Document and Entity Information
Document and Entity Information - shares | 12 Months Ended | |
Dec. 31, 2017 | Mar. 05, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | METHANEX CORP | |
Entity Central Index Key | 886,977 | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 40-F | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 83,783,704 | |
Entity Current Reporting Status | Yes |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 375,479 | $ 223,890 |
Trade and other receivables (note 3) | 536,636 | 499,603 |
Inventories (note 4) | 304,464 | 281,328 |
Prepaid expenses | 26,548 | 20,846 |
Current assets | 1,243,127 | 1,025,667 |
Non-current assets: | ||
Property, plant and equipment (note 5) | 2,998,326 | 3,117,469 |
Investment in associate (note 6) | 188,922 | 197,402 |
Deferred income tax assets (note 15) | 102,341 | 137,341 |
Other assets (note 7) | 78,026 | 78,784 |
Non-current assets | 3,367,615 | 3,530,996 |
Assets | 4,610,742 | 4,556,663 |
Current liabilities: | ||
Trade, other payables and accrued liabilities | 626,817 | 523,216 |
Current maturities on long-term debt (note 8) | 55,905 | 53,997 |
Current maturities on other long-term liabilities (note 9) | 65,226 | 29,720 |
Current liabilities | 747,948 | 606,933 |
Non-current liabilities: | ||
Long-term debt (note 8) | 1,446,366 | 1,502,209 |
Other long-term liabilities (note 9) | 404,885 | 351,191 |
Deferred income tax liabilities (note 15) | 266,432 | 290,980 |
Non-current liabilities | 2,117,683 | 2,144,380 |
Equity: | ||
Capital stock, 25,000,000 authorized preferred shares without nominal or par value; Unlimited authorization of common shares without nominal or par value; Issued and outstanding common shares at December 31, 2017 were 83,770,254 (2016 - 89,824,338) | 480,331 | 511,465 |
Contributed surplus | 2,124 | 2,568 |
Retained earnings | 1,088,150 | 1,124,104 |
Accumulated other comprehensive loss | (69,841) | (41,302) |
Shareholders’ equity | 1,500,764 | 1,596,835 |
Non-controlling interests | 244,347 | 208,515 |
Total equity | 1,745,111 | 1,805,350 |
Equity and liabilities | $ 4,610,742 | $ 4,556,663 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Position (Parenthetical) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Preferred shares | ||
Statement [Line Items] | ||
Number of shares authorised | 25,000,000 | 25,000,000 |
Capital stock | Common shares | ||
Statement [Line Items] | ||
Number of shares issued | 83,770,254 | 89,824,338 |
Number of shares outstanding | 83,770,254 | 89,824,338 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Profit or loss [abstract] | ||
Revenue | $ 3,060,642 | $ 1,998,429 |
Cost of sales and operating expenses (note 10) | (2,351,949) | (1,774,429) |
Depreciation and amortization (note 10) | (232,225) | (228,054) |
Argentina gas settlement | 0 | 32,500 |
Operating income | 476,468 | 28,446 |
Earnings of associate (note 6) | 75,995 | 19,930 |
Finance costs (note 11) | (94,955) | (90,060) |
Finance income and other expenses | 13,377 | 4,180 |
Income (loss) before income taxes | 470,885 | (37,504) |
Income tax recovery (expense) (note 15): | ||
Current | (85,504) | (54,677) |
Deferred | (10,284) | 63,956 |
Tax expense (income), continuing operations | (95,788) | 9,279 |
Net income (loss) | 375,097 | (28,225) |
Attributable to: | ||
Methanex Corporation shareholders | 316,135 | (12,545) |
Non-controlling interests (note 23) | 58,962 | (15,680) |
Net income (loss) | $ 375,097 | $ (28,225) |
Income (loss) per common share for the period attributable to Methanex Corporation shareholders: | ||
Basic net income (loss) per common share (note 12) (in usd per share) | $ 3.64 | $ (0.14) |
Diluted net income (loss) per common share (note 12) (in usd per share) | $ 3.64 | $ (0.14) |
Weighted average number of common shares outstanding | 86,768,589 | 89,783,883 |
Diluted weighted average number of common shares outstanding | 86,824,948 | 89,783,883 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of comprehensive income [abstract] | ||
Net income (loss) | $ 375,097 | $ (28,225) |
Items that may be reclassified to income: | ||
Change in fair value of cash flow hedges (note 18) | (74,790) | 153,863 |
Forward elements excluded from hedging relationship (note 18) | 45,416 | (174,078) |
Items that will not be reclassified to income: | ||
Actuarial gains (losses) on defined benefit pension plans (note 20(a)) | 564 | (77) |
Taxes on above items | 674 | 6,597 |
Other comprehensive loss | (28,136) | (13,695) |
Comprehensive income (loss) | 346,961 | (41,920) |
Attributable to: | ||
Methanex Corporation shareholders | 287,999 | (26,240) |
Non-controlling interests (note 23) | $ 58,962 | $ (15,680) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Capital stock | Capital stockCommon shares | Contributed surplus | Retained earnings | Accumulated other comprehensive loss | Shareholders’ equity | Non-controlling interests |
Number of common shares, beginning of period at Dec. 31, 2015 | 89,671,198 | |||||||
Balance, beginning of period at Dec. 31, 2015 | $ 1,968,573 | $ 509,464 | $ 2,426 | $ 1,235,615 | $ (27,776) | $ 1,719,729 | $ 248,844 | |
Net income (loss) | (28,225) | (12,545) | (12,545) | (15,680) | ||||
Other comprehensive income (loss) | (13,695) | (169) | (13,526) | (13,695) | ||||
Compensation expense recorded for stock options | 637 | 637 | 637 | |||||
Issue of shares on exercise of stock options (in shares) | 153,140 | |||||||
Issue of shares on exercise of stock options | 1,506 | 1,506 | 1,506 | |||||
Reclassification of grant-date fair value on exercise of stock options | 0 | 495 | (495) | |||||
Dividend payments to Methanex Corporation shareholders | (98,797) | (98,797) | (98,797) | |||||
Distributions made and accrued to non-controlling interests | (24,674) | (24,674) | ||||||
Equity contributions by non-controlling interests | 25 | 25 | ||||||
Number of common shares, end of period at Dec. 31, 2016 | 89,824,338 | |||||||
Balance, end of period at Dec. 31, 2016 | 1,805,350 | 511,465 | 2,568 | 1,124,104 | (41,302) | 1,596,835 | 208,515 | |
Net income (loss) | 375,097 | 316,135 | 316,135 | 58,962 | ||||
Other comprehensive income (loss) | (28,136) | 403 | (28,539) | (28,136) | ||||
Compensation expense recorded for stock options | 488 | 488 | 488 | |||||
Issue of shares on exercise of stock options (in shares) | 98,274 | |||||||
Issue of shares on exercise of stock options | 3,059 | 3,059 | 3,059 | |||||
Reclassification of grant-date fair value on exercise of stock options | 0 | 932 | (932) | |||||
Payments for shares repurchased (in shares) | (6,152,358) | |||||||
Payment for shares repurchased | (286,120) | (35,125) | (250,995) | (286,120) | ||||
Dividend payments to Methanex Corporation shareholders | (101,497) | (101,497) | (101,497) | |||||
Distributions made and accrued to non-controlling interests | (31,300) | (31,300) | ||||||
Equity contributions by non-controlling interests | 8,170 | 8,170 | ||||||
Number of common shares, end of period at Dec. 31, 2017 | 83,770,254 | |||||||
Balance, end of period at Dec. 31, 2017 | $ 1,745,111 | $ 480,331 | $ 2,124 | $ 1,088,150 | $ (69,841) | $ 1,500,764 | $ 244,347 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of changes in equity [abstract] | ||
Dividends payments to Methanex Corporation shareholders (in usd per common share) | $ 1.175 | $ 1.10 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM / (USED IN) OPERATING ACTIVITIES | ||
Net income (loss) | $ 375,097 | $ (28,225) |
Deduct earnings of associate | (75,995) | (19,930) |
Dividends received from associate | 84,553 | 47,325 |
Add (deduct) non-cash items: | ||
Depreciation and amortization | 232,225 | 228,054 |
Income tax expense (recovery) | 95,788 | (9,279) |
Share-based compensation expense | 78,821 | 33,493 |
Finance costs | 94,955 | 90,060 |
Other | 4,033 | 1,559 |
Income taxes paid | (35,890) | (5,241) |
Other cash payments, including share-based compensation | (16,477) | (23,505) |
Cash flows from operating activities before undernoted | 837,110 | 314,311 |
Changes in non-cash working capital (note 16(a)) | (49,368) | (87,644) |
Cash flows from / (used in) operating activities | 787,742 | 226,667 |
CASH FLOWS FROM / (USED IN) FINANCING ACTIVITIES | ||
Payments for repurchase of shares | (286,120) | 0 |
Dividend payments to Methanex Corporation shareholders | (101,497) | (98,797) |
Interest paid | (86,041) | (82,965) |
Net proceeds on issue of long-term debt | 0 | 65,700 |
Repayment of long-term debt and financing fees | (56,997) | (48,417) |
Finance leases | (6,880) | (5,144) |
Equity contributions by non-controlling interests | 8,170 | 25 |
Cash distributions to non-controlling interests | (4,330) | (1,410) |
Proceeds on issue of shares on exercise of stock options | 3,059 | 1,506 |
Cash flows from / (used in) financing activities | (530,636) | (169,502) |
CASH FLOWS FROM / (USED IN) INVESTING ACTIVITIES | ||
Property, plant and equipment | (103,170) | (99,881) |
Other assets | 0 | (66) |
Changes in non-cash working capital related to investing activities (note 16(a)) | (2,347) | 11,738 |
Cash flows from / (used in) investing activities | (105,517) | (88,209) |
Increase (decrease) in cash and cash equivalents | 151,589 | (31,044) |
Cash and cash equivalents, beginning of year | 223,890 | 254,934 |
Cash and cash equivalents, end of year | $ 375,479 | $ 223,890 |
Nature of operations
Nature of operations | 12 Months Ended |
Dec. 31, 2017 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Nature of operations | Nature of operations: Methanex Corporation ("the Company") is an incorporated entity with corporate offices in Vancouver, Canada. The Company’s operations consist of the production and sale of methanol, a commodity chemical. The Company is the world’s largest producer and supplier of methanol to the major international markets of Asia Pacific, North America, Europe and South America. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Significant accounting policies | Significant accounting policies: a) Statement of compliance: These consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB"). These consolidated financial statements were approved and authorized for issue by the Board of Directors on March 5, 2018 . b) Basis of presentation and consolidation: These consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, less than wholly-owned entities for which it has a controlling interest and its equity-accounted joint venture. Wholly-owned subsidiaries are entities in which the Company has control, directly or indirectly, where control is defined as the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities. For less than wholly-owned entities for which the Company has a controlling interest, a non-controlling interest is included in the Company’s consolidated financial statements and represents the non-controlling shareholders’ interest in the net assets of the entity. The Company also consolidates any special purpose entity where the substance of the relationship indicates the Company has control. All significant intercompany transactions and balances have been eliminated. Preparation of these consolidated financial statements requires estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and related notes. The areas of estimation and judgment that management considers most significant are property, plant and equipment (note 2(g)), financial instruments (note 2(o)), fair value measurements (note 2(p)) and income taxes (note 2(q)). Actual results could differ from those estimates. c) Reporting currency and foreign currency translation: Functional currency is the currency of the primary economic environment in which an entity operates. The majority of the Company’s business in all jurisdictions is transacted in United States dollars and, accordingly, these consolidated financial statements have been measured and expressed in that currency. The Company translates foreign currency denominated monetary items at the period-end exchange rates, foreign currency denominated non-monetary items at historic rates and revenues and expenditures at the exchange rates at the dates of the transactions. Foreign exchange gains and losses are included in earnings. d) Cash and cash equivalents: Cash and cash equivalents include securities with maturities of three months or less when purchased. e) Receivables: The Company provides credit to its customers in the normal course of business. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses. The Company records an allowance for doubtful accounts or writes down the receivable to estimated net realizable value if not collectible in full. Credit losses have historically been within the range of management’s expectations. f) Inventories: Inventories are valued at the lower of cost and estimated net realizable value. Cost is determined on a first-in, first-out basis and includes direct purchase costs, cost of production, allocation of production overhead and depreciation based on normal operating capacity and transportation. g) Property, plant and equipment: Initial recognition Property, plant and equipment are initially recorded at cost. The cost of purchased equipment includes expenditures that are directly attributable to the purchase price, delivery and installation. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to the location and condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located, and borrowing costs on self-constructed assets that meet certain criteria. Borrowing costs incurred during construction and commissioning are capitalized until the plant is operating in the manner intended by management. Subsequent costs Routine repairs and maintenance costs are expensed as incurred. At regular intervals, the Company conducts a planned shutdown and inspection (turnaround) at its plants to perform major maintenance and replacement of catalysts. Costs associated with these shutdowns are capitalized and amortized over the period until the next planned turnaround and the carrying amounts of replaced components are derecognized and included in earnings. Depreciation Depreciation and amortization is generally provided on a straight-line basis at rates calculated to amortize the cost of property, plant and equipment from the commencement of commercial operations over their estimated useful lives to estimated residual value. The estimated useful lives of the Company’s buildings, plant installations and machinery, excluding costs related to turnarounds, ranges from 10 to 25 years depending on the specific asset component and the production facility to which it is related. The Company determines the estimated useful lives of individual asset components based on the shorter of its physical life or economic life. The physical life of these assets is generally longer than the economic life. The economic life is primarily determined by the nature of the natural gas feedstock available to the various production facilities. Factors that influence the nature of natural gas feedstock availability include the terms of individual natural gas supply contracts, access to natural gas supply through open markets, regional factors influencing the exploration and development of natural gas and the expected price of securing natural gas supply. The Company reviews the factors related to each production facility on an annual basis to determine if changes are required to the estimated useful lives. Assets under finance lease are depreciated to their estimated residual value based on the shorter of their useful lives and the lease term. Impairment The Company reviews the carrying value of long-lived assets for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. Examples of such events or changes in circumstances include, but are not restricted to: a significant adverse change in the extent or manner in which the asset is being used or in its physical condition; a significant change in the long-term methanol price or in the price or availability of natural gas feedstock required to manufacture methanol; a significant adverse change in legal factors or in the business climate that could affect the asset’s value, including an adverse action or assessment by a foreign government that impacts the use of the asset; or a current-period operating or cash flow loss combined with a history of operating or cash flow losses, or a projection or forecast that demonstrates continuing losses associated with the asset’s use. Recoverability of long-lived assets is measured by comparing the carrying value of an asset or cash-generating unit to the estimated recoverable amount, which is the higher of its estimated fair value less cost to sell or its value in use. Value in use is determined by estimating the pre-tax cash flows expected to be generated from the asset or cash-generating unit over its estimated useful life discounted by a pre-tax discount rate. An impairment writedown is recorded for the difference that the carrying value exceeds the estimated recoverable amount. An impairment writedown recognized in prior periods for an asset or cash-generating unit is reversed if there has been a subsequent recovery in the value of the asset or cash-generating unit due to changes in events and circumstances. For purposes of recognition and measurement of an impairment writedown, the Company groups long-lived assets with other assets and liabilities to form a "cash-generating unit" at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. To the extent that methanol facilities in a particular location are interdependent as a result of common infrastructure and/or feedstock from sources that can be shared within a facility location, the Company groups assets based on site locations for the purpose of determining impairment. h) Other assets: Intangible assets are capitalized to other assets and amortized to depreciation and amortization expense on an appropriate basis to charge the cost of the assets against earnings. Financing fees related to undrawn credit facilities are capitalized to other assets and amortized to finance costs over the term of the credit facility. i) Leases: Leasing contracts are classified as either finance or operating leases based on the substance of the contractual arrangement at inception date. A lease is classified as a finance lease if it transfers substantially all of the risks and rewards of ownership of the leased asset. Where the contracts are classified as finance leases, upon initial recognition, the asset and liability are recorded at the lower of fair value and the present value of the minimum lease payments, net of executory costs. Finance lease payments are apportioned between interest expense and repayments of the liability. Where the contracts are classified as operating leases, they are not recognized in the Company's consolidated statements of financial position and lease payments are charged to income as they are incurred on a straight line basis over the lease term. j) Site restoration costs: The Company recognizes a liability to dismantle and remove assets or to restore a site upon which the assets are located. The Company estimates the present value of the expenditures required to settle the liability by determining the current market cost required to settle the site restoration costs, adjusts for inflation through to the expected date of the expenditures and then discounts this amount back to the date when the obligation was originally incurred. As the liability is initially recorded on a discounted basis, it is increased each period until the estimated date of settlement. The resulting expense is referred to as accretion expense and is included in finance costs. The Company reviews asset retirement obligations and adjusts the liability and corresponding asset as necessary to reflect changes in the estimated future cash flows, timing, inflation and discount rates underlying the measurement of the obligation. k) Employee future benefits: The Company has non-contributory defined benefit pension plans covering certain employees and defined contribution pension plans. The Company does not provide any significant post-retirement benefits other than pension plan benefits. For defined benefit pension plans, the net of the present value of the defined benefit obligation and the fair value of plan assets is recorded to the consolidated statements of financial position. The determination of the defined benefit obligation and associated pension cost is based on certain actuarial assumptions including inflation rates, mortality, plan expenses, salary growth and discount rates. The present value of the net defined benefit obligation (asset) is determined by discounting the net estimated future cash flows using current market bond yields that have terms to maturity approximating the terms of the net obligation. Actuarial gains and losses arising from differences between these assumptions and actual results are recognized in other comprehensive income and recorded in retained earnings. The Company recognizes gains and losses on the settlement of a defined benefit plan in income when the settlement occurs. The cost for defined contribution benefit plans is recognized in net income (loss) as earned by the employees. l) Share-based compensation: The Company grants share-based awards as an element of compensation. Share-based awards granted by the Company can include stock options, tandem share appreciation rights, share appreciation rights, deferred share units, restricted share units or performance share units. For stock options granted by the Company, the cost of the service received is measured based on an estimate of the fair value at the date of grant. The grant-date fair value is recognized as compensation expense over the vesting period with a corresponding increase in contributed surplus. On the exercise of stock options, consideration received, together with the compensation expense previously recorded to contributed surplus, is credited to share capital. The Company uses the Black-Scholes option pricing model to estimate the fair value of each stock option tranche at the date of grant. Share appreciation rights ("SARs") are units that grant the holder the right to receive a cash payment upon exercise for the difference between the market price of the Company’s common shares and the exercise price that is determined at the date of grant. Tandem share appreciation rights ("TSARs") give the holder the choice between exercising a regular stock option or a SAR. For SARs and TSARs, the cost of the service received is initially measured based on an estimate of the fair value at the date of grant. The grant-date fair value is recognized as compensation expense over the vesting period with a corresponding increase in liabilities. For SARs and TSARs, the liability is re-measured at each reporting date based on an estimate of the fair value with changes in fair value recognized as compensation expense for the proportion of the service that has been rendered at that date. The Company uses the Black-Scholes option pricing model to estimate the fair value for SARs and TSARs. Deferred, restricted and performance share units are grants of notional common shares that are redeemable for cash based on the market value of the Company’s common shares and are non-dilutive to shareholders. Performance share units have an additional feature where the ultimate number of units that vest will be determined by the Company’s total shareholder return in relation to a predetermined target over the period to vesting. The number of units that will ultimately vest will be in the range of 50% to 120% of the original grant for grants prior to 2014 and in the range of 25% to 150% for subsequent grants based on the weighted-average closing share price for the 90 calendar days on the NASDAQ Global Select Market immediately preceding the year end date that the performance share units vest. For deferred, restricted and performance share units, the cost of the service received as consideration is initially measured based on the market value of the Company’s common shares at the date of grant. The grant-date fair value is recognized as compensation expense over the vesting period with a corresponding increase in liabilities. Deferred, restricted and performance share units are re-measured at each reporting date based on the market value of the Company’s common shares with changes in fair value recognized as compensation expense for the proportion of the service that has been rendered at that date. Additional information related to the stock option plan, TSARs, SARs and the deferred, restricted and performance share units is described in note 13. m) Net income (loss) per common share: The Company calculates basic net income (loss) per common share by dividing net income (loss) attributable to Methanex shareholders by the weighted average number of common shares outstanding and calculates diluted net income (loss) per common share under the treasury stock method. Under the treasury stock method, diluted net income (loss) per common share is calculated by considering the potential dilution that would occur if outstanding stock options and, under certain circumstances, TSARs were exercised or converted to common shares. Stock options and TSARs are considered dilutive when the average market price of the Company’s common shares during the period disclosed exceeds the exercise price of the stock option or TSAR. Outstanding TSARs may be settled in cash or common shares at the holder’s option. For the purposes of calculating diluted net income (loss) per common share, the more dilutive of the cash-settled or equity-settled method is used, regardless of how the plan is accounted for. Accordingly, TSARs that are accounted for using the cash-settled method will require adjustments to the numerator and denominator if the equity-settled method is determined to have a dilutive effect on diluted net income (loss) per common share. The calculation of basic net income (loss) per common share and a reconciliation to diluted net income (loss) per common share is presented in note 12. n) Revenue recognition: Revenue is recognized based on individual contract terms when the risk of loss to the product transfers to the customer, which usually occurs at the time shipment is made. Revenue is recognized at the time of delivery to the customer’s location if the Company retains risk of loss during shipment. For methanol sold on a consignment basis, revenue is recognized when the customer consumes the methanol. For methanol sold on a commission basis, the commission income is included in revenue when earned. o) Financial instruments: All financial instruments are measured at fair value on initial recognition. Measurement in subsequent periods is dependent on the classification of the respective financial instrument. Financial instruments are classified into one of three categories and, depending on the category, will either be measured at amortized cost or fair value with fair value changes either recorded through profit or loss or other comprehensive income. All non-derivative financial instruments held by the Company are classified and measured at amortized cost. The Company enters into derivative financial instruments to manage certain exposures to commodity price and foreign exchange volatility. Under these standards, derivative financial instruments, including embedded derivatives, are classified as fair value through profit or loss and are recorded in the consolidated statements of financial position at fair value unless they are in accordance with the Company’s normal purchase, sale or usage requirements. The valuation of derivative financial instruments is a critical accounting estimate due to the complex nature of these instruments, the degree of judgment required to appropriately value these instruments and the potential impact of such valuation on the Company’s financial statements. The Company records all changes in fair value of derivative financial instruments in profit or loss unless the instruments are designated as cash flow hedges. The Company enters into and designates as cash flow hedges certain forward contracts to hedge its highly probable forecast natural gas purchases and certain forward exchange purchase and sales contracts to hedge foreign exchange exposure on anticipated purchases or sales. The Company assesses at inception and on an ongoing basis whether the hedges are and continue to be effective in offsetting changes in the cash flows of the hedged transactions. The effective portion of changes in the fair value of these hedging instruments is recognized in other comprehensive income. Any gain or loss in fair value relating to the ineffective portion is recognized immediately in profit or loss. Until settled, the fair value of the derivative financial instruments will fluctuate based on changes in commodity prices, foreign currency exchange rates or variable interest rates. p) Fair value measurements: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements within the scope of IFRS 13 are categorized into Level 1, 2 or 3 based on the degree to which the inputs are observable and the significance of the inputs to the fair value measurement in its entirety. