Tudor, Pickering, Holt on Thursday reiterated its buy rating on the shares of Methanex (MX.TO, MEOH) with a US$47.00 price target following third-quarter results from the methanol producer.

"Positive. MEOH reported adj Q3'24 EPS of $1.21, far surpassing TPHe/consensus of 58c/56c, and adj EBITDA of $216mm, better than TPHe/consensus of $177mm/$175mm. The results include $45mm from selling gas into the local utility in NZ, and $30mm from insurance recoveries in Egypt. The former was already in our number, while the latter was not. MEOH's sales volumes came in stronger than expected (1.38mmt vs TPHe 1.31mmt) as MEOH released inventory in the quarter. Production volumes were lower than our modeling (1.35mmt vs TPHe 1.46mmt) on softer results in the US with the new G3 plant seeing two separate shut-downs. Chile was also a little below on lower gas supply from Argentina. MEOH's realized methanol pricing improved q/q to $356/tonne (vs TPHe $357/tonne) on tailwinds from supply outages in the Atlantic Basin and stable global demand, leading to falling product inventories. On the demand front, MEOH noted that global methanol demand was flat q/q with traditional chemical applications flat, energy applications higher, and MTO lower q/q. The lower MTO rates were due to methanol shortages and seasonal maintenance. As expected, MEOH did not repurchase shares, but the dividend still provided a 2% yield in the quarter," analyst Matthew Blair wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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