Methanex Corp (NASDAQ: MEOH)

Methanex Corporation is the world’s largest producer and supplier of methanol and also produces and supplies ammonia, predominantly serving customers in North America. The company operates in the global commodity chemical industry, focusing on methanol derived from natural gas and coal and ammonia used in agriculture and industrial applications. Methanex reports a total annual methanol operating capacity of 10.4 million tonnes, including interests in jointly owned plants, located in the United States, Chile, Trinidad and Tobago, New Zealand, Egypt, and Canada. Its annual ammonia operating capacity is 0.3 million tonnes, situated in the United States. The company also holds marketing rights for 100% of the production from its jointly owned Egypt methanol facility, which contributes additional supply when natural gas is available.

The company generates revenue primarily from the sale of methanol and ammonia to industrial customers. Methanol revenue comes from long-term contracts, spot market sales, and offtake agreements that allow Methanex to market production from joint ventures such as the Egypt plant and its share of Natgasoline. Ammonia revenue is derived from sales to fertilizer producers and other industrial users mainly in North America. Methanol prices fluctuate with global supply and demand dynamics, influencing the company’s average realized price and overall profitability. Additionally, Methanex purchases methanol from third parties under offtake contracts and on the spot market to optimize its supply chain and meet customer demand.

The company operates through the following segments: Methanol and Ammonia.

• Methanol: This segment produces, markets, and distributes methanol worldwide using owned production facilities, joint venture interests, and purchased methanol to meet demand across traditional chemical, energy-related, and methanol-to-olefins applications. The segment’s capacity includes wholly owned plants in the United States, Chile, Trinidad and Tobago, New Zealand, Egypt, and Canada, as well as marketing rights for 100% of the output from the jointly owned Egypt facility and a 50% interest in the Natgasoline joint venture in Texas.

• Ammonia: This segment produces and supplies ammonia mainly to North American customers for use in fertilizer production, plastics, textiles, and refrigeration. The segment’s annual capacity of 0.3 million tonnes is located in the United States and serves agricultural and industrial users that rely on ammonia as a key input.

Methanex Corporation holds a leading position in the methanol industry as the largest producer and supplier, accounting for approximately 20% of the internationally traded methanol market based on its 2025 sales volume. Competitive advantages include low-cost feedstock access through long-term natural gas contracts, geographic diversification of production assets, and an integrated logistics network featuring its owned shipping fleet, Waterfront Shipping. These strengths enable the company to withstand methanol price volatility and compete effectively against other global methanol producers that may lack similar scale or supply chain integration. Key competitors include other large integrated methanol producers such as Petrobras, SABIC, and various regional players that operate single-site facilities.

The company serves a diverse customer base that includes chemical manufacturers producing formaldehyde, acetic acid, and other derivatives. Fuel blenders and distributors purchase methanol for MTBE, biodiesel, marine fuel, and vehicle fuel applications. Industrial users such as plastics, textiles, and refrigeration equipment manufacturers rely on methanol and ammonia, while agricultural businesses consume ammonia-based fertilizers.