Cover
Cover | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Addresses [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 000-20115 |
Entity Registrant Name | METHANEX CORPORATION |
Entity Incorporation, State or Country Code | Z4 |
Entity Primary SIC Number | 2860 |
Entity Address, Address Line One | 1800 Waterfront Centre |
Entity Address, Address Line Two | 200 Burrard Street |
Entity Address, City or Town | Vancouver |
Entity Address, State or Province | BC |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | V6C 3M1 |
City Area Code | 604 |
Local Phone Number | 661-2600 |
Title of 12(b) Security | Common Shares |
Trading Symbol | MEOH |
Security Exchange Name | NASDAQ |
Security Reporting Obligation | 15(d) |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Common Stock, Shares Outstanding | 67,387,492 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction | false |
Entity Central Index Key | 0000886977 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Agent for service in United States | |
Entity Addresses [Line Items] | |
Contact Personnel Name | CT Corporation System |
Entity Address, Address Line One | 28 Liberty Street |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10005 |
City Area Code | 212 |
Local Phone Number | 894-8940 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 85 |
Auditor Name | KPMG LLP |
Auditor Location | Vancouver, British Columbia, Canada |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 458,015 | $ 857,747 |
Trade and other receivables (note 3) | 533,615 | 500,925 |
Inventories (note 4) | 426,774 | 439,771 |
Prepaid expenses | 58,024 | 38,585 |
Other assets (note 7) | 3,893 | 39,346 |
Current assets | 1,480,321 | 1,876,374 |
Non-current assets: | ||
Property, plant and equipment (note 5) | 4,411,768 | 4,155,283 |
Investment in associate (note 6) | 184,249 | 197,083 |
Deferred income tax assets (note 16) | 152,250 | 46,353 |
Other assets (note 7) | 197,967 | 356,387 |
Non-current assets | 4,946,234 | 4,755,106 |
Assets | 6,426,555 | 6,631,480 |
Current liabilities: | ||
Trade, other payables and accrued liabilities | 771,867 | 789,200 |
Current maturities on long-term debt (note 8) | 314,716 | 15,133 |
Current maturities on lease obligations (note 9) | 120,731 | 108,736 |
Current maturities on other long-term liabilities (note 10) | 94,992 | 29,548 |
Current liabilities | 1,302,306 | 942,617 |
Non-current liabilities: | ||
Long-term debt (note 8) | 1,827,085 | 2,136,380 |
Lease obligations (note 9) | 751,389 | 761,427 |
Other long-term liabilities (note 10) | 154,918 | 134,603 |
Deferred income tax liabilities (note 16) | 217,840 | 226,996 |
Non-current liabilities | 2,951,232 | 3,259,406 |
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, 2023 were 67,387,492 (2022 - 69,239,136) | 391,924 | 401,295 |
Contributed surplus | 1,838 | 1,904 |
Retained earnings | 1,514,264 | 1,466,872 |
Accumulated other comprehensive income | 22,901 | 241,942 |
Shareholders’ equity | 1,930,927 | 2,112,013 |
Non-controlling interests | 242,090 | 317,444 |
Total equity | 2,173,017 | 2,429,457 |
Equity and liabilities | $ 6,426,555 | $ 6,631,480 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred shares | ||
Statement [Line Items] | ||
Number of shares authorised (in shares) | 25,000,000 | 25,000,000 |
Common shares | Capital stock | ||
Statement [Line Items] | ||
Number of shares issued (in shares) | 67,387,492 | 69,239,136 |
Number of shares outstanding (in shares) | 67,387,492 | 69,239,136 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Profit or loss [abstract] | ||
Revenue | $ 3,723,475 | $ 4,311,188 |
Cost of sales and operating expenses (note 11) | (3,068,072) | (3,446,101) |
Depreciation and amortization (note 11) | (391,830) | (372,420) |
Egypt gas redirection and sale proceeds (note 26) | 0 | 117,946 |
Operating income | 263,573 | 610,613 |
Earnings of associate (note 6) | 99,466 | 76,938 |
Finance costs (note 12) | (117,366) | (130,752) |
Finance income and other | 39,938 | 25,348 |
Income before income taxes | 285,611 | 582,147 |
Income tax (expense) recovery (note 16): | ||
Current | (49,924) | (127,578) |
Deferred | 48,435 | 7,719 |
Total income tax expense | (1,489) | (119,859) |
Net income | 284,122 | 462,288 |
Attributable to: | ||
Methanex Corporation shareholders | 174,140 | 353,830 |
Non-controlling interests (note 24) | 109,982 | 108,458 |
Net income | $ 284,122 | $ 462,288 |
Income per common share for the year attributable to Methanex Corporation shareholders: | ||
Basic net income per common share (note 13) (in usd per share) | $ 2.57 | $ 4.95 |
Diluted net income per common share (note 13) (in usd per share) | $ 2.57 | $ 4.86 |
Weighted average number of common shares outstanding (note 13) (in shares) | 67,805,220 | 71,422,360 |
Diluted weighted average number of common shares outstanding (note 13) (in shares) | 67,811,615 | 71,677,484 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of comprehensive income [abstract] | ||
Net income | $ 284,122 | $ 462,288 |
Items that may be reclassified to income: | ||
Change in cash flow hedges and excluded forward element (note 19) | (310,456) | 378,287 |
Realized losses (gains) on foreign exchange hedges reclassified to revenue | 3,105 | (5,674) |
Items that will not be reclassified to income: | ||
Actuarial loss on defined benefit pension plans (note 21(a)) | (2,827) | (726) |
Taxes on above items | 66,636 | (72,440) |
Other comprehensive income (loss) | (243,542) | 299,447 |
Comprehensive income | 40,580 | 761,735 |
Attributable to: | ||
Methanex Corporation shareholders | (69,402) | 653,277 |
Non-controlling interests (note 24) | $ 109,982 | $ 108,458 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity $ in Thousands | USD ($) | Capital stock USD ($) | Capital stock Common shares shares | Contributed surplus USD ($) | Retained earnings USD ($) | Accumulated other comprehensive income (loss) USD ($) | Shareholders’ equity USD ($) | Non-controlling interests USD ($) |
Balance, beginning of period (in shares) at Dec. 31, 2021 | shares | 74,774,087 | |||||||
Balance, beginning of period at Dec. 31, 2021 | $ 1,954,731 | $ 432,728 | $ 1,928 | $ 1,251,640 | $ (2,720) | $ 1,683,576 | $ 271,155 | |
Net income | 462,288 | 353,830 | 353,830 | 108,458 | ||||
Other comprehensive income (loss) | 299,447 | (252) | 299,699 | 299,447 | ||||
Compensation expense recorded for stock options | 110 | 110 | 110 | |||||
Issue of shares on exercise of stock options (in shares) | shares | 16,800 | |||||||
Issue of shares on exercise of stock options | 582 | 582 | 582 | |||||
Reclassification of grant date fair value on exercise of stock options | 0 | 134 | (134) | |||||
Sale of partial interest in subsidiary (note 25) | 148,990 | 126,445 | 126,445 | 22,545 | ||||
Payments for repurchase of shares (in shares) | shares | (5,551,751) | |||||||
Payments for repurchase of shares | (252,985) | (32,149) | (220,836) | (252,985) | ||||
Dividend payments to Methanex Corporation shareholders | (43,955) | (43,955) | (43,955) | |||||
Distributions made and accrued to non-controlling interests | (84,714) | (84,714) | ||||||
Realized hedge loss (gains) recognized in cash flow hedges | (55,037) | (55,037) | (55,037) | |||||
Balance, end of period (in shares) at Dec. 31, 2022 | shares | 69,239,136 | |||||||
Balance, end of period at Dec. 31, 2022 | 2,429,457 | 401,295 | 1,904 | 1,466,872 | 241,942 | 2,112,013 | 317,444 | |
Net income | 284,122 | 174,140 | 174,140 | 109,982 | ||||
Other comprehensive income (loss) | (243,542) | (1,976) | (241,566) | (243,542) | ||||
Compensation expense recorded for stock options | 124 | 124 | 124 | |||||
Issue of shares on exercise of stock options (in shares) | shares | 43,067 | |||||||
Issue of shares on exercise of stock options | 1,437 | 1,437 | 1,437 | |||||
Reclassification of grant date fair value on exercise of stock options | 0 | 190 | (190) | |||||
Payments for repurchase of shares (in shares) | shares | (1,894,711) | |||||||
Payments for repurchase of shares | (86,392) | (10,998) | (75,394) | (86,392) | ||||
Dividend payments to Methanex Corporation shareholders | (49,378) | (49,378) | (49,378) | |||||
Distributions made and accrued to non-controlling interests | (185,336) | (185,336) | ||||||
Realized hedge loss (gains) recognized in cash flow hedges | 22,525 | 22,525 | 22,525 | |||||
Balance, end of period (in shares) at Dec. 31, 2023 | shares | 67,387,492 | |||||||
Balance, end of period at Dec. 31, 2023 | $ 2,173,017 | $ 391,924 | $ 1,838 | $ 1,514,264 | $ 22,901 | $ 1,930,927 | $ 242,090 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of changes in equity [abstract] | ||
Dividend payments to Methanex Corporation shareholders (in usd per share) | $ 0.730 | $ 0.620 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | ||
Net income | $ 284,122 | $ 462,288 |
Deduct earnings of associate | (99,466) | (76,938) |
Dividends received from associate | 112,318 | 97,174 |
Add (deduct) non-cash items: | ||
Depreciation and amortization | 391,830 | 372,420 |
Income tax expense | 1,489 | 119,859 |
Share-based compensation expense | 34,502 | 15,398 |
Finance costs | 117,366 | 130,752 |
Other | (24,651) | (12,985) |
Interest received | 21,633 | 9,590 |
Income taxes paid | (81,922) | (163,828) |
Other cash payments, including share-based compensation | (37,894) | (20,503) |
Cash flows from operating activities before undernoted | 719,327 | 933,227 |
Changes in non-cash working capital (note 17(a)) | (59,058) | 54,122 |
Cash flows from/(used in) operating activities | 660,269 | 987,349 |
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | ||
Payments for repurchase of shares | (86,392) | (252,985) |
Dividend payments to Methanex Corporation shareholders | (49,378) | (43,955) |
Interest paid | (168,636) | (161,816) |
Repayment of long-term debt and financing fees (note 8) | (12,280) | (9,151) |
Repayment of lease obligations | (118,159) | (105,863) |
Distributions to non-controlling interests | (185,336) | (84,713) |
Proceeds on issue of shares on exercise of stock options | 1,437 | 582 |
Restricted cash for debt service accounts | (1,424) | (1,394) |
Sale of partial interest in subsidiary (note 25) | 0 | 148,990 |
Changes in non-cash working capital related to financing activities (note 17(a)) | 68,750 | 1,771 |
Cash flows from (used in) financing activities | (551,418) | (508,534) |
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | ||
Property, plant and equipment | (178,464) | (145,701) |
Geismar plant under construction | (269,989) | (431,680) |
Changes in non-cash working capital related to investing activities (note 17(a)) | (60,130) | 24,244 |
Cash flows from (used in) investing activities | (508,583) | (553,137) |
Decrease in cash and cash equivalents | (399,732) | (74,322) |
Cash and cash equivalents, beginning of year | 857,747 | 932,069 |
Cash and cash equivalents, end of year | $ 458,015 | $ 857,747 |
Nature of operations
Nature of operations | 12 Months Ended |
Dec. 31, 2023 | |
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. |
Material accounting policies
Material accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Corporate information and statement of IFRS compliance [abstract] | |
Material accounting policies | Material 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 7, 2024. 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 controlled by the Company. The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. 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. 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)), leases (note 2(i)), 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 records provisions for expected credit losses for receivables measured at amortized cost. The Company records an allowance for doubtful accounts or writes down the receivable to estimated net realizable value, if not collectible in full, based on expected credit losses. Expected credit losses are based on historic and forward looking customer specific factors including historic credit losses incurred. 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 ocean freight costs for the shipment of product. 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 at installation, excluding costs related to turnarounds, initially range up to 25 years depending on the specific asset component and the production facility to which it is related. Right-of-use (leased) assets are depreciated from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. 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. The estimated useful life of production facilities may be adjusted from time-to-time based on turnarounds, plant refurbishments and gas availability. 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. Recoverability of asset carrying values Long-lived assets are tested for recoverability whenever events or changes in circumstances, either internal or external, indicate that the carrying amount may not be recoverable (“triggering events”). Examples of such triggering events related to our long-lived assets may 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 change in management’s intention or strategy for the asset, which includes a plan to dispose of the asset or idle the asset for a significant period of time; a significant adverse change in our long-term methanol price assumption 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. When a triggering event is identified, 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 costs to sell or its value in use. Fair value less costs of disposal is determined by estimating the price that would be received to sell an asset in an orderly transaction between market participants under current market conditions, less incremental costs directly attributable to the disposal, excluding finance costs and income tax expense. Value in use is determined by measuring the pre-tax cash flows expected to be generated from the cash-generating unit over its estimated useful life discounted by a pre-tax discount rate. An impairment writedown is recorded if 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 the purposes of recognition and measurement of an impairment writedown or reversal, we group our 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 our methanol facilities in a particular location are interdependent as a result of common infrastructure and/or feedstock from shared sources that can be shared within a facility location, we group our assets based on site locations for the purpose of determining impairment. When impairment indicators exist, there are two key variables that impact our estimate of future cash flows from producing assets: (1) the methanol price and (2) the price and availability of natural gas feedstock. Short-term methanol price estimates are based on current supply and demand fundamentals and current methanol prices. Long-term methanol price estimates are based on our view of long-term supply and demand, incorporating third-party assumptions, forecasts and market observable prices when appropriate. Consideration is given to many factors, including, but not limited to, estimates of global industrial production rates, energy prices, changes in general economic conditions, the ability for the industry to add further global methanol production capacity and earn an appropriate return on capital, industry operating rates and the global industry cost structure. Our estimate of the price and availability of natural gas takes into consideration the current contracted terms, as well as factors that we believe are relevant to supply under these contracts and supplemental natural gas sources. Other assumptions included in our estimate of future cash flows include the estimated cost incurred to maintain the facilities, estimates of transportation costs and other variable costs incurred in producing methanol in each period. Changes in these assumptions will impact our estimates of future cash flows when testing for impairment and could impact our estimates of the useful lives of property, plant and equipment. Consequently, it is possible that our future operating results could be adversely affected by further asset impairment charges or by changes in depreciation and amortization rates related to property, plant and equipment. In relation to previous impairment charges, we do not believe that there are significant changes in events or circumstances that would support their reversal. 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: At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: • the contract involves the use of an identified asset - this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; • the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and • the Company has the right to direct the use of the asset. The Company has the right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. For contracts that contain a lease, the Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is assessed for impairment losses, should a trigger be identified and adjusted for impairment if required. Lease terms range up to 20 years for vessels, terminals, equipment, and other items. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. The assessment is reviewed upon a trigger by an event or a significant change in circumstances. Certain leases contain non-lease components, excluded from the right-of-use asset and lease liability, related to operating charges for ocean vessels, terminal facilities and rail transport contracts. Judgment is applied in the determination of the stand-alone price of the lease and non-lease components. The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets, except for terminal and vessel leases. The Company recognizes the lease payments associated with these leases as an expense 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 transferred to 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 ("PSUs") granted from 2019 onwards are redeemable for cash based on the market value of the Company's common shares and are non-dilutive to shareholders. PSUs vest over three years and include two performance factors: (i) relative total shareholder return of Methanex shares versus a specific market index (the market performance factor) and (ii) three year average Return on Capital Employed ("ROCE") (the non-market performance factor). The market performance factor is measured by the Company at the grant date and reporting date using a Monte-Carlo simulation model to determine fair value. The non-market performance factor reflects management's best estimate of ROCE over the performance period (using actual ROCE as applicable) to determine the expected number of units to vest. Based on these performance factors the performance share unit payout will range between 0% to 200%. 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 14. 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 13. n) Revenue recognition: Revenue is recognized based on individual contract terms at the point in time when control of 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 contractual performance obligation has not been met during shipment. For methanol sold on a consignment basis, revenue is recognized at the point in time the customer draws down the consigned methanol. Revenue is measured and recorded at the most likely amount of consideration the Company expects to receive. By contract, the Company sells all the methanol produced by the Atlas Joint Venture and earns a commission on the sale of the methanol. As the Company obtains title and control of the methanol from the Atlas facility and directs the sale of the methanol to the Company's customers, the Company recognizes the revenue on these sales to customers at the gross amount receivable from the customers based on the Company's revenue recognition policy noted above. Cost of sales is recognized for these sales as the amount due to the Atlas Joint Venture which is the gross amount receivable less the commission earned by the Company. 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. Assessment of contracts as derivative instruments, applicability of the own use exemption, determination of whether hybrid instruments contain embedded derivatives to be separated, the valuation of financial instruments and derivatives and hedge effectiveness assessments require a high degree of judgment and are considered critical accounting judgements and estimates due to the complex nature of these products and the potential impact on our financial statements. 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 19. 