MX Methanex Corporation

For the fourth quarter of 2021, Methanex (TSX:MX) (NASDAQ:MEOH) reported net income attributable to Methanex shareholders of $201 million ($2.51 net income per common share on a diluted basis) compared to net income of $71 million ($0.93 net income per common share on a diluted basis) in the third quarter of 2021. The increase in net income is primarily due to the higher average realized price and higher sales of Methanex-produced methanol. Adjusted EBITDA for the fourth quarter of 2021 was $340 million, and Adjusted net income was $185 million ($2.43 Adjusted net income per common share). This compares with Adjusted EBITDA of $264 million and Adjusted net income of $99 million ($1.29 Adjusted net income per common share) for the third quarter of 2021.

In the fourth quarter, strong market conditions supported high methanol prices while cost pressures from higher natural gas and coal prices led to restrictions in methanol industry production. We increased our average realized price to $445 per tonne in the fourth quarter, a 14% or $55 per tonne increase compared to $390 per tonne in the third quarter.

For the year ended December 31, 2021, Methanex reported significantly higher net income attributable to Methanex shareholders of $482 million ($6.13 net income per common shares on a diluted basis), Adjusted EBITDA of $1,108 million and an Adjusted net income of $460 million ($6.03 Adjusted net income per common share). This compares with a net loss attributable to Methanex shareholders of $157 million ($2.06 net loss per common share on a diluted basis), Adjusted EBITDA of $346 million and an Adjusted net loss of $123 million ($1.62 Adjusted net loss per common share) for the year ended December 31, 2020.

We ended the quarter with $932 million in cash and returned $68 million to shareholders through our regular dividend and share purchase program. We repurchased 1,435,193 common shares, of the approved 3,810,464, for approximately $63 million since the start of the normal course issuer bid on September 16, 2021.

John Floren, President & CEO of Methanex, said, “I am extremely proud of the record financial results we delivered in 2021 amid the continuing impact of COVID-19. In 2021, we took actions to strengthen our asset portfolio by restarting the construction of G3, restarting Chile IV and completing the G2 debottlenecking project. In the fourth quarter, the strong fundamentals of the methanol industry, coupled with our high levels of production and strong and consistent execution of our strategy enabled us to generate strong free cash flow and deliver one of the strongest operational and financial performances in our history." Mr. Floren continued, "Our capital allocation priorities remain the same. We are well positioned to maintain our business, pursue attractive growth opportunities and continue our long track record of returning excess cash to shareholders through a sustainable dividend and share buybacks."

FURTHER INFORMATIONThe information set forth in this news release summarizes Methanex's key financial and operational data for the fourth quarter of 2021. It is not a complete source of information for readers and is not in any way a substitute for reading the fourth quarter 2021 Management’s Discussion and Analysis ("MD&A") dated January 26, 2022 and the unaudited condensed consolidated interim financial statements for the period ended December 31, 2021, both of which are available from the Investor Relations section of our website at www.methanex.com. The MD&A and the unaudited condensed consolidated interim financial statements for the period ended December 31, 2021 are also available on the Canadian Securities Administrators' SEDAR website at www.sedar.com and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov.

FINANCIAL AND OPERATIONAL DATA

	Three Months Ended							Years Ended
($ millions except per share amounts and where noted)	Dec 312021		Sep 302021		Dec 312020			Dec 312021		Dec 312020
Production (thousands of tonnes) (attributable to Methanex shareholders) 1	1,933		1,480		1,607			6,514		6,614
Sales volume (thousands of tonnes)
Methanex-produced methanol	1,672		1,435		1,480			6,207		6,704
Purchased methanol	810		1,023		1,192			3,750		2,994
Commission sales	322		299		196			1,227		1,042
Total sales volume 1	2,804		2,757		2,868			11,184		10,740
Methanex average non-discounted posted price ($ per tonne) 2	579		476		334			492		297
Average realized price ($ per tonne) 3 4	445		390		282			393		247
Revenue	1,253		1,078		811			4,415		2,650
Adjusted revenue 4	1,110		963		755			3,932		2,399
Net income (loss) (attributable to Methanex shareholders)	201		71		(27	)		482		(157	)
Adjusted net income (loss) 4	185		99		12			460		(123	)
Adjusted EBITDA 4	340		264		136			1,108		346
Cash flows from operating activities	283		301		98			994		461
Basic net income (loss) per common share	2.66		0.93		(0.35	)		6.34		(2.06	)
Diluted net income (loss) per common share	2.51		0.93		(0.35	)		6.13		(2.06	)
Adjusted net income (loss) per common share 4	2.43		1.29		0.15			6.03		(1.62	)
Common share information (millions of shares)
Weighted average number of common shares	76		76		76			76		76
Diluted weighted average number of common shares	76		76		76			76		76
Number of common shares outstanding, end of period	75		76		76			75		76

