------------------------------- 
$     168,339    $      66,233 
---------------------------------------------------------------------------- 
Income per share for the period                                             
 attributable to Methanex Corporation                                       
 shareholders                                                               
  Basic net income per common share          $        1.51    $        0.64 
  Diluted net income per common share        $        1.50    $        0.63  
Weighted average number of common shares                                    
 outstanding (note 7)                           96,298,231       94,514,188 
Diluted weighted average number of common                                   
 shares outstanding (note 7)                    96,997,489       95,717,869  
See accompanying notes to condensed consolidated interim financial          
 statements.                                                                 
Methanex Corporation                                                        
Consolidated Statements of Comprehensive Income (unaudited)                 
(thousands of U.S. dollars)                                                  
Three Months Ended         
--------------------------------- 
Mar 31           Mar 31  
2014             2013 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
Net income                                   $     168,339    $      66,233 
  Other comprehensive income, net of taxes:                                  
Items that may be reclassified to                                        
income:                                                                 
Change in fair value of forward                                        
exchange contracts                              148             (184) 
Change in fair value of interest rate                                  
swap contracts                                 (266)            (296) 
Realized loss on interest rate swap                                    
contracts reclassified to finance                                     
costs                                         2,213            2,591 
---------------------------------------------------------------------------- 
2,095            2,111 
----------------------------------------------------------------------------
Comprehensive income                         $     170,434    $      68,344 
----------------------------------------------------------------------------
Attributable to:                                                            
  Methanex Corporation shareholders                145,728           61,460 
  Non-controlling interests                         24,706            6,884 
---------------------------------------------------------------------------- 
$     170,434    $      68,344 
---------------------------------------------------------------------------- 
See accompanying notes to condensed consolidated interim financial          
 statements.                                                                 
Methanex Corporation                                                        
Consolidated Statements of Financial Position (unaudited)                   
(thousands of U.S. dollars)                                                  
Mar 31           Dec 31 
AS AT                                                 2014             2013 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
ASSETS                                                                      
Current assets:                                                             
  Cash and cash equivalents                  $     709,213    $     732,736 
  Trade and other receivables                      575,987          534,130 
  Inventories (note 2)                             304,766          313,809 
  Prepaid expenses                                  22,372           20,533 
---------------------------------------------------------------------------- 
1,612,338        1,601,208 
Non-current assets:                                                         
  Property, plant and equipment (note 3)         2,344,819        2,230,938 
  Investment in associate (note 4)                 223,662          216,095 
  Other assets                                      66,044           65,253 
---------------------------------------------------------------------------- 
2,634,525        2,512,286 
---------------------------------------------------------------------------- 
$   4,246,863    $   4,113,494 
---------------------------------------------------------------------------- 
LIABILITIES AND EQUITY                                                      
Current liabilities:                                                        
  Trade, other payables and accrued                                          
liabilities                               $     650,407    $     618,181 
  Current maturities on long-term debt                                       
(note 5)                                         42,724           41,504 
  Current maturities on other long-term                                      
liabilities                                     106,665           85,648 
---------------------------------------------------------------------------- 
799,796          745,333 
Non-current liabilities:                                                    
  Long-term debt (note 5)                        1,106,942        1,126,802 
  Other long-term liabilities                      120,462          188,520 
  Deferred income tax liabilities                  173,493          147,506 
---------------------------------------------------------------------------- 
1,400,897        1,462,828 
Equity:                                                                     
  Capital stock                                    541,275          531,573 
  Contributed surplus                                3,087            4,994 
  Retained earnings                              1,252,507        1,126,700 
  Accumulated other comprehensive loss              (4,918)          (5,544)
----------------------------------------------------------------------------
  Shareholders' equity                           1,791,951        1,657,723 
  Non-controlling interests                        254,219          247,610 
----------------------------------------------------------------------------
  Total equity                                   2,046,170        1,905,333 
---------------------------------------------------------------------------- 
$   4,246,863    $   4,113,494 
---------------------------------------------------------------------------- 
See accompanying notes to condensed consolidated interim financial          
 statements.                                                                 
Methanex Corporation                                                        
Consolidated Statements of Changes in Equity (unaudited)                    
(thousands of U.S. dollars, except number of common shares)                  
Accumulated  
Number of              Contri-                       Other  
Common   Capital      buted    Retained   Comprehensive  
Shares     Stock    Surplus    Earnings            Loss 
----------------------------------------------------------------------------
Balance,                                                                    
 December 31,                                                               
 2012           94,309,970 $ 481,779 $   15,481  $  805,661  $      (13,045)
Net income               -         -          -      60,267               - 
Other                                                                       
 comprehensive                                                              