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. Uncertain tax positions derive from the complexity of tax law and its interpretation by tax authorities and ultimately the judicial system in place in each jurisdiction. Uncertain tax positions, including interest and penalties, are recognized and measured applying management estimates. Given the complexity, management engages third-party experts as required, for the interpretation of tax law, transfer pricing regulations and determination of the ultimate resolution of its tax positions. The Company is subject to various taxation authorities who may interpret tax legislation differently, and resolve matters over longer-periods of time. The differences in judgement in assessing uncertain tax positions may result in material differences in the final amount or timing of the payment of taxes or settlement of tax assessments. r) Segmented information: The Company’s operations consist of the production and sale of methanol, which constitutes a single operating segment. s) Application of new and revised accounting standards: The Company has adopted the amendments to IAS 1 Presentation of Financial Statements as well as IAS 8 Changes in Accounting Estimates and Errors regarding the disclosure of accounting policies and accounting estimates, and IAS 12, Income Taxes ("IAS 12") regarding deferred tax related to assets and liabilities arising from a single transaction, which were effective for annual periods beginning on January 1, 2023. The amendments did not have a material impact on the Company's consolidated financial statements. In May 2023, the IASB issued a further amendment to IAS 12, establishing a mandatory exception for recognition and disclosure of deferred taxes related to the Pillar Two model rules published by the Organization for Economic Co-operation and Development (“Pillar Two rules”). The Pillar Two rules establish a global minimum fifteen percent top-up tax regime and are expected to apply to Methanex beginning in 2024. The Company has applied this mandatory exception in the current period. Refer to note 16 for further disclosure on the expected impact of Pillar Two rules. t) Anticipated changes to International Financial Reporting Standards: The following new or amended standards or interpretations that are effective for annual periods beginning on or after January 1, 2024 are being reviewed to determine the potential impact: amendments to IAS 1, Presentation of Financial Statements regarding the classification of liabilities as current or non-current, IFRS 16, Leases regarding sale-and-leaseback transactions and IAS 7, Statement of Cash Flows |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade and other receivables | Trade and other receivables: As at Dec 31 Dec 31 Trade $ 431,602 $ 407,733 Value-added and other tax receivables 22,292 14,986 Other 79,721 78,206 $ 533,615 $ 500,925 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 is $2,860 million (2022 - $3,157 million). |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | Property, plant and equipment: Owned Assets Right-of-use assets Total Net book value at December 31, 2023 $ 3,654,475 $ 757,293 $ 4,411,768 Net book value at December 31, 2022 $ 3,398,805 $ 756,478 $ 4,155,283 a) Owned assets: Buildings, plant Plants Under Construction 1 Ocean vessels Other TOTAL Cost at January 1, 2023 $ 5,000,999 $ 1,001,888 $ 240,867 $ 140,081 $ 6,383,835 Additions 174,058 353,609 253 4,153 532,073 Disposals and other (294,850) — (397) (15,571) (310,818) Cost at December 31, 2023 4,880,207 1,355,497 240,723 128,663 6,605,090 Accumulated depreciation at January 1, 2023 2,827,870 — 49,310 107,850 2,985,030 Depreciation 248,783 — 12,080 2,153 263,016 Disposals and other (281,951) — — (15,480) (297,431) Accumulated depreciation at December 31, 2023 2,794,702 — 61,390 94,523 2,950,615 Net book value at December 31, 2023 $ 2,085,505 $ 1,355,497 $ 179,333 $ 34,140 $ 3,654,475 1 The Company is constructing a 1.8 million tonne methanol plant in Geismar, Louisiana adjacent to its Geismar 1 and Geismar 2 facilities. Included in cost of Plants Under Construction are $150 million (2022: $94 million) of capitalized interest and finance charges. Buildings, plant Plants under Ocean vessels Other TOTAL Cost at January 1, 2022 $ 4,908,492 $ 561,860 $ 240,525 $ 138,378 $ 5,849,255 Additions 140,326 440,028 342 1,703 582,399 Disposals and other (47,819) — — — (47,819) Cost at December 31, 2022 5,000,999 1,001,888 240,867 140,081 6,383,835 Accumulated depreciation at January 1, 2022 2,631,268 — 37,271 105,518 2,774,057 Depreciation 248,032 — 12,039 2,332 262,403 Disposals and other (51,430) — — — (51,430) Accumulated depreciation at December 31, 2022 2,827,870 — 49,310 107,850 2,985,030 Net book value at December 31, 2022 $ 2,173,129 $ 1,001,888 $ 191,557 $ 32,231 $ 3,398,805 b) Right-of-use (leased) assets: Ocean vessels Terminals and tanks Other TOTAL Cost at January 1, 2023 $ 846,977 $ 286,036 $ 68,701 $ 1,201,714 Additions 83,333 52,909 5,951 142,193 Disposals and other (19,589) (6,504) (16,031) (42,124) Cost at December 31, 2023 910,721 332,441 58,621 1,301,783 Accumulated depreciation at January 1, 2023 245,873 160,163 39,200 445,236 Depreciation 88,040 36,140 6,583 130,763 Disposals and other (19,589) — (11,920) (31,509) Accumulated depreciation at December 31, 2023 314,324 196,303 33,863 544,490 Net book value at December 31, 2023 $ 596,397 $ 136,138 $ 24,758 $ 757,293 Ocean vessels Terminals and tanks Other TOTAL Cost at January 1, 2022 $ 657,774 $ 258,743 $ 64,700 $ 981,217 Additions 232,536 27,293 4,001 263,830 Disposals and other (43,333) — — (43,333) Cost at December 31, 2022 846,977 286,036 68,701 1,201,714 Accumulated depreciation at January 1, 2022 214,004 125,494 30,768 370,266 Depreciation 75,586 34,669 8,432 118,687 Disposals and other (43,717) — — (43,717) Accumulated depreciation at December 31, 2022 245,873 160,163 39,200 445,236 Net book value at December 31, 2022 $ 601,104 $ 125,873 $ 29,501 $ 756,478 |
Investment in associate
Investment in associate | 12 Months Ended |
Dec. 31, 2023 | |
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 and Tobago. 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 $ 126,392 $ 24,420 Other current assets 1 189,062 182,103 Non-current assets 149,354 184,373 Current liabilities 1 (157,835) (92,108) Other long-term liabilities, including current maturities (135,940) (107,416) Net assets at 100% $ 171,033 $ 191,372 Net assets at 63.1% $ 107,921 $ 120,755 Long-term receivable from Atlas 1 76,328 76,328 Investment in associate $ 184,249 $ 197,083 Consolidated statements of income for the years ended December 31 2023 2022 Revenue 1 $ 466,312 $ 532,456 Cost of sales and depreciation and amortization (289,705) (332,999) Gas contract settlement (b) 75,000 — Operating income 251,607 199,457 Finance costs, finance income and other (10,316) (9,433) Income tax expense (83,659) (68,093) Net earnings at 100% $ 157,632 $ 121,931 Earnings of associate at 63.1% $ 99,466 $ 76,938 Dividends received from associate $ 112,318 $ 97,174 1 Includes related party transactions between Atlas and the Company (see note 23). b) Gas contract settlement: Atlas stand-alone financial results for the year ended December 31, 2023 include a $75 million settlement (Methanex share, $47 million, net of tax, $31 million) related to a historical dispute under an existing gas contract. The amount was received in cash in the fourth quarter of 2023. c) Atlas tax assessments: The Board of Inland Revenue of Trinidad and Tobago ("the BIR") has audited and issued assessments against Atlas in respect of the 2005 to 2017 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 that commenced in 2005 and continued with affiliates through 2014 and with an unrelated third party through 2019. The long-term fixed-price sales contracts with affiliates were established as part of the formation of Atlas and management believes these were reflective of market considerations at that time. During the periods under assessment and continuing through 2014, approximately 50% of Atlas-produced methanol was sold under these fixed-price contracts. From late 2014 through 2019 fixed-price sales to an unrelated third party represented approximately 10% of Atlas produced methanol. Atlas had partial relief from corporation income tax until late July 2014. The Company believes it is impractical to disclose a reasonable estimate of the potential contingent liability due to the wide range of assumptions and interpretations implicit in the assessments. The Company has lodged objections to the assessments. No deposits have been required to lodge objections. Based on the merits of the cases and advice from legal counsel, the Company believes its position should be sustained, that Atlas has filed its tax returns and paid applicable taxes in compliance with Trinidadian tax law, and as such has not accrued for any amounts relating to these assessments. Contingencies inherently involve the exercise of significant judgment, and as such the outcomes of these assessments and the financial impact to the Company could be material. The Company anticipates the resolution of this matter through the court systems to be lengthy and, at this time, cannot predict a date as to when this matter is expected to be ultimately resolved. d) Impairment testing: In Trinidad we announced our intention to idle the Atlas plant when its 20-year legacy natural gas supply arrangement expires in September 2024. The expected idling of the Atlas plant has been identified as an impairment indicator for the Atlas cash generating unit ("Atlas CGU"). The impairment test performed on the Atlas CGU resulted in no impairment provision recognized as the estimated recoverable value, determined on a fair value less costs of disposal methodology, exceeded the carrying value. The estimated recoverable value was based on an assumed restart date and an operating period for Atlas aligned to natural gas reserves estimates in Trinidad and Tobago with no terminal value, discounted at an after-tax rate of 16%. The following table indicates the percentages by which key assumptions would need to change individually for the estimated Atlas CGU recoverable value to be equal to the carrying value: Key Assumptions Change Required for Carrying Value to Equal Recoverable Value Long-term average realized methanol price 10 percent decrease Production volumes 15 percent decrease Gas price 10 percent increase Discount rate (after-tax) 800 basis points increase The sensitivity above has been prepared considering each variable independently. Historically, our natural gas contracts in Trinidad and Tobago have included terms whereby a change in methanol price results in a change in natural gas price, protecting margins should revenue decrease. |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other assets | Other assets: As at Dec 31 2023 Dec 31 2022 Cash flow hedges (note 19) $ 121,108 $ 322,748 Chile VAT receivable 17,824 18,343 Restricted cash for debt service and major maintenance of vessels (a) 15,772 14,349 Fair value of Egypt gas supply contract derivative (note 19) 20,402 11,220 Investment in Carbon Recycling International 5,620 5,620 Defined benefit pension plans (note 21) 5,718 3,977 Other 15,416 19,476 Total other assets 201,860 395,733 Less current portion (b) (3,893) (39,346) 197,967 $ 356,387 a) Restricted cash The Company holds $15.8 million (2022 - $14.3 million) of restricted cash for the funding of debt service and major maintenance accounts. b) Current portion of other assets |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments [Abstract] | |
Long-term debt | Long-term debt: As at Dec 31 Dec 31 Unsecured notes (i) $300 million at 4.25% due December 1, 2024 $ 299,283 $ 298,836 (ii) $700 million at 5.125% due October 15, 2027 694,844 693,649 (iii) $700 million at 5.25% due December 15, 2029 695,824 695,283 (iv) $300 million at 5.65% due December 1, 2044 295,709 295,606 1,985,660 1,983,374 Other limited recourse debt facilities (i) 5.58% due through June 30, 2031 56,637 61,978 (ii) 5.35% due through September 30, 2033 65,300 70,312 (iii) 5.21% due through September 15, 2036 34,204 35,849 156,141 168,139 Total long-term debt 1 2,141,801 2,151,513 Less current maturities 1 (314,716) (15,133) $ 1,827,085 $ 2,136,380 1 Long-term debt and current maturities are presented net of discounts and deferred financing fees of $16.8 million as at December 31, 2023 (2022 - $19.4 million). For the year ended December 31, 2023, non-cash accretion, on an effective interest basis, of deferred financing costs included in finance costs was $2.6 million (2022 - $2.2 million). The gross minimum principal payments for long-term debt in aggregate and for each of the five succeeding years are as follows: Other limited recourse debt facilities Unsecured Total 2024 $ 15,367 $ 300,000 $ 315,367 2025 13,660 — 13,660 2026 13,796 — 13,796 2027 15,173 700,000 715,173 2028 16,026 — 16,026 Thereafter 84,574 1,000,000 1,084,574 $ 158,596 $ 2,000,000 $ 2,158,596 The Company has access to a $300 million committed revolving credit facility from a syndicate of highly rated financial institutions expiring in July 2026. The revolving credit facility is subject to the following significant covenants and default provisions: i) the obligation to maintain a minimum EBITDA to interest coverage ratio of greater than or equal to 2:1 calculated on a four-quarter trailing basis and a debt to capitalization ratio of less than or equal to 60%, both calculated in accordance with definitions in the credit agreement that include adjustments to 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 revolving credit facility is secured by certain assets of the Company, and also includes other customary covenants including restrictions on the incurrence of additional indebtedness. During the year, the Company cancelled the $300 million non-revolving construction facility for the Geismar 3 project. At the time of cancellation, the construction facility was undrawn. Other limited recourse debt facilities relate to financing for certain of our ocean vessels which we own through less than wholly-owned entities under the Company's control. 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 covenants governing the Company’s unsecured notes, which are specified in an indenture, apply to the Company and its subsidiaries, excluding the Egypt entity and the Atlas joint venture entity, 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. 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. |
Lease obligations
Lease obligations | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Leases [Abstract] | |
Lease obligations | Lease obligations: 2023 2022 Opening lease obligations $ 870,163 $ 717,101 Additions, net of disposals 123,187 262,470 Interest expense 53,418 48,039 Lease payments (171,577) (153,901) Effect of movements in exchange rates and other (3,071) (3,546) Lease obligations at December 31 872,120 870,163 Less: current portion (120,731) (108,736) Lease obligations - non current portion $ 751,389 $ 761,427 The Company incurs lease payments related to ocean vessels, terminal facilities, rail cars, vehicles and equipment, and office facilities. Leases are entered into and exited in coordination with specific business requirements which includes the assessment of the appropriate durations for the related leased assets. The following table presents the contractual undiscounted cash flows for lease obligations as at December 31, 2023: Lease Interest Lease obligations 2024 $ 172,197 $ 51,466 $ 120,731 2025 142,761 45,617 97,144 2026 123,738 39,998 83,740 2027 112,397 34,419 77,978 2028 108,284 28,547 79,737 Thereafter 514,969 102,179 412,790 $ 1,174,346 $ 302,226 $ 872,120 Variable lease payments and short-term and low value leases Certain leases contain non-lease components, excluded from the right-of-use asset and lease liability, related to operating charges for ocean vessels and terminal facilities. The total expense recognized in cost of sales relating to operating charges for 2023 was $83.8 million (2022 - $81.9 million). Short-term leases are leases with a lease term of twelve months or less while low-value leases are comprised of information technology and miscellaneous equipment. Such items recognized within cost of sales in 2023 were $0.2 million (2022 - $0.2 million). Extension options Some leases contain extension options exercisable by the Company. Where practicable, the Company seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Company and not by the lessors. The Company assesses, at lease commencement, whether it is reasonably certain to exercise the extension options. The Company reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant change in circumstances within its control. Total potential future lease payments not included in the lease liabilities should the Company exercise these extension options totals $51.8 million (2022 - $53.5 million). Lease liabilities recognized (discounted) Potential future lease payments not included in lease liabilities (undiscounted) Ocean-going vessels $ 662,903 $ 1,512 Terminals and tanks 174,019 38,987 Other 35,198 11,279 Total $ 872,120 $ 51,778 Leases not yet commenced As at December 31, 2023, the Company has entered into lease agreements for which the leases have not yet commenced. Total exposure to undiscounted future cash outflows not reflected in lease liabilities is $68.7 million (2022 - $132.6 million). The leases not yet commenced as at December 31, 2023 related to terminal agreements, railcar agreements, storage tank agreements and the addition of 1 new ocean vessel in 2024 with a 5-year term, replacing an existing ocean vessel lease. The leases not yet commenced as at December 31, 2022 related to terminal agreements, storage tank agreements and 1 ocean vessel lease that commenced in 2023. |
Other long-term liabilities
Other long-term liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other Long-Term Liabilities | Other long-term liabilities: As at Dec 31 Dec 31 Share-based compensation liability (note 14) $ 74,107 $ 70,569 Site restoration costs 32,596 36,581 Land mortgage 28,014 28,514 Defined benefit pension plans (note 21) 22,691 19,216 Cash flow hedges (note 19) 91,183 6,739 Other 1,319 2,532 249,910 164,151 Less current maturities (94,992) (29,548) $ 154,918 $ 134,603 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, 2023, the total undiscounted amount of estimated cash flows required to settle the liabilities was $50.6 million (2022 - $52.1 million). The movement in the provision during the year is explained as follows: 2023 2022 Balance at January 1 $ 36,581 $ 29,355 New or revised provisions (5,573) 6,915 Accretion expense 1,588 311 Balance at December 31 $ 32,596 $ 36,581 |
Expenses
Expenses | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Expenses | Expenses: For the years ended December 31 2023 2022 Cost of sales $ 2,797,794 $ 3,238,312 Selling and distribution 552,693 498,552 Administrative expenses 109,415 81,657 Total expenses by function $ 3,459,902 $ 3,818,521 Cost of raw materials and purchased methanol 2,329,856 2,789,921 Ocean freight and other logistics 357,495 325,893 Employee expenses, including share-based compensation 243,542 219,012 Other expenses 137,179 111,275 Cost of sales and operating expenses 3,068,072 3,446,101 Depreciation and amortization 391,830 372,420 Total expenses by nature $ 3,459,902 $ 3,818,521 For the year ended December 31, 2023 we recorded a share-based compensation expense of $34.5 million (2022 - expense of $15.4 million), the majority of which is included in administrative expenses for the total expenses by function presentation above. Included in cost of sales is $466.3 million (2022 - $532.5 million) of cost of sales which are recognized as sales to Methanex in our Atlas equity investee’s statements of income. |
Finance costs
Finance costs | 12 Months Ended |
Dec. 31, 2023 | |
Borrowing costs [abstract] | |
Finance costs | Finance costs: For the years ended December 31 2023 2022 Finance costs before capitalized interest $ 172,814 $ 167,066 Less capitalized interest related to Geismar plant under construction (55,448) (36,314) Finance costs $ 117,366 $ 130,752 |
Net income per common share
Net income per common share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share [abstract] | |
Net income per common share | Net income per common share: Diluted net income 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 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 per common share as compared to the cash-settled method. The cash-settled method was more dilutive for the year ended December 31, 2023, and no adjustment was required for the numerator or the denominator. The equity-settled method was more dilutive for the year ended December 31, 2022, and an adjustment was required for both the numerator and denominator. 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 TSARs. For the year ended December 31, 2023 and 2022, stock options were dilutive, resulting in an adjustment to the denominator. For the year ended December 31, 2023, TSARs were not dilutive, resulting in no adjustment to the denominator. For the year ended December 31, 2022, TSARs were dilutive, resulting in an adjustment to the denominator. A reconciliation of the numerator used for the purposes of calculating diluted net income per common share is as follows: For the years ended December 31 2023 2022 Numerator for basic net income per common share $ 174,140 $ 353,830 Adjustment for the effect of TSARs: Cash-settled recovery included in net income — (316) Equity-settled expense — (5,503) Numerator for diluted net income per common share $ 174,140 $ 348,011 A reconciliation of the denominator used for the purposes of calculating diluted net income per common share is as follows: For the years ended December 31 2023 2022 Denominator for basic net income per common share 67,805,220 71,422,360 Effect of dilutive stock options 6,395 10,108 Effect of dilutive TSARS — 245,016 Denominator for diluted net income per common share 67,811,615 71,677,484 For the years ended December 31, 2023 and 2022, basic and diluted net income per common share attributable to Methanex shareholders were as follows: For the years ended December 31 2023 2022 Basic net income per common share $ 2.57 $ 4.95 Diluted net income per common share $ 2.57 $ 4.86 |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, the Company had 4,010,076 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 from the date of grant. SARs and TSARs units outstanding at December 31, 2023 and 2022 are as follows: SARs TSARs Number of Exercise Number of Exercise Outstanding at December 31, 2021 666,256 $ 45.70 2,380,237 $ 42.05 Granted 32,730 48.49 266,090 48.49 Exercised (129,162) 37.17 (290,577) 35.94 Cancelled (12,900) 55.70 (21,922) 46.45 Expired (149,237) 55.66 (145,469) 55.82 Outstanding at December 31, 2022 407,687 $ 44.67 2,188,359 $ 42.68 Granted 51,160 50.49 169,190 50.49 Exercised (50,715) 33.85 (336,535) 31.88 Cancelled (5,600) 53.69 (13,544) 51.36 Outstanding at December 31, 2023 402,532 $ 46.65 2,007,470 $ 45.10 Information regarding the SARs and TSARs outstanding as at December 31, 2023 is as follows: Units outstanding at December 31, 2023 Units exercisable at December 31, 2023 Range of exercise prices Weighted average Number Weighted Number Weighted SARs $29.27 to $38.79 3.52 112,962 $ 32.60 99,800 $ 31.78 $45.40 to $50.49 2.93 171,010 49.93 98,029 49.96 $54.65 to $78.59 1.39 118,560 55.30 118,560 55.30 2.64 402,532 $ 46.65 316,389 $ 46.23 TSARs $29.27 to $38.79 3.57 776,194 $ 33.05 666,922 $ 32.11 $45.40 to $50.49 3.65 673,316 49.55 330,265 49.62 $54.65 to $78.59 1.66 557,960 56.48 557,960 56.48 3.07 2,007,470 $ 45.10 1,555,147 $ 44.57 The fair value of each outstanding SARs and TSARs grant was estimated on December 31, 2023 and 2022 using the Black-Scholes option pricing model with the following weighted average assumptions: 2023 2022 Risk-free interest rate 4.5% 4.4% Expected dividend yield 1.6% 1.9% Expected life of SARs and TSARs (years) 1.4 1.8 Expected volatility 38% 51% Expected forfeitures 0% 0% Weighted average fair value (USD per unit) $ 10.75 $ 8.72 Compensation expense for SARs and TSARs is measured based on their fair value and is recognized over the vesting period. Changes in fair value each period are recognized in net income for the proportion of the service that has been rendered at each reporting date. The fair value as at December 31, 2023 was $26.7 million compared with the recorded liability of $25 million. The difference between the fair value and the recorded liability of $1.7 million will be recognized over the weighted average remaining vesting period of approximately 1.4 years. For the year ended December 31, 2023, compensation expense related to SARs and TSARs included an expense in cost of sales and operating expenses of $10.5 million (2022 - expense of $1.8 million). This included an expense of $6.6 million (2022 - recovery of $3.7 million) related to the effect of the change in the Company’s share price. b) Deferred, restricted and performance share units (old plan and new plan): Deferred, restricted and performance share units (old plan and new plan) outstanding as at December 31, 2023 and 2022 are as follows: Number of Number of Number of Outstanding at December 31, 2021 133,418 332,385 689,688 Granted 19,909 104,810 199,430 Performance factor impact on redemption 1 — — (14,796) Granted in lieu of dividends 2,434 5,561 11,764 Redeemed — (82,039) (119,714) Cancelled — (19,788) (21,485) Outstanding at December 31, 2022 155,761 340,929 744,887 Granted 18,417 104,980 179,340 Performance factor impact on redemption 1 — — 143,065 Granted in lieu of dividends 2,484 5,267 10,411 Redeemed (18,962) (131,398) (435,035) Cancelled — (8,924) (11,546) Outstanding at December 31, 2023 157,700 310,854 631,122 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. These units relate to performance share units redeemed in the quarter ended March 31, 2023 and the quarter ended March 31, 2022. Performance share units are redeemable for cash based on the market value of the Company's common shares and are non-dilutive to shareholders. Units vest over three years and include two equally weighted performance factors: (i) relative total shareholder return of Methanex shares versus a specific market index (the market performance factor) and (ii) three year average Return on Capital Employed (the non-market performance factor). The market performance factor is measured by the Company at the grant date and reporting date using a Monte-Carlo simulation model to determine fair value. The non-market performance factor reflects management's best estimate to determine the expected number of units to vest. Based on these performance factors the performance share unit payout will range between 0% to 200%. 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 for the proportion of the service that has been rendered at each reporting date. The fair value of deferred, restricted and performance share units at December 31, 2023 was $58.6 million compared with the recorded liability of $48.9 million. The difference between the fair value and the recorded liability of $9.7 million will be recognized over the weighted average remaining vesting period of approximately 1.7 years. |