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Financial instruments measured at fair value and categorized within the fair value hierarchy are disclosed in note 18. q) Income taxes: Income tax expense represents current tax and deferred tax. The Company records current tax based on the taxable profits for the period calculated using tax rates that have been enacted or substantively enacted by the reporting date. Income taxes relating to uncertain tax positions are provided for based on the Company’s best estimate. Deferred income taxes are accounted for using the liability method. The liability method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities and their tax bases. Deferred income tax assets and liabilities are determined for each temporary difference based on currently enacted or substantially enacted tax rates that are expected to be in effect when the underlying items are expected to be realized. The effect of a change in tax rates or tax legislation is recognized in the period of substantive enactment. Deferred tax assets, such as non-capital loss carryforwards, are recognized to the extent it is probable that taxable profit will be available against which the asset can be utilized. The Company accrues for taxes that will be incurred upon distributions from its subsidiaries when it is probable that the earnings will be repatriated. r) Provisions: Provisions are recognized where a legal or constructive obligation has been incurred as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. s) Segmented information: The Company’s operations consist of the production and sale of methanol, which constitutes a single operating segment. t) Application of new and revised accounting standards: The Company has adopted the amendments to IAS 7, Statement of Cash Flows, which were effective for annual periods beginning on or after January 1, 2017. As a result of applying the amendment, the Company presented new disclosures relating to change in financial liabilities arising from financing activities (note16(b)). u) Anticipated changes to International Financial Reporting Standards: In May 2014, the IASB issued IFRS 15, Revenue from Contracts with Customers ("IFRS 15") establishing a comprehensive framework for revenue recognition. The standard replaces IAS 18, Revenue and IAS 11, Construction Contracts and related interpretations and is effective for annual periods beginning on or after January 1, 2018, with early adoption permitted. The Company has performed its assessment of the impact of the new standard and anticipates no impact on its consolidated financial statements. In January 2016, the IASB issued IFRS 16, Leases ("IFRS 16"), which eliminates the current operating/finance lease dual accounting model for lessees and replaces it with a single, on-balance sheet accounting model, similar to the current finance lease accounting. The standard replaces IAS 17, Leases ("IAS 17") and related interpretations and is effective for annual periods beginning on or after January 1, 2019, with early application permitted. The Company plans to apply this standard at the date it becomes effective. The Company is currently assessing the impact of the new standard including the optional exemptions available. The recognition of all leases on balance sheet is expected to increase the assets and liabilities on the Consolidated Statement of Financial Position upon adoption. The increase primarily relates to ocean vessels, terminal facilities and other right of use assets currently accounted for as operating leases. In addition, the nature and timing of certain expenses related to leases previously classified as operating and presented in cost of sales and operating expenses will now change and be presented in depreciation and amortization and finance costs. As a result, the Company expects that adoption of IFRS 16 will significantly impact the consolidated financial statements. The Company has not yet decided whether it will use the optional exemptions available under the standard. Refer to note 21, commitments and contingencies, for operating lease commitments as at December 31, 2017 disclosed under IAS 17. The Company does not expect that any other new or amended standards or interpretations that are effective as of January 1, 2018 will have a significant impact on the Company’s results of operations or financial position. |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade and other receivables | Trade and other receivables: As at Dec 31 Dec 31 Trade $ 429,582 $ 335,606 Value-added and other tax receivables 36,584 63,738 Egypt gas contract recoveries (a) 24,466 41,578 Other 46,004 58,681 $ 536,636 $ 499,603 a) Egypt gas contract recoveries: The natural gas supply agreement in Egypt has a mechanism whereby the Company is partially compensated when gas delivery shortfalls exceed a certain threshold. The receivable is secured by a combination of funds held in escrow and a bank guarantee. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Inventories | Inventories: Inventories are valued at the lower of cost, determined on a first-in first-out basis, and estimated net realizable value. The amount of inventories recognized as an expense in cost of sales and operating expenses and depreciation and amortization for the year ended December 31, 2017 is $2,219 million ( 2016 - $1,704 million ). |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | Property, plant and equipment: Buildings, plant Finance Other TOTAL Cost at January 1, 2017 $ 4,549,816 $ 206,260 $ 272,878 $ 5,028,954 Additions 98,780 7,667 5,001 111,448 Disposals and other 328 1,846 (2,386 ) (212 ) Cost at December 31, 2017 4,648,924 215,773 275,493 5,140,190 Accumulated depreciation at January 1, 2017 1,752,540 18,557 140,388 1,911,485 Disposals and other (2,066 ) — (673 ) (2,739 ) Depreciation 205,843 15,370 11,905 233,118 Accumulated depreciation at December 31, 2017 1,956,317 33,927 151,620 2,141,864 Net book value at December 31, 2017 $ 2,692,607 $ 181,846 $ 123,873 $ 2,998,326 Buildings, plant Finance Other TOTAL Cost at January 1, 2016 $ 4,521,835 $ 121,849 $ 204,483 $ 4,848,167 Additions 35,644 87,800 74,303 197,747 Disposals and other (7,663 ) (3,389 ) (5,908 ) (16,960 ) Cost at December 31, 2016 4,549,816 206,260 272,878 5,028,954 Accumulated depreciation at January 1, 2016 1,545,834 6,853 136,698 1,689,385 Disposals and other (945 ) — (5,908 ) (6,853 ) Depreciation 207,651 11,704 9,598 228,953 Accumulated depreciation at December 31, 2016 1,752,540 18,557 140,388 1,911,485 Net book value at December 31, 2016 $ 2,797,276 $ 187,703 $ 132,490 $ 3,117,469 Included in finance leases as at December 31, 2017 are capitalized costs related to a methanol terminal and storage tanks in Geismar, Louisiana, an oxygen production facility in Trinidad, and two ocean going vessels. |
Investment in associate
Investment in associate | 12 Months Ended |
Dec. 31, 2017 | |
Interests In Other Entities [Abstract] | |
Investment in associate | Investment in associate: a) The Company has a 63.1% equity interest in Atlas Methanol Company Unlimited ("Atlas"). Atlas owns a 1.8 million tonne per year methanol production facility in Trinidad. The Company accounts for its interest in Atlas using the equity method. Summarized financial information of Atlas (100% basis) is as follows: Consolidated statements of financial position as at Dec 31 Dec 31 Cash and cash equivalents $ 8,361 $ 15,530 Other current assets 1 79,738 45,219 Non-current assets 289,671 324,297 Current liabilities 1 (41,388 ) (24,783 ) Other long-term liabilities, including current maturities (157,935 ) (168,253 ) Net assets at 100% 178,447 192,010 Net assets at 63.1% 112,600 121,158 Long-term receivable from Atlas 1 76,322 76,244 Investment in associate $ 188,922 $ 197,402 Consolidated statements of income for the years ended December 31 2017 2016 Revenue 1 $ 459,367 $ 213,533 Cost of sales and depreciation and amortization (261,121 ) (145,126 ) Operating income 198,246 68,407 Finance costs, finance income and other expenses (11,170 ) (12,771 ) Income tax expense (66,640 ) (24,052 ) Net earnings at 100% 120,436 31,584 Earnings of associate at 63.1% 75,995 19,930 Dividends received from associate $ 84,553 $ 47,325 1 Includes related party transactions between Atlas and the Company (see note 22). b) Contingent liability: The Board of Inland Revenue of Trinidad and Tobago has issued assessments against Atlas in respect of the 2005 to 2011 financial years. All subsequent tax years remain open to assessment. The assessments relate to the pricing arrangements of certain long-term fixed price sales contracts from 2005 to 2019 related to methanol produced by Atlas. Atlas had partial relief from corporation income tax until late July 2014. The Company has lodged objections to the assessments. Based on the merits of the cases and legal interpretation, management believes its position should be sustained. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other assets | Other assets: As at Dec 31 Dec 31 Restricted cash $ 27,863 $ 35,386 Chile VAT receivable 25,456 23,406 Investment in Carbon Recycling International 4,502 4,502 Defined benefit pension plans (note 20) 6,650 5,862 Other 13,555 9,628 $ 78,026 $ 78,784 |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Long-term debt | Long-term debt: As at Dec 31 Dec 31 Unsecured notes (i) 3.25% due December 15, 2019 $ 348,060 $ 347,126 (ii) 5.25% due March 1, 2022 248,072 247,685 (iii) 4.25% due December 1, 2024 296,873 296,529 (iv) 5.65% due December 1, 2044 295,158 295,084 1,188,163 1,186,424 Egypt limited recourse debt facilities 241,190 288,515 Other limited recourse debt facilities 72,918 81,267 Total long-term debt 1 1,502,271 1,556,206 Less current maturities 1 (55,905 ) (53,997 ) $ 1,446,366 $ 1,502,209 1 Long-term debt and current maturities are presented net of discounts and deferred financing fees of $17.8 million as at December 31, 2017 (2016 - $17.8 million ). The Egypt limited recourse debt facilities have interest payable semi-annually with rates based on LIBOR plus a spread ranging from 0.9% to 1.6% per annum. Principal is paid in 24 semi-annual payments, which commenced in September 2010. Other limited recourse debt facilities relate to financing for certain of our ocean going vessels which we own through less than wholly-owned entities under the Company's control. Other limited recourse debt facilities have remaining terms of two to four years with principal and interest payable quarterly with rates based on LIBOR plus a spread ranging from 0.75% to 2.5% per annum. Subsequent to the year ended December 31, 2017, the Company, through a 50% owned entity, issued other limited recourse debt for $86 million ( $43 million Methanex share) bearing an interest rate of 5.35% due September 2033. The debt will be used to acquire two ocean going vessels. For the year ended December 31, 2017 , non-cash accretion, on an effective interest basis, of deferred financing costs included in finance costs was $3.1 million ( 2016 - $3.0 million ). The minimum principal payments for long-term debt in aggregate and for each of the five succeeding years are as follows: Limited recourse debt facilities Unsecured Total 2018 $ 57,072 $ — $ 57,072 2019 60,100 350,000 410,100 2020 62,115 — 62,115 2021 109,462 — 109,462 2022 31,279 250,000 281,279 Thereafter — 600,000 600,000 $ 320,028 $ 1,200,000 $ 1,520,028 The covenants governing the Company’s unsecured notes, which are specified in an indenture, apply to the Company and its subsidiaries, excluding entities which we control but do not fully own, and include restrictions on liens, sale and lease-back transactions, a merger or consolidation with another corporation or sale of all or substantially all of the Company’s assets. The indenture also contains customary default provisions. The Company maintains a $300 million committed revolving credit facility with a syndicate of highly rated financial institutions that expires in December 2022. Significant covenants and default provisions under this facility include: i) the obligation to maintain an EBITDA to interest coverage ratio of greater than 2 :1 calculated on a four-quarter trailing basis and a debt to capitalization ratio of less than or equal to 55% , both ratios calculated in accordance with definitions in the credit agreement that include adjustments related to the limited recourse subsidiaries, ii) a default if payment is accelerated by a creditor on any indebtedness of $50 million or more of the Company and its subsidiaries, except for the limited recourse subsidiaries, and iii) a default if a default occurs that permits a creditor to demand repayment on any other indebtedness of $50 million or more of the Company and its subsidiaries, except for the limited recourse subsidiaries. The limited recourse debt facilities are described as limited recourse as they are secured only by the assets of the entity that carries the debt. Accordingly, the lenders to the limited recourse debt facilities have no recourse to the Company or its other subsidiaries. The Egypt limited recourse debt facilities have covenants and default provisions that apply only to the Egypt entity, including restrictions on the incurrence of additional indebtedness and a requirement to fulfill certain conditions before the payment of cash or other shareholder distributions. Certain conditions had not been met, resulting in a restriction on shareholder distributions from the Egypt entity to December 31, 2017. Under amended terms reached in 2017, shareholder distributions are permitted starting in 2018 if the average gas deliveries over the prior 12 months are greater than 70% of gas requirements. The first $100 million of shareholder distributions must be matched with $100 million of principal repayments on the Egypt limited recourse debt facilities. As of December 31, 2017, the Egypt cash balance on a 100% ownership basis was $131 million . Failure to comply with any of the covenants or default provisions of the long-term debt facilities described above could result in a default under the applicable credit agreement that would allow the lenders to not fund future loan requests, accelerate the due date of the principal and accrued interest on any outstanding loans or restrict the payment of cash or other distributions. As at December 31, 2017, management believes the Company was in compliance with all significant terms and default provisions related to long-term debt obligations. |
Other long-term liabilities
Other long-term liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other long-term liabilities | Other long-term liabilities: As at Dec 31 Dec 31 Site restoration costs (a) $ 33,975 $ 30,512 Finance lease obligations (b) 204,242 201,268 Share-based compensation liability (note 13) 111,405 53,725 Cash flow hedges (note 18) 90,199 68,664 Defined benefit pension plans (note 20) 25,076 22,403 Other 5,214 4,339 470,111 380,911 Less current maturities (65,226 ) (29,720 ) $ 404,885 $ 351,191 a) Site restoration costs: The Company has accrued liabilities related to the decommissioning and reclamation of its methanol production sites and oil and gas properties. Because of uncertainties in estimating the amount and timing of the expenditures related to the sites, actual results could differ from the amounts estimated. As at December 31, 2017 , the total undiscounted amount of estimated cash flows required to settle the liabilities was $44.9 million ( 2016 - $41.1 million ). The movement in the provision during the year is explained as follows: 2017 2016 Balance at January 1 $ 30,512 $ 29,892 New or revised provisions 2,823 51 Accretion expense 640 569 Balance at December 31 $ 33,975 $ 30,512 b) Finance lease obligations: As at December 31, 2017 , the Company has finance lease obligations related to a methanol terminal and storage tanks in Geismar, Louisiana, an oxygen production facility in Trinidad, and two ocean-going vessels. Total finance lease payments for 2017 of $30.6 million include an interest component of $23.7 million . Finance lease obligations are payable as follows: Lease Interest Finance lease obligations 2018 $ 31,447 $ 23,549 $ 7,898 2019 31,826 22,727 9,099 2020 32,213 21,756 10,457 2021 32,608 20,612 11,996 2022 33,010 19,271 13,739 Thereafter 236,772 85,719 151,053 $ 397,876 $ 193,634 $ 204,242 |
Expenses
Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
Expenses | Expenses: For the years ended December 31 2017 2016 Cost of sales $ 2,035,545 $ 1,533,915 Selling and distribution 449,593 408,893 Administrative expenses 99,036 59,675 Total expenses by function $ 2,584,174 $ 2,002,483 Cost of raw materials and purchased methanol $ 1,637,085 $ 1,140,551 Ocean freight and other logistics 374,717 351,609 Employee expenses, including share-based compensation 243,707 204,762 Other expenses 96,440 77,507 Cost of sales and operating expenses 2,351,949 1,774,429 Depreciation and amortization 232,225 228,054 Total expenses by nature $ 2,584,174 $ 2,002,483 For the year ended December 31, 2017 we recorded a share-based compensation expense of $78.8 million ( 2016 - $33.5 million ), the majority of which is included in administrative expenses for the total expenses by function presentation above. |
Finance Costs
Finance Costs | 12 Months Ended |
Dec. 31, 2017 | |
Borrowing costs [abstract] | |
Finance cost | Finance costs: Finance costs are primarily comprised of interest on borrowings and finance lease obligations, amortization of deferred financing fees and accretion expense associated with site restoration costs. Finance costs were $95.0 million for the year ended December 31, 2017 ( 2016 - $90.1 million ). |
Net income (loss) per common sh
Net income (loss) per common share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share [abstract] | |
Net income (loss) per common share | Net income (loss) per common share: Diluted net income (loss) per common share is calculated by considering the potential dilution that would occur if outstanding stock options and, under certain circumstances, TSARs were exercised or converted to common shares. Outstanding TSARs may be settled in cash or common shares at the holder’s option and for purposes of calculating diluted net income (loss) per common share, the more dilutive of the cash-settled and equity-settled method is used, regardless of how the plan is accounted for. Accordingly, TSARs that are accounted for using the cash-settled method will require adjustments to the numerator and denominator if the equity-settled method is determined to have a dilutive effect on diluted net income (loss) per common share as compared to the cash-settled method. The cash-settled method was more dilutive for the years ended December 31, 2017 and 2016 , and no adjustment was required for the numerator or the denominator for TSARs. Stock options and, if calculated using the equity-settled method, TSARs are considered dilutive when the average market price of the Company’s common shares during the period disclosed exceeds the exercise price of the stock option or TSAR. For the year ended December 31, 2017, stock options were considered dilutive resulting in an adjustment to the denominator. For the year ended December 31, 2016, the Company incurred a net loss attributable to Methanex shareholders and therefore exclusion of the stock options was more dilutive. Basic and diluted net income (loss) per common share for the year ended December 31, 2017 was calculated using basic and diluted net income of $ 316.1 million (2016 - basic and diluted net loss of $ 12.5 million ). A reconciliation of the denominator used for the purposes of calculating basic and diluted net income (loss) per common share is as follows: For the years ended December 31 2017 2016 Denominator for basic net income (loss) per common share 86,768,589 89,783,883 Effect of dilutive stock options 56,359 — Denominator for diluted net income (loss) per common share 86,824,948 89,783,883 For the years ended December 31, 2017 and 2016 , basic and diluted net income (loss) per common share attributable to Methanex shareholders were as follows: For the years ended December 31 2017 2016 Basic net income (loss) per common share $ 3.64 $ (0.14 ) Diluted net income (loss) per common share $ 3.64 $ (0.14 ) |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2017 | |
Share-Based Payment Arrangements [Abstract] | |
Share-based compensation | Share-based compensation: The Company provides share-based compensation to its directors and certain employees through grants of stock options, TSARs, SARs and deferred, restricted or performance share units. As at December 31, 2017 , the Company had 3,953,471 common shares reserved for future grants of stock options and tandem share appreciation rights under the Company’s stock option plan. a) Share appreciation rights and tandem share appreciation rights: All SARs and TSARs granted have a maximum term of seven years with one-third vesting each year after the date of grant. SARs and TSARs units outstanding at December 31, 2017 are as follows: SARs TSARs Number of Exercise Number of Exercise Outstanding at December 31, 2015 1,259,208 $ 44.48 2,108,965 $ 42.73 Granted 375,500 34.59 574,600 34.59 Exercised (73,291 ) 27.43 (212,505 ) 25.38 Cancelled (49,932 ) 49.77 (54,949 ) 52.55 Outstanding at December 31, 2016 1,511,485 $ 42.68 2,416,111 $ 42.10 Granted 167,600 50.15 340,200 50.17 Exercised (213,207 ) 32.03 (710,616 ) 32.98 Cancelled (10,801 ) 50.18 (2,200 ) 34.59 Expired (5,000 ) 25.22 — — Outstanding at December 31, 2017 1,450,077 $ 45.11 2,043,495 $ 46.62 Information regarding the SARs and TSARs outstanding as at December 31, 2017 is as follows: Units outstanding at December 31, 2017 Units exercisable at December 31, 2017 Range of exercise prices Weighted average Number Weighted Number Weighted SARs $25.97 to $35.51 3.36 585,317 $ 32.94 345,629 $ 31.79 $38.24 to $73.13 3.77 864,760 53.35 609,687 53.94 3.61 1,450,077 $ 45.11 955,316 $ 45.93 TSARs $25.97 to $35.51 3.94 779,194 $ 33.67 401,049 $ 32.80 $38.24 to $73.13 4.09 1,264,301 54.60 794,658 56.33 4.03 2,043,495 $ 46.62 1,195,707 $ 48.44 The fair value of each outstanding SARs and TSARs grant was estimated on December 31, 2017 using the Black-Scholes option pricing model with the following weighted average assumptions: 2017 2016 Risk-free interest rate 1.8 % 1.0 % Expected dividend yield 2.0 % 2.5 % Expected life of SARs and TSARs (years) 1.2 1.4 Expected volatility 31 % 41 % Expected forfeitures 0.2 % 0.2 % Weighted average fair value (USD per share) $ 19.02 $ 10.19 Compensation expense for SARs and TSARs is measured based on their fair value and is recognized over the vesting period. Changes in fair value in each period are recognized in net income (loss) for the proportion of the service that has been rendered at each reporting date. The fair value as at December 31, 2017 was $ 69.8 million compared with the recorded liability of $ 65.2 million . The difference between the fair value and the recorded liability of $ 4.6 million will be recognized over the weighted average remaining vesting period of approximately 1.5 years . For the year ended December 31, 2017 , compensation expense related to SARs and TSARs included an expense in cost of sales and operating expenses of $ 45.1 million ( 2016 - $ 26.9 million ). This included an expense of $ 37.8 million ( 2016 - $ 20.0 million ) related to the effect of the change in the Company’s share price. b) Deferred, restricted and performance share units: Deferred, restricted and performance share units outstanding as at December 31, 2017 are as follows: Number of Number of Number of Outstanding at December 31, 2015 285,816 13,864 610,578 Granted 8,269 11,500 261,760 Granted performance factor 1 — — 55,592 Granted in lieu of dividends 8,430 773 18,082 Redeemed (51,498 ) (7,488 ) (355,415 ) Cancelled — — (18,325 ) Outstanding at December 31, 2016 251,017 18,649 572,272 Granted 10,452 8,100 163,500 Performance factor impact on redemption 1 — — (102,557 ) Granted in lieu of dividends 5,669 613 14,383 Redeemed (42,292 ) (6,907 ) (34,186 ) Cancelled — — (8,517 ) Outstanding at December 31, 2017 224,846 20,455 604,895 1 Performance share units have a feature where the ultimate number of units that vest are adjusted by a performance factor of the original grant as determined by the Company’s total shareholder return in relation to a predetermined target over the period to vesting. The performance factor is measured based on the weighted-average closing share price for the 90 calendar days on the NASDAQ Global Select Market immediately preceding the year end date that the performance share units vest. Compensation expense for deferred, restricted and performance share units is measured at fair value based on the market value of the Company’s common shares and is recognized over the vesting period. Changes in fair value are recognized in net income (loss) for the proportion of the service that has been rendered at each reporting date. The fair value of deferred, restricted and performance share units as at December 31, 2017 was $ 55.9 million compared with the recorded liability of $ 46.1 million . The difference between the fair value and the recorded liability of $ 9.8 million will be recognized over the weighted average remaining vesting period of approximately 1.5 years . For the year ended December 31, 2017 , compensation expense related to deferred, restricted and performance share units included in cost of sales and operating expenses was an expense of $ 33.0 million ( 2016 - $ 6.0 million ). This included an expense of $ 29.9 million ( 2016 - $ 2.8 million ) related to the effect of the change in the Company’s share price. c) Stock options: The exercise price of each stock option is equal to the quoted market price of the Company’s common shares at the date of the grant. Options granted have a maximum term of seven years with one-third of the options vesting each year after the date of grant. Common shares reserved for outstanding incentive stock options as at December 31, 2017 and 2016 are as follows: Number of Weighted Outstanding at December 31, 2015 448,507 $30.52 Granted 75,500 34.59 Exercised (153,140 ) 9.80 Cancelled (14,100 ) 44.04 Expired (12,000 ) 6.33 Outstanding at December 31, 2016 344,767 $40.91 Granted 31,400 50.17 Exercised (98,274 ) 30.90 Cancelled (15,358 ) 52.43 Outstanding at December 31, 2017 262,535 $45.09 Information regarding the stock options outstanding as at December 31, 2017 is as follows: Options outstanding at December 31, 2017 Options exercisable at December 31, 2017 Range of exercise prices Weighted Number of Weighted Number of Weighted Options $25.97 to $35.51 3.40 103,850 $33.08 60,980 $32.02 $38.24 to $73.13 3.69 158,685 52.95 114,380 53.28 3.58 262,535 $45.09 175,360 $45.88 For the year ended December 31, 2017 , compensation expense related to stock options was $ 0.5 million ( 2016 - $ 0.6 million ). |
