Methanex president Bruce Aitken today said the repayment of the US$182 million debt was consistent with the corporation’s track record for financial prudence and a balanced approach in using excess cash.
“The transaction lowers interest expenses and provides additional operating flexibility as we further integrate this low cost production facility into our global supply chain.”
After repayment of the Titan project debt, Methanex cash balances exceed US$100 million, together with an undrawn US$250 million revolving credit facility.
Methanex has been rapidly repositioning itself as the world’s largest trader of methanol, particularly with regard to the growing Asia-Pacific region, since its kiwi production was drastically cut from early 2003 and last September it scrapped its planned 1.3 million tonne production facility at the Burrup Peninsula, Western Australia.
Its two low-cost expansions - a 1.7 million tonne Atlas methanol facility in Trinidad, and the 840,000 tonne Chile IV project - are due for completion during 2004-05.