Segmented information
Segmented information | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022, revenues attributed to geographic regions, based on the location of customers, were as follows: Revenue China Europe United States South America South Korea Other Asia Canada TOTAL 2023 $ 1,042,723 $ 722,578 $ 574,951 $ 428,617 $ 391,821 $ 387,373 $ 175,412 $ 3,723,475 28 % 19 % 15 % 12 % 11 % 10 % 5 % 100 % 2022 $ 1,105,610 $ 830,507 $ 657,495 $ 458,989 $ 542,646 $ 518,901 $ 197,040 $ 4,311,188 26 % 19 % 15 % 11 % 13 % 12 % 4 % 100 % As at December 31, 2023 and 2022, the net book value of property, plant and equipment by geographic region, and the Company's shipping business, was as follows: Property, plant and equipment 1 United Egypt New Canada Chile Trinidad Waterfront Shipping Other TOTAL December 31, 2023 $ 2,537,515 $ 520,497 $ 232,831 $ 157,483 $ 113,789 $ 43,835 $ 775,729 $ 30,089 $ 4,411,768 December 31, 2022 $ 2,211,333 $ 564,454 $ 211,544 $ 165,783 $ 102,467 $ 70,432 $ 792,016 $ 37,254 $ 4,155,283 1 Includes right-of-use (leased) assets. |
Income and other taxes
Income and other taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Income and other taxes | Income and other taxes: a) Income tax (expense) recovery: For the years ended December 31 2023 2022 Current tax (expense) recovery: Current period before undernoted items $ (64,679) $ (127,254) Adjustments to prior years including resolution for certain outstanding audits 14,755 (324) (49,924) (127,578) Deferred tax recovery (expense): Origination and reversal of temporary differences 46,982 9,589 Adjustments to prior years including resolution for certain outstanding audits 6,904 (400) Changes in tax rates (5,828) (23) Impact of foreign exchange and other 377 (1,447) 48,435 7,719 Total income tax expense $ (1,489) $ (119,859) 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 before income taxes as follows: For the years ended December 31 2023 2022 Income before income taxes $ 285,611 $ 582,147 Deduct earnings of associate (99,466) (76,938) 186,145 505,209 Canadian statutory tax rate 24.5 % 24.5 % Income tax expense calculated at Canadian statutory tax rate (45,606) (123,776) Decrease (increase) in income tax expense resulting from: Impact of income and losses taxed in foreign jurisdictions 27,260 1,346 Utilization of unrecognized loss carryforwards and temporary differences 7,381 7,077 Impact of tax rate changes (5,828) (23) Impact of foreign exchange 5,287 3,783 Other business taxes (13,943) (11,065) Impact of items not taxable for tax purposes 2,373 3,624 Adjustments to prior years including resolution for certain outstanding audits 21,658 (724) Other (71) (101) Total income tax expense $ (1,489) $ (119,859) c) Net deferred income tax assets and liabilities: (i) The tax effect of temporary differences that give rise to deferred income tax liabilities and deferred income tax assets is as follows: As at Dec 31, 2023 Dec 31, 2022 Net Deferred tax assets Deferred tax liabilities Net Deferred tax assets Deferred tax liabilities Property, plant and equipment (owned) $ (363,644) $ (189,646) $ (173,998) $ (403,505) $ (230,756) $ (172,749) Right-of-use assets (35,883) (28,299) (7,584) (33,477) (26,486) (6,991) Repatriation taxes (109,186) (7) (109,179) (106,989) — (106,989) Other (31,630) (9,259) (22,371) (78,305) (60,850) (17,455) (540,343) (227,212) (313,131) (622,276) (318,092) (304,184) Non-capital loss carryforwards 358,774 321,602 37,172 353,986 322,608 31,378 Lease obligations 48,633 37,854 10,779 46,438 35,957 10,481 Share-based compensation 16,391 651 15,740 17,068 2,096 14,972 Other 50,955 19,355 31,600 24,141 3,784 20,357 474,753 379,462 95,291 441,633 364,445 77,188 Net deferred income tax assets (liabilities) $ (65,590) $ 152,250 $ (217,840) $ (180,643) $ 46,353 $ (226,996) As at December 31, 2023, deferred income tax assets have been recognized in respect of non-capital loss carryforwards generated in the United States. These loss carryforwards expire as follows: Dec 31 2023 Gross amount Tax effect Expire Losses generated in 2015 (expires 2035) $ 282,437 $ 62,136 Losses generated in 2016 (expires 2036) 432,581 95,168 Losses generated in 2017 (expires 2037) 234,941 51,687 949,959 208,991 No expiry Losses generated in 2019 255,244 56,154 Losses generated in 2020 121,321 26,691 Losses generated in 2023 29,235 6,432 Total non-capital loss carryforwards $ 1,355,760 $ 298,267 Losses generated in the United States on or after January 1, 2018 may be carried forward indefinitely against future taxable income. Tax losses generated before December 31, 2017 may be carried forward for a 20 year period. As at December 31, 2023 the Company had $201 million (2022 - $231 million) of deductible temporary differences in the United States that have not been recognized. As at December 31, 2023, deferred income tax assets have been recognized in respect of non-capital loss carryforwards generated in Trinidad. The loss carryforwards total $82 million (2022 - $70 million), which result in a deferred income tax asset of $29 million (2022 - $24 million). The losses generated in Trinidad may be carried forward indefinitely against future taxable income. As at December 31, 2023, deferred income tax assets have been recognized in respect of non-capital loss carryforwards generated in New Zealand. The loss carryforwards total $25 million (2022 - $7 million), which result in a deferred income tax asset of $7 million (2022 - $2 million). The losses generated in New Zealand may be carried forward indefinitely against future taxable income. As at December 31, 2023, deferred income tax assets have been recognized in respect of non-capital loss carryforwards generated in Canada. The loss carryforwards total $123 million (2022 - $121 million), which result in a deferred income tax asset of $30 million (2022 - $30 million). The losses were generated in 2020 and can be carried forward 20 years against future taxable income. (ii) Analysis of the change in deferred income tax assets and liabilities: 2023 2022 Net Deferred tax assets Deferred tax liabilities Net Deferred tax assets Deferred tax liabilities Balance, January 1 $ (180,643) $ 46,353 $ (226,996) $ (114,536) $ 98,169 $ (212,705) Deferred income tax recovery (expense) included in net income 48,435 40,159 8,276 7,719 22,578 (14,859) Deferred income tax recovery (expense) included in other comprehensive income 66,636 65,738 898 (72,440) (74,394) 1,954 Other (17) — (17) (1,386) — (1,386) Balance, December 31 $ (65,590) $ 152,250 $ (217,840) $ (180,643) $ 46,353 $ (226,996) International Tax Reform — Pillar Two Rules |
Supplemental cash flow informat
Supplemental cash flow information | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 were as follows: For the years ended December 31 2023 2022 Changes in non-cash working capital: Trade and other receivables $ (32,690) $ 50,442 Inventories 12,997 19,785 Prepaid expenses (19,439) (2,622) Trade, other payables and accrued liabilities (17,333) (46,751) (56,465) 20,854 Adjustments for items not having a cash effect and working capital changes relating to taxes and interest paid and interest received 6,027 59,283 Changes in non-cash working capital having a cash effect $ (50,438) $ 80,137 These changes relate to the following activities: Operating $ (59,058) $ 54,122 Financing 68,750 1,771 Investing (60,130) 24,244 Changes in non-cash working capital $ (50,438) $ 80,137 b) Reconciliation of movements in liabilities to cash flows arising from financing activities: Long term debt Lease obligations (note 9) Balance at December 31, 2022 $ 2,151,513 $ 870,163 Changes from financing cash flows Repayment of long-term debt and financing fees (12,280) — Payment of lease obligations — (118,159) Total changes from financing cash flows (12,280) (118,159) Liability-related other changes Finance costs 2,568 — New lease obligations — 123,187 Other — (3,071) Total liability-related other changes 2,568 120,116 Balance at December 31, 2023 $ 2,141,801 $ 872,120 |
Capital disclosures
Capital disclosures | 12 Months Ended |
Dec. 31, 2023 | |
Liquidity And Capitalization [Abstract] | |
Capital disclosures | Capital disclosures: The Company’s objective in managing liquidity and capital is to safeguard the Company’s ability to continue as a going concern and to provide financial capacity and flexibility to meet its strategic objectives, with a focus on cash preservation and liquidity. As at Dec 31 Dec 31 Liquidity: Cash and cash equivalents $ 458,015 $ 857,747 Undrawn credit facility 300,000 300,000 Undrawn G3 construction facility — 300,000 Total liquidity $ 758,015 $ 1,457,747 Capitalization: Unsecured notes, including current portion 1,985,660 1,983,374 Other limited recourse debt facilities, including current portion 156,141 168,139 Total debt 2,141,801 2,151,513 Non-controlling interests 242,090 317,444 Shareholders’ equity 1,930,927 2,112,013 Total capitalization $ 4,314,818 $ 4,580,970 Total debt to capitalization 1 50% 47% Net debt to capitalization 2 44% 35% 1 Total debt (including Other limited recourse debt facilities) divided by total capitalization. 2 Total debt (including Other 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, private placements by limited recourse subsidiaries, 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. The Company has access to a $300 million committed revolving credit facility with a syndicate of highly rated financial institutions expiring in July 2026. The credit facility is subject to certain financial covenants (note 8). During the year ended December 31, 2023, the Company cancelled the $300 million non-revolving construction facility for the Geismar 3 plant. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2023 | |
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 the 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 or accumulated other comprehensive income when the underlying hedged transaction is recognized in earnings or inventory. 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 $ 121,108 $ 322,748 Fair value of Egypt gas supply contract derivative 2 20,402 11,220 Financial assets not measured at fair value: Cash and cash equivalents 458,015 857,747 Trade and other receivables, excluding tax receivable 514,739 488,184 Restricted cash included in other assets 15,772 14,349 Total financial assets 3 $ 1,130,036 $ 1,694,248 Financial liabilities: Financial liabilities measured at fair value: Derivative instruments designated as cash flow hedges 1 $ 91,653 $ 8,466 Financial liabilities not measured at fair value: Trade, other payables and accrued liabilities, excluding tax payable 672,237 656,010 Lease obligations, including current portion 872,120 870,163 Long-term debt, including current portion 2,141,801 2,151,513 Land mortgage 28,014 28,514 Total financial liabilities $ 3,805,825 $ 3,714,666 1 The Geismar 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 Egypt natural gas supply contract is measured at fair value using a Monte-Carlo model classified within Level 3 of the fair value hierarchy. 3 The carrying amount of the financial assets represents the maximum exposure to credit risk at the respective reporting periods. As at December 31, 2023, 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 were 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 and those using significant unobservable inputs classified as Level 3. The fair value of all of the Company's derivative contracts as presented in the consolidated statements of financial position are determined based on present values and the discount rates used are adjusted 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 in other comprehensive income as the forward element excluded from the hedging relationships. Once a commodity hedge settles, the amount realized during the period and not recognized immediately in the statement of income is reclassified from accumulated other comprehensive income (equity) to inventory and ultimately through cost of goods sold. Foreign currency hedges settled, are realized during the period directly to the statement of income reclassified from the statement of other comprehensive income. Until settled, the fair value of Level 2 derivative financial instruments will fluctuate based on changes in commodity prices or foreign currency exchange rates and the fair value of Level 3 derivative financial instruments will fluctuate based on changes in the observable and unobservable valuation model inputs. North American natural gas forward contracts The Company manages 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: both financial and physical. The Company has entered into forward contracts designated as cash flow hedges to manage its exposure to changes in natural gas prices for Geismar. Natural gas is fungible across the Geismar plants. Other costs incurred to transport natural gas from the contracted delivery point, Henry Hub, to the relevant production facility represent an insignificant portion of the overall underlying risk and are recognized as incurred outside of the hedging relationship. No hedge ineffectiveness has been recognized in 2023 or 2022. As at Dec 31 Dec 31 Maturities 2024-2032 2023-2032 Notional quantity 1 347,190 307,900 Notional quantity per day, annualized 1 50 - 170 50 - 150 Notional amount $ 1,183,319 $ 1,014,264 Net fair value $ 29,925 $ 316,008 1 In thousands of Million British Thermal Units (MMBtu) Information regarding the gross amounts of the Company's natural gas forward contracts designated as cash flow hedges in the audited consolidated statements of financial position is as follows: As at Dec 31 Dec 31 Other current assets $ 470 $ 32,768 Other non-current assets 120,638 289,979 Other current liabilities (60,532) (317) Other long-term liabilities (30,651) (6,422) Net fair value $ 29,925 $ 316,008 For the year ended December 31, 2023, the Company reclassified a loss of $22.5 million (2022 - gain of $55.0 million) for natural gas hedge settlements from accumulated other comprehensive income. Realized gains and losses related to settlements of natural gas hedges are presented separately within the Consolidated Statement of Changes in Equity. Euro forward exchange contracts The Company manages its foreign currency exposure to euro denominated sales by executing a number of forward contracts which it has designated as cash flow hedges for its highly probable forecast euro collections. 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 2023 or 2022. As at December 31, 2023, the Company had outstanding forward exchange contracts designated as cash flow hedges to sell a notional amount of 12.2 million euros (2022 - 21.1 million euros). The euro contracts had a negative fair value of $0.5 million included in current liabilities (2022 - negative fair value of $1.7 million included in current liabilities). For the year ended December 31, 2023, the Company reclassified a loss of $3.1 million (2022 - gain of $5.7 million) for foreign currency hedge settlements from other comprehensive income. Changes in cash flow hedges and excluded forward element Information regarding the impact of changes in cash flow hedges and cost of hedging reserve in the consolidated statement of comprehensive income is as follows: For the years ended December 31 2023 2022 Change in fair value of cash flow hedges $ (276,619) $ (27,742) Forward element excluded from hedging relationships (33,837) 406,029 $ (310,456) $ 378,287 Fair value - Level 2 instruments The table below shows the nominal cash outflows for derivative hedging instruments including natural gas forward contracts and forward exchange contracts, excluding credit risk adjustments, based upon contracted settlement dates. The amounts reflect the maturity profile of the hedging instruments 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 $ 65,034 $ 2,050 1-3 years 17,771 7,132 3-5 years 5,537 — More than 5 years 11,378 — $ 99,720 $ 9,182 The fair value of the Company’s derivative financial instruments as disclosed above are determined based on Bloomberg quoted market prices, 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 investment-grade counterparties. 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 $121.1 million as at December 31, 2023 (2022 - $322.7 million). The carrying values of the Company’s financial instruments approximate their fair values, except as follows: As at December 31, 2023 December 31, 2022 Carrying value Fair value Carrying value Fair value Long-term debt excluding deferred financing fees $ 2,156,534 $ 2,063,661 $ 2,168,585 $ 1,953,932 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. Fair value - Level 3 instrument The Company holds a long-term natural gas supply contract expiring in 2035 with the Egyptian Natural Gas Holding Company ("EGAS"), a State-Owned enterprise in Egypt. The natural gas supply contract includes a base fixed price plus a premium based on the realized price of methanol for the full volume of natural gas to supply the plant through 2035. As a result of the amendment in 2022, the contract is being treated as a derivative measured at fair value. There is no observable, liquid spot market or forward curve for natural gas in Egypt. In addition, there are limited observable prices for natural gas in Egypt as all natural gas purchases and sales are controlled by the government and the observed prices differ based on the produced output or usage. Due to the absence of an observable market price for an equivalent or similar contract to measure fair value, the contract's fair value is estimated using a Monte-Carlo model. The Monte-Carlo model includes significant unobservable inputs and as a result is classified within Level 3 of the fair value hierarchy. We consider market participant assumptions in establishing the model inputs and determining fair value, including adjusting the base fixed price and methanol based premium at the valuation date to consider estimates of inflation since contract inception. At December 31, 2023 the fair value of the derivative associated with the remaining term of the natural gas supply contract is $20.4 million (2022 - $11.2 million ) recorded in Other assets. Changes in fair value of the contract are recognized in Finance income and other. The table presents the Level 3 inputs and the sensitivities of the Monte-Carlo model valuation to changes in these inputs: Sensitivities Valuation input Input value or range Change in input Resulting change in valuation Methanol price volatility (before impact of mean reversion) 35% +/- 5% $+/-7 million Methanol price forecast $300 - $415 per MT +/- $25 per MT $-5/+7 million Discount rate 7.6% +/- 1% $-/+1 million It is possible that the assumptions used in establishing fair value amounts will differ from future outcomes and the impact of such variations could be material. |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2023 | |