Segmented information
Segmented information | 12 Months Ended |
Dec. 31, 2017 | |
Operating Segments [Abstract] | |
Segmented information | Segmented information: The Company’s operations consist of the production and sale of methanol, which constitutes a single operating segment. During the years ended December 31, 2017 and 2016 , revenues attributed to geographic regions, based on the location of customers, were as follows: Revenue China Europe United States South Korea South America Canada Other Asia TOTAL 2017 $ 801,838 $ 608,668 $ 570,482 $ 347,896 $ 279,270 $ 167,436 $ 285,052 $ 3,060,642 2016 $ 518,499 $ 403,879 $ 359,476 $ 257,658 $ 179,287 $ 109,706 $ 169,924 $ 1,998,429 As at December 31, 2017 and 2016 , the net book value of property, plant and equipment by country was as follows: Property, plant and equipment United Egypt New Trinidad Canada Chile Other TOTAL 2017 $ 1,412,394 $ 720,397 $ 265,153 $ 155,525 $ 148,420 $ 107,495 $ 188,942 $ 2,998,326 2016 $ 1,468,283 $ 742,446 $ 261,482 $ 176,256 $ 154,982 $ 108,065 $ 205,955 $ 3,117,469 |
Income and other taxes
Income and other taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income and other taxes | Income and other taxes: a) Income tax expense: For the years ended December 31 2017 2016 Current tax recovery (expense): Current period before undernoted items $ (85,287 ) $ (44,743 ) Impact of Argentina gas settlement — (7,800 ) Adjustments to prior years (217 ) (2,134 ) (85,504 ) (54,677 ) Deferred tax recovery (expense): Origination and reversal of temporary differences 23,310 82,838 Impact of Argentina gas settlement — (3,575 ) Derecognition of non-capital loss carryforwards — (17,861 ) Adjustments to prior years 200 1,667 Change in U.S. tax rate (36,567 ) — Change in other jurisdictions tax rates 734 — Other 2,039 887 (10,284 ) 63,956 Total income tax recovery (expense) $ (95,788 ) $ 9,279 b) Reconciliation of the effective tax rate: The Company operates in several tax jurisdictions and therefore its income is subject to various rates of taxation. Income tax expense differs from the amounts that would be obtained by applying the Canadian statutory income tax rate to net income (loss) before income taxes as follows: For the years ended December 31 2017 2016 Income (loss) before income taxes $ 470,885 $ (37,504 ) Deduct earnings of associate (75,995 ) (19,930 ) 394,890 (57,434 ) Canadian statutory tax rate 26.5 % 26.5 % Income tax recovery (expense) calculated at Canadian statutory tax rate (104,646 ) 15,220 Increase (decrease) in income tax recovery resulting from: Impact of income and losses taxed in foreign jurisdictions 30,223 34,857 Derecognition of non-capital loss carryforwards — (17,861 ) Unrecognised loss carryforwards and temporary differences 20,468 (6,468 ) Impact of tax rate changes in the U.S. (36,567 ) — Impact of tax rate changes in other jurisdictions 734 — Impact of foreign exchange 3,104 (4,332 ) Other business taxes (4,105 ) (5,404 ) Adjustments to prior years (17 ) (467 ) Other (4,982 ) (6,266 ) Total income tax recovery (expense) $ (95,788 ) $ 9,279 c) Net deferred income tax liabilities: (i) The tax effect of temporary differences that give rise to deferred income tax liabilities and deferred income tax assets are as follows: As at Dec 31 Dec 31 Net Deferred tax assets Deferred tax liabilities Net Deferred tax assets Deferred tax liabilities Property, plant and equipment $ (403,705 ) $ (189,368 ) $ (214,337 ) $ (419,982 ) $ (197,931 ) $ (222,051 ) Repatriation taxes (87,239 ) — (87,239 ) (85,364 ) — (85,364 ) Other (11,670 ) (3,740 ) (7,930 ) (19,956 ) (4,981 ) (14,975 ) (502,614 ) (193,108 ) (309,506 ) (525,302 ) (202,912 ) (322,390 ) Non-capital loss carryforwards 244,576 244,576 — 280,931 280,931 — Share-based compensation 19,920 2,946 16,974 8,590 935 7,655 Other 74,027 47,927 26,100 82,142 58,387 23,755 338,523 295,449 43,074 371,663 340,253 31,410 Net deferred income tax assets (liabilities) $ (164,091 ) $ 102,341 $ (266,432 ) $ (153,639 ) $ 137,341 $ (290,980 ) The Company recognizes deferred income tax assets to the extent that it is probable that the benefit of these assets will be realized. As at December 31, 2017 , the Company had $ 110 million ( 2016 - $ 153 million ) of unrecognized non-capital loss carryforwards in Egypt that expire in 2020 and 2021 and $ 384 million ( 2016 - $ 415 million ) of deductible temporary differences in the United States that have not been recognized. (ii) Analysis of the change in deferred income tax assets and liabilities: 2017 2016 Net Deferred tax assets Deferred tax liabilities Net Deferred tax assets Deferred tax liabilities Balance, January 1 $ (153,639 ) $ 137,341 $ (290,980 ) $ (223,757 ) $ 61,881 $ (285,638 ) Deferred income tax recovery (expense) included in net income (loss) (10,284 ) (34,517 ) 24,233 63,956 69,110 (5,154 ) Impact of U.S. tax rate change in other comprehensive income (8,621 ) (8,621 ) — — — — Deferred income tax recovery (expense) included in other comprehensive income (loss) 9,295 8,398 897 6,597 6,364 233 Other (842 ) (260 ) (582 ) (435 ) (14 ) (421 ) Balance, December 31 $ (164,091 ) $ 102,341 $ (266,432 ) $ (153,639 ) $ 137,341 $ (290,980 ) |
Supplemental cash flow informat
Supplemental cash flow information | 12 Months Ended |
Dec. 31, 2017 | |
Cash Flow Statement [Abstract] | |
Supplemental cash flow information | Supplemental cash flow information: a) Changes in non-cash working capital: Changes in non-cash working capital for the years ended December 31, 2017 and 2016 are as follows: For the years ended December 31 2017 2016 Changes in non-cash working capital: Trade and other receivables $ (37,033 ) $ 4,747 Inventories (23,136 ) (28,094 ) Prepaid expenses (5,702 ) (1,286 ) Trade, other payables and accrued liabilities, including long-term payables included in other long-term liabilities 103,601 14,577 37,730 (10,056 ) Adjustments for items not having a cash effect and working capital changes relating to taxes and interest paid (89,445 ) (65,850 ) Changes in non-cash working capital $ (51,715 ) $ (75,906 ) These changes relate to the following activities: Operating $ (49,368 ) $ (87,644 ) Financing — — Investing (2,347 ) 11,738 Changes in non-cash working capital $ (51,715 ) $ (75,906 ) The Company has reclassified the presentation of amounts relating to accrued distributions to non-controlling interests in Changes in non-cash working capital from Operating activities to Financing activities. The reclassification has been reflected in the comparative figures. b) Reconciliation of movements in liabilities to cash flows arising from financing activities: Long term debt Finance lease obligations (note 9) Balance at December 31, 2016 $ 1,556,206 $ 201,268 Changes from financing cash flows Repayment of long-term debt and financing fees (56,997 ) — Payment of finance lease liabilities — (6,880 ) Total changes from financing cash flows $ (56,997 ) $ (6,880 ) Liability-related other changes Finance costs $ 3,062 $ — New finance leases — 9,512 Other — 342 Total liability-related other changes $ 3,062 $ 9,854 Balance at December 31, 2017 $ 1,502,271 $ 204,242 |
Capital disclosures
Capital disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Capital disclosures | Capital disclosures: The Company’s objectives in managing its liquidity and capital are to safeguard the Company’s ability to continue as a going concern, to provide financial capacity and flexibility to meet its strategic objectives, to provide an adequate return to shareholders commensurate with the level of risk and to return excess cash through a combination of dividends and share repurchases. As at Dec 31 Dec 31 Liquidity: Cash and cash equivalents $ 375,479 $ 223,890 Undrawn credit facilities 300,000 300,000 Total liquidity $ 675,479 $ 523,890 Capitalization: Unsecured notes $ 1,188,163 $ 1,186,424 Limited recourse debt facilities, including current portion 314,108 369,782 Total debt 1,502,271 1,556,206 Non-controlling interests 244,347 208,515 Shareholders’ equity 1,500,764 1,596,835 Total capitalization $ 3,247,382 $ 3,361,556 Total debt to capitalization 1 46 % 46 % Net debt to capitalization 2 39 % 42 % 1 Total debt (including 100% of Egypt limited recourse debt facilities) divided by total capitalization. 2 Total debt (including 100% of Egypt limited recourse debt facilities) less cash and cash equivalents divided by total capitalization less cash and cash equivalents. The Company manages its liquidity and capital structure and makes adjustments to it in light of changes to economic conditions, the underlying risks inherent in its operations and capital requirements to maintain and grow its operations. The strategies employed by the Company may include the issue or repayment of general corporate debt, the issue of project debt, the issue of equity, the payment of dividends and the repurchase of shares. The Company is not subject to any statutory capital requirements and has no commitments to sell or otherwise issue common shares except pursuant to outstanding employee stock options. During the year, the Company renewed and extended a $300 million revolving credit facility for a five year term to December 2022. The undrawn credit facility is provided by highly rated financial institutions and is subject to certain financial covenants (note 8). |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Financial instruments | Financial instruments: Financial instruments are either measured at amortized cost or fair value. In the normal course of business, the Company's assets, liabilities and forecasted transactions, as reported in U.S. dollars, are impacted by various market risks including, but not limited to, natural gas prices and currency exchange rates. The time frame and manner in which the Company manages those risks varies for each item based on the Company's assessment of the risk and the available alternatives for mitigating risks. The Company uses derivatives as part of its risk management program to mitigate variability associated with changing market values. Changes in fair value of derivative financial instruments are recorded in earnings unless the instruments are designated as cash flow hedges, in which case the changes in fair value are recorded in other comprehensive income and are reclassified to profit or loss when the underlying hedged transaction is recognized in earnings. The Company designates as cash flow hedges certain derivative financial instruments to hedge its risk exposure to fluctuations in natural gas prices and to hedge its risk exposure to fluctuations on certain foreign currency denominated transactions. The following table provides the carrying value of each category of financial assets and liabilities and the related balance sheet item: As at Dec 31 Dec 31 Financial assets: Financial assets measured at fair value: Derivative instruments designated as cash flow hedges 1 $ — $ 7,024 Financial assets not measured at fair value: Cash and cash equivalents 375,479 223,890 Trade and other receivables, excluding tax receivable 527,084 479,272 Project financing reserve accounts included in other assets 27,863 35,386 Total financial assets 2 $ 930,426 $ 745,572 Financial liabilities: Financial liabilities measured at fair value: Derivative instruments designated as cash flow hedges 1 $ 91,014 $ 68,664 Financial liabilities not measured at fair value: Trade, other payables and accrued liabilities, excluding tax payable 528,182 449,213 Long-term debt, including current portion 1,502,271 1,556,206 Total financial liabilities $ 2,121,467 $ 2,074,083 1 The Geismar 2 and Medicine Hat natural gas hedges and euro foreign currency hedges designated as cash flow hedges are measured at fair value based on industry accepted valuation models and inputs obtained from active markets. 2 The carrying amount of the financial assets represents the maximum exposure to credit risk at the respective reporting periods. As at December 31, 2017, all of the financial instruments were recorded on the consolidated statements of financial position at amortized cost with the exception of derivative financial instruments, which are recorded at fair value unless exempted. The fair value of derivative instruments is determined based on industry-accepted valuation models using market observable inputs and are classified within Level 2 of the fair value hierarchy. The fair value of all the Company's derivative contracts includes an adjustment for credit risk. The effective portion of the changes in fair value of derivative financial instruments designated as cash flow hedges is recorded in other comprehensive income. The spot element of forward contracts in the hedging relationships is recorded in other comprehensive income as the change in fair value of cash flow hedges. The change in the fair value of the forward element of forward contracts is recorded separately in other comprehensive income as the forward element excluded from hedging relationships. Until settled, the fair value of the derivative financial instruments will fluctuate based on changes in commodity prices or foreign currency exchange rates. Natural gas forward contracts The Company has elected to manage its exposure to changes in natural gas prices for a portion of its North American natural gas requirements by executing a number of fixed price forward contracts. The Company has entered into forward contracts to manage its exposure to changes in natural gas prices for the Geismar 2 facility for 40% of its gas requirements to 2025, which it has designated as cash flow hedges. The Company has also entered into physical forward contracts to manage its exposure to changes in natural gas prices for the Medicine Hat facility over the period 2017 to 2022. The Company has designated contracts for the 2021 and 2022 periods as cash flow hedges for its highly probable forecast natural gas purchases in Medicine Hat. Other costs incurred to transport natural gas from the contracted delivery point, either Henry Hub or AECO, to the relevant production facility represent an insignificant portion of the overall underlying risk and are recognized as incurred outside of the hedging relationship. The Company has elected to designate the spot element of the forward contracts as cash flow hedges. The forward element of the forward contracts are excluded from the designation and only the spot element is considered for the purpose of assessing effectiveness and measuring ineffectiveness. The excluded forward element of the swap contracts will be accounted for as a cost of hedging (transaction cost) to be recognized in profit or loss over the term of the hedging relationships. Ineffectiveness may arise in the hedging relationship due to changes in the timing of the anticipated transactions and/or due to changes in credit risk of the hedging instrument not replicated in the hedged item. No hedge ineffectiveness has been recognized in 2017. As at December 31, 2017 , the Company had outstanding forward contracts designated as cash flow hedges with a notional amount of $ 473 million ( 2016 - $ 484 million ) and a net negative fair value of $ 90.2 million ( 2016 - $ 61.9 million ) included in other long-term liabilities. As at December 31, 2017 , the forward contracts for the Geismar 2 facility had an average contract price of $ 3.74 per mmbtu (2016 - $ 3.68 per mmbtu) over the remaining eight year term, and for the forward contracts for the Medicine Hat facility has an average contract price of $ 1.96 per mmbtu. Forward exchange contracts The Company also designates as cash flow hedges forward exchange contracts to sell certain foreign currencies at a fixed U.S. dollar exchange rate to hedge its exposure to exchange rate fluctuations on certain foreign currency denominated transactions. The Company has elected to designate the spot element of the forward contracts as cash flow hedges. The forward element of the forward contracts are excluded from the designation and only the spot element is considered for the purpose of assessing effectiveness and measuring ineffectiveness. The excluded forward element of the swap contracts will be accounted for as a cost of hedging (transaction cost) to be recognized in profit or loss over the term of the hedging relationships. Ineffectiveness may arise in the hedging relationship due to changes in the timing of the anticipated transactions and/or due to changes in credit risk of the hedging instrument not replicated in the hedged item. No hedge ineffectiveness has been recognized in 2017. As at December 31, 2017 , the Company had outstanding forward exchange contracts designated as cash flow hedges to sell euros at a fixed U.S. dollar exchange rate with a notional amount of 109 million euros ( 2016 - 92 million euros) and a negative fair value of $ 0.8 million included in current liabilities ( 2016 - positive fair value of $ 0.3 million included in current assets) . Fair value liabilities The table below shows net cash outflows for derivative hedging instruments including natural gas forward contracts and forward exchange contracts, excluding credit risk adjustments, based upon contracted payment dates. The amounts reflect the maturity profile of the fair value liabilities and are subject to change based on the prevailing market rate at each of the future settlement dates. Financial asset derivative positions, if any, are held with investment-grade counterparties and therefore the settlement day risk exposure is considered to be negligible. As at Dec 31 Dec 31 Within one year $ 7,114 $ — 1-3 years 17,057 8,481 3-5 years 28,864 18,962 More than 5 years 52,085 56,029 $ 105,120 $ 83,472 The fair value of the Company’s derivative financial instruments as disclosed above are determined based on Bloomberg quoted market prices and confirmations received from counterparties, which are adjusted for credit risk. The Company is exposed to credit-related losses in the event of non-performance by counterparties to derivative financial instruments but does not expect any counterparties to fail to meet their obligations. The Company deals with only highly rated counterparties, normally major financial institutions. The Company is exposed to credit risk when there is a positive fair value of derivative financial instruments at a reporting date. The maximum amount that would be at risk if the counterparties to derivative financial instruments with positive fair values failed completely to perform under the contracts was nil as at December 31, 2017 ( 2016 - $7.0 million ). The carrying values of the Company’s financial instruments approximate their fair values, except as follows: As at December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair Long-term debt excluding deferred financing fees $ 1,515,544 $ 1,561,392 $ 1,568,822 $ 1,538,543 Long-term debt consists of limited recourse debt facilities and unsecured notes. There is no publicly traded market for the limited recourse debt facilities. The fair value of the limited recourse debt facilities as disclosed on a recurring basis and categorized as Level 2 within the fair value hierarchy is estimated by reference to current market rates as at the reporting date. The fair value of the unsecured notes disclosed on a recurring basis and also categorized as Level 2 within the fair value hierarchy is estimated using quoted prices and yields as at the reporting date. The fair value of the Company’s long term debt will fluctuate until maturity. |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Financial risk management | Financial risk management: a) Market risks: The Company’s operations consist of the production and sale of methanol. Market fluctuations may result in significant cash flow and profit volatility risk for the Company. Its worldwide operating business as well as its investment and financing activities are affected by changes in methanol and natural gas prices and interest and foreign exchange rates. The Company seeks to manage and control these risks primarily through its regular operating and financing activities and uses derivative instruments to hedge these risks when deemed appropriate. This is not an exhaustive list of all risks, nor will the risk management strategies eliminate these risks. Methanol price risk The methanol industry is a highly competitive commodity industry and methanol prices fluctuate based on supply and demand fundamentals and other factors. The profitability of the Company is directly related to the market price of methanol. A decline in the market price of methanol could negatively impact the Company's future operations. The Company does not hedge its methanol sales through derivative contracts. The Company manages its methanol price risk, to a certain degree, through natural gas supply contracts that include a variable price component related to methanol prices, as described below. Natural gas price risk Natural gas is the primary feedstock for the production of methanol. The Company has entered into multi-year natural gas supply contracts for its production facilities in New Zealand, Trinidad, Egypt and certain contracts in Chile that include base and variable price components to reduce the commodity price risk exposure. The variable price component is adjusted by formulas related to methanol prices above a certain level. The Company also has multi-year fixed price natural gas contracts to supply its production facilities in Geismar, Medicine Hat and Chile and natural gas hedges in Geismar and Medicine Hat to manage its exposure to natural gas price risk. Interest rate risk Interest rate risk is the risk that the Company suffers financial loss due to changes in the value of an asset or liability or in the value of future cash flows due to movements in interest rates. The Company’s interest rate risk exposure is mainly related to long-term debt obligations. As at Dec 31 Dec 31 Fixed interest rate debt: Unsecured notes $ 1,188,163 $ 1,186,424 $ 1,188,163 $ 1,186,424 Variable interest rate debt: Egypt limited recourse debt facilities $ 241,190 $ 288,515 Other limited recourse debt facilities 72,918 81,267 $ 314,108 $ 369,782 For fixed interest rate debt, a 1% change in interest rates would result in a change in the fair value of the debt (disclosed in note 18) of approximately $ 84.0 million as of December 31, 2017 ( 2016 - $ 80.2 million ). The fair value of variable interest rate debt fluctuates primarily with changes in credit spreads. For the variable interest rate debt, a 1% change in LIBOR would result in a change in annual interest payments of $ 3.2 million as of December 31, 2017 ( 2016 - $ 3.7 million ). Foreign currency risk The Company’s international operations expose the Company to foreign currency exchange risks in the ordinary course of business. Accordingly, the Company has established a policy that provides a framework for foreign currency management and hedging strategies and defines the approved hedging instruments. The Company reviews all significant exposures to foreign currencies arising from operating and investing activities and hedges exposures if deemed appropriate. The dominant currency in which the Company conducts business is the United States dollar, which is also the reporting currency. Methanol is a global commodity chemical that is priced in United States dollars. In certain jurisdictions, however, the transaction price is set either quarterly or monthly in the local currency. Accordingly, a portion of the Company’s revenue is transacted in Canadian dollars, euros, Chinese yuan and, to a lesser extent, other currencies. For the period from when the price is set in local currency to when the amount due is collected, the Company is exposed to declines in the value of these currencies compared to the United States dollar. The Company also purchases varying quantities of methanol for which the transaction currency is the euro, Chinese yuan and, to a lesser extent, other currencies. In addition, some of the Company’s underlying operating costs and capital expenditures are incurred in other currencies. The Company is exposed to increases in the value of these currencies that could have the effect of increasing the United States dollar equivalent of cost of sales and operating expenses and capital expenditures. The Company has elected not to actively manage these exposures at this time except for a portion of the net exposure to euro revenues, which is hedged through forward exchange contracts each quarter when the euro price for methanol is established. As at December 31, 2017 , the Company had a net working capital asset of $ 85.3 million in non U.S. dollar currencies ( 2016 - $ 75.3 million ). Each 10% strengthening (weakening) of the U.S. dollar against these currencies would decrease (increase) the value of net working capital and pre-tax cash flows and earnings by approximately $ 8.5 million ( 2016 - $ 7.5 million ). b) Liquidity risks: Liquidity risk is the risk that the Company will not have sufficient funds to meet its liabilities, such as the settlement of financial debt and lease obligations and payment to its suppliers. The Company maintains liquidity and makes adjustments to it in light of changes to economic conditions, underlying risks inherent in its operations and capital requirements to maintain and grow its operations. As at December 31, 2017 , the Company had $375 million of cash and cash equivalents. In addition, the Company has an undrawn credit facility of $ 300 million provided by highly rated financial institutions that expires in December 2022. In addition to the above-mentioned sources of liquidity, the Company monitors funding options available in the capital markets, as well as trends in the availability and costs of such funding, with a view to maintaining financial flexibility and limiting refinancing risks. The expected cash flows of financial liabilities from the date of the balance sheet to the contractual maturity date are as follows: As at December 31, 2017 Carrying Contractual 1 year or less 1-3 years 3-5 years More than Trade and other payables 1 $ 519,352 $ 519,352 $ 519,352 $ — $ — $ — Finance lease obligations 204,242 397,876 31,447 64,039 65,618 236,772 Long-term debt 2 1,502,271 2,178,011 121,689 586,091 471,831 998,400 Cash flow hedges 91,014 105,120 7,114 17,057 28,864 52,085 $ 2,316,879 $ 3,200,359 $ 679,602 $ 667,187 $ 566,313 $ 1,287,257 1 Excludes tax and accrued interest. 2 Contractual cash flows include contractual interest payments related to debt obligations. Interest rates on variable rate debt are based on prevailing rates as at December 31, 2017. c) Credit risks: Counterparty credit risk is the risk that the financial benefits of contracts with a specific counterparty will be lost if a counterparty defaults on its obligations under the contract. This includes any cash amounts owed to the Company by those counterparties, less any amounts owed to the counterparty by the Company where a legal right of offset exists and also includes the fair values of contracts with individual counterparties that are recorded in the financial statements. Trade credit risk Trade credit risk is defined as an unexpected loss in cash and earnings if the customer is unable to pay its obligations in due time or if the value of the security provided declines. The Company has implemented a credit policy that includes approvals for new customers, annual credit evaluations of all customers and specific approval for any exposures beyond approved limits. The Company employs a variety of risk-mitigation alternatives, including credit insurance, certain contractual rights in the event of deterioration in customer credit quality and various forms of bank and parent company guarantees and letters of credit to upgrade the credit risk to a credit rating equivalent or better than the stand-alone rating of the counterparty. Trade credit losses have historically been minimal and as at December 31, 2017 substantially all of the trade receivables were classified as current. Cash and cash equivalents To manage credit and liquidity risk, the Company’s investment policy specifies eligible types of investments, maximum counterparty exposure and minimum credit ratings. Therefore, the Company invests only in highly rated investment-grade instruments that have maturities of three months or less. Derivative financial instruments The Company’s hedging policies specify risk management objectives and strategies for undertaking hedge transactions. The policies also include eligible types of derivatives and required transaction approvals, as well as maximum counterparty exposures and minimum credit ratings. The Company does not use derivative financial instruments for trading or speculative purposes. To manage credit risk, the Company only enters into derivative financial instruments with highly rated investment-grade counterparties. Hedge transactions are reviewed, approved and appropriately documented in accordance with Company policies. |