 income                  -         -          -           -           1,193 
Compensation                                                                
 expense                                                                    
 recorded for                                                               
 stock options           -         -        223           -               - 
Issue of shares                                                             
 on exercise of                                                             
 stock options     587,689    13,088          -           -               - 
Reclassification                                                            
 of grant date                                                              
 fair value on                                                              
 exercise of                                                                
 stock options           -     4,132     (4,132)          -               - 
Dividend                                                                    
 payments to                                                                
 Methanex                                                                   
 Corporation                                                                
 shareholders            -         -          -     (17,534)              - 
Distributions to                                                            
 non-controlling                                                            
 interests               -         -          -           -               - 
Equity                                                                      
 contributions                                                              
 by non-                                                                    
 controlling                                                                
 interests               -         -          -           -               - 
----------------------------------------------------------------------------
Balance, March                                                              
 31, 2013       94,897,659   498,999     11,572     848,394         (11,852)
Net income               -         -          -     268,900               - 
Other                                                                       
 comprehensive                                                              
 income                  -         -          -       5,362           4,855 
Compensation                                                                
 expense                                                                    
 recorded for                                                               
 stock options           -         -        499           -               - 
Sale of partial                                                             
 interest in                                                                
 subsidiary              -         -          -      61,447           1,453 
Issue of shares                                                             
 on exercise of                                                             
 stock options   1,203,310    25,497          -           -               - 
Reclassification                                                            
 of grant date                                                              
 fair value on                                                              
 exercise of                                                                
 stock options           -     7,077     (7,077)          -               - 
Dividend                                                                    
 payments to                                                                
 Methanex                                                                   
 Corporation                                                                
 shareholders            -         -          -     (57,403)              - 
Distributions to                                                            
 non-controlling                                                            
 interests               -         -          -           -               - 
----------------------------------------------------------------------------
Balance,                                                                    
 December 31,                                                               
 2013           96,100,969   531,573      4,994   1,126,700          (5,544)
Net income               -         -          -     145,102               - 
Other                                                                       
 comprehensive                                                              
 income                  -         -          -           -             626 
Compensation                                                                
 expense                                                                    
 recorded for                                                               
 stock options           -         -        227           -               - 
Issue of shares                                                             
 on exercise of                                                             
 stock options     422,987     7,568          -           -               - 
Reclassification                                                            
 of grant date                                                              
 fair value on                                                              
 exercise of                                                                
 stock options           -     2,134     (2,134)          -               - 
Dividend                                                                    
 payments to                                                                
 Methanex                                                                   
 Corporation                                                                
 shareholders            -         -          -     (19,295)              - 
Distributions to                                                            
 non-controlling                                                            
 interests               -         -          -           -               - 
----------------------------------------------------------------------------
Balance, March                                                              
 31, 2014       96,523,956 $ 541,275 $    3,087  $1,252,507  $       (4,918)
---------------------------------------------------------------------------- 
Non-                    
Shareholders'       Controlling             Total  
Equity         Interests            Equity 
-----------------------------------------------------------------------
Balance,                                                               
 December 31,                                                          
 2012            $       1,289,876  $        187,861  $      1,477,737 
Net income                  60,267             5,966            66,233 
Other                                                                  
 comprehensive                                                         
 income                      1,193               918             2,111 
Compensation                                                           
 expense                                                               
 recorded for                                                          
 stock options                 223                 -               223 
Issue of shares                                                        