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 linked 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 and Tobago, 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 financial hedges in Geismar 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 the undrawn credit facility. As at Dec 31 Dec 31 Fixed interest rate debt: Unsecured notes $ 1,985,660 $ 1,983,374 Other limited recourse debt facilities 156,141 168,139 $ 2,141,801 $ 2,151,513 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 19) of approximately $100.5 million as of December 31, 2023 (2022 - $104.8 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 Chinese yuan, euros, 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, 2023, the Company had a net working capital asset of $74.4 million in non U.S. dollar currencies (2022 - $69.9 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 $7.4 million (2022 - $7.0 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, 2023, the Company had a strong liquidity position including a cash and cash equivalents balance of $458 million. In addition, the Company has access to a $300 million committed undrawn revolving credit facility. 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, 2023 Carrying Contractual 1 year or less 1-3 years 3-5 years More than Trade and other payables 1 $ 659,723 $ 659,723 $ 659,723 $ — $ — $ — Lease obligations 2 872,120 1,174,346 172,197 266,499 220,681 514,969 Other long-term liabilities 2 28,014 53,348 2,200 4,400 4,400 42,348 Long-term debt 2 2,141,801 2,932,911 425,953 220,901 879,530 1,406,527 Cash flow hedges 3 91,653 99,720 65,034 17,771 5,537 11,378 $ 3,793,311 $ 4,920,048 $ 1,325,107 $ 509,571 $ 1,110,148 $ 1,975,222 1 Excludes tax, accrued interest and euro foreign currency hedges. 2 Contractual cash flows include contractual interest payments related to debt obligations and lease obligations. 3 The expected cash flows of hedges are based on current valuations of the expected settlement amounts, which will fluctuate at settlement dependent on the market prices at the future settlement dates 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, 2023 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, 2023 | |
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 $ 53,586 $ 62,208 Current service cost 2,246 2,329 Past service cost 2,479 — Interest cost on accrued benefit obligations 2,549 2,007 Benefit payments (4,280) (5,760) Settlements (3,738) — Actuarial (gain) loss 2,074 (4,047) Foreign exchange (gain) loss 265 (3,151) Balance, end of year 55,181 53,586 Fair values of plan assets: Balance, beginning of year 38,347 46,608 Interest income on assets 1,901 1,221 Contributions 5,687 4,457 Benefit payments (4,280) (5,760) Settlements (3,680) — Return on plan assets (705) (5,173) Foreign exchange gain (loss) 938 (3,006) Balance, end of year 38,208 38,347 Unfunded status 16,973 15,239 Minimum funding requirement — — Defined benefit obligation, net $ 16,973 $ 15,239 The net defined benefit obligation above is comprised of unfunded retirement obligations and funded retirement net assets from defined benefit pension plans, as follows: The Company has an unfunded retirement obligation of $20.2 million as at December 31, 2023 (2022 - obligation of $19.2 million) for its employees in Chile that will be funded in accordance with Chilean law. The Company also has an unfunded retirement obligation of $2.5 million as at December 31, 2023 (2022 - nil) for its employees in Egypt. The accrued benefits for the unfunded retirement arrangement in Chile and Egypt are paid when an employee leaves the Company in accordance with the plan terms and country regulations.The Company estimates that it may make benefit payments based on actuarial assumptions related to the unfunded retirement obligation of $11.3 million in Chile and $0.1 million in Egypt for 2024. Actual benefit payments in future periods will fluctuate based on employee retirements. The Company has a net funded retirement asset of $5.3 million as at December 31, 2023 (2022 - $3.6 million) for certain employees and retirees in Canada and a net funded retirement asset of $0.4 million as at December 31, 2023 (2022 - asset of $0.4 million) in Europe. The Company estimates that it will make no additional contributions relating to its defined benefit pension plan in Canada and that it will make additional contributions relating to its defined benefit pension plan in Europe of $0.5 million in 2024. 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 7 years. The Company’s net defined benefit pension plan expense charged to the consolidated statements of income for the years ended December 31, 2023 and 2022 is as follows: For the years ended December 31 2023 2022 Net defined benefit pension plan expense: Current service cost $ 2,246 $ 2,329 Past service cost 2,479 — Net interest cost 648 786 Cost of settlement (58) — Total net defined benefit pension plan expense $ 5,315 $ 3,115 The Company’s current year actuarial losses, recognized in the consolidated statements of comprehensive income for the years ended December 31, 2023 and 2022, are as follows: For the years ended December 31 2023 2022 Actuarial loss $ (2,827) $ (726) The Company had no minimum funding requirement for the years ended December 31, 2023 and 2022. 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, 2022 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, 2025. The discount rate is the most significant actuarial assumption used in accounting for the defined benefit pension plans. As at December 31, 2023, the weighted average discount rate for the defined benefit obligation was 5.3% (2022 - 5.1%). A change of 1% in the weighted average discount rate at the end of the reporting period, while holding all other assumptions constant, would result in a change to the defined benefit obligation of approximately $3.6 million. The asset allocation for the defined benefit pension plan assets as at December 31, 2023 and 2022 is as follows: As at Dec 31 Dec 31 Equity securities 15% 20% Debt securities 52% 49% Cash and other short-term securities 33% 31% Total 100% 100% The fair value of the above equity and debt instruments are determined based on quoted market prices in active markets whereas the fair value 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: |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2023 | |
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 for our operating plants and Geismar 3 project up to 2044. The minimum estimated commitment under these contracts, except as noted below, is as follows: As at December 31, 2023 2024 2025 2026 2027 2028 Thereafter $ 438,284 $ 517,793 $ 324,251 $ 254,155 $ 215,417 $ 923,105 Take-or-pay means that we are obliged to pay for the supplies regardless of whether we take delivery. Such commitments are common in the methanol industry. These contracts generally provide a quantity that is subject to take-or-pay terms that is lower than the maximum quantity that we are entitled to purchase. The amounts disclosed in the table above represent only the minimum take-or-pay quantity. The natural gas supply contracts for our facilities in New Zealand, Trinidad and Tobago, Egypt and certain contracts in Chile are take-or-pay contracts denominated in United States dollars and include base and variable price components to manage our commodity price risk exposure. The variable price component of each natural gas contract is adjusted by a formula linked to methanol prices. We believe this pricing relationship enables these facilities to be competitive throughout the methanol price cycle. The amounts disclosed in the table for these contracts represent only the base price component representative of the minimum take-or-pay commitment. b) Other commitments: The Company has future minimum payments relating primarily to short-term vessel charters, terminal facilities, and other commitments that are not leases, as follows: As at December 31, 2023 2024 2025 2026 2027 2028 Thereafter $ 94,534 $ 4,665 $ 1,314 $ 560 $ 358 $ 1,183 Refer to note 9 for a summary of lease commitments. c) 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 0.6 million tonnes per year of methanol offtake supply when Egypt operates at capacity and 0.6 million tonnes per year of methanol offtake supply for Atlas. The offtake commitment for Atlas for 2024 will be reduced to 0.4 million tonnes of supply due to the facility running only until September 2024, when the legacy gas supply agreement expires. As at December 31, 2023, the Company also had commitments to purchase methanol from other suppliers for approximately 0.8 million tonnes for 2024. 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, 2023 | |
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 Services (Shanghai) Co., Ltd. China 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 SpA Chile Production 100% 100% Methanex New Zealand Limited New Zealand Production 100% 100% Methanex Trinidad (Titan) Unlimited Trinidad and Tobago Production 100% 100% Methanex USA LLC United States Production 100% 100% Methanex Louisiana LLC United States Production 100% 100% Methanex Geismar III LLC United States Geismar 3 project development 100% 100% Waterfront Shipping Limited 1 Canada Shipping 60% 60% Significant joint ventures: Atlas Methanol Company Unlimited 2 Trinidad and Tobago Production 63.1% 63.1% 1 On February 1, 2022, we closed the shipping partnership with Mitsui O.S.K. Lines, Ltd. ("MOL") whereby MOL acquired a 40% minority interest in Waterfront Shipping Limited. 2 Summarized financial information for the investment in Atlas is disclosed in note 6. 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, 2023 of $466 million (2022 - $532 million) is a related party transaction included in cost of sales of the Company as Methanex has marketing rights for 100% of the methanol produced by Atlas. Balances outstanding with Atlas as at December 31, 2023 and provided in the summarized financial information in note 6 include receivables owing from Atlas to the Company of $74 million (2022 - $73 million), and payables to Atlas of $172 million (2022 - $198 million). The Company has total loans outstanding to Atlas as at December 31, 2023 of $76 million (2022 - $76 million) which are unsecured and due at maturity. Remuneration to non-management directors and senior management, which includes the members of the executive leadership team, is as follows: For the years ended December 31 2023 2022 Short-term employee benefits $ 9,034 $ 11,760 Post-employment benefits 681 656 Other long-term employee benefits 59 52 Share-based compensation expense 1 10,046 6,142 Total $ 19,820 $ 18,610 1 Balance includes realized and unrealized expenses and recoveries from share-based compensation awards granted. |
Non-controlling interests
Non-controlling interests | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 Dec 31, 2022 Methanex Waterfront Shipping Limited Total Methanex Waterfront Shipping Limited 1 Total Current assets $ 129,320 $ 154,308 $ 283,628 $ 133,499 $ 180,227 $ 313,726 Non-current assets 521,708 791,512 1,313,220 557,484 806,079 1,363,563 Current liabilities (123,969) (185,459) (309,428) (56,689) (112,085) (168,774) Non-current liabilities (101,810) (718,915) (820,725) (104,101) (744,936) (849,037) Net assets 425,249 41,446 466,695 530,193 129,285 659,478 Carrying amount of Methanex non-controlling interests $ 214,568 $ 27,522 $ 242,090 $ 251,949 $ 65,495 $ 317,444 For the years ended December 31 2023 2022 Methanex Waterfront Shipping Limited Total Methanex Waterfront Shipping Limited 1 Total Revenue $ 258,782 $ 670,834 $ 929,616 $ 212,339 $ 576,810 $ 789,149 Net and total comprehensive income 55,428 129,411 184,839 107,375 67,670 175,045 Net and total comprehensive income attributable to Methanex non-controlling interests 56,310 53,672 109,982 77,133 31,325 108,458 Sale of partial interest in non-controlling interests and equity contributions by non-controlling interest $ — $ — $ — $ — $ 22,545 $ 22,545 Distributions made and accrued to non-controlling interests $ (93,696) $ (91,640) $ (185,336) $ (75,996) $ (8,718) $ (84,714) For the years ended December 31 2023 2022 Methanex Waterfront Shipping Limited Total Methanex Waterfront Shipping Limited 1 Total Cash flows from operating activities $ 131,667 $ 251,290 $ 382,957 $ 226,647 $ 94,355 $ 321,002 Cash flows from (used in) financing activities (99,490) (300,824) (400,314) (152,806) (52,796) (205,602) Cash flows from (used in) investing activities $ (5,560) $ 2,686 $ (2,874) $ (35,110) $ 215 $ (34,895) 1 On February 1, 2022, we closed the shipping partnership with Mitsui O.S.K. Lines, Ltd. ("MOL") whereby MOL acquired a minority interest in Waterfront Shipping Limited. |
Sale of interest in subsidiary
Sale of interest in subsidiary | 12 Months Ended |
Dec. 31, 2023 | |
Interests In Other Entities [Abstract] | |
Sale of interest in subsidiary | Sale of interest in subsidiary:In 2022, the Company completed the sale of a 40% equity interest in Waterfront Shipping Limited ("WFS") for cash proceeds of approximately $149 million. The sale reduces the Company's interest in WFS to 60% while retaining control of the consolidated WFS group of companies. The sale has been accounted for as a transaction between equity holders as Methanex controls WFS before and after the transaction and the $126 million gain on sale has been reflected as an increase in shareholders' equity. |
Egypt gas redirection and sale
Egypt gas redirection and sale proceeds | 12 Months Ended |
Dec. 31, 2023 | |
Oil and Gas Assets [Abstract] | |
Egypt gas redirection and sale proceeds | Egypt gas redirection and sale proceeds: In 2022, the Company entered into an agreement to redirect and sell the Egypt plant's contracted natural gas during an extended turnaround for a three-month period. The Company has recognized $118 million ($59 million - attributable to Methanex) for the year ended December 31, 2022 to redirect and sell the contracted natural gas during the diversion period. |
Material accounting policies (P
Material accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Corporate information and statement of IFRS compliance [abstract] | |
Statement of compliance | 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 7, 2024. |
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 controlled by the Company. The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. 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. 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)), leases (note 2(i)), 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 | 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. |
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 records provisions for expected credit losses for receivables measured at amortized cost. The Company records an allowance for doubtful accounts or writes down the receivable to estimated net realizable value, if not collectible in full, based on expected credit losses. Expected credit losses are based on historic and forward looking customer specific factors including historic credit losses incurred. |
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 ocean freight costs for the shipment of product. |
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 at installation, excluding costs related to turnarounds, initially range up to 25 years depending on the specific asset component and the production facility to which it is related. Right-of-use (leased) assets are depreciated from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. 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. The estimated useful life of production facilities may be adjusted from time-to-time based on turnarounds, plant refurbishments and gas availability. 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. Recoverability of asset carrying values Long-lived assets are tested for recoverability whenever events or changes in circumstances, either internal or external, indicate that the carrying amount may not be recoverable (“triggering events”). Examples of such triggering events related to our long-lived assets may 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 change in management’s intention or strategy for the asset, which includes a plan to dispose of the asset or idle the asset for a significant period of time; a significant adverse change in our long-term methanol price assumption 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. When a triggering event is identified, 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 costs to sell or its value in use. Fair value less costs of disposal is determined by estimating the price that would be received to sell an asset in an orderly transaction between market participants under current market conditions, less incremental costs directly attributable to the disposal, excluding finance costs and income tax expense. Value in use is determined by measuring the pre-tax cash flows expected to be generated from the cash-generating unit over its estimated useful life discounted by a pre-tax discount rate. An impairment writedown is recorded if 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 the purposes of recognition and measurement of an impairment writedown or reversal, we group our 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 our methanol facilities in a particular location are interdependent as a result of common infrastructure and/or feedstock from shared sources that can be shared within a facility location, we group our assets based on site locations for the purpose of determining impairment. When impairment indicators exist, there are two key variables that impact our estimate of future cash flows from producing assets: (1) the methanol price and (2) the price and availability of natural gas feedstock. Short-term methanol price estimates are based on current supply and demand fundamentals and current methanol prices. Long-term methanol price estimates are based on our view of long-term supply and demand, incorporating third-party assumptions, forecasts and market observable prices when appropriate. Consideration is given to many factors, including, but not limited to, estimates of global industrial production rates, energy prices, changes in general economic conditions, the ability for the industry to add further global methanol production capacity and earn an appropriate return on capital, industry operating rates and the global industry cost structure. Our estimate of the price and availability of natural gas takes into consideration the current contracted terms, as well as factors that we believe are relevant to supply under these contracts and supplemental natural gas sources. Other assumptions included in our estimate of future cash flows include the estimated cost incurred to maintain the facilities, estimates of transportation costs and other variable costs incurred in producing methanol in each period. Changes in these assumptions will impact our estimates of future cash flows when testing for impairment and could impact our estimates of the useful lives of property, plant and equipment. Consequently, it is possible that our future operating results could be adversely affected by further asset impairment charges or by changes in depreciation and amortization rates related to property, plant and equipment. In relation to previous impairment charges, we do not believe that there are significant changes in events or circumstances that would support their reversal. |
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. |
Financing fees | 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: At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: • the contract involves the use of an identified asset - this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; • the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and • the Company has the right to direct the use of the asset. The Company has the right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. For contracts that contain a lease, the Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is assessed for impairment losses, should a trigger be identified and adjusted for impairment if required. Lease terms range up to 20 years for vessels, terminals, equipment, and other items. The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. The assessment is reviewed upon a trigger by an event or a significant change in circumstances. Certain leases contain non-lease components, excluded from the right-of-use asset and lease liability, related to operating charges for ocean vessels, terminal facilities and rail transport contracts. Judgment is applied in the determination of the stand-alone price of the lease and non-lease components. The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets, except for terminal and vessel leases. The Company recognizes the lease payments associated with these leases as an expense 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 transferred to 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 ("PSUs") granted from 2019 onwards are redeemable for cash based on the market value of the Company's common shares and are non-dilutive to shareholders. PSUs vest over three years and include two performance factors: (i) relative total shareholder return of Methanex shares versus a specific market index (the market performance factor) and (ii) three year average Return on Capital Employed ("ROCE") (the non-market performance factor). The market performance factor is measured by the Company at the grant date and reporting date using a Monte-Carlo simulation model to determine fair value. The non-market performance factor reflects management's best estimate of ROCE over the performance period (using actual ROCE as applicable) to determine the expected number of units to vest. Based on these performance factors the performance share unit payout will range between 0% to 200%. 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. |
Net income (loss) per common 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. |
Revenue recognition | Revenue recognition: Revenue is recognized based on individual contract terms at the point in time when control of 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 contractual performance obligation has not been met during shipment. For methanol sold on a consignment basis, revenue is recognized at the point in time the customer draws down the consigned methanol. Revenue is measured and recorded at the most likely amount of consideration the Company expects to receive. By contract, the Company sells all the methanol produced by the Atlas Joint Venture and earns a commission on the sale of the methanol. As the Company obtains title and control of the methanol from the Atlas facility and directs the sale of the methanol to the Company's customers, the Company recognizes the revenue on these sales to customers at the gross amount receivable from the customers based on the Company's revenue recognition policy noted above. Cost of sales is recognized for these sales as the amount due to the Atlas Joint Venture which is the gross amount receivable less the commission earned by the Company. |
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. Assessment of contracts as derivative instruments, applicability of the own use exemption, determination of whether hybrid instruments contain embedded derivatives to be separated, the valuation of financial instruments and derivatives and hedge effectiveness assessments require a high degree of judgment and are considered critical accounting judgements and estimates due to the complex nature of these products and the potential impact on our financial statements. |