1	Methanex-produced methanol represents our equity share of volume produced at our facilities and excludes volume marketed on a commission basis related to the 36.9% of the Atlas facility and 50% of the Egypt facility that we do not own.
2	Methanex average non-discounted posted price represents the average of our non-discounted posted prices in North America, Europe and Asia Pacific weighted by sales volume. Current and historical pricing information is available at www.methanex.com.
3	The Company has used Average realized price ("ARP") throughout this document. This is a non-GAAP ratio that does not have any standardized meaning prescribed by GAAP and therefore is unlikely to be comparable to similar measures presented by other companies. ARP is calculated as revenue, excluding commissions earned and the Egypt non-controlling interest share of revenue, but including an amount representing our share of Atlas revenue, divided by the total sales volume of Methanex-produced and purchased methanol. It is used by management to assess the realized price per unit of methanol sold, and is relevant in a cyclical commodity environment where revenue can fluctuate in response to market prices.
4	Note that Adjusted net income, Adjusted net income per common share, Adjusted revenue, Adjusted EBITDA, and Average realized price are non-GAAP measures and ratios that do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. Refer to the Non-GAAP Measures section on page 14 of the MD&A, available SEDAR at www.sedar.com, for a description of each non-GAAP measure.

A reconciliation from net income (loss) attributable to Methanex shareholders to Adjusted EBITDA, Adjusted net income (loss), Adjusted revenue, and the calculation of Adjusted net income (loss) per common share is as follows:

	Three Months Ended										Years Ended
($ millions)	Dec 312021			Sep 302021			Dec 312020				Dec 312021			Dec 312020
Net income (loss) attributable to Methanex shareholders	$	201		$	71		$	(27	)		$	482		$	(157	)
Mark-to-market impact of share-based compensation		(19	)		33			45				(23	)		39
Depreciation and amortization		87			91			87				363			357
Finance costs		34			37			41				144			165
Finance income and other expenses		4			(2	)		3				(1	)		—
Income tax expense (recovery)		22			28			(10	)			110			(62	)
Earnings of associate adjustment		26			19			8				84			42
Non-controlling interests adjustment		(15	)		(13	)		(11	)			(51	)		(38	)
Adjusted EBITDA (attributable to Methanex shareholders)	$	340		$	264		$	136			$	1,108		$	346

	Three Months Ended										Years Ended
($ millions except number of shares and per share amounts)	Dec 31 2021			Sep 30 2021			Dec 31 2020				Dec 31 2021			Dec 31 2020
Net income (loss) attributable to Methanex shareholders	$	201		$	71		$	(27	)		$	482		$	(157	)
Mark-to-market impact of share-based compensation, net of tax		(16	)		28			39				(22	)		34
Adjusted net income (loss)	$	185		$	99		$	12			$	460		$	(123	)
Diluted weighted average shares outstanding (millions)		76			76			76				76			76
Adjusted net income (loss) per common share	$	2.43		$	1.29		$	0.15			$	6.03		$	(1.62	)

A reconciliation from revenue to Adjusted Revenue is as follows:

	Three Months Ended										Years Ended
($ millions)	Dec 31 2021			Sep 30 2021			Dec 31 2020				Dec 31 2021			Dec 31 2020
Revenue	$	1,253		$	1,078		$	811			$	4,415		$	2,650
Methanex share of Atlas revenue		(78	)		(61	)		(20	)			(255	)		(115	)
Non-controlling interests' share of revenue		(65	)		(54	)		(36	)			(228	)		(136	)
Adjusted Revenue	$	1,110		$	963		$	755			$	3,932		$	2,399