 on exercise of                                                        
 stock options              13,088                 -            13,088 
Reclassification                                                       
 of grant date                                                         
 fair value on                                                         
 exercise of                                                           
 stock options                   -                 -                 - 
Dividend                                                               
 payments to                                                           
 Methanex                                                              
 Corporation                                                           
 shareholders              (17,534)                -           (17,534)
Distributions to                                                       
 non-controlling                                                       
 interests                       -            (5,265)           (5,265)
Equity                                                                 
 contributions                                                         
 by non-                                                               
 controlling                                                           
 interests                       -             1,000             1,000 
-----------------------------------------------------------------------
Balance, March                                                         
 31, 2013                1,347,113           190,480         1,537,593 
Net income                 268,900            41,867           310,767 
Other                                                                  
 comprehensive                                                         
 income                     10,217             2,849            13,066 
Compensation                                                           
 expense                                                               
 recorded for                                                          
 stock options                 499                 -               499 
Sale of partial                                                        
 interest in                                                           
 subsidiary                 62,900            47,100           110,000 
Issue of shares                                                        
 on exercise of                                                        
 stock options              25,497                 -            25,497 
Reclassification                                                       
 of grant date                                                         
 fair value on                                                         
 exercise of                                                           
 stock options                   -                 -                 - 
Dividend                                                               
 payments to                                                           
 Methanex                                                              
 Corporation                                                           
 shareholders              (57,403)                -           (57,403)
Distributions to                                                       
 non-controlling                                                       
 interests                       -           (34,686)          (34,686)
-----------------------------------------------------------------------
Balance,                                                               
 December 31,                                                          
 2013                    1,657,723           247,610         1,905,333 
Net income                 145,102            23,237           168,339 
Other                                                                  
 comprehensive                                                         
 income                        626             1,469             2,095 
Compensation                                                           
 expense                                                               
 recorded for                                                          
 stock options                 227                 -               227 
Issue of shares                                                        
 on exercise of                                                        
 stock options               7,568                 -             7,568 
Reclassification                                                       
 of grant date                                                         
 fair value on                                                         
 exercise of                                                           
 stock options                   -                 -                 - 
Dividend                                                               
 payments to                                                           
 Methanex                                                              
 Corporation                                                           
 shareholders              (19,295)                -           (19,295)
Distributions to                                                       
 non-controlling                                                       
 interests                       -           (18,097)          (18,097)
-----------------------------------------------------------------------
Balance, March                                                         
 31, 2014        $       1,791,951  $        254,219  $      2,046,170 
-----------------------------------------------------------------------
See accompanying notes to condensed consolidated interim financial          
 statements.                                                                 
Methanex Corporation                                                        
Consolidated Statements of Cash Flows (unaudited)                           
(thousands of U.S. dollars)                                                  
Three Months Ended         
--------------------------------- 
Mar 31           Mar 31  
2014             2013 
----------------------------------------------------------------------------
---------------------------------------------------------------------------- 
CASH FLOWS FROM OPERATING ACTIVITIES                                        
  Net income                                 $     168,339    $      66,233 
  Deduct earnings of associate                      (7,411)          (1,286)
  Add (deduct) non-cash items:                                               
Depreciation and amortization                   34,811           29,817  
Income tax expense                              51,666           12,062  
Share based compensation expense                25,246           36,313  
Finance costs                                   10,838           15,451  
Other                                             (277)             464 
  Income taxes paid                                (11,358)          (8,783)
  Other cash payments, including share-                                      
based compensation                              (34,709)         (17,555)
----------------------------------------------------------------------------
  Cash flows from operating activities                                       
before undernoted                               237,145          132,716 
  Changes in non-cash working capital (note                                  
9)                                              (58,074)         (15,037)