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. |
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. Uncertain tax positions derive from the complexity of tax law and its interpretation by tax authorities and ultimately the judicial system in place in each jurisdiction. Uncertain tax positions, including interest and penalties, are recognized and measured applying management estimates. Given the complexity, management engages third-party experts as required, for the interpretation of tax law, transfer pricing regulations and determination of the ultimate resolution of its tax positions. The Company is subject to various taxation authorities who may interpret tax legislation differently, and resolve matters over longer-periods of time. The differences in judgement in assessing uncertain tax positions may result in material differences in the final amount or timing of the payment of taxes or settlement of tax assessments. |
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 | Application of new and revised accounting standards: The Company has adopted the amendments to IAS 1 Presentation of Financial Statements as well as IAS 8 Changes in Accounting Estimates and Errors regarding the disclosure of accounting policies and accounting estimates, and IAS 12, Income Taxes ("IAS 12") regarding deferred tax related to assets and liabilities arising from a single transaction, which were effective for annual periods beginning on January 1, 2023. The amendments did not have a material impact on the Company's consolidated financial statements. In May 2023, the IASB issued a further amendment to IAS 12, establishing a mandatory exception for recognition and disclosure of deferred taxes related to the Pillar Two model rules published by the Organization for Economic Co-operation and Development (“Pillar Two rules”). The Pillar Two rules establish a global minimum fifteen percent top-up tax regime and are expected to apply to Methanex beginning in 2024. The Company has applied this mandatory exception in the current period. Refer to note 16 for further disclosure on the expected impact of Pillar Two rules. The following new or amended standards or interpretations that are effective for annual periods beginning on or after January 1, 2024 are being reviewed to determine the potential impact: amendments to IAS 1, Presentation of Financial Statements regarding the classification of liabilities as current or non-current, IFRS 16, Leases regarding sale-and-leaseback transactions and IAS 7, Statement of Cash Flows |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of trade and other receivables | As at Dec 31 Dec 31 Trade $ 431,602 $ 407,733 Value-added and other tax receivables 22,292 14,986 Other 79,721 78,206 $ 533,615 $ 500,925 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment [abstract] | |
Schedule of property, plant and equipment | Owned Assets Right-of-use assets Total Net book value at December 31, 2023 $ 3,654,475 $ 757,293 $ 4,411,768 Net book value at December 31, 2022 $ 3,398,805 $ 756,478 $ 4,155,283 Buildings, plant Plants Under Construction 1 Ocean vessels Other TOTAL Cost at January 1, 2023 $ 5,000,999 $ 1,001,888 $ 240,867 $ 140,081 $ 6,383,835 Additions 174,058 353,609 253 4,153 532,073 Disposals and other (294,850) — (397) (15,571) (310,818) Cost at December 31, 2023 4,880,207 1,355,497 240,723 128,663 6,605,090 Accumulated depreciation at January 1, 2023 2,827,870 — 49,310 107,850 2,985,030 Depreciation 248,783 — 12,080 2,153 263,016 Disposals and other (281,951) — — (15,480) (297,431) Accumulated depreciation at December 31, 2023 2,794,702 — 61,390 94,523 2,950,615 Net book value at December 31, 2023 $ 2,085,505 $ 1,355,497 $ 179,333 $ 34,140 $ 3,654,475 1 The Company is constructing a 1.8 million tonne methanol plant in Geismar, Louisiana adjacent to its Geismar 1 and Geismar 2 facilities. Included in cost of Plants Under Construction are $150 million (2022: $94 million) of capitalized interest and finance charges. Buildings, plant Plants under Ocean vessels Other TOTAL Cost at January 1, 2022 $ 4,908,492 $ 561,860 $ 240,525 $ 138,378 $ 5,849,255 Additions 140,326 440,028 342 1,703 582,399 Disposals and other (47,819) — — — (47,819) Cost at December 31, 2022 5,000,999 1,001,888 240,867 140,081 6,383,835 Accumulated depreciation at January 1, 2022 2,631,268 — 37,271 105,518 2,774,057 Depreciation 248,032 — 12,039 2,332 262,403 Disposals and other (51,430) — — — (51,430) Accumulated depreciation at December 31, 2022 2,827,870 — 49,310 107,850 2,985,030 Net book value at December 31, 2022 $ 2,173,129 $ 1,001,888 $ 191,557 $ 32,231 $ 3,398,805 |
Schedule of right-of-use assets | Ocean vessels Terminals and tanks Other TOTAL Cost at January 1, 2023 $ 846,977 $ 286,036 $ 68,701 $ 1,201,714 Additions 83,333 52,909 5,951 142,193 Disposals and other (19,589) (6,504) (16,031) (42,124) Cost at December 31, 2023 910,721 332,441 58,621 1,301,783 Accumulated depreciation at January 1, 2023 245,873 160,163 39,200 445,236 Depreciation 88,040 36,140 6,583 130,763 Disposals and other (19,589) — (11,920) (31,509) Accumulated depreciation at December 31, 2023 314,324 196,303 33,863 544,490 Net book value at December 31, 2023 $ 596,397 $ 136,138 $ 24,758 $ 757,293 Ocean vessels Terminals and tanks Other TOTAL Cost at January 1, 2022 $ 657,774 $ 258,743 $ 64,700 $ 981,217 Additions 232,536 27,293 4,001 263,830 Disposals and other (43,333) — — (43,333) Cost at December 31, 2022 846,977 286,036 68,701 1,201,714 Accumulated depreciation at January 1, 2022 214,004 125,494 30,768 370,266 Depreciation 75,586 34,669 8,432 118,687 Disposals and other (43,717) — — (43,717) Accumulated depreciation at December 31, 2022 245,873 160,163 39,200 445,236 Net book value at December 31, 2022 $ 601,104 $ 125,873 $ 29,501 $ 756,478 |
Investment in associate (Tables
Investment in associate (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 $ 126,392 $ 24,420 Other current assets 1 189,062 182,103 Non-current assets 149,354 184,373 Current liabilities 1 (157,835) (92,108) Other long-term liabilities, including current maturities (135,940) (107,416) Net assets at 100% $ 171,033 $ 191,372 Net assets at 63.1% $ 107,921 $ 120,755 Long-term receivable from Atlas 1 76,328 76,328 Investment in associate $ 184,249 $ 197,083 Consolidated statements of income for the years ended December 31 2023 2022 Revenue 1 $ 466,312 $ 532,456 Cost of sales and depreciation and amortization (289,705) (332,999) Gas contract settlement (b) 75,000 — Operating income 251,607 199,457 Finance costs, finance income and other (10,316) (9,433) Income tax expense (83,659) (68,093) Net earnings at 100% $ 157,632 $ 121,931 Earnings of associate at 63.1% $ 99,466 $ 76,938 Dividends received from associate $ 112,318 $ 97,174 1 |
Schedule of key assumptions for investment in associate | The following table indicates the percentages by which key assumptions would need to change individually for the estimated Atlas CGU recoverable value to be equal to the carrying value: Key Assumptions Change Required for Carrying Value to Equal Recoverable Value Long-term average realized methanol price 10 percent decrease Production volumes 15 percent decrease Gas price 10 percent increase Discount rate (after-tax) 800 basis points increase |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of other assets | As at Dec 31 2023 Dec 31 2022 Cash flow hedges (note 19) $ 121,108 $ 322,748 Chile VAT receivable 17,824 18,343 Restricted cash for debt service and major maintenance of vessels (a) 15,772 14,349 Fair value of Egypt gas supply contract derivative (note 19) 20,402 11,220 Investment in Carbon Recycling International 5,620 5,620 Defined benefit pension plans (note 21) 5,718 3,977 Other 15,416 19,476 Total other assets 201,860 395,733 Less current portion (b) (3,893) (39,346) 197,967 $ 356,387 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments [Abstract] | |
Schedule of long-term debt | As at Dec 31 Dec 31 Unsecured notes (i) $300 million at 4.25% due December 1, 2024 $ 299,283 $ 298,836 (ii) $700 million at 5.125% due October 15, 2027 694,844 693,649 (iii) $700 million at 5.25% due December 15, 2029 695,824 695,283 (iv) $300 million at 5.65% due December 1, 2044 295,709 295,606 1,985,660 1,983,374 Other limited recourse debt facilities (i) 5.58% due through June 30, 2031 56,637 61,978 (ii) 5.35% due through September 30, 2033 65,300 70,312 (iii) 5.21% due through September 15, 2036 34,204 35,849 156,141 168,139 Total long-term debt 1 2,141,801 2,151,513 Less current maturities 1 (314,716) (15,133) $ 1,827,085 $ 2,136,380 1 |
Schedule of minimum principal payments for long-term debt | The gross minimum principal payments for long-term debt in aggregate and for each of the five succeeding years are as follows: Other limited recourse debt facilities Unsecured Total 2024 $ 15,367 $ 300,000 $ 315,367 2025 13,660 — 13,660 2026 13,796 — 13,796 2027 15,173 700,000 715,173 2028 16,026 — 16,026 Thereafter 84,574 1,000,000 1,084,574 $ 158,596 $ 2,000,000 $ 2,158,596 |
Lease obligations (Tables)
Lease obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of Leases [Abstract] | |
Disclosure of additional information about leasing activities for lessee | 2023 2022 Opening lease obligations $ 870,163 $ 717,101 Additions, net of disposals 123,187 262,470 Interest expense 53,418 48,039 Lease payments (171,577) (153,901) Effect of movements in exchange rates and other (3,071) (3,546) Lease obligations at December 31 872,120 870,163 Less: current portion (120,731) (108,736) Lease obligations - non current portion $ 751,389 $ 761,427 |
Disclosure of maturity analysis of lease payments | The following table presents the contractual undiscounted cash flows for lease obligations as at December 31, 2023: Lease Interest Lease obligations 2024 $ 172,197 $ 51,466 $ 120,731 2025 142,761 45,617 97,144 2026 123,738 39,998 83,740 2027 112,397 34,419 77,978 2028 108,284 28,547 79,737 Thereafter 514,969 102,179 412,790 $ 1,174,346 $ 302,226 $ 872,120 |
Disclosure of potential lease options | Lease liabilities recognized (discounted) Potential future lease payments not included in lease liabilities (undiscounted) Ocean-going vessels $ 662,903 $ 1,512 Terminals and tanks 174,019 38,987 Other 35,198 11,279 Total $ 872,120 $ 51,778 |
Other long-term liabilities (Ta
Other long-term liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Composition of other liabilities | As at Dec 31 Dec 31 Share-based compensation liability (note 14) $ 74,107 $ 70,569 Site restoration costs 32,596 36,581 Land mortgage 28,014 28,514 Defined benefit pension plans (note 21) 22,691 19,216 Cash flow hedges (note 19) 91,183 6,739 Other 1,319 2,532 249,910 164,151 Less current maturities (94,992) (29,548) $ 154,918 $ 134,603 |
Provision for site restoration costs | The movement in the provision during the year is explained as follows: 2023 2022 Balance at January 1 $ 36,581 $ 29,355 New or revised provisions (5,573) 6,915 Accretion expense 1,588 311 Balance at December 31 $ 32,596 $ 36,581 |
Expenses (Tables)
Expenses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Schedule of expenses | For the years ended December 31 2023 2022 Cost of sales $ 2,797,794 $ 3,238,312 Selling and distribution 552,693 498,552 Administrative expenses 109,415 81,657 Total expenses by function $ 3,459,902 $ 3,818,521 Cost of raw materials and purchased methanol 2,329,856 2,789,921 Ocean freight and other logistics 357,495 325,893 Employee expenses, including share-based compensation 243,542 219,012 Other expenses 137,179 111,275 Cost of sales and operating expenses 3,068,072 3,446,101 Depreciation and amortization 391,830 372,420 Total expenses by nature $ 3,459,902 $ 3,818,521 |
Finance costs (Tables)
Finance costs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Borrowing costs [abstract] | |
Schedule of finance costs | For the years ended December 31 2023 2022 Finance costs before capitalized interest $ 172,814 $ 167,066 Less capitalized interest related to Geismar plant under construction (55,448) (36,314) Finance costs $ 117,366 $ 130,752 |
Net income per common share (Ta
Net income per common share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share [abstract] | |
Earnings per share reconciliation | A reconciliation of the numerator used for the purposes of calculating diluted net income per common share is as follows: For the years ended December 31 2023 2022 Numerator for basic net income per common share $ 174,140 $ 353,830 Adjustment for the effect of TSARs: Cash-settled recovery included in net income — (316) Equity-settled expense — (5,503) Numerator for diluted net income per common share $ 174,140 $ 348,011 A reconciliation of the denominator used for the purposes of calculating diluted net income per common share is as follows: For the years ended December 31 2023 2022 Denominator for basic net income per common share 67,805,220 71,422,360 Effect of dilutive stock options 6,395 10,108 Effect of dilutive TSARS — 245,016 Denominator for diluted net income per common share 67,811,615 71,677,484 For the years ended December 31, 2023 and 2022, basic and diluted net income per common share attributable to Methanex shareholders were as follows: For the years ended December 31 2023 2022 Basic net income per common share $ 2.57 $ 4.95 Diluted net income per common share $ 2.57 $ 4.86 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangements [Abstract] | |
Changes in number and exercise prices of other equity instruments | SARs and TSARs units outstanding at December 31, 2023 and 2022 are as follows: SARs TSARs Number of Exercise Number of Exercise Outstanding at December 31, 2021 666,256 $ 45.70 2,380,237 $ 42.05 Granted 32,730 48.49 266,090 48.49 Exercised (129,162) 37.17 (290,577) 35.94 Cancelled (12,900) 55.70 (21,922) 46.45 Expired (149,237) 55.66 (145,469) 55.82 Outstanding at December 31, 2022 407,687 $ 44.67 2,188,359 $ 42.68 Granted 51,160 50.49 169,190 50.49 Exercised (50,715) 33.85 (336,535) 31.88 Cancelled (5,600) 53.69 (13,544) 51.36 Outstanding at December 31, 2023 402,532 $ 46.65 2,007,470 $ 45.10 Deferred, restricted and performance share units (old plan and new plan) outstanding as at December 31, 2023 and 2022 are as follows: Number of Number of Number of Outstanding at December 31, 2021 133,418 332,385 689,688 Granted 19,909 104,810 199,430 Performance factor impact on redemption 1 — — (14,796) Granted in lieu of dividends 2,434 5,561 11,764 Redeemed — (82,039) (119,714) Cancelled — (19,788) (21,485) Outstanding at December 31, 2022 155,761 340,929 744,887 Granted 18,417 104,980 179,340 Performance factor impact on redemption 1 — — 143,065 Granted in lieu of dividends 2,484 5,267 10,411 Redeemed (18,962) (131,398) (435,035) Cancelled — (8,924) (11,546) Outstanding at December 31, 2023 157,700 310,854 631,122 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. These units relate to performance share units redeemed in the quarter ended March 31, 2023 and the quarter ended March 31, 2022. |
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, 2023 is as follows: Units outstanding at December 31, 2023 Units exercisable at December 31, 2023 Range of exercise prices Weighted average Number Weighted Number Weighted SARs $29.27 to $38.79 3.52 112,962 $ 32.60 99,800 $ 31.78 $45.40 to $50.49 2.93 171,010 49.93 98,029 49.96 $54.65 to $78.59 1.39 118,560 55.30 118,560 55.30 2.64 402,532 $ 46.65 316,389 $ 46.23 TSARs $29.27 to $38.79 3.57 776,194 $ 33.05 666,922 $ 32.11 $45.40 to $50.49 3.65 673,316 49.55 330,265 49.62 $54.65 to $78.59 1.66 557,960 56.48 557,960 56.48 3.07 2,007,470 $ 45.10 1,555,147 $ 44.57 |
SARs and TSARs outstanding and exercisable by range of exercise prices | Information regarding the SARs and TSARs outstanding as at December 31, 2023 is as follows: Units outstanding at December 31, 2023 Units exercisable at December 31, 2023 Range of exercise prices Weighted average Number Weighted Number Weighted SARs $29.27 to $38.79 3.52 112,962 $ 32.60 99,800 $ 31.78 $45.40 to $50.49 2.93 171,010 49.93 98,029 49.96 $54.65 to $78.59 1.39 118,560 55.30 118,560 55.30 2.64 402,532 $ 46.65 316,389 $ 46.23 TSARs $29.27 to $38.79 3.57 776,194 $ 33.05 666,922 $ 32.11 $45.40 to $50.49 3.65 673,316 49.55 330,265 49.62 $54.65 to $78.59 1.66 557,960 56.48 557,960 56.48 3.07 2,007,470 $ 45.10 1,555,147 $ 44.57 |
Weighted average assumptions of outstanding SARs and TSARs | The fair value of each outstanding SARs and TSARs grant was estimated on December 31, 2023 and 2022 using the Black-Scholes option pricing model with the following weighted average assumptions: 2023 2022 Risk-free interest rate 4.5% 4.4% Expected dividend yield 1.6% 1.9% Expected life of SARs and TSARs (years) 1.4 1.8 Expected volatility 38% 51% Expected forfeitures 0% 0% Weighted average fair value (USD per unit) $ 10.75 $ 8.72 |
Segmented information (Tables)
Segmented information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Operating Segments [Abstract] | |
Revenue attributed to geographic regions | During the years ended December 31, 2023 and 2022, revenues attributed to geographic regions, based on the location of customers, were as follows: Revenue China Europe United States South America South Korea Other Asia Canada TOTAL 2023 $ 1,042,723 $ 722,578 $ 574,951 $ 428,617 $ 391,821 $ 387,373 $ 175,412 $ 3,723,475 28 % 19 % 15 % 12 % 11 % 10 % 5 % 100 % 2022 $ 1,105,610 $ 830,507 $ 657,495 $ 458,989 $ 542,646 $ 518,901 $ 197,040 $ 4,311,188 26 % 19 % 15 % 11 % 13 % 12 % 4 % 100 % As at December 31, 2023 and 2022, the net book value of property, plant and equipment by geographic region, and the Company's shipping business, was as follows: Property, plant and equipment 1 United Egypt New Canada Chile Trinidad Waterfront Shipping Other TOTAL December 31, 2023 $ 2,537,515 $ 520,497 $ 232,831 $ 157,483 $ 113,789 $ 43,835 $ 775,729 $ 30,089 $ 4,411,768 December 31, 2022 $ 2,211,333 $ 564,454 $ 211,544 $ 165,783 $ 102,467 $ 70,432 $ 792,016 $ 37,254 $ 4,155,283 1 Includes right-of-use (leased) assets. |
Income and other taxes (Tables)
Income and other taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Components of income tax (expense) recovery | Income tax (expense) recovery: For the years ended December 31 2023 2022 Current tax (expense) recovery: Current period before undernoted items $ (64,679) $ (127,254) Adjustments to prior years including resolution for certain outstanding audits 14,755 (324) (49,924) (127,578) Deferred tax recovery (expense): Origination and reversal of temporary differences 46,982 9,589 Adjustments to prior years including resolution for certain outstanding audits 6,904 (400) Changes in tax rates (5,828) (23) Impact of foreign exchange and other 377 (1,447) 48,435 7,719 Total income tax expense $ (1,489) $ (119,859) |
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 before income taxes as follows: For the years ended December 31 2023 2022 Income before income taxes $ 285,611 $ 582,147 Deduct earnings of associate (99,466) (76,938) 186,145 505,209 Canadian statutory tax rate 24.5 % 24.5 % Income tax expense calculated at Canadian statutory tax rate (45,606) (123,776) Decrease (increase) in income tax expense resulting from: Impact of income and losses taxed in foreign jurisdictions 27,260 1,346 Utilization of unrecognized loss carryforwards and temporary differences 7,381 7,077 Impact of tax rate changes (5,828) (23) Impact of foreign exchange 5,287 3,783 Other business taxes (13,943) (11,065) Impact of items not taxable for tax purposes 2,373 3,624 Adjustments to prior years including resolution for certain outstanding audits 21,658 (724) Other (71) (101) Total income tax expense $ (1,489) $ (119,859) |
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 is as follows: As at Dec 31, 2023 Dec 31, 2022 Net Deferred tax assets Deferred tax liabilities Net Deferred tax assets Deferred tax liabilities Property, plant and equipment (owned) $ (363,644) $ (189,646) $ (173,998) $ (403,505) $ (230,756) $ (172,749) Right-of-use assets (35,883) (28,299) (7,584) (33,477) (26,486) (6,991) Repatriation taxes (109,186) (7) (109,179) (106,989) — (106,989) Other (31,630) (9,259) (22,371) (78,305) (60,850) (17,455) (540,343) (227,212) (313,131) (622,276) (318,092) (304,184) Non-capital loss carryforwards 358,774 321,602 37,172 353,986 322,608 31,378 Lease obligations 48,633 37,854 10,779 46,438 35,957 10,481 Share-based compensation 16,391 651 15,740 17,068 2,096 14,972 Other 50,955 19,355 31,600 24,141 3,784 20,357 474,753 379,462 95,291 441,633 364,445 77,188 Net deferred income tax assets (liabilities) $ (65,590) $ 152,250 $ (217,840) $ (180,643) $ 46,353 $ (226,996) As at December 31, 2023, deferred income tax assets have been recognized in respect of non-capital loss carryforwards generated in the United States. These loss carryforwards expire as follows: Dec 31 2023 Gross amount Tax effect Expire Losses generated in 2015 (expires 2035) $ 282,437 $ 62,136 Losses generated in 2016 (expires 2036) 432,581 95,168 Losses generated in 2017 (expires 2037) 234,941 51,687 949,959 208,991 No expiry Losses generated in 2019 255,244 56,154 Losses generated in 2020 121,321 26,691 Losses generated in 2023 29,235 6,432 Total non-capital loss carryforwards $ 1,355,760 $ 298,267 2023 2022 Net Deferred tax assets Deferred tax liabilities Net Deferred tax assets Deferred tax liabilities Balance, January 1 $ (180,643) $ 46,353 $ (226,996) $ (114,536) $ 98,169 $ (212,705) Deferred income tax recovery (expense) included in net income 48,435 40,159 8,276 7,719 22,578 (14,859) Deferred income tax recovery (expense) included in other comprehensive income 66,636 65,738 898 (72,440) (74,394) 1,954 Other (17) — (17) (1,386) — (1,386) Balance, December 31 $ (65,590) $ 152,250 $ (217,840) $ (180,643) $ 46,353 $ (226,996) |
Supplemental cash flow inform_2
Supplemental cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash Flow Statement [Abstract] | |
Changes in non-cash working capital | Changes in non-cash working capital for the years ended December 31, 2023 and 2022 were as follows: For the years ended December 31 2023 2022 Changes in non-cash working capital: Trade and other receivables $ (32,690) $ 50,442 Inventories 12,997 19,785 Prepaid expenses (19,439) (2,622) Trade, other payables and accrued liabilities (17,333) (46,751) (56,465) 20,854 Adjustments for items not having a cash effect and working capital changes relating to taxes and interest paid and interest received 6,027 59,283 Changes in non-cash working capital having a cash effect $ (50,438) $ 80,137 These changes relate to the following activities: Operating $ (59,058) $ 54,122 Financing 68,750 1,771 Investing (60,130) 24,244 Changes in non-cash working capital $ (50,438) $ 80,137 |
