Vancouver-headquartered Methanex said today that it was raising the maximum allowable repurchase of common shares from 6,143,543 to 12,178,092 common shares, or 10% of the public float. It has also declared a quarterly dividend of US$0.08 per share payable on December 31.
“Our low-cost production facilities and leading market position have combined with strong methanol pricing to allow us to continue to generate significant cash flow from operating activities over recent quarters. We have excellent financial strength and flexibility with US$162 million in cash at the end of the third quarter 2004, an undrawn US$250 million credit facility and an outlook for continued strong cash generation,” said company president Bruce Aitken.
“We have the financial capacity to complete our capital maintenance spending program, the current normal course issuer bid, the construction of Chile IV and to pursue new opportunities to enhance our strategic position in methanol.”
It is known the future of the Taranaki Methanex plants continues to hang in the balance, with talk of domestic gas prices rising to “within striking distance” of the expected NZ$6.50-7.50 per gigajoule cost of imported LNG - a price Methanex could not afford to pay long-term.