---------------------------------------------------------------------------- 
179,071          117,679 
---------------------------------------------------------------------------- 
CASH FLOWS FROM FINANCING ACTIVITIES                                        
  Dividend payments to Methanex Corporation                                  
shareholders                                    (19,295)         (17,534)
  Interest paid, including interest rate                                     
swap settlements                                (21,001)         (21,211)
  Repayment of long-term debt and limited                                    
recourse debt                                   (19,520)         (18,267)
  Cash distributions to non-controlling                                      
interests                                       (18,097)          (5,265)
  Proceeds from limited recourse debt                    -           10,000 
  Proceeds on issue of shares on exercise                                    
of stock options                                  7,568           13,088 
  Other                                             (1,015)              81 
---------------------------------------------------------------------------- 
(71,360)         (39,108)
---------------------------------------------------------------------------- 
CASH FLOWS FROM INVESTING ACTIVITIES                                        
  Property, plant and equipment                    (15,828)         (33,619)
  Geismar plants under construction               (127,914)         (43,398)
  Other assets                                      (4,863)            (792)
  Changes in non-cash working capital                                        
related to investing activities (note 9)         17,371           (1,296)
---------------------------------------------------------------------------- 
(131,234)         (79,105)
----------------------------------------------------------------------------
  Decrease in cash and cash equivalents            (23,523)            (534)
  Cash and cash equivalents, beginning of                                    
period                                          732,736          727,385 
----------------------------------------------------------------------------
  Cash and cash equivalents, end of period   $     709,213    $     726,851 
---------------------------------------------------------------------------- 
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.                                                             
/T/ 
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 producer and supplier of methanol to the major
international markets of Asia Pacific, North America, Europe and South 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.  
These condensed consolidated interim financial statements do not include all of
the information required for full annual financial statements and were approved
and authorized for issue by the Audit, Finance & Risk Committee of the
Board of Directors on April 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 ended March 31, 2014 is $691 million (2013 - $469 million). 
3. Property, plant and equipment:  
/T/ 
Buildings,                                                
Plant       Plants                                   
Installations        Under    Oil & Gas                      
& Machinery Construction   Properties    Other       Total
---------------------------------------------------------------------------- 
Cost at March                                                               
 31, 2014       $   3,115,259   $  525,641  $    86,779  $83,598  $3,811,277
Accumulated                                                                 
 depreciation at                                                            
 March 31, 2014     1,349,657            -       79,085   37,716   1,466,458
----------------------------------------------------------------------------
Net book value                                                              
 at March 31,                                                               
 2014           $   1,765,602   $  525,641  $     7,694  $45,882  $2,344,819
---------------------------------------------------------------------------- 
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
---------------------------------------------------------------------------- 
/T/ 
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 March 31, 2014, the Company incurred
capital expenditures related to the Geismar projects of $130 million, excluding
capitalized interest. The remaining budgeted capital expenditures for these
projects are $505 million, excluding capitalized interest. 
4. Interest in Atlas joint venture:  
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. The Company accounts for its interest in Atlas using the equity
method. Summarized financial information of Atlas (100% basis) is as follows:  
/T/ 
Mar 31           Dec 31 
Consolidated statements of financial                                        
 position as at                                       2014             2013 
---------------------------------------------------------------------------- 
Cash and cash equivalents                    $      58,539    $      20,776 
Other current assets                               137,892          161,765 
Non-current assets                                 370,686          378,890 
Current liabilities                                (43,694)         (47,359)
Long-term debt, including current                                           
 maturities                                        (56,752)         (56,752)
Other long-term liabilities, including                                      
 current maturities                               (134,336)        (136,730)
----------------------------------------------------------------------------
Net assets at 100%                           $     332,335    $     320,590 
---------------------------------------------------------------------------- 
Net assets at 63.1%                          $     209,703    $     202,292 
Long-term receivable from Atlas                     13,959           13,803 
---------------------------------------------------------------------------- 
Investment in associate                      $     223,662    $     216,095 
---------------------------------------------------------------------------- 
Three Months Ended         
--------------------------------- 
Mar 31           Mar 31 
Consolidated statements of income                     2014             2013 
---------------------------------------------------------------------------- 
Revenue                                      $     116,027    $      85,366 
Cost of sales and depreciation and                                          
 amortization                                      (98,398)         (79,298)
----------------------------------------------------------------------------
Operating income                                    17,629            6,068 
Finance costs, finance income and other                                     
 expenses                                           (2,750)          (3,421)
Income tax expense                                  (3,134)            (609)
----------------------------------------------------------------------------
Net earnings at 100%                         $      11,745    $       2,038 
----------------------------------------------------------------------------
Earnings of associate at 63.1%               $       7,411    $       1,286 
---------------------------------------------------------------------------- 
/T/ 
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 mid-2014.  