Reconciliation of liabilities arising from financing activities | Reconciliation of movements in liabilities to cash flows arising from financing activities: Long term debt Lease obligations (note 9) Balance at December 31, 2022 $ 2,151,513 $ 870,163 Changes from financing cash flows Repayment of long-term debt and financing fees (12,280) — Payment of lease obligations — (118,159) Total changes from financing cash flows (12,280) (118,159) Liability-related other changes Finance costs 2,568 — New lease obligations — 123,187 Other — (3,071) Total liability-related other changes 2,568 120,116 Balance at December 31, 2023 $ 2,141,801 $ 872,120 |
Capital disclosures (Tables)
Capital disclosures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Liquidity And Capitalization [Abstract] | |
Schedule of liquidity and capitalization | As at Dec 31 Dec 31 Liquidity: Cash and cash equivalents $ 458,015 $ 857,747 Undrawn credit facility 300,000 300,000 Undrawn G3 construction facility — 300,000 Total liquidity $ 758,015 $ 1,457,747 Capitalization: Unsecured notes, including current portion 1,985,660 1,983,374 Other limited recourse debt facilities, including current portion 156,141 168,139 Total debt 2,141,801 2,151,513 Non-controlling interests 242,090 317,444 Shareholders’ equity 1,930,927 2,112,013 Total capitalization $ 4,314,818 $ 4,580,970 Total debt to capitalization 1 50% 47% Net debt to capitalization 2 44% 35% 1 Total debt (including Other limited recourse debt facilities) divided by total capitalization. 2 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 $ 121,108 $ 322,748 Fair value of Egypt gas supply contract derivative 2 20,402 11,220 Financial assets not measured at fair value: Cash and cash equivalents 458,015 857,747 Trade and other receivables, excluding tax receivable 514,739 488,184 Restricted cash included in other assets 15,772 14,349 Total financial assets 3 $ 1,130,036 $ 1,694,248 Financial liabilities: Financial liabilities measured at fair value: Derivative instruments designated as cash flow hedges 1 $ 91,653 $ 8,466 Financial liabilities not measured at fair value: Trade, other payables and accrued liabilities, excluding tax payable 672,237 656,010 Lease obligations, including current portion 872,120 870,163 Long-term debt, including current portion 2,141,801 2,151,513 Land mortgage 28,014 28,514 Total financial liabilities $ 3,805,825 $ 3,714,666 1 The Geismar 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 Egypt natural gas supply contract is measured at fair value using a Monte-Carlo model classified within Level 3 of the fair value hierarchy. 3 |
Fair value measurement of liabilities | 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 $ 121,108 $ 322,748 Fair value of Egypt gas supply contract derivative 2 20,402 11,220 Financial assets not measured at fair value: Cash and cash equivalents 458,015 857,747 Trade and other receivables, excluding tax receivable 514,739 488,184 Restricted cash included in other assets 15,772 14,349 Total financial assets 3 $ 1,130,036 $ 1,694,248 Financial liabilities: Financial liabilities measured at fair value: Derivative instruments designated as cash flow hedges 1 $ 91,653 $ 8,466 Financial liabilities not measured at fair value: Trade, other payables and accrued liabilities, excluding tax payable 672,237 656,010 Lease obligations, including current portion 872,120 870,163 Long-term debt, including current portion 2,141,801 2,151,513 Land mortgage 28,014 28,514 Total financial liabilities $ 3,805,825 $ 3,714,666 1 The Geismar 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 Egypt natural gas supply contract is measured at fair value using a Monte-Carlo model classified within Level 3 of the fair value hierarchy. 3 The carrying amount of the financial assets represents the maximum exposure to credit risk at the respective reporting periods. The carrying values of the Company’s financial instruments approximate their fair values, except as follows: As at December 31, 2023 December 31, 2022 Carrying value Fair value Carrying value Fair value Long-term debt excluding deferred financing fees $ 2,156,534 $ 2,063,661 $ 2,168,585 $ 1,953,932 |
Fair value, natural gas forward contracts and cash flow hedges and excluded forward element | As at Dec 31 Dec 31 Maturities 2024-2032 2023-2032 Notional quantity 1 347,190 307,900 Notional quantity per day, annualized 1 50 - 170 50 - 150 Notional amount $ 1,183,319 $ 1,014,264 Net fair value $ 29,925 $ 316,008 1 In thousands of Million British Thermal Units (MMBtu) Information regarding the gross amounts of the Company's natural gas forward contracts designated as cash flow hedges in the audited consolidated statements of financial position is as follows: As at Dec 31 Dec 31 Other current assets $ 470 $ 32,768 Other non-current assets 120,638 289,979 Other current liabilities (60,532) (317) Other long-term liabilities (30,651) (6,422) Net fair value $ 29,925 $ 316,008 Information regarding the impact of changes in cash flow hedges and cost of hedging reserve in the consolidated statement of comprehensive income is as follows: For the years ended December 31 2023 2022 Change in fair value of cash flow hedges $ (276,619) $ (27,742) Forward element excluded from hedging relationships (33,837) 406,029 $ (310,456) $ 378,287 |
Fair value, level 2 maturity profile | The table below shows the nominal cash outflows for derivative hedging instruments including natural gas forward contracts and forward exchange contracts, excluding credit risk adjustments, based upon contracted settlement dates. The amounts reflect the maturity profile of the hedging instruments 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 $ 65,034 $ 2,050 1-3 years 17,771 7,132 3-5 years 5,537 — More than 5 years 11,378 — $ 99,720 $ 9,182 |
Fair value, level 3 inputs and the sensitivities, valuation to changes | The table presents the Level 3 inputs and the sensitivities of the Monte-Carlo model valuation to changes in these inputs: Sensitivities Valuation input Input value or range Change in input Resulting change in valuation Methanol price volatility (before impact of mean reversion) 35% +/- 5% $+/-7 million Methanol price forecast $300 - $415 per MT +/- $25 per MT $-5/+7 million Discount rate 7.6% +/- 1% $-/+1 million |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments [Abstract] | |
Schedule of interest rate risk exposure | The Company’s interest rate risk exposure is mainly related to the undrawn credit facility. As at Dec 31 Dec 31 Fixed interest rate debt: Unsecured notes $ 1,985,660 $ 1,983,374 Other limited recourse debt facilities 156,141 168,139 $ 2,141,801 $ 2,151,513 |
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, 2023 Carrying Contractual 1 year or less 1-3 years 3-5 years More than Trade and other payables 1 $ 659,723 $ 659,723 $ 659,723 $ — $ — $ — Lease obligations 2 872,120 1,174,346 172,197 266,499 220,681 514,969 Other long-term liabilities 2 28,014 53,348 2,200 4,400 4,400 42,348 Long-term debt 2 2,141,801 2,932,911 425,953 220,901 879,530 1,406,527 Cash flow hedges 3 91,653 99,720 65,034 17,771 5,537 11,378 $ 3,793,311 $ 4,920,048 $ 1,325,107 $ 509,571 $ 1,110,148 $ 1,975,222 1 Excludes tax, accrued interest and euro foreign currency hedges. 2 Contractual cash flows include contractual interest payments related to debt obligations and lease obligations. 3 |
Retirement plans (Tables)
Retirement plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 $ 53,586 $ 62,208 Current service cost 2,246 2,329 Past service cost 2,479 — Interest cost on accrued benefit obligations 2,549 2,007 Benefit payments (4,280) (5,760) Settlements (3,738) — Actuarial (gain) loss 2,074 (4,047) Foreign exchange (gain) loss 265 (3,151) Balance, end of year 55,181 53,586 Fair values of plan assets: Balance, beginning of year 38,347 46,608 Interest income on assets 1,901 1,221 Contributions 5,687 4,457 Benefit payments (4,280) (5,760) Settlements (3,680) — Return on plan assets (705) (5,173) Foreign exchange gain (loss) 938 (3,006) Balance, end of year 38,208 38,347 Unfunded status 16,973 15,239 Minimum funding requirement — — Defined benefit obligation, net $ 16,973 $ 15,239 |
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, 2023 and 2022 is as follows: For the years ended December 31 2023 2022 Net defined benefit pension plan expense: Current service cost $ 2,246 $ 2,329 Past service cost 2,479 — Net interest cost 648 786 Cost of settlement (58) — Total net defined benefit pension plan expense $ 5,315 $ 3,115 |
Expense recognized in other comprehensive income | The Company’s current year actuarial losses, recognized in the consolidated statements of comprehensive income for the years ended December 31, 2023 and 2022, are as follows: For the years ended December 31 2023 2022 Actuarial loss $ (2,827) $ (726) |
Disclosure of fair value of plan assets | The asset allocation for the defined benefit pension plan assets as at December 31, 2023 and 2022 is as follows: As at Dec 31 Dec 31 Equity securities 15% 20% Debt securities 52% 49% Cash and other short-term securities 33% 31% Total 100% 100% |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2024 2025 2026 2027 2028 Thereafter $ 438,284 $ 517,793 $ 324,251 $ 254,155 $ 215,417 $ 923,105 |
Schedule of contractual obligations | The Company has future minimum payments relating primarily to short-term vessel charters, terminal facilities, and other commitments that are not leases, as follows: As at December 31, 2023 2024 2025 2026 2027 2028 Thereafter $ 94,534 $ 4,665 $ 1,314 $ 560 $ 358 $ 1,183 Refer to note 9 for a summary of lease commitments. |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party [Abstract] | |
Schedule of disclosure of interests in subsidiaries and joint ventures | 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 Services (Shanghai) Co., Ltd. China 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 SpA Chile Production 100% 100% Methanex New Zealand Limited New Zealand Production 100% 100% Methanex Trinidad (Titan) Unlimited Trinidad and Tobago Production 100% 100% Methanex USA LLC United States Production 100% 100% Methanex Louisiana LLC United States Production 100% 100% Methanex Geismar III LLC United States Geismar 3 project development 100% 100% Waterfront Shipping Limited 1 Canada Shipping 60% 60% Significant joint ventures: Atlas Methanol Company Unlimited 2 Trinidad and Tobago Production 63.1% 63.1% 1 On February 1, 2022, we closed the shipping partnership with Mitsui O.S.K. Lines, Ltd. ("MOL") whereby MOL acquired a 40% minority interest in Waterfront Shipping Limited. 2 Summarized financial information for the investment in Atlas is disclosed in note 6. |
Schedule of disclosure of transactions between related parties | Remuneration to non-management directors and senior management, which includes the members of the executive leadership team, is as follows: For the years ended December 31 2023 2022 Short-term employee benefits $ 9,034 $ 11,760 Post-employment benefits 681 656 Other long-term employee benefits 59 52 Share-based compensation expense 1 10,046 6,142 Total $ 19,820 $ 18,610 1 Balance includes realized and unrealized expenses and recoveries from share-based compensation awards granted. |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Interest In Other Entities [Abstract] | |
Schedule of financial information for each subsidiary with 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, 2023 Dec 31, 2022 Methanex Waterfront Shipping Limited Total Methanex Waterfront Shipping Limited 1 Total Current assets $ 129,320 $ 154,308 $ 283,628 $ 133,499 $ 180,227 $ 313,726 Non-current assets 521,708 791,512 1,313,220 557,484 806,079 1,363,563 Current liabilities (123,969) (185,459) (309,428) (56,689) (112,085) (168,774) Non-current liabilities (101,810) (718,915) (820,725) (104,101) (744,936) (849,037) Net assets 425,249 41,446 466,695 530,193 129,285 659,478 Carrying amount of Methanex non-controlling interests $ 214,568 $ 27,522 $ 242,090 $ 251,949 $ 65,495 $ 317,444 For the years ended December 31 2023 2022 Methanex Waterfront Shipping Limited Total Methanex Waterfront Shipping Limited 1 Total Revenue $ 258,782 $ 670,834 $ 929,616 $ 212,339 $ 576,810 $ 789,149 Net and total comprehensive income 55,428 129,411 184,839 107,375 67,670 175,045 Net and total comprehensive income attributable to Methanex non-controlling interests 56,310 53,672 109,982 77,133 31,325 108,458 Sale of partial interest in non-controlling interests and equity contributions by non-controlling interest $ — $ — $ — $ — $ 22,545 $ 22,545 Distributions made and accrued to non-controlling interests $ (93,696) $ (91,640) $ (185,336) $ (75,996) $ (8,718) $ (84,714) For the years ended December 31 2023 2022 Methanex Waterfront Shipping Limited Total Methanex Waterfront Shipping Limited 1 Total Cash flows from operating activities $ 131,667 $ 251,290 $ 382,957 $ 226,647 $ 94,355 $ 321,002 Cash flows from (used in) financing activities (99,490) (300,824) (400,314) (152,806) (52,796) (205,602) Cash flows from (used in) investing activities $ (5,560) $ 2,686 $ (2,874) $ (35,110) $ 215 $ (34,895) 1 On February 1, 2022, we closed the shipping partnership with Mitsui O.S.K. Lines, Ltd. ("MOL") whereby MOL acquired a minority interest in Waterfront Shipping Limited. |
Material accounting policies -
Material accounting policies - Property plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Buildings, plant installations and machinery | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives | 25 years |
Material accounting policies _2
Material accounting policies - Leases (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Top of range | |
Disclosure of Finance Leases [Line Items] | |
Lease term | 20 years |
Material accounting policies _3
Material accounting policies - Share-based compensation (Details) - Performance shares | 12 Months Ended |
Dec. 31, 2023 performanceFactor | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting period | 3 years |
Number of performance factors | 2 |
Return on capital employed average period | 3 years |
Bottom of range | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Share-based compensation arrangement vesting rights, percentage | 0% |
Top of range | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Share-based compensation arrangement vesting rights, percentage | 200% |
Material accounting policies _4
Material accounting policies - Segmented information (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
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, 2023 | Dec. 31, 2022 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade | $ 431,602 | $ 407,733 |
Value-added and other tax receivables | 22,292 | 14,986 |
Other | 79,721 | 78,206 |
Trade and other receivables | $ 533,615 | $ 500,925 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Inventories [Abstract] | ||
Cost of inventories recognized as expense | $ 2,860 | $ 3,157 |
Property, plant and equipment -
Property, plant and equipment - Book value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, plant and equipment [abstract] | ||
Owned assets | $ 3,654,475 | $ 3,398,805 |
Right-of-use assets | 757,293 | 756,478 |
Total | $ 4,411,768 | $ 4,155,283 |
Property, plant and equipment_2
Property, plant and equipment - Owned assets (Details) $ in Thousands, t in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) t | Dec. 31, 2022 USD ($) | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | $ 3,398,805 | |
Value at end of period | 3,654,475 | $ 3,398,805 |
Buildings, plant installations and machinery | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | 2,173,129 | |
Value at end of period | 2,085,505 | 2,173,129 |
Plants under construction | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | 1,001,888 | |
Value at end of period | $ 1,355,497 | 1,001,888 |
Plants under construction | Methanol plant in Geismar, Louisiana | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Owned asset (in tonnes) | t | 1.8 | |
Ocean vessels | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | $ 191,557 | |
Value at end of period | 179,333 | 191,557 |
Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | 32,231 | |
Value at end of period | 34,140 | 32,231 |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | 6,383,835 | 5,849,255 |
Additions | 532,073 | 582,399 |
Disposals and other | 310,818 | 47,819 |
Value at end of period | 6,605,090 | 6,383,835 |
Cost | Buildings, plant installations and machinery | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | 5,000,999 | 4,908,492 |
Additions | 174,058 | 140,326 |
Disposals and other | 294,850 | 47,819 |
Value at end of period | 4,880,207 | 5,000,999 |
Cost | Plants under construction | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | 1,001,888 | 561,860 |
Additions | 353,609 | 440,028 |
Disposals and other | 0 | 0 |
Value at end of period | 1,355,497 | 1,001,888 |
Cost | Plants under construction | Methanol plant in Geismar, Louisiana | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Owned assets, capitalized interest | 150,000 | 94,000 |
Cost | Ocean vessels | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | 240,867 | 240,525 |
Additions | 253 | 342 |
Disposals and other | 397 | 0 |
Value at end of period | 240,723 | 240,867 |
Cost | Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | 140,081 | 138,378 |
Additions | 4,153 | 1,703 |
Disposals and other | 15,571 | 0 |
Value at end of period | 128,663 | 140,081 |
Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | (2,985,030) | (2,774,057) |
Disposals and other | (297,431) | (51,430) |
Depreciation | 263,016 | 262,403 |
Value at end of period | (2,950,615) | (2,985,030) |
Accumulated depreciation | Buildings, plant installations and machinery | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | (2,827,870) | (2,631,268) |
Disposals and other | (281,951) | (51,430) |
Depreciation | 248,783 | 248,032 |
Value at end of period | (2,794,702) | (2,827,870) |
Accumulated depreciation | Plants under construction | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | 0 | 0 |
Disposals and other | 0 | 0 |
Depreciation | 0 | 0 |
Value at end of period | 0 | 0 |
Accumulated depreciation | Ocean vessels | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | (49,310) | (37,271) |
Disposals and other | 0 | 0 |
Depreciation | 12,080 | 12,039 |
Value at end of period | (61,390) | (49,310) |
Accumulated depreciation | Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Value at beginning of period | (107,850) | (105,518) |
Disposals and other | (15,480) | 0 |
Depreciation | 2,153 | 2,332 |
Value at end of period | $ (94,523) | $ (107,850) |
Property, plant and equipment_3
Property, plant and equipment - Right of use assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets, beginning balance | $ 756,478 | |
Right-of-use assets, ending balance | 757,293 | $ 756,478 |
Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets, beginning balance | 1,201,714 | 981,217 |
Additions | 142,193 | 263,830 |
Disposals and other | 42,124 | 43,333 |
Right-of-use assets, ending balance | 1,301,783 | 1,201,714 |
Accumulated depreciation | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets, beginning balance | (445,236) | (370,266) |
Disposals and other | (31,509) | (43,717) |
Depreciation | 130,763 | 118,687 |
Right-of-use assets, ending balance | (544,490) | (445,236) |
Ocean vessels | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets, beginning balance | 601,104 | |
Right-of-use assets, ending balance | 596,397 | 601,104 |
Ocean vessels | Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets, beginning balance | 846,977 | 657,774 |
Additions | 83,333 | 232,536 |
Disposals and other | 19,589 | 43,333 |
Right-of-use assets, ending balance | 910,721 | 846,977 |
Ocean vessels | Accumulated depreciation | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets, beginning balance | (245,873) | (214,004) |
Disposals and other | (19,589) | (43,717) |
Depreciation | 88,040 | 75,586 |
Right-of-use assets, ending balance | (314,324) | (245,873) |
Terminals and tanks | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets, beginning balance | 125,873 | |
Right-of-use assets, ending balance | 136,138 | 125,873 |
Terminals and tanks | Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets, beginning balance | 286,036 | 258,743 |
Additions | 52,909 | 27,293 |
Disposals and other | 6,504 | 0 |
Right-of-use assets, ending balance | 332,441 | 286,036 |
Terminals and tanks | Accumulated depreciation | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets, beginning balance | (160,163) | (125,494) |
Disposals and other | 0 | 0 |
Depreciation | 36,140 | 34,669 |
Right-of-use assets, ending balance | (196,303) | (160,163) |
Other | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets, beginning balance | 29,501 | |
Right-of-use assets, ending balance | 24,758 | 29,501 |
Other | Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets, beginning balance | 68,701 | 64,700 |
Additions | 5,951 | 4,001 |
Disposals and other | 16,031 | 0 |
Right-of-use assets, ending balance | 58,621 | 68,701 |
Other | Accumulated depreciation | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets, beginning balance | (39,200) | (30,768) |
Disposals and other | (11,920) | 0 |
Depreciation | 6,583 | 8,432 |
Right-of-use assets, ending balance | $ (33,863) | $ (39,200) |
Investment in associate - Narra
Investment in associate - Narrative (Details) $ in Thousands, t in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) t | Dec. 31, 2022 USD ($) | |
Disclosure of associates [line items] | ||
Percentage of sales | 100% | 100% |
Atlas Methanol Company Unlimited | ||
Disclosure of associates [line items] | ||
Annual methanol production facility owned (in tonnes) | t | 1.8 | |
Ownership rate | 100% | |
Gas contract settlement | $ 75,000 | $ 0 |
Atlas Methanol Company Unlimited | Fixed-price contracts | Methanol | 2005 through 2014 | ||
Disclosure of associates [line items] | ||
Percentage of sales | 50% | |
Atlas Methanol Company Unlimited | Fixed-price contracts | Methanol | Late 2014 through 2019 | ||
Disclosure of associates [line items] | ||
Percentage of sales | 10% | |
Atlas Methanol Company Unlimited | ||