Retirement plans
Retirement plans | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefits [Abstract] | |
Retirement plans | Retirement plans: a) Defined benefit pension plans: The Company has non-contributory defined benefit pension plans covering certain employees. The Company does not provide any significant post-retirement benefits other than pension plan benefits. Information concerning the Company’s defined benefit pension plans, in aggregate, is as follows: As at Dec 31 Dec 31 Accrued benefit obligations: Balance, beginning of year $ 60,771 $ 55,966 Current service cost 1,879 1,677 Past service cost 812 — Interest cost on accrued benefit obligations 2,242 2,269 Benefit payments (5,280 ) (2,570 ) Settlements — — Actuarial loss 166 2,393 Foreign exchange loss 4,803 1,036 Balance, end of year 65,393 60,771 Fair values of plan assets: Balance, beginning of year 44,230 40,286 Interest income on assets 1,522 1,553 Contributions 1,970 2,722 Benefit payments (5,280 ) (2,570 ) Settlements — — Return on plan assets 1,330 2,345 Foreign exchange gain (loss) 3,219 (106 ) Balance, end of year 46,991 44,230 Unfunded status 18,402 16,541 Minimum funding requirement — — Defined benefit obligation, net $ 18,402 $ 16,541 The Company has an unfunded retirement obligation of $25.1 million as at December 31, 2017 ( 2016 - $22.4 million ) for its employees in Chile that will be funded at retirement in accordance with Chilean law. The accrued benefit for the unfunded retirement arrangement in Chile is paid when an employee leaves the Company in accordance with plan terms and Chilean regulations. The Company estimates that it may make benefit payments based on actuarial assumptions related to the unfunded retirement obligation in Chile of $ 5.1 million in 2018. Actual benefit payments in future periods will fluctuate based on employee retirements. The Company has a net funded retirement asset of $6.6 million as at December 31, 2017 ( 2016 - $5.7 million ) for certain employees and retirees in Canada and a net funded retirement asset of $0.1 million as at December 31, 2017 ( 2016 - $0.2 million ) in Europe. The Company estimates that it will make additional contributions relating to its defined benefit pension plan in Canada of $ 0.6 million in 2018 . These defined benefit plans expose the Company to actuarial risks, such as longevity risk, currency risk, interest rate risk and market risk on the funded plans. Additionally, as the plans provide benefits to plan members predominantly in Canada and Chile, the plans expose the Company to foreign currency risk for funding requirements. The primary long-term risk is that the Company will not have sufficient plan assets and liquidity to meet obligations when they fall due. The weighted average duration of the net defined benefit obligation is 10 years. The Company’s net defined benefit pension plan expense charged to the consolidated statements of income for the years ended December 31, 2017 and 2016 is as follows: For the years ended December 31 2017 2016 Net defined benefit pension plan expense: Current service cost $ 1,879 $ 1,677 Past service cost 812 — Net interest cost 720 715 Cost of settlement — — $ 3,411 $ 2,392 The Company’s current year actuarial gains (losses), recognized in the consolidated statements of comprehensive income (loss) for the years ended December 31, 2017 and 2016 , are as follows: For the years ended December 31 2017 2016 Actuarial gain (loss) $ 564 $ (77 ) Minimum funding requirement — — Actuarial gain (loss), net $ 564 $ (77 ) The Company uses a December 31 measurement date for its defined benefit pension plans. Actuarial reports for the Company’s defined benefit pension plans were prepared by independent actuaries for funding purposes as of December 31, 2016 in Canada. The next actuarial reports for funding purposes for the Company’s Canadian defined benefit pension plans are scheduled to be completed as of December 31, 2019. The discount rate is the most significant actuarial assumption used in accounting for the defined benefit pension plans. As at December 31, 2017 , the weighted average discount rate for the defined benefit obligation was 3.7% ( 2016 - 3.7% ). A decrease of 1% in the weighted average discount rate at the end of the reporting period, while holding all other assumptions constant, would result in an increase to the defined benefit obligation of approximately $6.3 million . The asset allocation for the defined benefit pension plan assets as at December 31, 2017 and 2016 is as follows: As at Dec 31 Dec 31 Equity securities 46 % 49 % Debt securities 29 % 27 % Cash and other short-term securities 25 % 24 % Total 100 % 100 % The fair values of the above equity and debt instruments are determined based on quoted market prices in active markets whereas the fair values of cash and other short-term securities are not based on quoted market prices in active markets. The plan assets are held separately from those of the Company in funds under the control of trustees. b) Defined contribution pension plans: The Company has defined contribution pension plans. The Company’s funding obligations under the defined contribution pension plans are limited to making regular payments to the plans, based on a percentage of employee earnings. Total net pension expense for the defined contribution pension plans charged to operations during the year ended December 31, 2017 was $ 8.1 million ( 2016 - $ 7.6 million ). |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments and contingencies | Commitments and contingencies: a) Take-or-pay purchase contracts and related commitments: The Company has commitments under take-or-pay contracts to purchase natural gas, to pay for transportation capacity related to the delivery of natural gas and to purchase oxygen and other feedstock requirements up to 2035. The minimum estimated commitment under these contracts, except as noted below, is as follows: As at December 31, 2017 2018 2019 2020 2021 2022 Thereafter $ 473,927 $ 371,167 $ 306,400 $ 308,338 $ 245,989 $ 1,300,609 In the above table, the Company has included natural gas commitments at the contractual volume and prices. b) Argentina natural gas supply contracts: Since June 2007, the Company’s natural gas suppliers from Argentina have curtailed all gas supply to the Company’s plants in Chile pursuant to long-term gas supply agreements. The Company has not received natural gas under these long-term agreements since 2007 and therefore potential future purchase obligations have been excluded from the table above. c) Operating lease commitments: The Company has future minimum lease payments under operating leases relating primarily to vessel charter, terminal facilities, office space, equipment and other operating lease commitments as follows: As at December 31, 2017 2018 2019 2020 2021 2022 Thereafter $ 90,820 $ 90,035 $ 56,973 $ 38,982 $ 37,858 $ 163,822 The minimum lease payments relate to the right of use of the leased asset and exclude non-lease elements such as the reimbursement of operating costs. For the year ended December 31, 2017 , the Company recognized as an expense $ 181.4 million ( 2016 - expense of $ 165.1 million ) relating to operating lease payments. The expense recognized includes amounts related to leased assets and the reimbursement of operating costs for time charter vessels. d) Leased assets not yet in service: The Company has future minimum lease payments under operating leases related to two time charter agreements for vessels which are currently under construction and expected to be delivered in 2019. The minimum lease payments under these leases have been excluded from the operating lease commitments table above as the contracts contain certain cancellation features which are dependent on the delivery of the vessels. Once delivered, these vessels will have a total minimum commitment of approximately $80 million per vessel over a 15 year life. e) Purchased methanol: The Company has marketing rights for 100% of the production from its jointly owned plants (the Atlas plant in Trinidad in which it has a 63.1% interest and the plant in Egypt in which it has a 50% interest), which results in purchase commitments of an additional 1.3 million tonnes per year of methanol offtake supply when these plants operate at capacity. As at December 31, 2017, the Company also had commitments to purchase methanol from other suppliers for approximately 0.8 million tonnes for 2018 and 1.5 million tonnes in aggregate thereafter. The pricing under these purchase commitments is referenced to pricing at the time of purchase or sale, and accordingly, no amounts have been included in the table above. |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2017 | |
Related Party [Abstract] | |
Related parties | Related parties: The Company has interests in significant subsidiaries and joint ventures as follows: Name Country of Principal activities Interest % Dec 31 Dec 31 Significant subsidiaries: Methanex Asia Pacific Limited Hong Kong Marketing & distribution 100 % 100 % Methanex Europe NV Belgium Marketing & distribution 100 % 100 % Methanex Methanol Company, LLC United States Marketing & distribution 100 % 100 % Egyptian Methanex Methanol Company S.A.E. Egypt Production 50 % 50 % Methanex Chile S.A. Chile Production 100 % 100 % Methanex New Zealand Limited New Zealand Production 100 % 100 % Methanex Trinidad (Titan) Unlimited Trinidad Production 100 % 100 % Methanex U.S.A. LLC United States Production 100 % 100 % Methanex Louisiana LLC United States Production 100 % 100 % Waterfront Shipping Company Limited 2 Cayman Islands Shipping 100 % 100 % Significant joint ventures: Atlas Methanol Company Unlimited 1 Trinidad Production 63.1 % 63.1 % 1 Summarized financial information for the group’s investment in Atlas is disclosed in note 6. 2 Waterfront Shipping Company Limited has a controlling interest in multiple ocean going vessels owned through less than wholly-owned entities as disclosed in note 23. Transactions between the Company and Atlas are considered related party transactions and are included within the summarized financial information in note 6. Atlas revenue for the year ended December 31, 2017 of $459 million ( 2016 - $214 million ) is a related party transaction as the Company has marketing rights for 100% of the methanol produced by Atlas. Balances outstanding with Atlas as at December 31, 2017 and provided in the summarized financial information in note 6 include receivables owing from Atlas to the Company of $13 million ( 2016 - $7 million ), and payables to Atlas of $98 million ( 2016 - $55 million ). The Company has total loans outstanding to Atlas as at December 31, 2017 of $76 million ( 2016 - $76 million ) which are unsecured and due at maturity. Remuneration of non-management directors and senior management, which includes the members of the executive leadership team, is as follows: For the years ended December 31 2017 2016 Short-term employee benefits $ 5,214 $ 5,315 Post-employment benefits 583 650 Other long-term employee benefits 43 47 Share-based compensation expense 1 40,668 16,172 Total $ 46,508 $ 22,184 1 Balance includes realized and unrealized gains (losses) from share-based compensation awards granted. |
Non-controlling interests
Non-controlling interests | 12 Months Ended |
Dec. 31, 2017 | |
Interest In Other Entities [Abstract] | |
Non-controlling interests | Non-controlling interests: Set out below is summarized financial information for each of our subsidiaries that have non-controlling interests. The amounts disclosed are before inter-company eliminations. As at Dec 31 Dec 31 Methanex Other 1 Total Methanex Other 1 Total Current assets $ 248,032 $ 27,240 $ 275,272 $ 155,422 $ 12,123 $ 167,545 Non-current assets 720,356 105,375 825,731 746,202 116,314 862,516 Current liabilities (231,259 ) (12,489 ) (243,748 ) (177,088 ) (14,622 ) (191,710 ) Non-current liabilities (293,184 ) (76,090 ) (369,274 ) (339,369 ) (84,540 ) (423,909 ) Net assets 443,945 44,036 487,981 385,167 29,275 414,442 Carrying amount of Methanex non-controlling interests $ 216,599 $ 27,748 $ 244,347 $ 188,099 $ 20,416 $ 208,515 For the years ended December 31 2017 2016 Methanex Other 1 Total Methanex Other 1 Total Revenue $ 285,017 $ 32,094 $ 317,111 $ 111,728 $ 26,148 $ 137,876 Net and total comprehensive income (loss) 65,241 6,981 72,222 (79,963 ) 4,781 (75,182 ) Net and total comprehensive income (loss) allocated to Methanex non-controlling interests 55,470 3,492 58,962 (18,069 ) 2,389 (15,680 ) Equity contributions by non-controlling interests $ — $ 8,170 $ 8,170 $ — $ 25 $ 25 Distributions paid and accrued to non-controlling interests $ (26,970 ) $ (4,330 ) $ (31,300 ) $ (23,264 ) $ (1,410 ) $ (24,674 ) For the years ended December 31 2017 2016 Methanex Other 1 Total Methanex Other 1 Total Cash flows from (used in) operating activities $ 131,175 $ 19,538 $ 150,713 $ (23,992 ) $ 17,718 $ (6,274 ) Cash flows from (used in) financing activities (27,365 ) (3,250 ) (30,615 ) (24,929 ) 55,891 30,962 Cash flows from (used in) investing activities $ (18,839 ) $ (605 ) $ (19,444 ) $ (4,637 ) $ (70,516 ) $ (75,153 ) 1 Other is comprised of multiple ocean going vessels controlled by Waterfront Shipping Company Limited through less than wholly-owned entities. The Company has reclassified the presentation of amounts relating to accrued distributions to Methanex Egypt in Changes in non-cash working capital from Operating activities to Financing activities. The reclassification has been reflected in the comparative figures. |
Significant accounting polici32
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Basis of presentation and consolidation | Basis of presentation and consolidation: These consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, less than wholly-owned entities for which it has a controlling interest and its equity-accounted joint venture. Wholly-owned subsidiaries are entities in which the Company has control, directly or indirectly, where control is defined as the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities. For less than wholly-owned entities for which the Company has a controlling interest, a non-controlling interest is included in the Company’s consolidated financial statements and represents the non-controlling shareholders’ interest in the net assets of the entity. The Company also consolidates any special purpose entity where the substance of the relationship indicates the Company has control. All significant intercompany transactions and balances have been eliminated. |
Use of estimates | Preparation of these consolidated financial statements requires estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and related notes. The areas of estimation and judgment that management considers most significant are property, plant and equipment (note 2(g)), financial instruments (note 2(o)), fair value measurements (note 2(p)) and income taxes (note 2(q)). Actual results could differ from those estimates. |
Reporting currency | Reporting currency and foreign currency translation: Functional currency is the currency of the primary economic environment in which an entity operates. The majority of the Company’s business in all jurisdictions is transacted in United States dollars and, accordingly, these consolidated financial statements have been measured and expressed in that currency. The Company translates foreign currency denominated monetary items at the period-end exchange rates, foreign currency denominated non-monetary items at historic rates and revenues and expenditures at the exchange rates at the dates of the transactions. Foreign exchange gains and losses are included in earnings. |
Foreign currency translation | Functional currency is the currency of the primary economic environment in which an entity operates. The majority of the Company’s business in all jurisdictions is transacted in United States dollars and, accordingly, these consolidated financial statements have been measured and expressed in that currency. The Company translates foreign currency denominated monetary items at the period-end exchange rates, foreign currency denominated non-monetary items at historic rates and revenues and expenditures at the exchange rates at the dates of the transactions. Foreign exchange gains and losses are included in earnings. |
Cash and cash equivalents | Cash and cash equivalents: Cash and cash equivalents include securities with maturities of three months or less when purchased. |
Receivables | Receivables: The Company provides credit to its customers in the normal course of business. The Company performs ongoing credit evaluations of its customers and maintains reserves for potential credit losses. The Company records an allowance for doubtful accounts or writes down the receivable to estimated net realizable value if not collectible in full. Credit losses have historically been within the range of management’s expectations. |
Inventories | Inventories: Inventories are valued at the lower of cost and estimated net realizable value. Cost is determined on a first-in, first-out basis and includes direct purchase costs, cost of production, allocation of production overhead and depreciation based on normal operating capacity and transportation. |
Property, plant and equipment | Property, plant and equipment: Initial recognition Property, plant and equipment are initially recorded at cost. The cost of purchased equipment includes expenditures that are directly attributable to the purchase price, delivery and installation. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to the location and condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located, and borrowing costs on self-constructed assets that meet certain criteria. Borrowing costs incurred during construction and commissioning are capitalized until the plant is operating in the manner intended by management. Subsequent costs Routine repairs and maintenance costs are expensed as incurred. At regular intervals, the Company conducts a planned shutdown and inspection (turnaround) at its plants to perform major maintenance and replacement of catalysts. Costs associated with these shutdowns are capitalized and amortized over the period until the next planned turnaround and the carrying amounts of replaced components are derecognized and included in earnings. Depreciation Depreciation and amortization is generally provided on a straight-line basis at rates calculated to amortize the cost of property, plant and equipment from the commencement of commercial operations over their estimated useful lives to estimated residual value. The estimated useful lives of the Company’s buildings, plant installations and machinery, excluding costs related to turnarounds, ranges from 10 to 25 years depending on the specific asset component and the production facility to which it is related. The Company determines the estimated useful lives of individual asset components based on the shorter of its physical life or economic life. The physical life of these assets is generally longer than the economic life. The economic life is primarily determined by the nature of the natural gas feedstock available to the various production facilities. Factors that influence the nature of natural gas feedstock availability include the terms of individual natural gas supply contracts, access to natural gas supply through open markets, regional factors influencing the exploration and development of natural gas and the expected price of securing natural gas supply. The Company reviews the factors related to each production facility on an annual basis to determine if changes are required to the estimated useful lives. Assets under finance lease are depreciated to their estimated residual value based on the shorter of their useful lives and the lease term. Impairment The Company reviews the carrying value of long-lived assets for impairment whenever events or changes in circumstances indicate an asset’s carrying value may not be recoverable. Examples of such events or changes in circumstances include, but are not restricted to: a significant adverse change in the extent or manner in which the asset is being used or in its physical condition; a significant change in the long-term methanol price or in the price or availability of natural gas feedstock required to manufacture methanol; a significant adverse change in legal factors or in the business climate that could affect the asset’s value, including an adverse action or assessment by a foreign government that impacts the use of the asset; or a current-period operating or cash flow loss combined with a history of operating or cash flow losses, or a projection or forecast that demonstrates continuing losses associated with the asset’s use. Recoverability of long-lived assets is measured by comparing the carrying value of an asset or cash-generating unit to the estimated recoverable amount, which is the higher of its estimated fair value less cost to sell or its value in use. Value in use is determined by estimating the pre-tax cash flows expected to be generated from the asset or cash-generating unit over its estimated useful life discounted by a pre-tax discount rate. An impairment writedown is recorded for the difference that the carrying value exceeds the estimated recoverable amount. An impairment writedown recognized in prior periods for an asset or cash-generating unit is reversed if there has been a subsequent recovery in the value of the asset or cash-generating unit due to changes in events and circumstances. For purposes of recognition and measurement of an impairment writedown, the Company groups long-lived assets with other assets and liabilities to form a "cash-generating unit" at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. To the extent that methanol facilities in a particular location are interdependent as a result of common infrastructure and/or feedstock from sources that can be shared within a facility location, the Company groups assets based on site locations for the purpose of determining impairment. |
Other assets | Other assets: Intangible assets are capitalized to other assets and amortized to depreciation and amortization expense on an appropriate basis to charge the cost of the assets against earnings. |
Finance costs | Financing fees related to undrawn credit facilities are capitalized to other assets and amortized to finance costs over the term of the credit facility. |
Leases | Leases: Leasing contracts are classified as either finance or operating leases based on the substance of the contractual arrangement at inception date. A lease is classified as a finance lease if it transfers substantially all of the risks and rewards of ownership of the leased asset. Where the contracts are classified as finance leases, upon initial recognition, the asset and liability are recorded at the lower of fair value and the present value of the minimum lease payments, net of executory costs. Finance lease payments are apportioned between interest expense and repayments of the liability. Where the contracts are classified as operating leases, they are not recognized in the Company's consolidated statements of financial position and lease payments are charged to income as they are incurred on a straight line basis over the lease term. |
Site restoration costs | Site restoration costs: The Company recognizes a liability to dismantle and remove assets or to restore a site upon which the assets are located. The Company estimates the present value of the expenditures required to settle the liability by determining the current market cost required to settle the site restoration costs, adjusts for inflation through to the expected date of the expenditures and then discounts this amount back to the date when the obligation was originally incurred. As the liability is initially recorded on a discounted basis, it is increased each period until the estimated date of settlement. The resulting expense is referred to as accretion expense and is included in finance costs. The Company reviews asset retirement obligations and adjusts the liability and corresponding asset as necessary to reflect changes in the estimated future cash flows, timing, inflation and discount rates underlying the measurement of the obligation. |
Employee future benefits | Employee future benefits: The Company has non-contributory defined benefit pension plans covering certain employees and defined contribution pension plans. The Company does not provide any significant post-retirement benefits other than pension plan benefits. For defined benefit pension plans, the net of the present value of the defined benefit obligation and the fair value of plan assets is recorded to the consolidated statements of financial position. The determination of the defined benefit obligation and associated pension cost is based on certain actuarial assumptions including inflation rates, mortality, plan expenses, salary growth and discount rates. The present value of the net defined benefit obligation (asset) is determined by discounting the net estimated future cash flows using current market bond yields that have terms to maturity approximating the terms of the net obligation. Actuarial gains and losses arising from differences between these assumptions and actual results are recognized in other comprehensive income and recorded in retained earnings. The Company recognizes gains and losses on the settlement of a defined benefit plan in income when the settlement occurs. The cost for defined contribution benefit plans is recognized in net income (loss) as earned by the employees. |