• We recorded net income attributable to Methanex shareholders of $201 million in the fourth quarter of 2021 compared to net income of $71 million in the third quarter of 2021. The increase in net income is primarily due to the higher average realized price and higher sales of Methanex-produced methanol. Our average discount percentage, the percentage difference between the Methanex average non-discounted posted price and the Methanex average realized price, was wider in the fourth quarter of 2021 than we have historically seen. Our Asia Pacific non-discounted posted price encompasses the whole Asia Pacific region, including China where there are different market fundamentals. This wider global discount percentage was mainly due to a sustained higher price in the Asia Pacific market ex-China compared to the China market. Starting in 2022, we have introduced a separate posted methanol price for China to better reflect the different market fundamentals in China compared to the other countries in the region.
• We recorded Adjusted EBITDA of $340 million for the fourth quarter of 2021 compared to $264 million for the third quarter of 2021. We recorded Adjusted net income of $185 million for the fourth quarter of 2021 compared to Adjusted net income of $99 million for the third quarter of 2021. Adjusted EBITDA and Adjusted net income for the fourth quarter of 2021 are higher than the third quarter of 2021 primarily due to the increase in our average realized methanol price to $445 per tonne from $390 per tonne and a higher proportion of Methanex-produced methanol sales.
• We sold 2,804,000 tonnes in the fourth quarter of 2021 compared to 2,757,000 tonnes for the third quarter of 2021. Sales of Methanex-produced methanol were 1,672,000 tonnes in the fourth quarter of 2021 compared to 1,435,000 tonnes in the third quarter of 2021.
• Production for the fourth quarter of 2021 was 1,933,000 tonnes compared to 1,480,000 tonnes for the third quarter of 2021. Production is higher for the fourth quarter of 2021 primarily due to the restart of our Chile IV facility, and higher operating rates in New Zealand and Geismar. The impact of higher production on sales of Methanex-produced methanol will carryforward to the first quarter, as it generally takes between 30 to 60 days for produced methanol to make its way through the supply chain to customers.
• Construction on our highly advantaged Geismar 3 project is progressing to plan and is well-positioned to be completed on-time and on-budget by the end of 2023 or early 2024. All major equipment is now on site which reduces the risk of supply chain issues or inflation. Our capital cost estimate for the project is $1.25 to $1.35 billion and we have spent $508 million to the end of 2021. We expect approximately $750 to $850 million of remaining capital costs before capitalized interest.
• On September 16, 2021 we commenced a normal course issuer bid to repurchase up to 3,810,464 common shares. To December 31, 2021, we repurchased 1,435,193 common shares under the bid for $63 million.
• In the fourth quarter of 2021 we paid a $0.125 per common share quarterly dividend to shareholders for a total of $9 million.
• At December 31, 2021, we have a strong liquidity position including a cash balance of $932 million and $900 million of undrawn backup liquidity.

PRODUCTION HIGHLIGHTS

(thousands of tonnes)	Annual OperatingCapacity1	2021Production	2020Production	Q4 2021Production	Q3 2021Production	Q4 2020Production
New Zealand 2	2,200	1,348	1,672	405	268	439
USA (Geismar) 3	2,200	1,989	2,040	605	478	556
Trinidad (Methanex interest) 4	1,960	1,161	998	296	296	161
Chile	1,700	807	836	334	124	195
Egypt (50% interest)	630	581	578	144	155	145
Canada (Medicine Hat)	640	628	490	149	159	111
	9,330	6,514	6,614	1,933	1,480	1,607

1	Operating capacity includes only those facilities which are currently capable of operating, but excludes any portion of an asset that is underutilized due to a lack of natural gas feedstock over a prolonged period of time. The operating capacity of our production facilities may be higher than original nameplate capacity as, over time, these figures have been adjusted to reflect ongoing operating efficiencies at these facilities. Actual production for a facility in any given year may be higher or lower than operating capacity due to a number of factors, including natural gas composition or the age of the facility's catalyst. We review and update the operating capacity of our production facilities on a regular basis based on historical performance.
2	The operating capacity of New Zealand is made up of the two Motunui facilities and the Waitara Valley facility. The New Zealand facilities are capable of producing up to 2.4 million tonnes annually, depending on natural gas composition and availability. Annual Operating Capacity is currently 2.2 million tonnes based on the natural gas composition expected for the foreseeable future. The Waitara Valley plant is currently idled indefinitely due to insufficient natural gas availability.
3	For the comparative 2020 periods presented, our operating capacity in Geismar was 2.0 million tonnes. In the fourth quarter of 2020, we completed the debottlenecking project at our Geismar 1 facility and in Q2 2021 we completed the debottlenecking project at our Geismar 2 facility. As a result, we have increased our operating capacity for 2021 by 0.2 million tonnes to 2.2 million tonnes.
4	The operating capacity of Trinidad is made up of the Titan (100% interest) and Atlas (63.1% interest) facilities. The Titan plant remains idled indefinitely since the expiry of its gas contract with the National Gas Company of Trinidad and Tobago Limited ("NGC"). We continue to engage with the NGC to negotiate terms for a new gas contract for Titan.