Disclosure of associates [line items] | ||
Percentage of ownership interest in associates | 63.10% | 63.10% |
Natural gas supply arrangement term | 20 years | |
Atlas Methanol Company Unlimited | Cash-generating unit | ||
Disclosure of associates [line items] | ||
Discount rate used in current estimate of value in use | 16% | |
Atlas Methanol Company Unlimited | Atlas Methanol Company Unlimited | ||
Disclosure of associates [line items] | ||
Gas contract settlement, methanex share | $ 47,000 | |
Gas contract settlement, net of tax | $ 31,000 |
Investment in associate - State
Investment in associate - Statements of financial position (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of associates [line items] | |||
Cash and cash equivalents | $ 458,015 | $ 857,747 | $ 932,069 |
Other current assets | 3,893 | 39,346 | |
Non-current assets | 4,946,234 | 4,755,106 | |
Current liabilities | (1,302,306) | (942,617) | |
Investment in associate | 184,249 | 197,083 | |
Atlas Methanol Company Unlimited | |||
Disclosure of associates [line items] | |||
Net assets | 107,921 | 120,755 | |
Long-term receivable from Atlas | 76,328 | 76,328 | |
Investment in associate | $ 184,249 | $ 197,083 | |
Percentage of ownership interest in associates | 63.10% | 63.10% | |
Atlas Methanol Company Unlimited | |||
Disclosure of associates [line items] | |||
Cash and cash equivalents | $ 126,392 | $ 24,420 | |
Other current assets | 189,062 | 182,103 | |
Non-current assets | 149,354 | 184,373 | |
Current liabilities | (157,835) | (92,108) | |
Other long-term liabilities, including current maturities | (135,940) | (107,416) | |
Net assets | $ 171,033 | $ 191,372 | |
Ownership rate | 100% |
Investment in associate - Sta_2
Investment in associate - Statements of income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of associates [line items] | ||
Revenue | $ 3,723,475 | $ 4,311,188 |
Operating income | 263,573 | 610,613 |
Income tax expense | (1,489) | (119,859) |
Net income | 284,122 | 462,288 |
Atlas Methanol Company Unlimited | ||
Disclosure of associates [line items] | ||
Net income | 99,466 | 76,938 |
Dividends received from associate | $ 112,318 | $ 97,174 |
Percentage of ownership interest in associates | 63.10% | 63.10% |
Atlas Methanol Company Unlimited | ||
Disclosure of associates [line items] | ||
Revenue | $ 466,312 | $ 532,456 |
Cost of sales and depreciation and amortization | (289,705) | (332,999) |
Gas contract settlement | 75,000 | 0 |
Operating income | 251,607 | 199,457 |
Finance costs, finance income and other | (10,316) | (9,433) |
Income tax expense | (83,659) | (68,093) |
Net income | $ 157,632 | $ 121,931 |
Ownership rate | 100% |
Investment in associate - Key a
Investment in associate - Key assumptions (Details) - Cash-generating unit - Atlas Methanol Company Unlimited | Dec. 31, 2023 |
Long-term average realized methanol price | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Change Required for Carrying Value to Equal Recoverable Value | 0.10 |
Production volumes | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Change Required for Carrying Value to Equal Recoverable Value | 0.15 |
Gas price | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Change Required for Carrying Value to Equal Recoverable Value | 0.10 |
Discount rate (after-tax) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Change Required for Carrying Value to Equal Recoverable Value | 0.0800 |
Other assets - Components of ot
Other assets - Components of other assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Cash flow hedges (note 19) | $ 121,108 | $ 322,748 |
Chile VAT receivable | 17,824 | 18,343 |
Restricted cash for debt service and major maintenance of vessels | 15,772 | 14,349 |
Fair value of Egypt gas supply contract derivative (note 19) | 20,402 | 11,220 |
Investment in Carbon Recycling International | 5,620 | 5,620 |
Defined benefit pension plans (note 21) | 5,718 | 3,977 |
Other | 15,416 | 19,476 |
Total other assets | 201,860 | 395,733 |
Less current portion | (3,893) | (39,346) |
Other assets | $ 197,967 | $ 356,387 |
Other assets - Narrative (Detai
Other assets - Narrative (Details) $ in Millions | Dec. 31, 2023 USD ($) vessel | Dec. 31, 2022 USD ($) |
Subclassifications of assets, liabilities and equities [abstract] | ||
Restricted cash and cash equivalents | $ 15.8 | $ 14.3 |
Restricted cash, cash flow hedge | 0.5 | |
Restricted cash, major maintenance | $ 3.4 | |
Restricted cash, number of vessels | vessel | 4 |
Long-term debt - Components of
Long-term debt - Components of long-term debt (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 2,141,801,000 | $ 2,151,513,000 |
Less current maturities | (314,716,000) | (15,133,000) |
Non-current portion of long-term debt | 1,827,085,000 | 2,136,380,000 |
Debt discounts and deferred financing fees | 16,800,000 | 19,400,000 |
Unsecured notes | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 1,985,660,000 | 1,983,374,000 |
$300 million at 4.25% due December 1, 2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 299,283,000 | 298,836,000 |
Notional amount | $ 300,000,000 | |
$300 million at 4.25% due December 1, 2024 | Fixed interest rate | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate | 4.25% | |
$700 million at 5.125% due October 15, 2027 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 694,844,000 | 693,649,000 |
Notional amount | $ 700,000,000 | |
$700 million at 5.125% due October 15, 2027 | Fixed interest rate | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate | 5.125% | |
$700 million at 5.25% due December 15, 2029 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 695,824,000 | 695,283,000 |
Notional amount | $ 700,000,000 | |
$700 million at 5.25% due December 15, 2029 | Fixed interest rate | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate | 5.25% | |
$300 million at 5.65% due December 1, 2044 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 295,709,000 | 295,606,000 |
Notional amount | $ 300,000,000 | |
$300 million at 5.65% due December 1, 2044 | Fixed interest rate | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate | 5.65% | |
Other limited recourse debt facilities | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 156,141,000 | 168,139,000 |
5.58% due June 30, 2031 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 56,637,000 | 61,978,000 |
5.58% due June 30, 2031 | Fixed interest rate | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate | 5.58% | |
5.35% due September 30, 2033 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 65,300,000 | 70,312,000 |
5.35% due September 30, 2033 | Fixed interest rate | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate | 5.35% | |
5.21% due September 15, 2036 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | $ 34,204,000 | $ 35,849,000 |
5.21% due September 15, 2036 | Fixed interest rate | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate | 5.21% |
Long-term debt - Narrative (Det
Long-term debt - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||
Accretion of deferred financing costs | $ 2,600,000 | $ 2,200,000 |
Undrawn credit facility | ||
Disclosure of detailed information about borrowings [line items] | ||
Undrawn borrowing facilities | $ 300,000,000 | 300,000,000 |
Debt covenant, EBITDA to interest coverage ratio | 2 | |
Debt covenant, debt to capitalization ratio | 60% | |
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 | |
G3 construction facility | ||
Disclosure of detailed information about borrowings [line items] | ||
Undrawn borrowing facilities | 0 | $ 300,000,000 |
Cancellation of non-revolving construction facility | $ 300,000,000 |
Long-term debt - Maturity (Deta
Long-term debt - Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | $ 2,141,801 | $ 2,151,513 |
Other limited recourse debt facilities | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 156,141 | 168,139 |
Unsecured notes | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 1,985,660 | $ 1,983,374 |
Carrying amount | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 2,158,596 | |
Carrying amount | 2024 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 315,367 | |
Carrying amount | 2025 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 13,660 | |
Carrying amount | 2026 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 13,796 | |
Carrying amount | 2027 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 715,173 | |
Carrying amount | 2028 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 16,026 | |
Carrying amount | Thereafter | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 1,084,574 | |
Carrying amount | Other limited recourse debt facilities | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 158,596 | |
Carrying amount | Other limited recourse debt facilities | 2024 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 15,367 | |
Carrying amount | Other limited recourse debt facilities | 2025 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 13,660 | |
Carrying amount | Other limited recourse debt facilities | 2026 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 13,796 | |
Carrying amount | Other limited recourse debt facilities | 2027 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 15,173 | |
Carrying amount | Other limited recourse debt facilities | 2028 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 16,026 | |
Carrying amount | Other limited recourse debt facilities | Thereafter | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 84,574 | |
Carrying amount | Unsecured notes | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 2,000,000 | |
Carrying amount | Unsecured notes | 2024 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 300,000 | |
Carrying amount | Unsecured notes | 2025 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 0 | |
Carrying amount | Unsecured notes | 2026 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 0 | |
Carrying amount | Unsecured notes | 2027 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 700,000 | |
Carrying amount | Unsecured notes | 2028 | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | 0 | |
Carrying amount | Unsecured notes | Thereafter | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt | $ 1,000,000 |
Lease obligations - Lease activ
Lease obligations - Lease activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of Leases [Abstract] | ||
Opening lease obligations, beginning balance | $ 870,163 | $ 717,101 |
Additions, net of disposals | 123,187 | 262,470 |
Interest expense | 53,418 | 48,039 |
Lease payments | (171,577) | (153,901) |
Effect of movements in exchange rates and other | (3,071) | (3,546) |
Lease obligations, ending balance | 872,120 | 870,163 |
Less: current portion | (120,731) | (108,736) |
Lease obligations - non current portion | $ 751,389 | $ 761,427 |
Lease obligations - Lease payme
Lease obligations - Lease payments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Disclosure Of Maturity Analysis Of Lease Payments [Line Items] | |
Lease payments | $ 1,174,346 |
Interest component | 302,226 |
Lease obligations | 872,120 |
2024 | |
Disclosure Of Maturity Analysis Of Lease Payments [Line Items] | |
Lease payments | 172,197 |
Interest component | 51,466 |
Lease obligations | 120,731 |
2025 | |
Disclosure Of Maturity Analysis Of Lease Payments [Line Items] | |
Lease payments | 142,761 |
Interest component | 45,617 |
Lease obligations | 97,144 |
2026 | |
Disclosure Of Maturity Analysis Of Lease Payments [Line Items] | |
Lease payments | 123,738 |
Interest component | 39,998 |
Lease obligations | 83,740 |
2027 | |
Disclosure Of Maturity Analysis Of Lease Payments [Line Items] | |
Lease payments | 112,397 |
Interest component | 34,419 |
Lease obligations | 77,978 |
2028 | |
Disclosure Of Maturity Analysis Of Lease Payments [Line Items] | |
Lease payments | 108,284 |
Interest component | 28,547 |
Lease obligations | 79,737 |
Thereafter | |
Disclosure Of Maturity Analysis Of Lease Payments [Line Items] | |
Lease payments | 514,969 |
Interest component | 102,179 |
Lease obligations | $ 412,790 |
Lease obligations - Narrative (
Lease obligations - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) vessel | Dec. 31, 2022 USD ($) vessel | |
Disclosure of Leases [Abstract] | ||
Expense relating to variable lease payments not included in measurement of lease liabilities | $ 83,800 | $ 81,900 |
Expense relating to short-term leases for which recognition exemption has been used | 200 | 200 |
Potential future lease payments not included in lease liabilities (undiscounted) | 51,778 | 53,500 |
Lease not yet commenced, amount | $ 68,700 | $ 132,600 |
Lease not yet commenced, number of vessel, additions | vessel | 1 | |
Lease not yet commenced, term (in years) | 5 years | |
Lease not yet commenced, number of vessels | vessel | 1 |
Lease obligations - Extension o
Lease obligations - Extension options (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of Finance Leases [Line Items] | ||
Lease liabilities recognized (discounted) | $ 872,120 | |
Potential future lease payments not included in lease liabilities (undiscounted) | 51,778 | $ 53,500 |
Ocean-going vessels | ||
Disclosure of Finance Leases [Line Items] | ||
Lease liabilities recognized (discounted) | 662,903 | |
Potential future lease payments not included in lease liabilities (undiscounted) | 1,512 | |
Terminals and tanks | ||
Disclosure of Finance Leases [Line Items] | ||
Lease liabilities recognized (discounted) | 174,019 | |
Potential future lease payments not included in lease liabilities (undiscounted) | 38,987 | |
Other | ||
Disclosure of Finance Leases [Line Items] | ||
Lease liabilities recognized (discounted) | 35,198 | |
Potential future lease payments not included in lease liabilities (undiscounted) | $ 11,279 |
Other long-term liabilities - C
Other long-term liabilities - Components of other long-term liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Share-based compensation liability (note 14) | $ 74,107 | $ 70,569 |
Site restoration costs | 32,596 | 36,581 |
Land mortgage | 28,014 | 28,514 |
Defined benefit pension plans (note 21) | 22,691 | 19,216 |
Cash flow hedges (note 19) | 91,183 | 6,739 |
Other | 1,319 | 2,532 |
Other long-term liabilities | 249,910 | 164,151 |
Less current maturities | (94,992) | (29,548) |
Other non-current liabilities | $ 154,918 | $ 134,603 |
Other long-term liabilities - N
Other long-term liabilities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Undiscounted amount of estimated cash flows required to settle liabilities | $ 50.6 | $ 52.1 |
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, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in other provisions [abstract] | ||
Balance at beginning of period | $ 36,581 | $ 29,355 |
New or revised provisions | (5,573) | 6,915 |
Accretion expense | 1,588 | 311 |
Balance at end of period | $ 32,596 | $ 36,581 |
Expenses - Components of expens
Expenses - Components of expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Analysis of income and expense [abstract] | ||
Cost of sales | $ 2,797,794 | $ 3,238,312 |
Selling and distribution | 552,693 | 498,552 |
Administrative expenses | 109,415 | 81,657 |
Total expenses by function | 3,459,902 | 3,818,521 |
Cost of raw materials and purchased methanol | 2,329,856 | 2,789,921 |
Ocean freight and other logistics | 357,495 | 325,893 |
Employee expenses, including share-based compensation | 243,542 | 219,012 |
Other expenses | 137,179 | 111,275 |
Cost of sales and operating expenses | 3,068,072 | 3,446,101 |
Depreciation and amortization | 391,830 | 372,420 |
Total expenses by nature | $ 3,459,902 | $ 3,818,521 |
Expenses - Narrative (Details)
Expenses - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Expenses [Line Items] | ||
Share-based compensation expense | $ 34,502 | $ 15,398 |
Revenue | 3,723,475 | 4,311,188 |
Atlas Methanol Company Unlimited | ||
Expenses [Line Items] | ||
Revenue | $ 466,312 | $ 532,456 |
Finance costs (Details)
Finance costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Borrowing costs [abstract] | ||
Finance costs before capitalized interest | $ 172,814 | $ 167,066 |
Less capitalized interest related to Geismar plant under construction | (55,448) | (36,314) |
Finance costs | $ 117,366 | $ 130,752 |
Net income per common share - R
Net income per common share - Reconciliation of numerator used for calculation of diluted net income per common share (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings per share [abstract] | ||
Numerator for basic net income per common share | $ 174,140 | $ 353,830 |
Adjustment for the effect of TSARs: | ||
Cash-settled recovery included in net income | 0 | (316) |
Equity-settled expense | 0 | (5,503) |
Numerator for diluted net income per common share | $ 174,140 | $ 348,011 |
Net income per common share -_2
Net income per common share - Reconciliation of denominator used for calculation of diluted net income per common share (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings per share [abstract] | ||
Denominator for basic net income per common share (in shares) | 67,805,220 | 71,422,360 |
Effect of dilutive stock options (in shares) | 6,395 | 10,108 |
Effect of dilutive TSARS (in shares) | 0 | 245,016 |
Denominator for diluted net income per common share (in shares) | 67,811,615 | 71,677,484 |
Net income per common share - B
Net income per common share - Basic and diluted (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings per share [abstract] | ||
Basic net income per common share (in usd per share) | $ 2.57 | $ 4.95 |
Diluted net income per common share (in usd per share) | $ 2.57 | $ 4.86 |
Share-based compensation - Narr
Share-based compensation - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) performanceFactor shares | Dec. 31, 2022 USD ($) | |
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 (in shares) | shares | 4,010,076 | |
Liabilities from share-based payment transactions | $ 74,107 | $ 70,569 |
SARs and TSARs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting period | 7 years | |
Vesting rate | 33.33% | |
Fair value of share-based payment transactions | $ 26,700 | |
Liabilities from share-based payment transactions | 25,000 | |
Intrinsic value of liabilities from share-based payment transactions | $ 1,700 | |
Weighted average remaining vesting period | 1 year 4 months 24 days | |
Expense from share-based payment transactions with employees | $ 10,500 | 1,800 |
Expense (recovery) from share-based payment transactions with employees, effect of change in share price | $ 6,600 | (3,700) |
Performance Share Units (PSU) New Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting period | 3 years | |
Number of performance factors | performanceFactor | 2 | |
Performance Share Units (PSU) New Plan | Bottom of range | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation arrangement vesting rights, percentage | 0% | |
Performance Share Units (PSU) New Plan | Top of range | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation arrangement vesting rights, percentage | 200% | |
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 | $ 58,600 | |
Liabilities from share-based payment transactions | 48,900 | |
Intrinsic value of liabilities from share-based payment transactions | $ 9,700 | |
Weighted average remaining vesting period | 1 year 8 months 12 days | |
Expense from share-based payment transactions with employees | $ 23,900 | 13,500 |
Expense (recovery) from share-based payment transactions with employees, effect of change in share price | $ 8,800 | $ (3,400) |
Performance shares | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting period | 3 years | |
Number of performance factors | performanceFactor | 2 | |
Return on capital employed average period | 3 years | |
Performance shares | Bottom of range | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation arrangement vesting rights, percentage | 0% | |
Performance shares | Top of range | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation arrangement vesting rights, percentage | 200% |
Share-based compensation - Chan
Share-based compensation - Changes in SARs and TSARs (Details) | 12 Months Ended | |
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | |
SARs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of outstanding units, beginning of period (in units) | shares | 407,687 | 666,256 |
Number of outstanding units granted (in units) | shares | 51,160 | 32,730 |
Number of outstanding units exercised (in units) | shares | (50,715) | (129,162) |
Number of outstanding units cancelled (in units) | shares | (5,600) | (12,900) |
Number of outstanding units expired (in units) | shares | (149,237) | |
Number of outstanding units, end of period (in units) | shares | 402,532 | 407,687 |
Exercise price of outstanding units, beginning of period (in usd per unit) | $ / shares | $ 44.67 | $ 45.7 |
Exercise price of outstanding units granted (in usd per unit) | $ / shares | 50.49 | 48.49 |
Exercise price of outstanding units exercised (in usd per unit) | $ / shares | 33.85 | 37.17 |
Exercise price of outstanding units cancelled (in usd per unit) | $ / shares | 53.69 | 55.70 |
Exercise price of outstanding units expired (in usd per unit) | $ / shares | 55.66 | |
Exercise price of outstanding units, end of period (in usd per unit) | $ / shares | $ 46.65 | $ 44.67 |
TSARs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of outstanding units, beginning of period (in units) | shares | 2,188,359 | 2,380,237 |
Number of outstanding units granted (in units) | shares | 169,190 | 266,090 |
Number of outstanding units exercised (in units) | shares | (336,535) | (290,577) |
Number of outstanding units cancelled (in units) | shares | (13,544) | (21,922) |
Number of outstanding units expired (in units) | shares | (145,469) | |
Number of outstanding units, end of period (in units) | shares | 2,007,470 | 2,188,359 |
Exercise price of outstanding units, beginning of period (in usd per unit) | $ / shares | $ 42.68 | $ 42.05 |
Exercise price of outstanding units granted (in usd per unit) | $ / shares | 50.49 | 48.49 |
Exercise price of outstanding units exercised (in usd per unit) | $ / shares | 31.88 | 35.94 |
Exercise price of outstanding units cancelled (in usd per unit) | $ / shares | 51.36 | 46.45 |
Exercise price of outstanding units expired (in usd per unit) | $ / shares | 55.82 | |
Exercise price of outstanding units, end of period (in usd per unit) | $ / shares | $ 45.10 | $ 42.68 |
Share-based compensation - Rang
Share-based compensation - Range of exercise prices in SARs and TSARs (Details) | 12 Months Ended | ||
