Methanex (TSX:MX) has lengthy been generally known as a type of secure shares that basically any investor ought to really feel comfy proudly owning. Due to this Methanex inventory has additionally change into generally known as a secure dividend supplier, presently with a 1.54% dividend yield.
Nevertheless, earnings are due out on April 25. So let’s have a look at what traders ought to dive into in the event that they’re contemplating Methanex inventory on the TSX right now.
About Methanex
Methanex is the world’s largest producer and provider of methanol. Methanex was based in 1968 in Canada. Initially, it was a subsidiary of Canadian petrochemical firm Westcoast Transmission Co. Ltd. In 1992, Methanex turned an impartial firm via a administration buyout.
Now, Methanex inventory primarily produces and markets methanol, a flexible chemical constructing block utilized in quite a few industrial functions, together with the manufacturing of formaldehyde, acetic acid, and varied plastics. Methanol can also be used as a gasoline additive and within the manufacturing of renewable fuels.
Given its important use, Methanex inventory expanded and operates manufacturing amenities in a number of nations, together with Canada, the USA, Chile, New Zealand, and Trinidad and Tobago. These amenities are strategically positioned close to sources of pure fuel, which is the first feedstock for methanol manufacturing.
Past earnings
Regardless of this, shares haven’t been performing so nice during the last yr. And to determine why, let’s have a look at how Methanex inventory has carried out via its earnings. That approach we will inform if there was momentum, positively or negatively.
For the second quarter, internet earnings got here in at $57 million, with income at $939 million. Manufacturing hit 1.658 million tonnes. By the third quarter, internet earnings plunged to $24 million, with income all the way down to $823 million, and manufacturing at 1.545 million tonnes.
Methanex inventory managed to enhance by the fourth quarter, however nonetheless not again to earlier ranges. Internet earnings got here in at simply $33 million, with income at $922 million. Each decrease than second quarter ranges. But manufacturing improved, hitting 1.779 million tonnes. The yr additionally noticed enhancements yr over yr, with 6.642 million tonnes produced. Nevertheless, income was down year-over-year at $3.723 billion in comparison with $4.311 billion in 2022, and practically half the online earnings at $174 million.
What to look at
The corporate wants gross sales. Manufacturing is up, and that’s unbelievable. But it surely doesn’t imply something if Methanex inventory can’t promote the merchandise. Manufacturing for 2024 now seems prefer it might be greater than 2023 outcomes. And once more, nice, however it must promote that product.
So now, when Methanex inventory and its outcomes, think about trying past manufacturing. Granted, that have to be up as effectively. And needs to be with its G3 venture up and working. Nevertheless, there must even be an general enchancment in income and internet earnings. What’s extra, hopefully there might be extra outcomes from administration stating how the corporate believes it’s going to carry out in 2024. And the way it expects to develop its income within the yr to return, or not.