Share-based compensation | Share-based compensation: The Company grants share-based awards as an element of compensation. Share-based awards granted by the Company can include stock options, tandem share appreciation rights, share appreciation rights, deferred share units, restricted share units or performance share units. For stock options granted by the Company, the cost of the service received is measured based on an estimate of the fair value at the date of grant. The grant-date fair value is recognized as compensation expense over the vesting period with a corresponding increase in contributed surplus. On the exercise of stock options, consideration received, together with the compensation expense previously recorded to contributed surplus, is credited to share capital. The Company uses the Black-Scholes option pricing model to estimate the fair value of each stock option tranche at the date of grant. Share appreciation rights ("SARs") are units that grant the holder the right to receive a cash payment upon exercise for the difference between the market price of the Company’s common shares and the exercise price that is determined at the date of grant. Tandem share appreciation rights ("TSARs") give the holder the choice between exercising a regular stock option or a SAR. For SARs and TSARs, the cost of the service received is initially measured based on an estimate of the fair value at the date of grant. The grant-date fair value is recognized as compensation expense over the vesting period with a corresponding increase in liabilities. For SARs and TSARs, the liability is re-measured at each reporting date based on an estimate of the fair value with changes in fair value recognized as compensation expense for the proportion of the service that has been rendered at that date. The Company uses the Black-Scholes option pricing model to estimate the fair value for SARs and TSARs. Deferred, restricted and performance share units are grants of notional common shares that are redeemable for cash based on the market value of the Company’s common shares and are non-dilutive to shareholders. Performance share units have an additional feature where the ultimate number of units that vest will be determined by the Company’s total shareholder return in relation to a predetermined target over the period to vesting. The number of units that will ultimately vest will be in the range of 50% to 120% of the original grant for grants prior to 2014 and in the range of 25% to 150% for subsequent grants based on the weighted-average closing share price for the 90 calendar days on the NASDAQ Global Select Market immediately preceding the year end date that the performance share units vest. For deferred, restricted and performance share units, the cost of the service received as consideration is initially measured based on the market value of the Company’s common shares at the date of grant. The grant-date fair value is recognized as compensation expense over the vesting period with a corresponding increase in liabilities. Deferred, restricted and performance share units are re-measured at each reporting date based on the market value of the Company’s common shares with changes in fair value recognized as compensation expense for the proportion of the service that has been rendered at that date. Additional information related to the stock option plan, TSARs, SARs and the deferred, restricted and performance share units is described in note 13. |
Net income (loss) per common per share | Net income (loss) per common share: The Company calculates basic net income (loss) per common share by dividing net income (loss) attributable to Methanex shareholders by the weighted average number of common shares outstanding and calculates diluted net income (loss) per common share under the treasury stock method. Under the treasury stock method, diluted net income (loss) per common share is calculated by considering the potential dilution that would occur if outstanding stock options and, under certain circumstances, TSARs were exercised or converted to common shares. Stock options and TSARs are considered dilutive when the average market price of the Company’s common shares during the period disclosed exceeds the exercise price of the stock option or TSAR. Outstanding TSARs may be settled in cash or common shares at the holder’s option. For the purposes of calculating diluted net income (loss) per common share, the more dilutive of the cash-settled or equity-settled method is used, regardless of how the plan is accounted for. Accordingly, TSARs that are accounted for using the cash-settled method will require adjustments to the numerator and denominator if the equity-settled method is determined to have a dilutive effect on diluted net income (loss) per common share. The calculation of basic net income (loss) per common share and a reconciliation to diluted net income (loss) per common share is presented in note 12. |
Revenue recognition | Revenue recognition: Revenue is recognized based on individual contract terms when the risk of loss to the product transfers to the customer, which usually occurs at the time shipment is made. Revenue is recognized at the time of delivery to the customer’s location if the Company retains risk of loss during shipment. For methanol sold on a consignment basis, revenue is recognized when the customer consumes the methanol. For methanol sold on a commission basis, the commission income is included in revenue when earned. |
Financial instruments | Financial instruments: All financial instruments are measured at fair value on initial recognition. Measurement in subsequent periods is dependent on the classification of the respective financial instrument. Financial instruments are classified into one of three categories and, depending on the category, will either be measured at amortized cost or fair value with fair value changes either recorded through profit or loss or other comprehensive income. All non-derivative financial instruments held by the Company are classified and measured at amortized cost. The Company enters into derivative financial instruments to manage certain exposures to commodity price and foreign exchange volatility. Under these standards, derivative financial instruments, including embedded derivatives, are classified as fair value through profit or loss and are recorded in the consolidated statements of financial position at fair value unless they are in accordance with the Company’s normal purchase, sale or usage requirements. The valuation of derivative financial instruments is a critical accounting estimate due to the complex nature of these instruments, the degree of judgment required to appropriately value these instruments and the potential impact of such valuation on the Company’s financial statements. The Company records all changes in fair value of derivative financial instruments in profit or loss unless the instruments are designated as cash flow hedges. The Company enters into and designates as cash flow hedges certain forward contracts to hedge its highly probable forecast natural gas purchases and certain forward exchange purchase and sales contracts to hedge foreign exchange exposure on anticipated purchases or sales. The Company assesses at inception and on an ongoing basis whether the hedges are and continue to be effective in offsetting changes in the cash flows of the hedged transactions. The effective portion of changes in the fair value of these hedging instruments is recognized in other comprehensive income. Any gain or loss in fair value relating to the ineffective portion is recognized immediately in profit or loss. Until settled, the fair value of the derivative financial instruments will fluctuate based on changes in commodity prices, foreign currency exchange rates or variable interest rates. |
Fair value measurements | Fair value measurements: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements within the scope of IFRS 13 are categorized into Level 1, 2 or 3 based on the degree to which the inputs are observable and the significance of the inputs to the fair value measurement in its entirety. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. Financial instruments measured at fair value and categorized within the fair value hierarchy are disclosed in note 18. |
Income taxes | Income taxes: Income tax expense represents current tax and deferred tax. The Company records current tax based on the taxable profits for the period calculated using tax rates that have been enacted or substantively enacted by the reporting date. Income taxes relating to uncertain tax positions are provided for based on the Company’s best estimate. Deferred income taxes are accounted for using the liability method. The liability method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities and their tax bases. Deferred income tax assets and liabilities are determined for each temporary difference based on currently enacted or substantially enacted tax rates that are expected to be in effect when the underlying items are expected to be realized. The effect of a change in tax rates or tax legislation is recognized in the period of substantive enactment. Deferred tax assets, such as non-capital loss carryforwards, are recognized to the extent it is probable that taxable profit will be available against which the asset can be utilized. The Company accrues for taxes that will be incurred upon distributions from its subsidiaries when it is probable that the earnings will be repatriated. |
Provisions | Provisions: Provisions are recognized where a legal or constructive obligation has been incurred as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation. |
Segmented information | Segmented information: The Company’s operations consist of the production and sale of methanol, which constitutes a single operating segment. |
Application of new and revised accounting standards and Anticipated changes to International Financial Reporting Standards | Anticipated changes to International Financial Reporting Standards: In May 2014, the IASB issued IFRS 15, Revenue from Contracts with Customers ("IFRS 15") establishing a comprehensive framework for revenue recognition. The standard replaces IAS 18, Revenue and IAS 11, Construction Contracts and related interpretations and is effective for annual periods beginning on or after January 1, 2018, with early adoption permitted. The Company has performed its assessment of the impact of the new standard and anticipates no impact on its consolidated financial statements. In January 2016, the IASB issued IFRS 16, Leases ("IFRS 16"), which eliminates the current operating/finance lease dual accounting model for lessees and replaces it with a single, on-balance sheet accounting model, similar to the current finance lease accounting. The standard replaces IAS 17, Leases ("IAS 17") and related interpretations and is effective for annual periods beginning on or after January 1, 2019, with early application permitted. The Company plans to apply this standard at the date it becomes effective. The Company is currently assessing the impact of the new standard including the optional exemptions available. The recognition of all leases on balance sheet is expected to increase the assets and liabilities on the Consolidated Statement of Financial Position upon adoption. The increase primarily relates to ocean vessels, terminal facilities and other right of use assets currently accounted for as operating leases. In addition, the nature and timing of certain expenses related to leases previously classified as operating and presented in cost of sales and operating expenses will now change and be presented in depreciation and amortization and finance costs. As a result, the Company expects that adoption of IFRS 16 will significantly impact the consolidated financial statements. The Company has not yet decided whether it will use the optional exemptions available under the standard. Refer to note 21, commitments and contingencies, for operating lease commitments as at December 31, 2017 disclosed under IAS 17. The Company does not expect that any other new or amended standards or interpretations that are effective as of January 1, 2018 will have a significant impact on the Company’s results of operations or financial position. Application of new and revised accounting standards: The Company has adopted the amendments to IAS 7, Statement of Cash Flows, which were effective for annual periods beginning on or after January 1, 2017. As a result of applying the amendment, the Company presented new disclosures relating to change in financial liabilities arising from financing activities (note16(b)). |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of trade and other receivables | As at Dec 31 Dec 31 Trade $ 429,582 $ 335,606 Value-added and other tax receivables 36,584 63,738 Egypt gas contract recoveries (a) 24,466 41,578 Other 46,004 58,681 $ 536,636 $ 499,603 a) Egypt gas contract recoveries: The natural gas supply agreement in Egypt has a mechanism whereby the Company is partially compensated when gas delivery shortfalls exceed a certain threshold. The receivable is secured by a combination of funds held in escrow and a bank guarantee. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment [abstract] | |
Schedule of property, plant and equipment | Buildings, plant Finance Other TOTAL Cost at January 1, 2017 $ 4,549,816 $ 206,260 $ 272,878 $ 5,028,954 Additions 98,780 7,667 5,001 111,448 Disposals and other 328 1,846 (2,386 ) (212 ) Cost at December 31, 2017 4,648,924 215,773 275,493 5,140,190 Accumulated depreciation at January 1, 2017 1,752,540 18,557 140,388 1,911,485 Disposals and other (2,066 ) — (673 ) (2,739 ) Depreciation 205,843 15,370 11,905 233,118 Accumulated depreciation at December 31, 2017 1,956,317 33,927 151,620 2,141,864 Net book value at December 31, 2017 $ 2,692,607 $ 181,846 $ 123,873 $ 2,998,326 Buildings, plant Finance Other TOTAL Cost at January 1, 2016 $ 4,521,835 $ 121,849 $ 204,483 $ 4,848,167 Additions 35,644 87,800 74,303 197,747 Disposals and other (7,663 ) (3,389 ) (5,908 ) (16,960 ) Cost at December 31, 2016 4,549,816 206,260 272,878 5,028,954 Accumulated depreciation at January 1, 2016 1,545,834 6,853 136,698 1,689,385 Disposals and other (945 ) — (5,908 ) (6,853 ) Depreciation 207,651 11,704 9,598 228,953 Accumulated depreciation at December 31, 2016 1,752,540 18,557 140,388 1,911,485 Net book value at December 31, 2016 $ 2,797,276 $ 187,703 $ 132,490 $ 3,117,469 |
Investment in associate (Tables
Investment in associate (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interests In Other Entities [Abstract] | |
Summarized financial information in associate | Summarized financial information of Atlas (100% basis) is as follows: Consolidated statements of financial position as at Dec 31 Dec 31 Cash and cash equivalents $ 8,361 $ 15,530 Other current assets 1 79,738 45,219 Non-current assets 289,671 324,297 Current liabilities 1 (41,388 ) (24,783 ) Other long-term liabilities, including current maturities (157,935 ) (168,253 ) Net assets at 100% 178,447 192,010 Net assets at 63.1% 112,600 121,158 Long-term receivable from Atlas 1 76,322 76,244 Investment in associate $ 188,922 $ 197,402 Consolidated statements of income for the years ended December 31 2017 2016 Revenue 1 $ 459,367 $ 213,533 Cost of sales and depreciation and amortization (261,121 ) (145,126 ) Operating income 198,246 68,407 Finance costs, finance income and other expenses (11,170 ) (12,771 ) Income tax expense (66,640 ) (24,052 ) Net earnings at 100% 120,436 31,584 Earnings of associate at 63.1% 75,995 19,930 Dividends received from associate $ 84,553 $ 47,325 1 Includes related party transactions between Atlas and the Company (see note 22). |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of other assets | As at Dec 31 Dec 31 Restricted cash $ 27,863 $ 35,386 Chile VAT receivable 25,456 23,406 Investment in Carbon Recycling International 4,502 4,502 Defined benefit pension plans (note 20) 6,650 5,862 Other 13,555 9,628 $ 78,026 $ 78,784 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Schedule of long-term debt | As at Dec 31 Dec 31 Unsecured notes (i) 3.25% due December 15, 2019 $ 348,060 $ 347,126 (ii) 5.25% due March 1, 2022 248,072 247,685 (iii) 4.25% due December 1, 2024 296,873 296,529 (iv) 5.65% due December 1, 2044 295,158 295,084 1,188,163 1,186,424 Egypt limited recourse debt facilities 241,190 288,515 Other limited recourse debt facilities 72,918 81,267 Total long-term debt 1 1,502,271 1,556,206 Less current maturities 1 (55,905 ) (53,997 ) $ 1,446,366 $ 1,502,209 1 Long-term debt and current maturities are presented net of discounts and deferred financing fees of $17.8 million as at December 31, 2017 (2016 - $17.8 million ). |
Schedule of minimum principal payments for long-term debt | The minimum principal payments for long-term debt in aggregate and for each of the five succeeding years are as follows: Limited recourse debt facilities Unsecured Total 2018 $ 57,072 $ — $ 57,072 2019 60,100 350,000 410,100 2020 62,115 — 62,115 2021 109,462 — 109,462 2022 31,279 250,000 281,279 Thereafter — 600,000 600,000 $ 320,028 $ 1,200,000 $ 1,520,028 |
Other long-term liabilities (Ta
Other long-term liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Composition of other liabilities | As at Dec 31 Dec 31 Site restoration costs (a) $ 33,975 $ 30,512 Finance lease obligations (b) 204,242 201,268 Share-based compensation liability (note 13) 111,405 53,725 Cash flow hedges (note 18) 90,199 68,664 Defined benefit pension plans (note 20) 25,076 22,403 Other 5,214 4,339 470,111 380,911 Less current maturities (65,226 ) (29,720 ) $ 404,885 $ 351,191 |
Provision for site restoration costs | The movement in the provision during the year is explained as follows: 2017 2016 Balance at January 1 $ 30,512 $ 29,892 New or revised provisions 2,823 51 Accretion expense 640 569 Balance at December 31 $ 33,975 $ 30,512 |
Finance lease obligations payable | Finance lease obligations are payable as follows: Lease Interest Finance lease obligations 2018 $ 31,447 $ 23,549 $ 7,898 2019 31,826 22,727 9,099 2020 32,213 21,756 10,457 2021 32,608 20,612 11,996 2022 33,010 19,271 13,739 Thereafter 236,772 85,719 151,053 $ 397,876 $ 193,634 $ 204,242 The Company has future minimum lease payments under operating leases relating primarily to vessel charter, terminal facilities, office space, equipment and other operating lease commitments as follows: As at December 31, 2017 2018 2019 2020 2021 2022 Thereafter $ 90,820 $ 90,035 $ 56,973 $ 38,982 $ 37,858 $ 163,822 |
Expenses (Tables)
Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |
Schedule of expenses | For the years ended December 31 2017 2016 Cost of sales $ 2,035,545 $ 1,533,915 Selling and distribution 449,593 408,893 Administrative expenses 99,036 59,675 Total expenses by function $ 2,584,174 $ 2,002,483 Cost of raw materials and purchased methanol $ 1,637,085 $ 1,140,551 Ocean freight and other logistics 374,717 351,609 Employee expenses, including share-based compensation 243,707 204,762 Other expenses 96,440 77,507 Cost of sales and operating expenses 2,351,949 1,774,429 Depreciation and amortization 232,225 228,054 Total expenses by nature $ 2,584,174 $ 2,002,483 |
Net income (loss) per common 40
Net income (loss) per common share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per share [abstract] | |
Earnings per share reconciliation | A reconciliation of the denominator used for the purposes of calculating basic and diluted net income (loss) per common share is as follows: For the years ended December 31 2017 2016 Denominator for basic net income (loss) per common share 86,768,589 89,783,883 Effect of dilutive stock options 56,359 — Denominator for diluted net income (loss) per common share 86,824,948 89,783,883 For the years ended December 31, 2017 and 2016 , basic and diluted net income (loss) per common share attributable to Methanex shareholders were as follows: For the years ended December 31 2017 2016 Basic net income (loss) per common share $ 3.64 $ (0.14 ) Diluted net income (loss) per common share $ 3.64 $ (0.14 ) |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-Based Payment Arrangements [Abstract] | |
Changes in number and exercise prices of other equity instruments | All SARs and TSARs granted have a maximum term of seven years with one-third vesting each year after the date of grant. SARs and TSARs units outstanding at December 31, 2017 are as follows: SARs TSARs Number of Exercise Number of Exercise Outstanding at December 31, 2015 1,259,208 $ 44.48 2,108,965 $ 42.73 Granted 375,500 34.59 574,600 34.59 Exercised (73,291 ) 27.43 (212,505 ) 25.38 Cancelled (49,932 ) 49.77 (54,949 ) 52.55 Outstanding at December 31, 2016 1,511,485 $ 42.68 2,416,111 $ 42.10 Granted 167,600 50.15 340,200 50.17 Exercised (213,207 ) 32.03 (710,616 ) 32.98 Cancelled (10,801 ) 50.18 (2,200 ) 34.59 Expired (5,000 ) 25.22 — — Outstanding at December 31, 2017 1,450,077 $ 45.11 2,043,495 $ 46.62 Deferred, restricted and performance share units outstanding as at December 31, 2017 are as follows: Number of Number of Number of Outstanding at December 31, 2015 285,816 13,864 610,578 Granted 8,269 11,500 261,760 Granted performance factor 1 — — 55,592 Granted in lieu of dividends 8,430 773 18,082 Redeemed (51,498 ) (7,488 ) (355,415 ) Cancelled — — (18,325 ) Outstanding at December 31, 2016 251,017 18,649 572,272 Granted 10,452 8,100 163,500 Performance factor impact on redemption 1 — — (102,557 ) Granted in lieu of dividends 5,669 613 14,383 Redeemed (42,292 ) (6,907 ) (34,186 ) Cancelled — — (8,517 ) Outstanding at December 31, 2017 224,846 20,455 604,895 1 Performance share units have a feature where the ultimate number of units that vest are adjusted by a performance factor of the original grant as determined by the Company’s total shareholder return in relation to a predetermined target over the period to vesting. The performance factor is measured based on the weighted-average closing share price for the 90 calendar days on the NASDAQ Global Select Market immediately preceding the year end date that the performance share units vest. |
Number and weighted average remaining contractual life of SARs and TSARs outstanding and exercisable | Information regarding the SARs and TSARs outstanding as at December 31, 2017 is as follows: Units outstanding at December 31, 2017 Units exercisable at December 31, 2017 Range of exercise prices Weighted average Number Weighted Number Weighted SARs $25.97 to $35.51 3.36 585,317 $ 32.94 345,629 $ 31.79 $38.24 to $73.13 3.77 864,760 53.35 609,687 53.94 3.61 1,450,077 $ 45.11 955,316 $ 45.93 TSARs $25.97 to $35.51 3.94 779,194 $ 33.67 401,049 $ 32.80 $38.24 to $73.13 4.09 1,264,301 54.60 794,658 56.33 4.03 2,043,495 $ 46.62 1,195,707 $ 48.44 |
SARs and TSARs outstanding and exercisable by range of exercise prices | Information regarding the SARs and TSARs outstanding as at December 31, 2017 is as follows: Units outstanding at December 31, 2017 Units exercisable at December 31, 2017 Range of exercise prices Weighted average Number Weighted Number Weighted SARs $25.97 to $35.51 3.36 585,317 $ 32.94 345,629 $ 31.79 $38.24 to $73.13 3.77 864,760 53.35 609,687 53.94 3.61 1,450,077 $ 45.11 955,316 $ 45.93 TSARs $25.97 to $35.51 3.94 779,194 $ 33.67 401,049 $ 32.80 $38.24 to $73.13 4.09 1,264,301 54.60 794,658 56.33 4.03 2,043,495 $ 46.62 1,195,707 $ 48.44 |
Weighted average assumptions of outstanding SARs and TSARs | The fair value of each outstanding SARs and TSARs grant was estimated on December 31, 2017 using the Black-Scholes option pricing model with the following weighted average assumptions: 2017 2016 Risk-free interest rate 1.8 % 1.0 % Expected dividend yield 2.0 % 2.5 % Expected life of SARs and TSARs (years) 1.2 1.4 Expected volatility 31 % 41 % Expected forfeitures 0.2 % 0.2 % Weighted average fair value (USD per share) $ 19.02 $ 10.19 |
Changes in stock options issued | Common shares reserved for outstanding incentive stock options as at December 31, 2017 and 2016 are as follows: Number of Weighted Outstanding at December 31, 2015 448,507 $30.52 Granted 75,500 34.59 Exercised (153,140 ) 9.80 Cancelled (14,100 ) 44.04 Expired (12,000 ) 6.33 Outstanding at December 31, 2016 344,767 $40.91 Granted 31,400 50.17 Exercised (98,274 ) 30.90 Cancelled (15,358 ) 52.43 Outstanding at December 31, 2017 262,535 $45.09 |
Stock options outstanding and exercisable by range of exercise prices | Information regarding the stock options outstanding as at December 31, 2017 is as follows: Options outstanding at December 31, 2017 Options exercisable at December 31, 2017 Range of exercise prices Weighted Number of Weighted Number of Weighted Options $25.97 to $35.51 3.40 103,850 $33.08 60,980 $32.02 $38.24 to $73.13 3.69 158,685 52.95 114,380 53.28 3.58 262,535 $45.09 175,360 $45.88 |
Number and weighted average remaining contractual life of stock options outstanding and exercisable | Information regarding the stock options outstanding as at December 31, 2017 is as follows: Options outstanding at December 31, 2017 Options exercisable at December 31, 2017 Range of exercise prices Weighted Number of Weighted Number of Weighted Options $25.97 to $35.51 3.40 103,850 $33.08 60,980 $32.02 $38.24 to $73.13 3.69 158,685 52.95 114,380 53.28 3.58 262,535 $45.09 175,360 $45.88 |
Segmented information (Tables)
Segmented information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Operating Segments [Abstract] | |
Revenue attributed to geographic regions | During the years ended December 31, 2017 and 2016 , revenues attributed to geographic regions, based on the location of customers, were as follows: Revenue China Europe United States South Korea South America Canada Other Asia TOTAL 2017 $ 801,838 $ 608,668 $ 570,482 $ 347,896 $ 279,270 $ 167,436 $ 285,052 $ 3,060,642 2016 $ 518,499 $ 403,879 $ 359,476 $ 257,658 $ 179,287 $ 109,706 $ 169,924 $ 1,998,429 As at December 31, 2017 and 2016 , the net book value of property, plant and equipment by country was as follows: Property, plant and equipment United Egypt New Trinidad Canada Chile Other TOTAL 2017 $ 1,412,394 $ 720,397 $ 265,153 $ 155,525 $ 148,420 $ 107,495 $ 188,942 $ 2,998,326 2016 $ 1,468,283 $ 742,446 $ 261,482 $ 176,256 $ 154,982 $ 108,065 $ 205,955 $ 3,117,469 |
Income and other taxes (Tables)
Income and other taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Components of income tax expense | Income tax expense: For the years ended December 31 2017 2016 Current tax recovery (expense): Current period before undernoted items $ (85,287 ) $ (44,743 ) Impact of Argentina gas settlement — (7,800 ) Adjustments to prior years (217 ) (2,134 ) (85,504 ) (54,677 ) Deferred tax recovery (expense): Origination and reversal of temporary differences 23,310 82,838 Impact of Argentina gas settlement — (3,575 ) Derecognition of non-capital loss carryforwards — (17,861 ) Adjustments to prior years 200 1,667 Change in U.S. tax rate (36,567 ) — Change in other jurisdictions tax rates 734 — Other 2,039 887 (10,284 ) 63,956 Total income tax recovery (expense) $ (95,788 ) $ 9,279 |
Reconciliation of accounting profit multiplied by applicable tax rates | Income tax expense differs from the amounts that would be obtained by applying the Canadian statutory income tax rate to net income (loss) before income taxes as follows: For the years ended December 31 2017 2016 Income (loss) before income taxes $ 470,885 $ (37,504 ) Deduct earnings of associate (75,995 ) (19,930 ) 394,890 (57,434 ) Canadian statutory tax rate 26.5 % 26.5 % Income tax recovery (expense) calculated at Canadian statutory tax rate (104,646 ) 15,220 Increase (decrease) in income tax recovery resulting from: Impact of income and losses taxed in foreign jurisdictions 30,223 34,857 Derecognition of non-capital loss carryforwards — (17,861 ) Unrecognised loss carryforwards and temporary differences 20,468 (6,468 ) Impact of tax rate changes in the U.S. (36,567 ) — Impact of tax rate changes in other jurisdictions 734 — Impact of foreign exchange 3,104 (4,332 ) Other business taxes (4,105 ) (5,404 ) Adjustments to prior years (17 ) (467 ) Other (4,982 ) (6,266 ) Total income tax recovery (expense) $ (95,788 ) $ 9,279 |