The Company has lodged objections to the assessments. Based on the merits of
the cases and legal interpretation, management believes its position should be
sustained. 
5. Long-term debt:  
/T/ 
Mar 31           Dec 31 
As at                                                 2014             2013 
---------------------------------------------------------------------------- 
Unsecured notes                                                              
$350 million at 3.25% due December 15,                                     
2019                                      $     344,744    $     344,530 
  $250 million at 5.25% due March 1, 2022          246,736          246,650 
  $150 million at 6.00% due August 15, 2015        149,644          149,581 
---------------------------------------------------------------------------- 
741,124          740,761 
Egypt limited recourse debt facilities             386,587          404,722 
Other limited recourse debt facilities              21,955           22,823 
----------------------------------------------------------------------------
Total long-term debt (1)                         1,149,666        1,168,306 
Less current maturities                            (42,724)         (41,504)
---------------------------------------------------------------------------- 
$   1,106,942    $   1,126,802 
---------------------------------------------------------------------------- 
/T/ 
(1) Long-term debt is presented net of deferred financing fees. 
During the three months ended March 31, 2014, the Company has made repayments
on its Egypt limited recourse debt facilities of $18.6 million. The Company
also made repayments on its other limited recourse debt facilities of $0.9
million.  
At March 31, 2014, management believes the Company was in compliance with all
significant terms and default provisions related to long-term debt obligations. 
6. Finance costs:  
/T/ 
Three Months Ended         
--------------------------------- 
Mar 31           Mar 31  
2014             2013 
---------------------------------------------------------------------------- 
Finance costs                                $      15,521    $      16,518 
Less capitalized interest related to                                        
 Geismar plants under construction                  (4,683)          (1,067)
---------------------------------------------------------------------------- 
$      10,838    $      15,451 
---------------------------------------------------------------------------- 
/T/ 
Finance costs are primarily comprised of interest on borrowings and finance
lease obligations, the effective portion of interest rate swaps designated as
cash flow hedges, amortization of deferred financing fees, and accretion
expense associated with site restoration costs. Interest during construction is
capitalized until the plant is substantially completed and ready for productive
use.  
The Company has interest rate swap contracts on its Egypt limited recourse debt
facilities to swap the LIBOR-based interest payments for an average aggregated
fixed rate of 4.8% plus a spread on approximately 75% of the Egypt limited
recourse debt facilities for the period to March 31, 2015. 
7. Net income per common share:  
Diluted net income per common share is calculated by considering the potential
dilution that would occur if outstanding stock options and, under certain
circumstances, tandem share appreciation rights (TSARs) were exercised or
converted to common shares.  
Outstanding TSARs may be settled in cash or common shares at the holder's
option and for purposes of calculating diluted net income per common share, the
more dilutive of the cash-settled and equity-settled method is used, regardless
of how the plan is accounted for. Accordingly, TSARs that are accounted for
using the cash-settled method will require adjustments to the numerator and
denominator if the equity-settled method is determined to have a dilutive
effect on diluted net income per common share.  