Key production and operational highlights during the fourth quarter and production outlook for 2022 include:

• New Zealand produced 405,000 tonnes compared to 268,000 tonnes in the third quarter of 2021. In New Zealand, our production levels were higher in the fourth quarter of 2021 compared to the third quarter of 2021 as we operated both Motunui plants throughout the full period of the fourth quarter, following the completion in late August of the short term commercial arrangement with Genesis Energy to idle one plant and make natural gas available to support a tight New Zealand electricity market. Based on our outlook for natural gas in New Zealand, we estimate production for 2022 to be approximately 1.5 million tonnes.
• Geismar produced a quarterly record 605,000 tonnes in the fourth quarter of 2021 compared to 478,000 tonnes in the third quarter of 2021. Geismar production is higher for the fourth quarter of 2021 compared to the third quarter of 2021 as we operated the plants at high rates throughout the fourth quarter. In the third quarter, production was impacted by a precautionary outage of approximately two weeks during Hurricane Ida. Geismar is now realizing the benefits of increased capacity for a full quarter following the completion of debottlenecking projects on both plants and recently completed planned turnarounds. With the completion of two Geismar debottlenecking projects, the annual operating capacity for the Geismar facilities has increased by 10%, to 2.2 million tonnes.
• Trinidad produced 296,000 tonnes (Methanex interest) in the fourth quarter of 2021 compared to 296,000 tonnes in the third quarter of 2021. Production levels in Trinidad were comparable in the fourth quarter of 2021 and the third quarter of 2021 as we continued to run our Atlas plant at high operating rates. Titan remains idled indefinitely.
• Chile produced 334,000 tonnes in the fourth quarter of 2021 compared to 124,000 tonnes in the third quarter of 2021. Production for the fourth quarter of 2021 is higher compared to the third quarter of 2021 as we restarted the Chile IV plant in early October when the Southern hemisphere winter months ended and seasonal demand for natural gas in the region decreased from its peak, allowing our gas suppliers to deliver higher volumes. We expect to have sufficient gas to operate both Chile plants through the Southern hemisphere summer months to the end of April 2022. We estimate production in 2022 to be approximately 1 million tonnes.
• Egypt produced 288,000 tonnes (Methanex interest - 144,000 tonnes) in the fourth quarter of 2021 compared to 310,000 tonnes (Methanex interest - 155,000 tonnes) in the third quarter of 2021. Production levels in Egypt were lower in the fourth quarter compared to the third quarter of 2021 due to minor operating constraints.
• Medicine Hat produced 149,000 tonnes in the fourth quarter of 2021 compared to 159,000 tonnes in the third quarter of 2021. Production for the fourth quarter of 2021 is slightly lower compared to the third quarter of 2021 due to weather related constraints in the fourth quarter.

CONFERENCE CALLA conference call is scheduled for January 27, 2022 at 11:00 am ET (8:00 am PT) to review these fourth quarter results. To access the call, dial the conferencing operator fifteen minutes prior to the start of the call at (416) 340-2217, or toll free at (800) 806-5484. The passcode for the call is 6947035#. A simultaneous audio-only webcast of the conference call can be accessed from our website at www.methanex.com and will also be available following the call. A playback version of the conference call will be available until February 26, 2022 at (905) 694-9451, or toll free at (800) 408-3053. The passcode for the playback version is 6095224#.

ABOUT METHANEXMethanex is a Vancouver-based, publicly traded company and is the world’s largest producer and supplier of methanol to major international markets. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the NASDAQ Global Market in the United States under the trading symbol "MEOH".

FORWARD-LOOKING INFORMATION WARNINGThis fourth quarter 2021 press release contains forward-looking statements with respect to us and the chemical industry. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond the Company's control. Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Methanex does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise, except as may be required by applicable law. Refer to Forward-Looking Information Warning in the fourth quarter 2021 Management's Discussion and Analysis for more information which is available from the Investor Relations section of our website at www.methanex.com, the Canadian Securities Administrators' SEDAR website at www.sedar.com and on the United States Securities and Exchange Commission's EDGAR website at www.sec.gov.

NON-GAAP MEASURESThe Company has used the terms Adjusted EBITDA, Adjusted net income (loss), Adjusted net income (loss) per common share, Adjusted revenue and Average realized price throughout this document. These items are non-GAAP measures and ratios that do not have any standardized meaning prescribed by GAAP. These measures represent the amounts that are attributable to Methanex Corporation shareholders and are calculated by excluding the mark-to-market impact of share-based compensation as a result of changes in our share price and the impact of certain items associated with specific identified events. Refer to Additional Information - Non-GAAP Measures on page 14 of the Company's MD&A for the period ended December 31, 2021 for reconciliations to the most comparable GAAP measures. Unless otherwise indicated, the financial information presented in this release is prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

For further information, contact:

Sarah HerriottDirector, Investor RelationsMethanex Corporation604-661-2600