Effect of temporary difference, unused tax losses and unused tax credits and analysis of change in deferred income tax liabilities | The tax effect of temporary differences that give rise to deferred income tax liabilities and deferred income tax assets are as follows: As at Dec 31 Dec 31 Net Deferred tax assets Deferred tax liabilities Net Deferred tax assets Deferred tax liabilities Property, plant and equipment $ (403,705 ) $ (189,368 ) $ (214,337 ) $ (419,982 ) $ (197,931 ) $ (222,051 ) Repatriation taxes (87,239 ) — (87,239 ) (85,364 ) — (85,364 ) Other (11,670 ) (3,740 ) (7,930 ) (19,956 ) (4,981 ) (14,975 ) (502,614 ) (193,108 ) (309,506 ) (525,302 ) (202,912 ) (322,390 ) Non-capital loss carryforwards 244,576 244,576 — 280,931 280,931 — Share-based compensation 19,920 2,946 16,974 8,590 935 7,655 Other 74,027 47,927 26,100 82,142 58,387 23,755 338,523 295,449 43,074 371,663 340,253 31,410 Net deferred income tax assets (liabilities) $ (164,091 ) $ 102,341 $ (266,432 ) $ (153,639 ) $ 137,341 $ (290,980 ) Analysis of the change in deferred income tax assets and liabilities: 2017 2016 Net Deferred tax assets Deferred tax liabilities Net Deferred tax assets Deferred tax liabilities Balance, January 1 $ (153,639 ) $ 137,341 $ (290,980 ) $ (223,757 ) $ 61,881 $ (285,638 ) Deferred income tax recovery (expense) included in net income (loss) (10,284 ) (34,517 ) 24,233 63,956 69,110 (5,154 ) Impact of U.S. tax rate change in other comprehensive income (8,621 ) (8,621 ) — — — — Deferred income tax recovery (expense) included in other comprehensive income (loss) 9,295 8,398 897 6,597 6,364 233 Other (842 ) (260 ) (582 ) (435 ) (14 ) (421 ) Balance, December 31 $ (164,091 ) $ 102,341 $ (266,432 ) $ (153,639 ) $ 137,341 $ (290,980 ) |
Supplemental cash flow inform44
Supplemental cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash Flow Statement [Abstract] | |
Changes in non-cash working capital | Changes in non-cash working capital for the years ended December 31, 2017 and 2016 are as follows: For the years ended December 31 2017 2016 Changes in non-cash working capital: Trade and other receivables $ (37,033 ) $ 4,747 Inventories (23,136 ) (28,094 ) Prepaid expenses (5,702 ) (1,286 ) Trade, other payables and accrued liabilities, including long-term payables included in other long-term liabilities 103,601 14,577 37,730 (10,056 ) Adjustments for items not having a cash effect and working capital changes relating to taxes and interest paid (89,445 ) (65,850 ) Changes in non-cash working capital $ (51,715 ) $ (75,906 ) These changes relate to the following activities: Operating $ (49,368 ) $ (87,644 ) Financing — — Investing (2,347 ) 11,738 Changes in non-cash working capital $ (51,715 ) $ (75,906 ) |
Reconciliation of liabilities arising from financing activities | Reconciliation of movements in liabilities to cash flows arising from financing activities: Long term debt Finance lease obligations (note 9) Balance at December 31, 2016 $ 1,556,206 $ 201,268 Changes from financing cash flows Repayment of long-term debt and financing fees (56,997 ) — Payment of finance lease liabilities — (6,880 ) Total changes from financing cash flows $ (56,997 ) $ (6,880 ) Liability-related other changes Finance costs $ 3,062 $ — New finance leases — 9,512 Other — 342 Total liability-related other changes $ 3,062 $ 9,854 Balance at December 31, 2017 $ 1,502,271 $ 204,242 |
Capital disclosures (Tables)
Capital disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Schedule of liquidity and capitalization | As at Dec 31 Dec 31 Liquidity: Cash and cash equivalents $ 375,479 $ 223,890 Undrawn credit facilities 300,000 300,000 Total liquidity $ 675,479 $ 523,890 Capitalization: Unsecured notes $ 1,188,163 $ 1,186,424 Limited recourse debt facilities, including current portion 314,108 369,782 Total debt 1,502,271 1,556,206 Non-controlling interests 244,347 208,515 Shareholders’ equity 1,500,764 1,596,835 Total capitalization $ 3,247,382 $ 3,361,556 Total debt to capitalization 1 46 % 46 % Net debt to capitalization 2 39 % 42 % 1 Total debt (including 100% of Egypt limited recourse debt facilities) divided by total capitalization. 2 Total debt (including 100% of Egypt limited recourse debt facilities) less cash and cash equivalents divided by total capitalization less cash and cash equivalents. |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Fair value measurement of assets | The following table provides the carrying value of each category of financial assets and liabilities and the related balance sheet item: As at Dec 31 Dec 31 Financial assets: Financial assets measured at fair value: Derivative instruments designated as cash flow hedges 1 $ — $ 7,024 Financial assets not measured at fair value: Cash and cash equivalents 375,479 223,890 Trade and other receivables, excluding tax receivable 527,084 479,272 Project financing reserve accounts included in other assets 27,863 35,386 Total financial assets 2 $ 930,426 $ 745,572 Financial liabilities: Financial liabilities measured at fair value: Derivative instruments designated as cash flow hedges 1 $ 91,014 $ 68,664 Financial liabilities not measured at fair value: Trade, other payables and accrued liabilities, excluding tax payable 528,182 449,213 Long-term debt, including current portion 1,502,271 1,556,206 Total financial liabilities $ 2,121,467 $ 2,074,083 1 The Geismar 2 and Medicine Hat natural gas hedges and euro foreign currency hedges designated as cash flow hedges are measured at fair value based on industry accepted valuation models and inputs obtained from active markets. 2 The carrying amount of the financial assets represents the maximum exposure to credit risk at the respective reporting periods. |
Fair value measurement of liabilities | The carrying values of the Company’s financial instruments approximate their fair values, except as follows: As at December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair Long-term debt excluding deferred financing fees $ 1,515,544 $ 1,561,392 $ 1,568,822 $ 1,538,543 The following table provides the carrying value of each category of financial assets and liabilities and the related balance sheet item: As at Dec 31 Dec 31 Financial assets: Financial assets measured at fair value: Derivative instruments designated as cash flow hedges 1 $ — $ 7,024 Financial assets not measured at fair value: Cash and cash equivalents 375,479 223,890 Trade and other receivables, excluding tax receivable 527,084 479,272 Project financing reserve accounts included in other assets 27,863 35,386 Total financial assets 2 $ 930,426 $ 745,572 Financial liabilities: Financial liabilities measured at fair value: Derivative instruments designated as cash flow hedges 1 $ 91,014 $ 68,664 Financial liabilities not measured at fair value: Trade, other payables and accrued liabilities, excluding tax payable 528,182 449,213 Long-term debt, including current portion 1,502,271 1,556,206 Total financial liabilities $ 2,121,467 $ 2,074,083 1 The Geismar 2 and Medicine Hat natural gas hedges and euro foreign currency hedges designated as cash flow hedges are measured at fair value based on industry accepted valuation models and inputs obtained from active markets. 2 The carrying amount of the financial assets represents the maximum exposure to credit risk at the respective reporting periods. |
Maturity profile of fair value liabilities | The table below shows net cash outflows for derivative hedging instruments including natural gas forward contracts and forward exchange contracts, excluding credit risk adjustments, based upon contracted payment dates. The amounts reflect the maturity profile of the fair value liabilities and are subject to change based on the prevailing market rate at each of the future settlement dates. Financial asset derivative positions, if any, are held with investment-grade counterparties and therefore the settlement day risk exposure is considered to be negligible. As at Dec 31 Dec 31 Within one year $ 7,114 $ — 1-3 years 17,057 8,481 3-5 years 28,864 18,962 More than 5 years 52,085 56,029 $ 105,120 $ 83,472 |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments [Abstract] | |
Schedule of interest rate risk exposure | The Company’s interest rate risk exposure is mainly related to long-term debt obligations. As at Dec 31 Dec 31 Fixed interest rate debt: Unsecured notes $ 1,188,163 $ 1,186,424 $ 1,188,163 $ 1,186,424 Variable interest rate debt: Egypt limited recourse debt facilities $ 241,190 $ 288,515 Other limited recourse debt facilities 72,918 81,267 $ 314,108 $ 369,782 |
Expected cash flows of financial liabilities by maturity date | The expected cash flows of financial liabilities from the date of the balance sheet to the contractual maturity date are as follows: As at December 31, 2017 Carrying Contractual 1 year or less 1-3 years 3-5 years More than Trade and other payables 1 $ 519,352 $ 519,352 $ 519,352 $ — $ — $ — Finance lease obligations 204,242 397,876 31,447 64,039 65,618 236,772 Long-term debt 2 1,502,271 2,178,011 121,689 586,091 471,831 998,400 Cash flow hedges 91,014 105,120 7,114 17,057 28,864 52,085 $ 2,316,879 $ 3,200,359 $ 679,602 $ 667,187 $ 566,313 $ 1,287,257 1 Excludes tax and accrued interest. 2 Contractual cash flows include contractual interest payments related to debt obligations. Interest rates on variable rate debt are based on prevailing rates as at December 31, 2017. |
Retirement plans (Tables)
Retirement plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefits [Abstract] | |
Disclosure of net defined benefit liability (asset) | Information concerning the Company’s defined benefit pension plans, in aggregate, is as follows: As at Dec 31 Dec 31 Accrued benefit obligations: Balance, beginning of year $ 60,771 $ 55,966 Current service cost 1,879 1,677 Past service cost 812 — Interest cost on accrued benefit obligations 2,242 2,269 Benefit payments (5,280 ) (2,570 ) Settlements — — Actuarial loss 166 2,393 Foreign exchange loss 4,803 1,036 Balance, end of year 65,393 60,771 Fair values of plan assets: Balance, beginning of year 44,230 40,286 Interest income on assets 1,522 1,553 Contributions 1,970 2,722 Benefit payments (5,280 ) (2,570 ) Settlements — — Return on plan assets 1,330 2,345 Foreign exchange gain (loss) 3,219 (106 ) Balance, end of year 46,991 44,230 Unfunded status 18,402 16,541 Minimum funding requirement — — Defined benefit obligation, net $ 18,402 $ 16,541 |
Expense recognized in the income statement | The Company’s net defined benefit pension plan expense charged to the consolidated statements of income for the years ended December 31, 2017 and 2016 is as follows: For the years ended December 31 2017 2016 Net defined benefit pension plan expense: Current service cost $ 1,879 $ 1,677 Past service cost 812 — Net interest cost 720 715 Cost of settlement — — $ 3,411 $ 2,392 |
Expense recognized in other comprehensive income | The Company’s current year actuarial gains (losses), recognized in the consolidated statements of comprehensive income (loss) for the years ended December 31, 2017 and 2016 , are as follows: For the years ended December 31 2017 2016 Actuarial gain (loss) $ 564 $ (77 ) Minimum funding requirement — — Actuarial gain (loss), net $ 564 $ (77 ) |
Disclosure of fair value of plan assets | The asset allocation for the defined benefit pension plan assets as at December 31, 2017 and 2016 is as follows: As at Dec 31 Dec 31 Equity securities 46 % 49 % Debt securities 29 % 27 % Cash and other short-term securities 25 % 24 % Total 100 % 100 % |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies [Abstract] | |
Schedule of minimum estimated commitment under purchase contracts | The minimum estimated commitment under these contracts, except as noted below, is as follows: As at December 31, 2017 2018 2019 2020 2021 2022 Thereafter $ 473,927 $ 371,167 $ 306,400 $ 308,338 $ 245,989 $ 1,300,609 |
Schedule of minimum lease payments | Finance lease obligations are payable as follows: Lease Interest Finance lease obligations 2018 $ 31,447 $ 23,549 $ 7,898 2019 31,826 22,727 9,099 2020 32,213 21,756 10,457 2021 32,608 20,612 11,996 2022 33,010 19,271 13,739 Thereafter 236,772 85,719 151,053 $ 397,876 $ 193,634 $ 204,242 The Company has future minimum lease payments under operating leases relating primarily to vessel charter, terminal facilities, office space, equipment and other operating lease commitments as follows: As at December 31, 2017 2018 2019 2020 2021 2022 Thereafter $ 90,820 $ 90,035 $ 56,973 $ 38,982 $ 37,858 $ 163,822 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party [Abstract] | |
Disclosure of interests in subsidiaries | The Company has interests in significant subsidiaries and joint ventures as follows: Name Country of Principal activities Interest % Dec 31 Dec 31 Significant subsidiaries: Methanex Asia Pacific Limited Hong Kong Marketing & distribution 100 % 100 % Methanex Europe NV Belgium Marketing & distribution 100 % 100 % Methanex Methanol Company, LLC United States Marketing & distribution 100 % 100 % Egyptian Methanex Methanol Company S.A.E. Egypt Production 50 % 50 % Methanex Chile S.A. Chile Production 100 % 100 % Methanex New Zealand Limited New Zealand Production 100 % 100 % Methanex Trinidad (Titan) Unlimited Trinidad Production 100 % 100 % Methanex U.S.A. LLC United States Production 100 % 100 % Methanex Louisiana LLC United States Production 100 % 100 % Waterfront Shipping Company Limited 2 Cayman Islands Shipping 100 % 100 % Significant joint ventures: Atlas Methanol Company Unlimited 1 Trinidad Production 63.1 % 63.1 % 1 Summarized financial information for the group’s investment in Atlas is disclosed in note 6. 2 Waterfront Shipping Company Limited has a controlling interest in multiple ocean going vessels owned through less than wholly-owned entities as disclosed in note 23. Set out below is summarized financial information for each of our subsidiaries that have non-controlling interests. The amounts disclosed are before inter-company eliminations. As at Dec 31 Dec 31 Methanex Other 1 Total Methanex Other 1 Total Current assets $ 248,032 $ 27,240 $ 275,272 $ 155,422 $ 12,123 $ 167,545 Non-current assets 720,356 105,375 825,731 746,202 116,314 862,516 Current liabilities (231,259 ) (12,489 ) (243,748 ) (177,088 ) (14,622 ) (191,710 ) Non-current liabilities (293,184 ) (76,090 ) (369,274 ) (339,369 ) (84,540 ) (423,909 ) Net assets 443,945 44,036 487,981 385,167 29,275 414,442 Carrying amount of Methanex non-controlling interests $ 216,599 $ 27,748 $ 244,347 $ 188,099 $ 20,416 $ 208,515 For the years ended December 31 2017 2016 Methanex Other 1 Total Methanex Other 1 Total Revenue $ 285,017 $ 32,094 $ 317,111 $ 111,728 $ 26,148 $ 137,876 Net and total comprehensive income (loss) 65,241 6,981 72,222 (79,963 ) 4,781 (75,182 ) Net and total comprehensive income (loss) allocated to Methanex non-controlling interests 55,470 3,492 58,962 (18,069 ) 2,389 (15,680 ) Equity contributions by non-controlling interests $ — $ 8,170 $ 8,170 $ — $ 25 $ 25 Distributions paid and accrued to non-controlling interests $ (26,970 ) $ (4,330 ) $ (31,300 ) $ (23,264 ) $ (1,410 ) $ (24,674 ) For the years ended December 31 2017 2016 Methanex Other 1 Total Methanex Other 1 Total Cash flows from (used in) operating activities $ 131,175 $ 19,538 $ 150,713 $ (23,992 ) $ 17,718 $ (6,274 ) Cash flows from (used in) financing activities (27,365 ) (3,250 ) (30,615 ) (24,929 ) 55,891 30,962 Cash flows from (used in) investing activities $ (18,839 ) $ (605 ) $ (19,444 ) $ (4,637 ) $ (70,516 ) $ (75,153 ) 1 Other is comprised of multiple ocean going vessels controlled by Waterfront Shipping Company Limited through less than wholly-owned entities. |
Disclosure of transactions between related parties | Remuneration of non-management directors and senior management, which includes the members of the executive leadership team, is as follows: For the years ended December 31 2017 2016 Short-term employee benefits $ 5,214 $ 5,315 Post-employment benefits 583 650 Other long-term employee benefits 43 47 Share-based compensation expense 1 40,668 16,172 Total $ 46,508 $ 22,184 1 Balance includes realized and unrealized gains (losses) from share-based compensation awards granted. |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interest In Other Entities [Abstract] | |
Summary of financial information for each subsidiary with non-controlling interests | The Company has interests in significant subsidiaries and joint ventures as follows: Name Country of Principal activities Interest % Dec 31 Dec 31 Significant subsidiaries: Methanex Asia Pacific Limited Hong Kong Marketing & distribution 100 % 100 % Methanex Europe NV Belgium Marketing & distribution 100 % 100 % Methanex Methanol Company, LLC United States Marketing & distribution 100 % 100 % Egyptian Methanex Methanol Company S.A.E. Egypt Production 50 % 50 % Methanex Chile S.A. Chile Production 100 % 100 % Methanex New Zealand Limited New Zealand Production 100 % 100 % Methanex Trinidad (Titan) Unlimited Trinidad Production 100 % 100 % Methanex U.S.A. LLC United States Production 100 % 100 % Methanex Louisiana LLC United States Production 100 % 100 % Waterfront Shipping Company Limited 2 Cayman Islands Shipping 100 % 100 % Significant joint ventures: Atlas Methanol Company Unlimited 1 Trinidad Production 63.1 % 63.1 % 1 Summarized financial information for the group’s investment in Atlas is disclosed in note 6. 2 Waterfront Shipping Company Limited has a controlling interest in multiple ocean going vessels owned through less than wholly-owned entities as disclosed in note 23. Set out below is summarized financial information for each of our subsidiaries that have non-controlling interests. The amounts disclosed are before inter-company eliminations. As at Dec 31 Dec 31 Methanex Other 1 Total Methanex Other 1 Total Current assets $ 248,032 $ 27,240 $ 275,272 $ 155,422 $ 12,123 $ 167,545 Non-current assets 720,356 105,375 825,731 746,202 116,314 862,516 Current liabilities (231,259 ) (12,489 ) (243,748 ) (177,088 ) (14,622 ) (191,710 ) Non-current liabilities (293,184 ) (76,090 ) (369,274 ) (339,369 ) (84,540 ) (423,909 ) Net assets 443,945 44,036 487,981 385,167 29,275 414,442 Carrying amount of Methanex non-controlling interests $ 216,599 $ 27,748 $ 244,347 $ 188,099 $ 20,416 $ 208,515 For the years ended December 31 2017 2016 Methanex Other 1 Total Methanex Other 1 Total Revenue $ 285,017 $ 32,094 $ 317,111 $ 111,728 $ 26,148 $ 137,876 Net and total comprehensive income (loss) 65,241 6,981 72,222 (79,963 ) 4,781 (75,182 ) Net and total comprehensive income (loss) allocated to Methanex non-controlling interests 55,470 3,492 58,962 (18,069 ) 2,389 (15,680 ) Equity contributions by non-controlling interests $ — $ 8,170 $ 8,170 $ — $ 25 $ 25 Distributions paid and accrued to non-controlling interests $ (26,970 ) $ (4,330 ) $ (31,300 ) $ (23,264 ) $ (1,410 ) $ (24,674 ) For the years ended December 31 2017 2016 Methanex Other 1 Total Methanex Other 1 Total Cash flows from (used in) operating activities $ 131,175 $ 19,538 $ 150,713 $ (23,992 ) $ 17,718 $ (6,274 ) Cash flows from (used in) financing activities (27,365 ) (3,250 ) (30,615 ) (24,929 ) 55,891 30,962 Cash flows from (used in) investing activities $ (18,839 ) $ (605 ) $ (19,444 ) $ (4,637 ) $ (70,516 ) $ (75,153 ) 1 Other is comprised of multiple ocean going vessels controlled by Waterfront Shipping Company Limited through less than wholly-owned entities. |
Significant accounting polici52
Significant accounting policies - Property plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 10 years |
Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 25 years |
Significant accounting polici53
Significant accounting policies - Share-based compensation (Details) - Performance shares | 12 Months Ended |
Dec. 31, 2017 | |
Grants prior to 2014 | Bottom of range | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Share-based compensation arrangement vesting rights, percentage | 50.00% |
Grants prior to 2014 | Top of range | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Share-based compensation arrangement vesting rights, percentage | 120.00% |
Grants subsequent to 2014 | Bottom of range | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Share-based compensation arrangement vesting rights, percentage | 25.00% |
Grants subsequent to 2014 | Top of range | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Share-based compensation arrangement vesting rights, percentage | 150.00% |
Significant accounting polici54
Significant accounting policies - Segment reporting (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Number of operating segments | 1 |
Trade and other receivables (De
Trade and other receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade | $ 429,582 | $ 335,606 |
Value-added and other tax receivables | 36,584 | 63,738 |
Egypt gas contract recoveries | 24,466 | 41,578 |
Other | 46,004 | 58,681 |
Trade and other receivables | $ 536,636 | $ 499,603 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Inventories [Abstract] | ||
Cost of inventories recognized as expense | $ 2,219 | $ 1,704 |
Property, plant and equipment57
Property, plant and equipment (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | $ 3,117,469 | |
Value at end of period | $ 2,998,326 | $ 3,117,469 |
Number of finance lease vessels | vessel | 2 | |
Buildings, plant installations and machinery | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | $ 2,797,276 | |
Value at end of period | 2,692,607 | 2,797,276 |
Finance leases | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | 187,703 | |
Value at end of period | 181,846 | 187,703 |
Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | 132,490 | |
Value at end of period | $ 123,873 | 132,490 |
Ocean going vessels | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Number of finance lease vessels | vessel | 2 | |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | $ 5,028,954 | 4,848,167 |
Additions | 111,448 | 197,747 |
Disposals and other | 212 | 16,960 |
Value at end of period | 5,140,190 | 5,028,954 |
Cost | Buildings, plant installations and machinery | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | 4,549,816 | 4,521,835 |
Additions | 98,780 | 35,644 |
Disposals and other | (328) | 7,663 |
Value at end of period | 4,648,924 | 4,549,816 |
Cost | Finance leases | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | 206,260 | 121,849 |
Additions | 7,667 | 87,800 |
Disposals and other | (1,846) | 3,389 |
Value at end of period | 215,773 | 206,260 |
Cost | Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | 272,878 | 204,483 |
Additions | 5,001 | 74,303 |
Disposals and other | 2,386 | 5,908 |
Value at end of period | 275,493 | 272,878 |
Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | (1,911,485) | (1,689,385) |
Disposals and other | (2,739) | (6,853) |
Depreciation | 233,118 | 228,953 |
Value at end of period | (2,141,864) | (1,911,485) |
Accumulated depreciation | Buildings, plant installations and machinery | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | (1,752,540) | (1,545,834) |
Disposals and other | (2,066) | (945) |
Depreciation | 205,843 | 207,651 |
Value at end of period | (1,956,317) | (1,752,540) |
Accumulated depreciation | Finance leases | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | (18,557) | (6,853) |
Disposals and other | 0 | 0 |
Depreciation | 15,370 | 11,704 |
Value at end of period | (33,927) | (18,557) |
Accumulated depreciation | Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | (140,388) | (136,698) |
Disposals and other | (673) | (5,908) |
Depreciation | 11,905 | 9,598 |
Value at end of period | $ (151,620) | $ (140,388) |
Investment in associate - Addit
Investment in associate - Additional information (Details) - t t in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Atlas Methanol Company Unlimited | ||
Disclosure of associates [line items] | ||
Annual methanol production facility owned (in tonnes) | 1.8 | |
Atlas Methanol Company Unlimited | ||
Disclosure of associates [line items] | ||
Percentage of ownership interest in associates | 63.10% | 63.10% |
Investment in associate - State
Investment in associate - Statements of financial position (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of associates [line items] | |||
Cash and cash equivalents | $ 375,479 | $ 223,890 | $ 254,934 |
Non-current assets | 3,367,615 | 3,530,996 | |
Current liabilities | (747,948) | (606,933) | |
Investment in associate | 188,922 | 197,402 | |
Atlas Methanol Company Unlimited | |||
Disclosure of associates [line items] | |||
Net assets | 112,600 | 121,158 | |
Long-term receivable from Atlas | 76,322 | 76,244 | |
Investment in associate | $ 188,922 | $ 197,402 | |
Percentage of ownership interest in associates | 63.10% | 63.10% | |
Atlas Methanol Company Unlimited | |||
Disclosure of associates [line items] | |||
Cash and cash equivalents | $ 8,361 | $ 15,530 | |
Other current assets | 79,738 | 45,219 | |
Non-current assets | 289,671 | 324,297 | |
Current liabilities | (41,388) | (24,783) | |
Other long-term liabilities, including current maturities | (157,935) | (168,253) | |
Net assets | $ 178,447 | $ 192,010 |
Investment in associate - Sta60
Investment in associate - Statements of income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of associates [line items] | ||
Revenue | $ 3,060,642 | $ 1,998,429 |
Operating income | 476,468 | 28,446 |
Income tax expense | (95,788) | 9,279 |
Net income (loss) | 375,097 | (28,225) |
Atlas Methanol Company Unlimited | ||
Disclosure of associates [line items] | ||
Net income (loss) | 75,995 | 19,930 |
Dividends received from associate | $ 84,553 | $ 47,325 |
Percentage of ownership interest in associates | 63.10% | 63.10% |
Atlas Methanol Company Unlimited | ||
Disclosure of associates [line items] | ||
Revenue | $ 459,367 | $ 213,533 |
Cost of sales and depreciation and amortization | (261,121) | (145,126) |
Operating income | 198,246 | 68,407 |
Finance costs, finance income and other expenses | (11,170) | (12,771) |
Income tax expense | (66,640) | (24,052) |
Net income (loss) | $ 120,436 | $ 31,584 |
Other assets (Details)
Other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Restricted cash | $ 27,863 | $ 35,386 |
Chile VAT receivable | 25,456 | 23,406 |
Investment in Carbon Recycling International | 4,502 | 4,502 |
Defined benefit pension plans (note 20) | 6,650 | 5,862 |
Other | 13,555 | 9,628 |
Other assets | $ 78,026 | $ 78,784 |
Long-term debt - Schedule (Deta
Long-term debt - Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 1,502,271 | $ 1,556,206 |
Less current maturities | (55,905) | (53,997) |
Non-current portion of long-term debt | 1,446,366 | 1,502,209 |
Debt discounts and deferred financing fees | 17,800 | 17,800 |
Unsecured notes | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 1,188,163 | 1,186,424 |
3.25% due December 15, 2019 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 348,060 | 347,126 |
3.25% due December 15, 2019 | Fixed interest rate | ||
Disclosure of detailed information about borrowings [line items] | ||
Unsecured notes, interest rate | 3.25% | |
5.25% due March 1, 2022 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 248,072 | 247,685 |
5.25% due March 1, 2022 | Fixed interest rate | ||
Disclosure of detailed information about borrowings [line items] | ||