Stock options and, 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: 
/T/ 
Three Months Ended       
------------------------------- 
Mar 31          Mar 31 
2014            2013
---------------------------------------------------------------------------- 
Denominator for basic net income per common                                 
 share                                            96,298,231      94,514,188
  Effect of dilutive stock options                   699,258       1,203,681
----------------------------------------------------------------------------
Denominator for diluted net income per common                               
 share                                            96,997,489      95,717,869
---------------------------------------------------------------------------- 
/T/ 
8. Share-based compensation:  
a) Share appreciation rights (SARs), tandem share appreciation rights (TSARs)
and stock options:  
(i) Outstanding units: 
Information regarding units outstanding at March 31, 2014 is as follows: 
/T/ 
SARs                          TSARs            
----------------------------  ---------------------------- 
Weighted                      Weighted
(per share amounts   Number of         Average     Number of         Average
 in USD)                 Units  Exercise Price         Units  Exercise Price
----------------------------------------------  ---------------------------- 
Outstanding at                                                              
 December 31, 2013   1,093,117   $       32.02     1,858,585   $       31.83
  Granted              203,190           73.13       303,850           72.66
  Exercised           (190,229)          28.90      (283,750)          30.21
  Cancelled            (10,750)          33.95        (6,900)          35.69
----------------------------------------------  ----------------------------
Outstanding at                                                              
 March 31, 2014      1,095,328   $       40.17     1,871,785   $       38.69
----------------------------------------------  ---------------------------- 
Stock Options            
----------------------------------- 
Number of      Weighted Average
(per share amounts in USD)                       Units        Exercise Price
---------------------------------------------------------------------------- 
Outstanding at December 31, 2013             1,219,420        $        19.15
  Granted                                       45,600                 73.13
  Exercised                                   (422,987)                17.72
  Cancelled                                     (2,500)                35.90
  Expired                                      (22,835)                22.82
----------------------------------------------------------------------------
Outstanding at March 31, 2014                  816,698        $        22.75
---------------------------------------------------------------------------- 
Units Outstanding at          Units Exercisable at 
March 31, 2014                March 31, 2014    
----------------------------------  --------------------- 
Weighted                                             
Range of Exercise       Average              Weighted               Weighted
 Prices               Remaining      Number   Average       Number   Average
(per share amounts  Contractual    of Units  Exercise     of Units  Exercise
 in USD)           Life (Years) Outstanding     Price  Exercisable     Price
-----------------------------------------------------  --------------------- 
SARs:                                                                       
  $23.36 to 31.74           4.2     546,138 $   29.13      426,457 $   28.49
  $31.88 to 73.13           6.3     549,190     51.15      109,000     38.24
---------------------------------------------------------------------------- 
5.2   1,095,328 $   40.17      535,457 $   30.47
---------------------------------------------------------------------------- 
TSARs:                                                                      
  $23.36 to 31.74           4.1   1,026,745 $   28.91      812,678 $   28.18
  $31.88 to 73.13           6.3     845,040     50.57      180,560     38.10
---------------------------------------------------------------------------- 
5.1   1,871,785 $   38.69      993,238 $   29.98
----------------------------------------------------------------------------
Stock options:                                                              
  $6.33 to 25.22            2.1     388,035 $    8.76      388,035 $    8.76
  $28.43 to 73.13           3.4     428,663     35.41      307,163     29.69
---------------------------------------------------------------------------- 
2.7     816,698 $   22.75      695,198 $   18.01
---------------------------------------------------------------------------- 
/T/ 
(ii) Compensation expense related to SARs and TSARs:  
Compensation expense for SARs and TSARs is measured based on their fair value
and is recognized over the vesting period. Changes in fair value each period
are recognized in net income for the proportion of the service that has been
rendered at each reporting date. The fair value at March 31, 2014 was $82.1
million compared with the recorded liability of $72.3 million. The difference
between the fair value and the recorded liability of $9.8 million will be
recognized over the weighted average remaining vesting period of approximately
1.9 years. The weighted average fair value was estimated at March 31, 2014
using the Black-Scholes option pricing model.  
For the three months ended March 31, 2014, compensation expense related to SARs
and TSARs included an expense in cost of sales and operating expenses of $18.2
million (2013 - expense of $17.0 million). This included an expense of $14.4
million (2013 - expense of $15.0 million) related to the effect of the change
in the Company's share price for the three months ended March 31, 2014.  
(iii) Compensation expense related to stock options:  
For the three months ended March 31, 2014, compensation expense related to
stock options included in cost of sales and operating expenses was $0.2 million
(2013 - $0.2 million). 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 March 31, 2014
are as follows: 
/T/ 
Number of       Number of      Number of  
Deferred Share      Restricted    Performance  
Units     Share Units    Share Units 
---------------------------------------------------------------------------- 
Outstanding at December 31,                                                 
 2013                                346,814          44,131        946,446 
  Granted                              4,200           7,000        139,160 
  Granted performance                                                        
factor(1)                               -               -         55,677 
  Granted in-lieu of                                                         
dividends                           1,012             152          2,381 
  Redeemed                           (27,052)              -       (334,062)
  Cancelled                                -               -         (6,663)
----------------------------------------------------------------------------
Outstanding at March 31, 2014        324,974          51,283        802,939 
----------------------------------------------------------------------------
(1) Performance share units have a feature where the ultimate number of      
units that vest are adjusted by a performance factor of the original     
grant as determined by the Company's total shareholder return in         
relation to a predetermined target over the period to vesting.           
/T/ 
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 March 31, 2014 was $77.7 million compared with the
recorded liability of $64.0 million. The difference between the fair value and
the recorded liability of $13.7 million will be recognized over the weighted
average remaining vesting period of approximately 1.6 years.  
For the three months ended March 31, 2014, compensation expense related to
deferred, restricted and performance share units included in cost of sales and
operating expenses was an expense of $6.8 million (2013 - expense of $19.1
million). This included an expense of $3.1 million (2013 - expense of $15.7
million) related to the effect of the change in the Company's share price
for the three months ended March 31, 2014.  
9. Changes in non-cash working capital:  
Changes in non-cash working capital for the three months ended March 31, 2014
were as follows: 
/T/ 
Three Months Ended         
--------------------------------- 
Mar 31           Mar 31  
2014             2013 
---------------------------------------------------------------------------- 
Decrease (increase) in non-cash working                                     
 capital:                                                                   
  Trade and other receivables                $     (41,857)   $     (24,428)
  Inventories                                        9,043          (33,127)
  Prepaid expenses                                  (1,839)           3,891 
  Trade, other payables and accrued                                          
liabilities, including long-term                                          
payables included in other long-term                                      
liabilities                                       6,267           37,708 
---------------------------------------------------------------------------- 
(28,386)         (15,956)
Adjustments for items not having a cash                                     
 effect and working capital changes                                         
 relating to taxes and interest paid               (12,317)            (377)
----------------------------------------------------------------------------
Changes in non-cash working capital having                                  
 a cash effect                               $     (40,703)   $     (16,333)
---------------------------------------------------------------------------- 
These changes relate to the following                                       
 activities:                                                                
  Operating                                  $     (58,074)   $     (15,037)
  Investing                                         17,371           (1,296)
----------------------------------------------------------------------------
Changes in non-cash working capital          $     (40,703)   $     (16,333)
---------------------------------------------------------------------------- 
/T/ 
10. Financial instruments:  
Financial instruments are either measured at amortized cost or fair value.
Held-to-maturity investments, loans and receivables and other financial
liabilities are measured at amortized cost. Held-for-trading financial assets
and liabilities and available-for-sale financial assets are measured on the
Consolidated 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 and Egypt interest rate swaps designated as cash flow hedges
are measured at fair value based on industry-accepted valuation models and
inputs obtained from active markets.  
The Egypt limited recourse debt facilities bear interest at LIBOR plus a
spread. The Company has interest rate swap contracts to swap the LIBOR-based
interest payments for an average aggregated fixed rate of 4.8% plus a spread on
approximately 75% of the Egypt limited recourse debt facilities for the period
to March 31, 2015. These interest rate swaps had an outstanding notional amount
of $302 million as at March 31, 2014. The notional amount decreases over the
expected repayment period. At March 31, 2014, these interest rate swap
contracts had a negative fair value of $13.1 million (December 31, 2013 -
negative $19.8 million) recorded in current liabilities. The fair value of
these interest rate swap contracts will fluctuate until maturity.  