Unsecured notes, interest rate | 5.25% | |
4.25% due December 1, 2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 296,873 | 296,529 |
4.25% due December 1, 2024 | Fixed interest rate | ||
Disclosure of detailed information about borrowings [line items] | ||
Unsecured notes, interest rate | 4.25% | |
5.65% due December 1, 2044 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 295,158 | 295,084 |
5.65% due December 1, 2044 | Fixed interest rate | ||
Disclosure of detailed information about borrowings [line items] | ||
Unsecured notes, interest rate | 5.65% | |
Egypt limited recourse debt facilities | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 241,190 | 288,515 |
Other limited recourse debt facilities | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 72,918 | $ 81,267 |
Long-term debt - Narrative (Det
Long-term debt - Narrative (Details) | 2 Months Ended | 12 Months Ended | ||
Mar. 06, 2018USD ($)vessel | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||
Net proceeds on issue of long-term debt | $ 0 | $ 65,700,000 | ||
Accretion of deferred financing costs | 3,100,000 | 3,000,000 | ||
Cash balance | 375,479,000 | $ 223,890,000 | $ 254,934,000 | |
Egypt entity | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Cash balance | $ 131,000,000 | |||
Egypt entity | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Ownership basis, percent | 100.00% | |||
Egypt limited recourse debt facilities | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Facilities term | 12 years | |||
Egypt limited recourse debt facilities | Egypt entity | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Percentage of gas requirements (greater than) | 70.00% | |||
Shareholder distributions subject to restriction | $ 100,000,000 | |||
Principal repayments to be matched with shareholder distributions | $ 100,000,000 | |||
Egypt limited recourse debt facilities | Minimum | LIBOR | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Basis spread, percent | 0.90% | |||
Egypt limited recourse debt facilities | Maximum | LIBOR | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Basis spread, percent | 1.60% | |||
Other limited recourse debt facilities | Issuance of debt | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Notional amount | $ 43,000,000 | |||
Number of vessels to be acquired | vessel | 2 | |||
Other limited recourse debt facilities | Fixed interest rate | Issuance of debt | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings, interest rate | 5.35% | |||
Other limited recourse debt facilities | 50% owned subsidiary | Issuance of debt | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest % | 50.00% | |||
Notional amount | $ 86,000,000 | |||
Other limited recourse debt facilities | Minimum | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Basis spread, percent | 0.75% | |||
Facilities term | 2 years | |||
Other limited recourse debt facilities | Maximum | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Basis spread, percent | 2.50% | |||
Facilities term | 4 years | |||
Revolving credit facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Facilities term | 5 years | |||
Notional amount | $ 300,000,000 | |||
Debt covenant, EBITDA to interest coverage ratio | 2 | |||
Debt covenant, debt to capitalization ratio (less than or equal) | 55.00% | |||
Default payment accelerated by a creditor, amount of indebtedness (or more) | $ 50,000,000 | |||
Default that permits a creditor to demand repayment, amount of indebtedness (or more) | $ 50,000,000 |
Long-term debt - Maturity (Deta
Long-term debt - Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | $ 1,502,271 | $ 1,556,206 |
Limited recourse debt facilities | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 314,108 | 369,782 |
Unsecured notes | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 1,188,163 | $ 1,186,424 |
Carrying amount | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 1,520,028 | |
Carrying amount | 2018 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 57,072 | |
Carrying amount | 2019 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 410,100 | |
Carrying amount | 2020 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 62,115 | |
Carrying amount | 2021 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 109,462 | |
Carrying amount | 2022 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 281,279 | |
Carrying amount | Thereafter | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 600,000 | |
Carrying amount | Limited recourse debt facilities | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 320,028 | |
Carrying amount | Limited recourse debt facilities | 2018 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 57,072 | |
Carrying amount | Limited recourse debt facilities | 2019 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 60,100 | |
Carrying amount | Limited recourse debt facilities | 2020 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 62,115 | |
Carrying amount | Limited recourse debt facilities | 2021 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 109,462 | |
Carrying amount | Limited recourse debt facilities | 2022 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 31,279 | |
Carrying amount | Limited recourse debt facilities | Thereafter | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 0 | |
Carrying amount | Unsecured notes | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 1,200,000 | |
Carrying amount | Unsecured notes | 2018 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 0 | |
Carrying amount | Unsecured notes | 2019 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 350,000 | |
Carrying amount | Unsecured notes | 2020 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 0 | |
Carrying amount | Unsecured notes | 2021 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 0 | |
Carrying amount | Unsecured notes | 2022 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 250,000 | |
Carrying amount | Unsecured notes | Thereafter | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | $ 600,000 |
- Other long-term liabilities (
- Other long-term liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Site restoration costs | $ 33,975 | $ 30,512 |
Finance lease liabilities | 204,242 | 201,268 |
Share-based compensation liability (note 13) | 111,405 | 53,725 |
Cash flow hedges (note 18) | 90,199 | 68,664 |
Defined benefit pension plans (note 20) | 25,076 | 22,403 |
Other | 5,214 | 4,339 |
Other long-term liabilities, total | 470,111 | 380,911 |
Less current maturities | (65,226) | (29,720) |
Other non-current liabilities | $ 404,885 | $ 351,191 |
Other long-term liabilities - N
Other long-term liabilities - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Undiscounted amount of estimated cash flows required to settle liabilities | $ 44.9 | $ 41.1 |
Number of vessels delivered | vessel | 2 | |
Total finance lease payments | $ 30.6 | |
Interest expense on finance leases | $ 23.7 |
Other long-term liabilities - P
Other long-term liabilities - Provision for site restoration costs (Details) - Provision for site restoration costs - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | $ 30,512 | $ 29,892 |
New or revised provisions | 2,823 | 51 |
Accretion expense | 640 | 569 |
Balance at end of period | $ 33,975 | $ 30,512 |
Other long-term liabilities - F
Other long-term liabilities - Finance lease obligations (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Disclosure of finance lease and operating lease by lessee [line items] | |
Lease payments | $ 397,876 |
Interest component | 193,634 |
Finance lease obligations | 204,242 |
2,018 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Lease payments | 31,447 |
Interest component | 23,549 |
Finance lease obligations | 7,898 |
2,019 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Lease payments | 31,826 |
Interest component | 22,727 |
Finance lease obligations | 9,099 |
2,020 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Lease payments | 32,213 |
Interest component | 21,756 |
Finance lease obligations | 10,457 |
2,021 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Lease payments | 32,608 |
Interest component | 20,612 |
Finance lease obligations | 11,996 |
2,022 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Lease payments | 33,010 |
Interest component | 19,271 |
Finance lease obligations | 13,739 |
Thereafter | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Lease payments | 236,772 |
Interest component | 85,719 |
Finance lease obligations | $ 151,053 |
Expenses (Details)
Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Analysis of income and expense [abstract] | ||
Cost of sales | $ 2,035,545 | $ 1,533,915 |
Selling and distribution | 449,593 | 408,893 |
Administrative expenses | 99,036 | 59,675 |
Total expenses by function | 2,584,174 | 2,002,483 |
Cost of raw materials and purchased methanol | 1,637,085 | 1,140,551 |
Ocean freight and other logistics | 374,717 | 351,609 |
Employee expenses, including share-based compensation | 243,707 | 204,762 |
Other expenses | 96,440 | 77,507 |
Cost of sales and operating expenses | 2,351,949 | 1,774,429 |
Depreciation and amortization | 232,225 | 228,054 |
Total expenses by nature | 2,584,174 | 2,002,483 |
Adjustments for share-based payments | $ 78,821 | $ 33,493 |
Finance costs (Details)
Finance costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Borrowing costs [abstract] | ||
Finance costs | $ 94,955 | $ 90,060 |
Net income (loss) per common 71
Net income (loss) per common share - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [abstract] | ||
Basic and diluted net income (loss) | $ 316,135 | $ (12,545) |
Net income (loss) per common 72
Net income (loss) per common share - Reconciliation of denominator used for calculation of basic and diluted net income (loss) per common share (Details) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [abstract] | ||
Denominator for basic net income (loss) per common share | 86,768,589 | 89,783,883 |
Effect of dilutive stock options | 56,359 | 0 |
Denominator for diluted net income (loss) per common share | 86,824,948 | 89,783,883 |
Net income (loss) per common 73
Net income (loss) per common share - Basic and diluted (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [abstract] | ||
Basic net income (loss) per common share (in usd per share) | $ 3.64 | $ (0.14) |
Diluted net income (loss) per common share (in usd per share) | $ 3.64 | $ (0.14) |
Share-based compensation - Narr
Share-based compensation - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of shares reserved for future grants of stock options and share appreciation rights | 3,953,471 | |
Liabilities from share-based payment transactions | $ 111,405 | $ 53,725 |
SARs and TSARs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Maximum term | 7 years | |
Share-based compensation arrangement vesting rights, percentage | 33.33% | |
Fair value of share-based payment transactions | $ 69,800 | |
Liabilities from share-based payment transactions | 65,200 | |
Intrinsic value of liabilities from share-based payment transactions | $ 4,600 | |
Weighted average remaining vesting period | 1 year 6 months | |
Expense from share-based payment transactions with employees | $ 45,100 | 26,900 |
Expense from share-based payment transactions with employees, effect of change in share price | 37,800 | 20,000 |
Deferred, Restricted and Performance Share Units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Fair value of share-based payment transactions | 55,900 | |
Liabilities from share-based payment transactions | 46,100 | |
Intrinsic value of liabilities from share-based payment transactions | $ 9,800 | |
Weighted average remaining vesting period | 1 year 6 months | |
Expense from share-based payment transactions with employees | $ 33,000 | 6,000 |
Expense from share-based payment transactions with employees, effect of change in share price | $ 29,900 | 2,800 |
Stock Options | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Maximum term | 7 years | |
Share-based compensation arrangement vesting rights, percentage | 33.33% | |
Expense from share-based payment transactions with employees | $ 500 | $ 600 |
Share-based compensation - Chan
Share-based compensation - Changes in SARs and TSARs (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | |
SARs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of outstanding units, beginning of period | shares | 1,511,485 | 1,259,208 |
Number of outstanding units granted | shares | 167,600 | 375,500 |
Number of outstanding units exercised | shares | (213,207) | (73,291) |
Number of outstanding units cancelled | shares | (10,801) | (49,932) |
Number of outstanding units expired | shares | (5,000) | |
Number of outstanding units, end of period | shares | 1,450,077 | 1,511,485 |
Exercise price of outstanding units, beginning of period (in usd per unit) | $ | $ 42.68 | $ 44.48 |
Exercise price of outstanding units granted (in usd per unit) | $ | 50.15 | 34.59 |
Exercise price of outstanding units exercised (in usd per unit) | $ | 32.03 | 27.43 |
Exercise price of outstanding units cancelled (in usd per unit) | $ | 50.18 | 49.77 |
Exercise price of outstanding units expired (in usd per unit) | $ | 25.22 | |
Exercise price of outstanding units, end of period (in usd per unit) | $ | $ 45.11 | $ 42.68 |
TSARs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of outstanding units, beginning of period | shares | 2,416,111 | 2,108,965 |
Number of outstanding units granted | shares | 340,200 | 574,600 |
Number of outstanding units exercised | shares | (710,616) | (212,505) |
Number of outstanding units cancelled | shares | (2,200) | (54,949) |
Number of outstanding units expired | shares | 0 | |
Number of outstanding units, end of period | shares | 2,043,495 | 2,416,111 |
Exercise price of outstanding units, beginning of period (in usd per unit) | $ | $ 42.10 | $ 42.73 |
Exercise price of outstanding units granted (in usd per unit) | $ | 50.17 | 34.59 |
Exercise price of outstanding units exercised (in usd per unit) | $ | 32.98 | 25.38 |
Exercise price of outstanding units cancelled (in usd per unit) | $ | 34.59 | 52.55 |
Exercise price of outstanding units expired (in usd per unit) | $ | 0 | |
Exercise price of outstanding units, end of period (in usd per unit) | $ | $ 46.62 | $ 42.10 |
Share-based compensation - Rang
Share-based compensation - Range of exercise prices in SARs and TSARs (Details) | Dec. 31, 2017USD ($)yearshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares |
SARs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life (years) | year | 3.61 | ||
Number of units outstanding | shares | 1,450,077 | 1,511,485 | 1,259,208 |
Weighted average exercise price of units outstanding (in usd per unit) | $ 45.11 | $ 42.68 | $ 44.48 |
Number of units exercisable | shares | 955,316 | ||
Weighted average exercise price of units exercisable (in usd per unit) | $ 45.93 | ||
SARs | $25.97 to $35.51 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life (years) | year | 3.36 | ||
Number of units outstanding | shares | 585,317 | ||
Weighted average exercise price of units outstanding (in usd per unit) | $ 32.94 | ||
Number of units exercisable | shares | 345,629 | ||
Weighted average exercise price of units exercisable (in usd per unit) | $ 31.79 | ||
SARs | $25.97 to $35.51 | Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | 25.97 | ||
SARs | $25.97 to $35.51 | Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | $ 35.51 | ||
SARs | $38.24 to $73.13 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life (years) | year | 3.77 | ||
Number of units outstanding | shares | 864,760 | ||
Weighted average exercise price of units outstanding (in usd per unit) | $ 53.35 | ||
Number of units exercisable | shares | 609,687 | ||
Weighted average exercise price of units exercisable (in usd per unit) | $ 53.94 | ||
SARs | $38.24 to $73.13 | Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | 38.24 | ||
SARs | $38.24 to $73.13 | Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | $ 73.13 | ||
TSARs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life (years) | year | 4.03 | ||
Number of units outstanding | shares | 2,043,495 | 2,416,111 | 2,108,965 |
Weighted average exercise price of units outstanding (in usd per unit) | $ 46.62 | $ 42.10 | $ 42.73 |
Number of units exercisable | shares | 1,195,707 | ||
Weighted average exercise price of units exercisable (in usd per unit) | $ 48.44 | ||
TSARs | $25.97 to $35.51 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life (years) | year | 3.94 | ||
Number of units outstanding | shares | 779,194 | ||
Weighted average exercise price of units outstanding (in usd per unit) | $ 33.67 | ||
Number of units exercisable | shares | 401,049 | ||
Weighted average exercise price of units exercisable (in usd per unit) | $ 32.80 | ||
TSARs | $25.97 to $35.51 | Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | 25.97 | ||
TSARs | $25.97 to $35.51 | Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | $ 35.51 | ||
TSARs | $38.24 to $73.13 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life (years) | year | 4.09 | ||
Number of units outstanding | shares | 1,264,301 | ||
Weighted average exercise price of units outstanding (in usd per unit) | $ 54.60 | ||
Number of units exercisable | shares | 794,658 | ||
Weighted average exercise price of units exercisable (in usd per unit) | $ 56.33 | ||
TSARs | $38.24 to $73.13 | Minimum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | 38.24 | ||
TSARs | $38.24 to $73.13 | Maximum | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | $ 73.13 |
Share-based compensation - Weig
Share-based compensation - Weighted average assumptions (Details) - SARs and TSARs | 12 Months Ended | |
Dec. 31, 2017USD ($)year | Dec. 31, 2016USD ($)year | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Risk-free interest rate | 1.80% | 1.00% |
Expected dividend yield | 2.00% | 2.50% |
Expected life of SARs and TSARs (years) | year | 1.2 | 1.4 |
Expected volatility | 31.00% | 41.00% |
Expected forfeitures | 0.20% | 0.20% |
Weighted average fair value (USD per share) | $ | $ 19.02 | $ 10.19 |
Share-based compensation - Ch78
Share-based compensation - Changes in other equity instruments (Details) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of outstanding units, beginning of period | 251,017 | 285,816 |
Number of outstanding units granted | 10,452 | 8,269 |
Number of outstanding units granted in lieu of dividends | 5,669 | 8,430 |
Number of outstanding units redeemed | (42,292) | (51,498) |
Number of outstanding units cancelled | 0 | 0 |
Number of outstanding units, end of period | 224,846 | 251,017 |
Restricted share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of outstanding units, beginning of period | 18,649 | 13,864 |
Number of outstanding units granted | 8,100 | 11,500 |
Number of outstanding units granted in lieu of dividends | 613 | 773 |
Number of outstanding units redeemed | (6,907) | (7,488) |
Number of outstanding units cancelled | 0 | 0 |
Number of outstanding units, end of period | 20,455 | 18,649 |
Performance share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of outstanding units, beginning of period | 572,272 | 610,578 |
Number of outstanding units granted | 163,500 | 261,760 |
Number of outstanding units granted performance factor | 55,592 | |
Number of outstanding units performance factor impact on redemption | (102,557) | |
Number of outstanding units granted in lieu of dividends | 14,383 | 18,082 |
Number of outstanding units redeemed | (34,186) | (355,415) |
Number of outstanding units cancelled | (8,517) | (18,325) |
Number of outstanding units, end of period | 604,895 | 572,272 |
Share-based compensation - Ch79
Share-based compensation - Changes in stock options (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | |
Share-Based Payment Arrangements [Abstract] | ||
Number of stock options outstanding, beginning of period | shares | 344,767 | 448,507 |
Number of stock options granted | shares | 31,400 | 75,500 |
Number of stock options exercised | shares | (98,274) | (153,140) |
Number of stock options cancelled | shares | (15,358) | (14,100) |
Number of stock options expired | shares | (12,000) | |
Number of stock options outstanding, end of period | shares | 262,535 | 344,767 |
Weighted average exercise price of stock options outstanding, beginning of period (in usd per option) | $ | $ 40.91 | $ 30.52 |
Weighted average exercise price of stock options granted (in usd per option) | $ | 50.17 | 34.59 |
Weighted average exercise price of stock options exercised (in usd per option) | $ | 30.90 | 9.80 |
Weighted average exercise price of stock options cancelled (in usd per option) | $ | 52.43 | 44.04 |
Weighted average exercise price of stock options expired (in usd per option) | $ | 6.33 | |
Weighted average exercise price of stock options outstanding, end of period (in usd per option) | $ | $ 45.09 | $ 40.91 |
Share-based compensation - Ra80
Share-based compensation - Range of exercise prices in stock options (Details) | Dec. 31, 2017USD ($)yearshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Weighted average remaining contractual life (years) | year | 3.58 | ||
Number of stock options outstanding | shares | 262,535 | 344,767 | 448,507 |
Weighted average exercise price (in usd per option) | $ 45.09 | $ 40.91 | $ 30.52 |
Number of stock options exercisable | shares | 175,360 | ||
Weighted average exercise price (in usd per option) | $ 45.88 | ||
$25.97 to $35.51 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Weighted average remaining contractual life (years) | year | 3.40 | ||
Number of stock options outstanding | shares | 103,850 | ||
Weighted average exercise price (in usd per option) | $ 33.08 | ||
Number of stock options exercisable | shares | 60,980 | ||
Weighted average exercise price (in usd per option) | $ 32.02 | ||
$25.97 to $35.51 | Minimum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | 25.97 | ||
$25.97 to $35.51 | Maximum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ 35.51 | ||
$38.24 to $73.13 | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Weighted average remaining contractual life (years) | year | 3.69 | ||
Number of stock options outstanding | shares | 158,685 | ||
Weighted average exercise price (in usd per option) | $ 52.95 | ||
Number of stock options exercisable | shares | 114,380 | ||
Weighted average exercise price (in usd per option) | $ 53.28 | ||
$38.24 to $73.13 | Minimum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | 38.24 | ||
$38.24 to $73.13 | Maximum | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options | $ 73.13 |
Segmented information - Revenue
Segmented information - Revenue attributed to geographic location (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of geographical areas [line items] | ||
Revenue | $ 3,060,642 | $ 1,998,429 |
China | ||
Disclosure of geographical areas [line items] | ||
Revenue | 801,838 | 518,499 |
Europe | ||
Disclosure of geographical areas [line items] | ||
Revenue | 608,668 | 403,879 |
United States | ||
Disclosure of geographical areas [line items] | ||
Revenue | 570,482 | 359,476 |
South Korea | ||
Disclosure of geographical areas [line items] | ||
Revenue | 347,896 | 257,658 |
South America | ||
Disclosure of geographical areas [line items] | ||
Revenue | 279,270 | 179,287 |
Canada | ||
Disclosure of geographical areas [line items] | ||
Revenue | 167,436 | 109,706 |
Other Asia | ||
Disclosure of geographical areas [line items] | ||
Revenue | $ 285,052 | $ 169,924 |
Segmented information - Propert
Segmented information - Property, plant and equipment, net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | $ 2,998,326 | $ 3,117,469 |
United States | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | 1,412,394 | 1,468,283 |
Egypt | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | 720,397 | 742,446 |
New Zealand | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | 265,153 | 261,482 |
Trinidad | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | 155,525 | 176,256 |
Canada | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | 148,420 | 154,982 |
Chile | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | 107,495 | 108,065 |
Other | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | $ 188,942 | $ 205,955 |
Income and other taxes - Income
Income and other taxes - Income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Current tax recovery (expense): | ||
Current period before undernoted items | $ (85,287) | $ (44,743) |
Impact of Argentina gas settlement | 0 | (7,800) |
Adjustments to prior years | (217) | (2,134) |
Current tax recovery (expense) | (85,504) | (54,677) |
Deferred tax recovery (expense): | ||
Origination and reversal of temporary differences | 23,310 | 82,838 |
Impact of Argentina gas settlement | 0 | (3,575) |
Derecognition of non-capital loss carryforwards | 0 | (17,861) |
Adjustments to prior years | 200 | 1,667 |
Change in U.S. tax rate | (36,567) | 0 |
Change in other jurisdictions tax rates | 734 | 0 |
Other | 2,039 | 887 |
Deferred tax recovery (expense) | (10,284) | 63,956 |
Tax expense (income), continuing operations | $ (95,788) | $ 9,279 |
Income and other taxes - Reconc
Income and other taxes - Reconciliation of effective tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | ||
Income (loss) before income taxes | $ 470,885 | $ (37,504) |
Deduct earnings of associate | (75,995) | (19,930) |
Income (loss) before income taxes after deduction of earnings of associate | $ 394,890 | $ (57,434) |
Canadian statutory tax rate | 26.50% | 26.50% |
Income tax recovery (expense) calculated at Canadian statutory tax rate | $ (104,646) | $ 15,220 |
Increase (decrease) in income tax recovery resulting from: | ||
Impact of income and losses taxed in foreign jurisdictions | 30,223 | 34,857 |
Derecognition of non-capital loss carryforwards | 0 | (17,861) |
Unrecognised loss carryforwards and temporary differences | 20,468 | (6,468) |
Impact of tax rate changes in the U.S. | (36,567) | 0 |
Impact of tax rate changes in other jurisdictions | 734 | 0 |
Impact of foreign exchange | 3,104 | (4,332) |
Other business taxes | (4,105) | (5,404) |
Adjustments to prior years | (17) | (467) |
Other | (4,982) | (6,266) |
Tax expense (income), continuing operations | $ (95,788) | $ 9,279 |
Income and other taxes - Net de
Income and other taxes - Net deferred income tax liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | $ (164,091) | $ (153,639) | $ (223,757) |
Deferred tax assets | 102,341 | 137,341 | 61,881 |
Deferred tax liabilities | (266,432) | (290,980) | $ (285,638) |
Property, plant and equipment | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | (403,705) | (419,982) | |
Deferred tax assets | (189,368) | (197,931) | |
Deferred tax liabilities | (214,337) | (222,051) | |
Repatriation taxes | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | (87,239) | (85,364) | |
Deferred tax assets | 0 | 0 | |
Deferred tax liabilities | (87,239) | (85,364) | |
Other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | (11,670) | (19,956) | |
Deferred tax assets | (3,740) | (4,981) | |
Deferred tax liabilities | (7,930) | (14,975) | |
Temporary differences including temporary differences with liability balances | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | (502,614) | (525,302) | |
Deferred tax assets | (193,108) | (202,912) | |
Deferred tax liabilities | (309,506) | (322,390) | |
Non-capital loss carryforwards | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | 244,576 | 280,931 | |
Deferred tax assets | 244,576 | 280,931 | |
Deferred tax liabilities | 0 | 0 | |
Share-based compensation | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | 19,920 | 8,590 | |