The Company also designates as cash flow hedges forward exchange contracts to
sell euro at a fixed USD exchange rate. At March 31, 2014, the Company had
outstanding forward exchange contracts designated as cash flow hedges to sell a
notional amount of EUR33.4 million in exchange for US dollars. The euro
contracts had a positive fair value of $0.2 million recorded in current
liabilities. 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: 
/T/ 
March 31, 2014           
-----------------------------------
As at                                       Carrying Value        Fair Value
---------------------------------------------------------------------------- 
Long-term debt excluding deferred                                           
 financing fees                            $     1,164,140   $     1,199,539
---------------------------------------------------------------------------- 
/T/ 
There is no publicly traded market for the limited recourse debt facilities.
The fair value disclosed on a recurring basis and categorized as Level 2 within
the fair value hierarchy is estimated by reference to current market prices for
debt securities with similar terms and characteristics. The fair value of the
unsecured notes disclosed on a recurring basis and also categorized as Level 2
within the fair value hierarchy was estimated by reference to a limited number
of small transactions in March 2014. The fair value of the Company's
unsecured notes will fluctuate until maturity. 
/T/ 
Methanex Corporation                                                        
Quarterly History(unaudited)                                                 
Q1 2014      2013        Q4        Q3        Q2        Q1
---------------------------------------------------------------------------- 
METHANOL SALES                                                              
 VOLUMES                                                                    
(thousands of                                                               
 tonnes)                                                                     
Methanex-                                                                   
 produced            1,228     4,304     1,190     1,045     1,039     1,030
Purchased                                                                   
 methanol              654     2,715       663       715       749       588
Commission sales                                                            
 (1)                   296       972       274       237       242       219
---------------------------------------------------------------------------- 
2,178     7,991     2,127     1,997     2,030     1,837
---------------------------------------------------------------------------- 
METHANOL                                                                    
 PRODUCTION                                                                 
(thousands of                                                               
 tonnes)                                                                     
New Zealand            500     1,419       400       349       361       309
Atlas, Trinidad                                                             
 (63.1%)               249       971       268       254       201       248
Titan, Trinidad        149       651       173       128       169       181
Egypt (50%) (2)        139       623       159       168       163       133
Medicine Hat           122       476        86       130       129       131
Chile                   67       204       108         6        29        61
---------------------------------------------------------------------------- 
1,226     4,344     1,194     1,035     1,052     1,063
---------------------------------------------------------------------------- 
AVERAGE REALIZED                                                            
 METHANOL PRICE                                                             
 (3)                                                                        
($/tonne)              524       441       493       438       425       412
($/gallon)            1.58      1.33      1.48      1.32      1.28      1.24 
PER SHARE                                                                   
 INFORMATION ($                                                             
 per share) (4)                                                             
Basic net income                                                            
 (loss)               1.51      3.46      1.33      0.91      0.57      0.64
Diluted net                                                                 
 income (loss)        1.50      3.41      1.32      0.90      0.56      0.63
Adjusted net                                                                
 income (5)           1.65      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 (50%) (2)          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                                                             
 (3)                                                                        
($/tonne)                382         389         373         384         382
($/gallon)              1.15        1.17        1.12        1.15        1.15 
PER SHARE                                                                   
 INFORMATION ($                                                             
 per share) (4)                                                             
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 (5)             1.90        0.64        0.38        0.47        0.41 
----------------------------------------------------------------------------
(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) On December 9, 2013, we completed a sale of 10% equity interest in the   
Egypt facility. Production figures prior to December 9, 2013 reflect a   
60% interest.                                                            
(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) Per share information calculated using amounts attributable to Methanex  
shareholders.                                                            
(5) 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.                                                                 
/T/ 
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
Sandra Daycock
Director, Investor Relations
Methanex Corporation
604-661-2600 or Toll Free: 1 800 661 8851
Website: www.methanex.com 
INDUSTRY:  Chemicals - Commodity Chemicals, Chemicals - Petrochemicals,
Chemicals - Plastics and fibers, Chemicals - Specialty Chemicals, Chemicals -
Wholesalers and Distributors 
SUBJECT:  ERN 
-0-
-0- Apr/30/2014 00:32 GMT
 
 
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