Deferred tax assets | 2,946 | 935 | |
Deferred tax liabilities | 16,974 | 7,655 | |
Other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | 74,027 | 82,142 | |
Deferred tax assets | 47,927 | 58,387 | |
Deferred tax liabilities | 26,100 | 23,755 | |
Temporary differences including temporary differences with asset balances | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | 338,523 | 371,663 | |
Deferred tax assets | 295,449 | 340,253 | |
Deferred tax liabilities | $ 43,074 | $ 31,410 |
Income and other taxes - Narrat
Income and other taxes - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Egypt | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital loss carryforwards | $ 110 | $ 153 |
United States | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | $ 384 | $ 415 |
Income and other taxes - Change
Income and other taxes - Change in deferred income tax liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net | ||
Net, beginning of period | $ (153,639) | $ (223,757) |
Deferred income tax recovery (expense) included in net income (loss) | (10,284) | 63,956 |
Impact of U.S. tax rate change in other comprehensive income | (8,621) | 0 |
Deferred income tax recovery (expense) included in other comprehensive income (loss) | 9,295 | 6,597 |
Other | (842) | (435) |
Net, end of period | (164,091) | (153,639) |
Deferred tax assets | ||
Deferred tax assets, beginning of period | 137,341 | 61,881 |
Deferred income tax recovery (expense) included in net income (loss) | (34,517) | 69,110 |
Impact of U.S. tax rate change in other comprehensive income | (8,621) | 0 |
Deferred income tax recovery (expense) included in other comprehensive income (loss) | 8,398 | 6,364 |
Other | (260) | (14) |
Deferred tax assets, end of period | 102,341 | 137,341 |
Deferred tax liabilities | ||
Deferred tax liabilities, beginning of period | (290,980) | (285,638) |
Deferred income tax recovery (expense) included in net income (loss) | 24,233 | (5,154) |
Impact of U.S. tax rate change in other comprehensive income | 0 | 0 |
Deferred income tax recovery (expense) included in other comprehensive income (loss) | 897 | 233 |
Other | (582) | (421) |
Deferred tax liabilities, end of period | $ (266,432) | $ (290,980) |
Supplemental cash flow inform88
Supplemental cash flow information - Changes in Non-cash Working Capital (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in non-cash working capital: | ||
Trade and other receivables | $ (37,033) | $ 4,747 |
Inventories | (23,136) | (28,094) |
Prepaid expenses | (5,702) | (1,286) |
Trade, other payables and accrued liabilities, including long-term payables included in other long-term liabilities | 103,601 | 14,577 |
Decrease (increase) in non-cash working capital | 37,730 | (10,056) |
Adjustments for items not having a cash effect and working capital changes relating to taxes and interest paid | (89,445) | (65,850) |
These changes relate to the following activities: | ||
Operating | (49,368) | (87,644) |
Financing | 0 | 0 |
Investing | (2,347) | 11,738 |
Changes in non-cash working capital | $ (51,715) | $ (75,906) |
Supplemental cash flow inform89
Supplemental cash flow information - Reconciliation of Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes from financing cash flows | ||
Repayment of long-term debt and financing fees | $ (56,997) | $ (48,417) |
Payment of finance lease liabilities | (6,880) | (5,144) |
Long term debt (note 8) | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Outstanding at beginning of period | 1,556,206 | |
Changes from financing cash flows | ||
Repayment of long-term debt and financing fees | (56,997) | |
Payment of finance lease liabilities | 0 | |
Total changes from financing cash flows | (56,997) | |
Liability-related other changes | ||
Finance costs | 3,062 | |
New finance leases | 0 | |
Other | 0 | |
Total liability-related other changes | 3,062 | |
Outstanding at end of period | 1,502,271 | 1,556,206 |
Finance lease obligations (note 9) | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Outstanding at beginning of period | 201,268 | |
Changes from financing cash flows | ||
Repayment of long-term debt and financing fees | 0 | |
Payment of finance lease liabilities | (6,880) | |
Total changes from financing cash flows | (6,880) | |
Liability-related other changes | ||
Finance costs | 0 | |
New finance leases | 9,512 | |
Other | 342 | |
Total liability-related other changes | 9,854 | |
Outstanding at end of period | $ 204,242 | $ 201,268 |
Capital disclosures (Details)
Capital disclosures (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of liquidity and capitalization [Line Items] | |||
Cash and cash equivalents | $ 375,479,000 | $ 223,890,000 | $ 254,934,000 |
Undrawn credit facilities | 300,000,000 | 300,000,000 | |
Total liquidity | 675,479,000 | 523,890,000 | |
Total debt | 1,502,271,000 | 1,556,206,000 | |
Non-controlling interests | 244,347,000 | 208,515,000 | |
Shareholders’ equity | 1,500,764,000 | 1,596,835,000 | |
Total capitalization | $ 3,247,382,000 | $ 3,361,556,000 | |
Total debt to capitalization (as a percent) | 46.00% | 46.00% | |
Net debt to capitalization (as a percent) | 39.00% | 42.00% | |
Unsecured notes | |||
Disclosure of liquidity and capitalization [Line Items] | |||
Total debt | $ 1,188,163,000 | $ 1,186,424,000 | |
Limited recourse debt facilities, including current portion | |||
Disclosure of liquidity and capitalization [Line Items] | |||
Total debt | 314,108,000 | $ 369,782,000 | |
Revolving credit facility | |||
Disclosure of liquidity and capitalization [Line Items] | |||
Notional amount | $ 300,000,000 | ||
Facilities term | 5 years |
Financial instruments - Fair va
Financial instruments - Fair value measurement (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | $ 930,426,000 | $ 745,572,000 |
Financial liabilities | 2,121,467,000 | 2,074,083,000 |
Trade, other payables and accrued liabilities, excluding tax payable | Financial liabilities at amortised cost, category | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 528,182,000 | 449,213,000 |
Long-term debt, including current portion | Financial liabilities at amortised cost, category | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 1,502,271,000 | 1,556,206,000 |
Cash flow hedges | Derivative instruments | Financial liabilities at fair value through other comprehensive income, category | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 91,014,000 | 68,664,000 |
Derivative instruments | Financial assets measured at fair value | Cash flow hedges | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 0 | 7,024,000 |
Cash and cash equivalents | Financial assets not measured at fair value | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 375,479,000 | 223,890,000 |
Trade and other receivables, excluding tax receivable | Financial assets not measured at fair value | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 527,084,000 | 479,272,000 |
Project financing reserve accounts included in other assets | Financial assets not measured at fair value | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | $ 27,863,000 | $ 35,386,000 |
Financial instruments - Natural
Financial instruments - Natural gas forward contracts (Details) - Natural gas forward contract | 12 Months Ended | |
Dec. 31, 2017USD ($)$ / MMBTU | Dec. 31, 2016USD ($)$ / MMBTU | |
Disclosure of financial assets [line items] | ||
Hedge ineffectiveness | $ 0 | |
Cash flow hedges | ||
Disclosure of financial assets [line items] | ||
Notional amount | 473,000,000 | $ 484,000,000 |
Negative fair value | $ 90,200,000 | $ 61,900,000 |
Cash flow hedges | Geismar 2 Facility | ||
Disclosure of financial assets [line items] | ||
Percentage of gas requirement for forward contracts that will be managed for changes in prices | 40.00% | |
Average contract price (in usd per mmbtu) | $ / MMBTU | 3.74 | 3.68 |
Remaining term | 8 years | |
Cash flow hedges | Medicine Hat Facility | ||
Disclosure of financial assets [line items] | ||
Average contract price (in usd per mmbtu) | $ / MMBTU | 1.96 |
Financial instruments - Forward
Financial instruments - Forward exchange contracts (Details) - Forward exchange contract € in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | |
Disclosure of financial assets [line items] | ||||
Hedge ineffectiveness | $ 0 | |||
Cash flow hedges | ||||
Disclosure of financial assets [line items] | ||||
Notional amount | € | € 109 | € 92 | ||
Negative fair value | $ 800,000 | |||
Positive fair value | $ 300,000 |
Financial instruments - Fair 94
Financial instruments - Fair value liabilities, Narrative (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Financial assets | $ 930,426,000 | $ 745,572,000 |
Financial assets measured at fair value | Derivative instruments | Cash flow hedges | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 0 | $ 7,024,000 |
Financial instruments - Maturit
Financial instruments - Maturity of derivative liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities | $ 105,120 | $ 83,472 |
Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities | 7,114 | 0 |
1-3 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities | 17,057 | 8,481 |
3-5 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities | 28,864 | 18,962 |
More than 5 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities | $ 52,085 | $ 56,029 |
Financial instruments - Carryin
Financial instruments - Carrying values of financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of fair value measurement of liabilities [line items] | ||
Carrying value | $ 2,121,467 | $ 2,074,083 |
Long-term debt excluding deferred financing fees | Level 2 | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Carrying value | 1,515,544 | 1,568,822 |
Fair value | $ 1,561,392 | $ 1,538,543 |
Financial risk management - Int
Financial risk management - Interest rate risk (Details) - Interest rate risk - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fixed interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Long-term debt | $ 1,188,163 | $ 1,186,424 |
Reasonably possible change in risk variable, percent | 1.00% | |
Reasonably possible change in risk variable, impact on debt | $ 84,000 | 80,200 |
Variable interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Long-term debt | $ 314,108 | 369,782 |
Reasonably possible change in risk variable, percent | 1.00% | |
Reasonably possible change in risk variable, impact on pre-tax earnings | $ 3,200 | 3,700 |
Unsecured notes | Fixed interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Long-term debt | 1,188,163 | 1,186,424 |
Egypt limited recourse debt facilities | Variable interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Long-term debt | 241,190 | 288,515 |
Other limited recourse debt facilities | Variable interest rate | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Long-term debt | $ 72,918 | $ 81,267 |
Financial risk management - For
Financial risk management - Foreign currency risk (Details) - Currency risk - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of financial instruments by type of interest rate [line items] | ||
Net working capital asset | $ 85.3 | $ 75.3 |
Reasonably possible change in risk variable, percent | 10.00% | |
Impact on value of net working capital | $ 8.5 | $ 7.5 |
Financial risk management - Liq
Financial risk management - Liquidity risks (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Instruments [Abstract] | |||
Cash and cash equivalents | $ 375,479 | $ 223,890 | $ 254,934 |
Undrawn credit facilities | 300,000 | 300,000 | |
Carrying amount | |||
Finance lease obligations | 204,242 | 201,268 | |
Long-term debt | 1,502,271 | 1,556,206 | |
Cash flow hedges | 90,199 | 68,664 | |
Financial liabilities | 2,121,467 | 2,074,083 | |
Contractual cash flows | |||
Finance lease obligations | 397,876 | ||
Cash flow hedges | 105,120 | 83,472 | |
1 year or less | |||
Contractual cash flows | |||
Finance lease obligations | 31,447 | ||
Cash flow hedges | 7,114 | 0 | |
1-3 years | |||
Contractual cash flows | |||
Cash flow hedges | 17,057 | 8,481 | |
3-5 years | |||
Contractual cash flows | |||
Cash flow hedges | 28,864 | 18,962 | |
More than 5 years | |||
Contractual cash flows | |||
Finance lease obligations | 236,772 | ||
Cash flow hedges | 52,085 | $ 56,029 | |
Liquidity risk | |||
Carrying amount | |||
Trade and other payables | 519,352 | ||
Finance lease obligations | 204,242 | ||
Long-term debt | 1,502,271 | ||
Cash flow hedges | 91,014 | ||
Financial liabilities | 2,316,879 | ||
Contractual cash flows | |||
Trade and other payables | 519,352 | ||
Finance lease obligations | 397,876 | ||
Long-term debt | 2,178,011 | ||
Cash flow hedges | 105,120 | ||
Financial liabilities | 3,200,359 | ||
Liquidity risk | 1 year or less | |||
Contractual cash flows | |||
Trade and other payables | 519,352 | ||
Finance lease obligations | 31,447 | ||
Long-term debt | 121,689 | ||
Cash flow hedges | 7,114 | ||
Financial liabilities | 679,602 | ||
Liquidity risk | 1-3 years | |||
Contractual cash flows | |||
Trade and other payables | 0 | ||
Finance lease obligations | 64,039 | ||
Long-term debt | 586,091 | ||
Cash flow hedges | 17,057 | ||
Financial liabilities | 667,187 | ||
Liquidity risk | 3-5 years | |||
Contractual cash flows | |||
Trade and other payables | 0 | ||
Finance lease obligations | 65,618 | ||
Long-term debt | 471,831 | ||
Cash flow hedges | 28,864 | ||
Financial liabilities | 566,313 | ||
Liquidity risk | More than 5 years | |||
Contractual cash flows | |||
Trade and other payables | 0 | ||
Finance lease obligations | 236,772 | ||
Long-term debt | 998,400 | ||
Cash flow hedges | 52,085 | ||
Financial liabilities | $ 1,287,257 |
Retirement plans - Defined bene
Retirement plans - Defined benefit pension plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Balance, beginning of year | $ 16,541 | |
Current service cost | 1,879 | $ 1,677 |
Past service cost | 812 | 0 |
Interest cost on accrued benefit obligations / (income) on assets | 720 | 715 |
Settlements | 0 | 0 |
Balance, end of year | 18,402 | 16,541 |
Unfunded status | 18,402 | 16,541 |
Minimum funding requirement | 0 | 0 |
Accrued benefit obligations | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Balance, beginning of year | 60,771 | 55,966 |
Current service cost | 1,879 | 1,677 |
Past service cost | 812 | 0 |
Interest cost on accrued benefit obligations / (income) on assets | 2,242 | 2,269 |
Benefit payments | (5,280) | (2,570) |
Settlements | 0 | 0 |
Actuarial loss | 166 | 2,393 |
Foreign exchange gain (loss) | 4,803 | 1,036 |
Balance, end of year | 65,393 | 60,771 |
Fair values of plan assets | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Balance, beginning of year | (44,230) | (40,286) |
Interest cost on accrued benefit obligations / (income) on assets | (1,522) | (1,553) |
Contributions | 1,970 | 2,722 |
Benefit payments | 5,280 | 2,570 |
Settlements | 0 | 0 |
Return on plan assets | 1,330 | 2,345 |
Foreign exchange gain (loss) | (3,219) | 106 |
Balance, end of year | $ (46,991) | $ (44,230) |
Retirement plans - Additional i
Retirement plans - Additional information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)year | Dec. 31, 2016USD ($) | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Retirement obligation (asset) | $ 18,402 | $ 16,541 |
Weighted average duration of defined benefit obligation | year | 10 | |
Unfunded | Foreign | Chile | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Retirement obligation (asset) | $ 25,100 | 22,400 |
Estimate of contributions expected to be paid to plan for 2018 | 5,100 | |
Funded | Domestic | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Retirement obligation (asset) | (6,600) | (5,700) |
Estimate of contributions expected to be paid to plan for 2018 | 600 | |
Funded | Foreign | Europe | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Retirement obligation (asset) | $ (100) | $ (200) |
Retirement plans - Expense reco
Retirement plans - Expense recognized in income statement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net defined benefit pension plan expense: | ||
Current service cost | $ 1,879 | $ 1,677 |
Past service cost | 812 | 0 |
Net interest cost | 720 | 715 |
Cost of settlement | 0 | 0 |
Net defined benefit pension plan expense | $ 3,411 | $ 2,392 |
Retirement plans - Expense r103
Retirement plans - Expense recognized in other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Benefits [Abstract] | ||
Actuarial gain (loss) | $ 564 | $ (77) |
Minimum funding requirement | 0 | 0 |
Actuarial gain (loss), net | $ 564 | $ (77) |
Retirement plans - Actuarial as
Retirement plans - Actuarial assumptions and sensitivity analysis (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rates | 3.70% | 3.70% |
Discount rate | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Percentage of reasonably possible decrease in actuarial assumption | 1.00% | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ 6.3 |
Retirement plans - Asset alloca
Retirement plans - Asset allocation (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Employee Benefits [Abstract] | ||
Equity securities | 46.00% | 49.00% |
Debt securities | 29.00% | 27.00% |
Cash and other short-term securities | 25.00% | 24.00% |
Total | 100.00% | 100.00% |
Retirement plans - Defined cont
Retirement plans - Defined contribution pension plans (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Benefits [Abstract] | ||
Defined contribution pension plans | $ 8.1 | $ 7.6 |
Commitments and contingencies -
Commitments and contingencies - Minimum purchase contract commitment (Details) - Take-or-pay purchase contracts $ in Thousands | Dec. 31, 2017USD ($) |
2,018 | |
Disclosure of contingent liabilities [line items] | |
Minimum estimated commitment | $ 473,927 |
2,019 | |
Disclosure of contingent liabilities [line items] | |
Minimum estimated commitment | 371,167 |
2,020 | |
Disclosure of contingent liabilities [line items] | |
Minimum estimated commitment | 306,400 |
2,021 | |
Disclosure of contingent liabilities [line items] | |
Minimum estimated commitment | 308,338 |
2,022 | |
Disclosure of contingent liabilities [line items] | |
Minimum estimated commitment | 245,989 |
Thereafter | |
Disclosure of contingent liabilities [line items] | |
Minimum estimated commitment | $ 1,300,609 |
Commitments and contingencie108
Commitments and contingencies - Operating lease payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
2,018 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future minimum lease payments | $ 90,820 |
2,019 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future minimum lease payments | 90,035 |
2,020 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future minimum lease payments | 56,973 |
2,021 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future minimum lease payments | 38,982 |
2,022 | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future minimum lease payments | 37,858 |
Thereafter | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future minimum lease payments | $ 163,822 |
Commitments and contingencie109
Commitments and contingencies - Narrative (Details) $ in Thousands, t in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)agreementt | Dec. 31, 2016USD ($) | |
Commitments And Contingencies [Abstract] | ||
Operating lease payments recognized as expense | $ | $ 181,400 | $ 165,100 |
Delivery of vessels currently under construction | ||
Disclosure of associates [line items] | ||
Number of time charter agreements | agreement | 2 | |
Future minimum lease payments | $ | $ 80,000 | |
Lease term | 15 years | |
Within one year | ||
Disclosure of associates [line items] | ||
Future minimum lease payments | $ | $ 90,820 | |
Purchase commitment of methanol supply | Within one year | ||
Disclosure of associates [line items] | ||
Purchase commitments (in tonnes) | t | 0.8 | |
Purchase commitment of methanol supply | Thereafter | ||
Disclosure of associates [line items] | ||
Purchase commitments (in tonnes) | t | 1.5 | |
Atlas Joint Venture | ||
Disclosure of associates [line items] | ||
Percentage of marketing rights in production | 100.00% | |
Percentage of ownership interest in associates | 63.10% | 63.10% |
Atlas Joint Venture | Purchase commitment of methanol supply | ||
Disclosure of associates [line items] | ||
Purchase commitments (in tonnes) | t | 1.3 | |
Atlas Joint Venture | Trinidad | ||
Disclosure of associates [line items] | ||
Percentage of ownership interest in associates | 63.10% | |
Atlas Joint Venture | Egypt | ||
Disclosure of associates [line items] | ||
Percentage of ownership interest in associates | 50.00% |
Related parties - Subsidiaries
Related parties - Subsidiaries and joint ventures (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Methanex Asia Pacific Limited | ||
Disclosure of subsidiaries [line items] | ||
Interest % | 100.00% | 100.00% |
Methanex Europe NV | ||
Disclosure of subsidiaries [line items] | ||
Interest % | 100.00% | 100.00% |
Methanex Methanol Company, LLC | ||
Disclosure of subsidiaries [line items] | ||
Interest % | 100.00% | 100.00% |
Egyptian Methanex Methanol Company S.A.E. (Methanex Egypt) | ||
Disclosure of subsidiaries [line items] | ||
Interest % | 50.00% | 50.00% |
Methanex Chile S.A. | ||
Disclosure of subsidiaries [line items] | ||
Interest % | 100.00% | 100.00% |
Methanex New Zealand Limited | ||
Disclosure of subsidiaries [line items] | ||
Interest % | 100.00% | 100.00% |
Methanex Trinidad (Titan) Unlimited | ||
Disclosure of subsidiaries [line items] | ||
Interest % | 100.00% | 100.00% |
Methanex U.S.A. LLC | ||
Disclosure of subsidiaries [line items] | ||
Interest % | 100.00% | 100.00% |
Methanex Louisiana LLC | ||
Disclosure of subsidiaries [line items] | ||
Interest % | 100.00% | 100.00% |
Waterfront Shipping Company Limited | ||
Disclosure of subsidiaries [line items] | ||
Interest % | 100.00% | 100.00% |
Atlas Methanol Company Unlimited | ||
Disclosure of associates [line items] | ||
Interest % | 63.10% | 63.10% |
Related parties - Narrative (De
Related parties - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of associates [line items] | ||
Revenue | $ 3,060,642 | $ 1,998,429 |
Atlas Methanol Company Unlimited | ||
Disclosure of associates [line items] | ||
Percentage of marketing rights in production | 100.00% | |
Loans outstanding from related party transactions | $ 76,322 | 76,244 |
Associates | Atlas Methanol Company Unlimited | ||
Disclosure of associates [line items] | ||
Revenue | 459,000 | 214,000 |
Receivables from related party transactions | 13,000 | 7,000 |
Payables from related party transactions | 98,000 | 55,000 |
Loans outstanding from related party transactions | $ 76,000 | $ 76,000 |
Related parties - Remuneration
Related parties - Remuneration (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party [Abstract] | ||
Short-term employee benefits | $ 5,214 | $ 5,315 |
Post-employment benefits | 583 | 650 |
Other long-term employee benefits | 43 | 47 |
Share-based compensation expense | 40,668 | 16,172 |
Total | $ 46,508 | $ 22,184 |
Non-controlling interests - Fin
Non-controlling interests - Financial position (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of subsidiaries [line items] | ||
Current assets | $ 1,243,127 | $ 1,025,667 |
Non-current assets | 3,367,615 | 3,530,996 |
Current liabilities | (747,948) | (606,933) |
Non-current liabilities | (2,117,683) | (2,144,380) |
Carrying amount of Methanex non-controlling interests | 244,347 | 208,515 |
Total | ||
Disclosure of subsidiaries [line items] | ||
Current assets | 275,272 | 167,545 |
Non-current assets | 825,731 | 862,516 |
Current liabilities | (243,748) | (191,710) |
Non-current liabilities | (369,274) | (423,909) |
Net assets | 487,981 | 414,442 |
Carrying amount of Methanex non-controlling interests | 244,347 | 208,515 |
Methanex Egypt | ||
Disclosure of subsidiaries [line items] | ||
Current assets | 248,032 | 155,422 |
Non-current assets | 720,356 | 746,202 |
Current liabilities | (231,259) | (177,088) |
Non-current liabilities | (293,184) | (339,369) |
Net assets | 443,945 | 385,167 |
Carrying amount of Methanex non-controlling interests | 216,599 | 188,099 |
Other | ||
Disclosure of subsidiaries [line items] | ||
Current assets | 27,240 | 12,123 |
Non-current assets | 105,375 | 116,314 |
Current liabilities | (12,489) | (14,622) |
Non-current liabilities | (76,090) | (84,540) |
Net assets | 44,036 | 29,275 |
Carrying amount of Methanex non-controlling interests | $ 27,748 | $ 20,416 |
Non-controlling interests - Inc
Non-controlling interests - Income statement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of subsidiaries [line items] | ||
Revenue | $ 3,060,642 | $ 1,998,429 |
Net income (loss) | 375,097 | (28,225) |
Total comprehensive income (loss) | 346,961 | (41,920) |
Net income (loss) allocated to Methanex non-controlling interests | 58,962 | (15,680) |
Equity contributions by non-controlling interests | 8,170 | 25 |
Distributions paid and accrued to non-controlling interests | (4,330) | (1,410) |
Methanex Egypt | ||
Disclosure of subsidiaries [line items] | ||
Revenue | 285,017 | 111,728 |
Net income (loss) | 65,241 | (79,963) |
Total comprehensive income (loss) | 65,241 | (79,963) |
Net income (loss) allocated to Methanex non-controlling interests | 55,470 | (18,069) |
Total comprehensive income (loss) allocated to Methanex non-controlling interests | 55,470 | (18,069) |
Equity contributions by non-controlling interests | 0 | 0 |
Distributions paid and accrued to non-controlling interests | (26,970) | (23,264) |
Other | ||
Disclosure of subsidiaries [line items] | ||
Revenue | 32,094 | 26,148 |
Net income (loss) | 6,981 | 4,781 |
Total comprehensive income (loss) | 6,981 | 4,781 |
Net income (loss) allocated to Methanex non-controlling interests | 3,492 | 2,389 |
Total comprehensive income (loss) allocated to Methanex non-controlling interests | 3,492 | 2,389 |
Equity contributions by non-controlling interests | 8,170 | 25 |
Distributions paid and accrued to non-controlling interests | (4,330) | (1,410) |
Total | ||
Disclosure of subsidiaries [line items] | ||
Revenue | 317,111 | 137,876 |
Net income (loss) | 72,222 | (75,182) |
Total comprehensive income (loss) | 72,222 | (75,182) |
Net income (loss) allocated to Methanex non-controlling interests | 58,962 | (15,680) |
Total comprehensive income (loss) allocated to Methanex non-controlling interests | 58,962 | (15,680) |
Equity contributions by non-controlling interests | 8,170 | 25 |
Distributions paid and accrued to non-controlling interests | $ (31,300) | $ (24,674) |
Non-controlling interests - Cas
Non-controlling interests - Cash flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of subsidiaries [line items] | ||
Cash flows from (used in) operating activities | $ 787,742 | $ 226,667 |
Cash flows from (used in) financing activities | (530,636) | (169,502) |
Cash flows from (used in) investing activities | (105,517) | (88,209) |
Methanex Egypt | ||
Disclosure of subsidiaries [line items] | ||
Cash flows from (used in) operating activities | 131,175 | (23,992) |
Cash flows from (used in) financing activities | (27,365) | (24,929) |
Cash flows from (used in) investing activities | (18,839) | (4,637) |
Other | ||
Disclosure of subsidiaries [line items] | ||
Cash flows from (used in) operating activities | 19,538 | 17,718 |
Cash flows from (used in) financing activities | (3,250) | 55,891 |
Cash flows from (used in) investing activities | (605) | (70,516) |
Total | ||
Disclosure of subsidiaries [line items] | ||
Cash flows from (used in) operating activities | 150,713 | (6,274) |
Cash flows from (used in) financing activities | (30,615) | 30,962 |
Cash flows from (used in) investing activities | $ (19,444) | $ (75,153) |