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | |
SARs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life (years) | 2 years 7 months 20 days | ||
Number of units outstanding (in units) | shares | 402,532 | 407,687 | 666,256 |
Weighted average exercise price of units outstanding (in usd per unit) | $ 46.65 | $ 44.67 | $ 45.7 |
Number of units exercisable (in units) | shares | 316,389 | ||
Weighted average exercise price of units exercisable (in usd per unit) | $ 46.23 | ||
SARs | $29.27 to $38.79 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life (years) | 3 years 6 months 7 days | ||
Number of units outstanding (in units) | shares | 112,962 | ||
Weighted average exercise price of units outstanding (in usd per unit) | $ 32.60 | ||
Number of units exercisable (in units) | shares | 99,800 | ||
Weighted average exercise price of units exercisable (in usd per unit) | $ 31.78 | ||
SARs | $29.27 to $38.79 | Bottom of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | 29.27 | ||
SARs | $29.27 to $38.79 | Top of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | $ 38.79 | ||
SARs | $45.40 to $50.49 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life (years) | 2 years 11 months 4 days | ||
Number of units outstanding (in units) | shares | 171,010 | ||
Weighted average exercise price of units outstanding (in usd per unit) | $ 49.93 | ||
Number of units exercisable (in units) | shares | 98,029 | ||
Weighted average exercise price of units exercisable (in usd per unit) | $ 49.96 | ||
SARs | $45.40 to $50.49 | Bottom of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | 45.40 | ||
SARs | $45.40 to $50.49 | Top of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | $ 50.49 | ||
SARs | $54.65 to $78.59 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life (years) | 1 year 4 months 20 days | ||
Number of units outstanding (in units) | shares | 118,560 | ||
Weighted average exercise price of units outstanding (in usd per unit) | $ 55.30 | ||
Number of units exercisable (in units) | shares | 118,560 | ||
Weighted average exercise price of units exercisable (in usd per unit) | $ 55.30 | ||
SARs | $54.65 to $78.59 | Bottom of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | 54.65 | ||
SARs | $54.65 to $78.59 | Top of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | $ 78.59 | ||
TSARs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life (years) | 3 years 25 days | ||
Number of units outstanding (in units) | shares | 2,007,470 | 2,188,359 | 2,380,237 |
Weighted average exercise price of units outstanding (in usd per unit) | $ 45.10 | $ 42.68 | $ 42.05 |
Number of units exercisable (in units) | shares | 1,555,147 | ||
Weighted average exercise price of units exercisable (in usd per unit) | $ 44.57 | ||
TSARs | $29.27 to $38.79 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life (years) | 3 years 6 months 25 days | ||
Number of units outstanding (in units) | shares | 776,194 | ||
Weighted average exercise price of units outstanding (in usd per unit) | $ 33.05 | ||
Number of units exercisable (in units) | shares | 666,922 | ||
Weighted average exercise price of units exercisable (in usd per unit) | $ 32.11 | ||
TSARs | $29.27 to $38.79 | Bottom of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | 29.27 | ||
TSARs | $29.27 to $38.79 | Top of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | $ 38.79 | ||
TSARs | $45.40 to $50.49 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life (years) | 3 years 7 months 24 days | ||
Number of units outstanding (in units) | shares | 673,316 | ||
Weighted average exercise price of units outstanding (in usd per unit) | $ 49.55 | ||
Number of units exercisable (in units) | shares | 330,265 | ||
Weighted average exercise price of units exercisable (in usd per unit) | $ 49.62 | ||
TSARs | $45.40 to $50.49 | Bottom of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | 45.40 | ||
TSARs | $45.40 to $50.49 | Top of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | $ 50.49 | ||
TSARs | $54.65 to $78.59 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average remaining contractual life (years) | 1 year 7 months 28 days | ||
Number of units outstanding (in units) | shares | 557,960 | ||
Weighted average exercise price of units outstanding (in usd per unit) | $ 56.48 | ||
Number of units exercisable (in units) | shares | 557,960 | ||
Weighted average exercise price of units exercisable (in usd per unit) | $ 56.48 | ||
TSARs | $54.65 to $78.59 | Bottom of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | 54.65 | ||
TSARs | $54.65 to $78.59 | Top of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Weighted average exercise price of units outstanding (in usd per unit) | $ 78.59 |
Share-based compensation - Weig
Share-based compensation - Weighted average assumptions (Details) - SARs and TSARs - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Risk-free interest rate | 4.50% | 4.40% |
Expected dividend yield | 1.60% | 1.90% |
Expected life of SARs and TSARs (years) | 1 year 4 months 24 days | 1 year 9 months 18 days |
Expected volatility | 38% | 51% |
Expected forfeitures | 0% | 0% |
Weighted average fair value (in usd per unit) | $ 10.75 | $ 8.72 |
Share-based compensation - Ch_2
Share-based compensation - Changes in other equity instruments (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of outstanding units, beginning of period (in units) | 155,761 | 133,418 |
Number of outstanding units granted (in units) | 18,417 | 19,909 |
Number of outstanding units performance factor impact on redemption (in units) | 0 | 0 |
Number of outstanding units granted in lieu of dividends (in units) | 2,484 | 2,434 |
Number of outstanding units redeemed (in units) | (18,962) | 0 |
Number of outstanding units cancelled (in units) | 0 | 0 |
Number of outstanding units, end of period (in units) | 157,700 | 155,761 |
Restricted share units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of outstanding units, beginning of period (in units) | 340,929 | 332,385 |
Number of outstanding units granted (in units) | 104,980 | 104,810 |
Number of outstanding units performance factor impact on redemption (in units) | 0 | 0 |
Number of outstanding units granted in lieu of dividends (in units) | 5,267 | 5,561 |
Number of outstanding units redeemed (in units) | (131,398) | (82,039) |
Number of outstanding units cancelled (in units) | (8,924) | (19,788) |
Number of outstanding units, end of period (in units) | 310,854 | 340,929 |
Performance Share Units (PSU) New Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of outstanding units, beginning of period (in units) | 744,887 | 689,688 |
Number of outstanding units granted (in units) | 179,340 | 199,430 |
Number of outstanding units performance factor impact on redemption (in units) | 143,065 | (14,796) |
Number of outstanding units granted in lieu of dividends (in units) | 10,411 | 11,764 |
Number of outstanding units redeemed (in units) | (435,035) | (119,714) |
Number of outstanding units cancelled (in units) | (11,546) | (21,485) |
Number of outstanding units, end of period (in units) | 631,122 | 744,887 |
Segmented information - Narrati
Segmented information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Operating Segments [Abstract] | |
Number of operating segments | 1 |
Segmented information - Revenue
Segmented information - Revenue attributed to geographic location (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of geographical areas [line items] | ||
Revenue | $ 3,723,475 | $ 4,311,188 |
Percentage of sales | 100% | 100% |
China | ||
Disclosure of geographical areas [line items] | ||
Revenue | $ 1,042,723 | $ 1,105,610 |
Percentage of sales | 28% | 26% |
Europe | ||
Disclosure of geographical areas [line items] | ||
Revenue | $ 722,578 | $ 830,507 |
Percentage of sales | 19% | 19% |
United States | ||
Disclosure of geographical areas [line items] | ||
Revenue | $ 574,951 | $ 657,495 |
Percentage of sales | 15% | 15% |
South America | ||
Disclosure of geographical areas [line items] | ||
Revenue | $ 428,617 | $ 458,989 |
Percentage of sales | 12% | 11% |
South Korea | ||
Disclosure of geographical areas [line items] | ||
Revenue | $ 391,821 | $ 542,646 |
Percentage of sales | 11% | 13% |
Other Asia | ||
Disclosure of geographical areas [line items] | ||
Revenue | $ 387,373 | $ 518,901 |
Percentage of sales | 10% | 12% |
Canada | ||
Disclosure of geographical areas [line items] | ||
Revenue | $ 175,412 | $ 197,040 |
Percentage of sales | 5% | 4% |
Segmented information - Propert
Segmented information - Property, plant and equipment, net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | $ 4,411,768 | $ 4,155,283 |
United States | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | 2,537,515 | 2,211,333 |
Egypt | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | 520,497 | 564,454 |
New Zealand | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | 232,831 | 211,544 |
Canada | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | 157,483 | 165,783 |
Chile | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | 113,789 | 102,467 |
Trinidad | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | 43,835 | 70,432 |
Waterfront Shipping | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | 775,729 | 792,016 |
Other | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment | $ 30,089 | $ 37,254 |
Income and other taxes - Income
Income and other taxes - Income tax (expense) recovery (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current tax (expense) recovery: | ||
Current period before undernoted items | $ (64,679) | $ (127,254) |
Adjustments to prior years including resolution for certain outstanding audits | 14,755 | (324) |
Current tax recovery (expense) | (49,924) | (127,578) |
Deferred tax recovery (expense): | ||
Origination and reversal of temporary differences | 46,982 | 9,589 |
Adjustments to prior years including resolution for certain outstanding audits | 6,904 | (400) |
Changes in tax rates | (5,828) | (23) |
Impact of foreign exchange and other | 377 | (1,447) |
Deferred tax recovery (expense) | 48,435 | 7,719 |
Total income tax expense | $ (1,489) | $ (119,859) |
Income and other taxes - Reconc
Income and other taxes - Reconciliation of effective tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes [Abstract] | ||
Income before income taxes | $ 285,611 | $ 582,147 |
Deduct earnings of associate | (99,466) | (76,938) |
Income (loss) before income taxes after deduction of earnings of associate | $ 186,145 | $ 505,209 |
Canadian statutory tax rate | 24.50% | 24.50% |
Income tax expense calculated at Canadian statutory tax rate | $ (45,606) | $ (123,776) |
Decrease (increase) in income tax expense resulting from: | ||
Impact of income and losses taxed in foreign jurisdictions | 27,260 | 1,346 |
Utilization of unrecognized loss carryforwards and temporary differences | 7,381 | 7,077 |
Impact of tax rate changes | (5,828) | (23) |
Impact of foreign exchange | 5,287 | 3,783 |
Other business taxes | (13,943) | (11,065) |
Impact of items not taxable for tax purposes | 2,373 | 3,624 |
Adjustments to prior years including resolution for certain outstanding audits | 21,658 | (724) |
Other | (71) | (101) |
Total income tax expense | $ (1,489) | $ (119,859) |
Income and other taxes - Net de
Income and other taxes - Net deferred income tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | $ (65,590) | $ (180,643) | $ (114,536) |
Deferred tax assets | 152,250 | 46,353 | |
Deferred tax liabilities | (217,840) | (226,996) | |
Temporary differences including temporary differences with liability balances | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | (540,343) | (622,276) | |
Deferred tax assets | (227,212) | (318,092) | |
Deferred tax liabilities | (313,131) | (304,184) | |
Property, plant and equipment (owned) | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | (363,644) | (403,505) | |
Deferred tax assets | (189,646) | (230,756) | |
Deferred tax liabilities | (173,998) | (172,749) | |
Right-of-use assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | (35,883) | (33,477) | |
Deferred tax assets | (28,299) | (26,486) | |
Deferred tax liabilities | (7,584) | (6,991) | |
Repatriation taxes | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | (109,186) | (106,989) | |
Deferred tax assets | (7) | 0 | |
Deferred tax liabilities | (109,179) | (106,989) | |
Other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | (31,630) | (78,305) | |
Deferred tax assets | (9,259) | (60,850) | |
Deferred tax liabilities | (22,371) | (17,455) | |
Temporary differences including temporary differences with asset balances | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | 474,753 | 441,633 | |
Deferred tax assets | 379,462 | 364,445 | |
Deferred tax liabilities | 95,291 | 77,188 | |
Non-capital loss carryforwards | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | 358,774 | 353,986 | |
Deferred tax assets | 321,602 | 322,608 | |
Deferred tax liabilities | 37,172 | 31,378 | |
Lease obligations | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | 48,633 | 46,438 | |
Deferred tax assets | 37,854 | 35,957 | |
Deferred tax liabilities | 10,779 | 10,481 | |
Share-based compensation | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | 16,391 | 17,068 | |
Deferred tax assets | 651 | 2,096 | |
Deferred tax liabilities | 15,740 | 14,972 | |
Other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Net | 50,955 | 24,141 | |
Deferred tax assets | 19,355 | 3,784 | |
Deferred tax liabilities | $ 31,600 | $ 20,357 |
Income and other taxes - Unused
Income and other taxes - Unused tax losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax effect | $ (7,381) | $ (7,077) |
Unused tax losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross amount | 1,355,760 | |
Tax effect | 298,267 | |
Expire | Unused tax losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross amount | 949,959 | |
Tax effect | 208,991 | |
Losses generated in 2015 (expires 2035) | Unused tax losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross amount | 282,437 | |
Tax effect | 62,136 | |
Losses generated in 2016 (expires 2036) | Unused tax losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross amount | 432,581 | |
Tax effect | 95,168 | |
Losses generated in 2017 (expires 2037) | Unused tax losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross amount | 234,941 | |
Tax effect | 51,687 | |
Losses generated in 2019 | Unused tax losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross amount | 255,244 | |
Tax effect | 56,154 | |
Losses generated in 2020 | Unused tax losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross amount | 121,321 | |
Tax effect | 26,691 | |
Losses generated in 2023 | Unused tax losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross amount | 29,235 | |
Tax effect | $ 6,432 |
Income and other taxes - Narrat
Income and other taxes - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 152,250 | $ 46,353 | $ 98,169 |
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 | 201,000 | 231,000 | |
Trinidad | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Operating loss carryforwards | 82,000 | 70,000 | |
Deferred tax assets | 29,000 | 24,000 | |
New Zealand | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Operating loss carryforwards | 25,000 | 7,000 | |
Deferred tax assets | 7,000 | 2,000 | |
Canada | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Operating loss carryforwards | 123,000 | 121,000 | |
Deferred tax assets | $ 30,000 | $ 30,000 |
Income and other taxes - Change
Income and other taxes - Change in deferred income tax liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net | ||
Net, beginning of period | $ (180,643) | $ (114,536) |
Deferred income tax recovery (expense) included in net income | 48,435 | 7,719 |
Deferred income tax recovery (expense) included in other comprehensive income | 66,636 | (72,440) |
Other | (17) | (1,386) |
Net, end of period | (65,590) | (180,643) |
Deferred tax assets | ||
Deferred tax assets, beginning of period | 46,353 | 98,169 |
Deferred income tax recovery (expense) included in net income | 40,159 | 22,578 |
Deferred income tax recovery (expense) included in other comprehensive income | 65,738 | (74,394) |
Other | 0 | 0 |
Deferred tax assets, end of period | 152,250 | 46,353 |
Deferred tax liabilities | ||
Deferred tax liabilities, beginning of period | (226,996) | (212,705) |
Deferred income tax recovery (expense) included in net income | 8,276 | (14,859) |
Deferred income tax recovery (expense) included in other comprehensive income | 898 | 1,954 |
Other | (17) | (1,386) |
Deferred tax liabilities, end of period | $ (217,840) | $ (226,996) |
Supplemental cash flow inform_3
Supplemental cash flow information - Changes in non-cash working capital (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in non-cash working capital: | ||
Trade and other receivables | $ (32,690) | $ 50,442 |
Inventories | 12,997 | 19,785 |
Prepaid expenses | (19,439) | (2,622) |
Trade, other payables and accrued liabilities | (17,333) | (46,751) |
Decrease (increase) in non-cash working capital | (56,465) | 20,854 |
Adjustments for items not having a cash effect and working capital changes relating to taxes and interest paid and interest received | 6,027 | 59,283 |
Changes in non-cash working capital | (50,438) | 80,137 |
These changes relate to the following activities: | ||
Operating | (59,058) | 54,122 |
Financing | 68,750 | 1,771 |
Investing | (60,130) | 24,244 |
Changes in non-cash working capital | $ (50,438) | $ 80,137 |
Supplemental cash flow inform_4
Supplemental cash flow information - Reconciliation of liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes from financing cash flows | ||
Repayment of long-term debt and financing fees | $ (12,280) | $ (9,151) |
Payment of lease obligations | (118,159) | (105,863) |
Long term debt | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Outstanding at beginning of period | 2,151,513 | |
Changes from financing cash flows | ||
Repayment of long-term debt and financing fees | (12,280) | |
Payment of lease obligations | 0 | |
Total changes from financing cash flows | (12,280) | |
Liability-related other changes | ||
Finance costs | 2,568 | |
New lease obligations | 0 | |
Other | 0 | |
Total liability-related other changes | 2,568 | |
Outstanding at end of period | 2,141,801 | 2,151,513 |
Lease obligations | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Outstanding at beginning of period | 870,163 | |
Changes from financing cash flows | ||
Repayment of long-term debt and financing fees | 0 | |
Payment of lease obligations | (118,159) | |
Total changes from financing cash flows | (118,159) | |
Liability-related other changes | ||
Finance costs | 0 | |
New lease obligations | 123,187 | |
Other | (3,071) | |
Total liability-related other changes | 120,116 | |
Outstanding at end of period | $ 872,120 | $ 870,163 |
Capital disclosures (Details)
Capital disclosures (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of liquidity and capitalization [Line Items] | |||
Cash and cash equivalents | $ 458,015,000 | $ 857,747,000 | $ 932,069,000 |
Total liquidity | 758,015,000 | 1,457,747,000 | |
Total debt | 2,141,801,000 | 2,151,513,000 | |
Non-controlling interests | 242,090,000 | 317,444,000 | |
Shareholders’ equity | 1,930,927,000 | 2,112,013,000 | |
Total capitalization | $ 4,314,818,000 | $ 4,580,970,000 | |
Total debt to capitalization | 50% | 47% | |
Net debt to capitalization | 44% | 35% | |
Undrawn credit facility | |||
Disclosure of liquidity and capitalization [Line Items] | |||
Undrawn credit facility | $ 300,000,000 | $ 300,000,000 | |
G3 construction facility | |||
Disclosure of liquidity and capitalization [Line Items] | |||
Undrawn credit facility | 0 | 300,000,000 | |
Cancellation of non-revolving construction facility | 300,000,000 | ||
Unsecured notes | |||
Disclosure of liquidity and capitalization [Line Items] | |||
Total debt | 1,985,660,000 | 1,983,374,000 | |
Other limited recourse debt facilities | |||
Disclosure of liquidity and capitalization [Line Items] | |||
Total debt | $ 156,141,000 | $ 168,139,000 |
Financial instruments - Financi
Financial instruments - Financial assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | $ 1,130,036 | $ 1,694,248 |
Financial liabilities | 3,805,825 | 3,714,666 |
Trade, other payables and accrued liabilities, excluding tax payable | Financial liabilities not measured at fair value: | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 672,237 | 656,010 |
Lease obligations, including current portion | Financial liabilities not measured at fair value: | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 872,120 | 870,163 |
Long-term debt, including current portion | Financial liabilities not measured at fair value: | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 2,141,801 | 2,151,513 |
Land mortgage | Financial liabilities not measured at fair value: | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 28,014 | 28,514 |
Cash flow hedges | Derivative instruments designated as cash flow hedges | Financial liabilities measured at fair value: | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 91,653 | 8,466 |
Derivative instruments designated as cash flow hedges | Financial assets measured at fair value: | Cash flow hedges | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 121,108 | 322,748 |
Fair value of Egypt gas supply contract derivative | Financial assets measured at fair value: | Cash flow hedges | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 20,402 | 11,220 |
Cash and cash equivalents | Financial assets not measured at fair value: | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 458,015 | 857,747 |
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 | 514,739 | 488,184 |
Restricted cash included in other assets | Financial assets not measured at fair value: | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | $ 15,772 | $ 14,349 |
Financial instruments - North a
Financial instruments - North american natural gas forward contracts (Details) MMBTU in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) MMBTU | Dec. 31, 2022 USD ($) MMBTU | |
Accumulated other comprehensive income | ||
Disclosure of financial assets [line items] | ||
Reclassification of hedge gain (loss) in cash flow hedge | $ (22,500,000) | $ 55,000,000 |
North american natural gas forward contract | ||
Disclosure of financial assets [line items] | ||
Hedge ineffectiveness | $ 0 | $ 0 |
North american natural gas forward contract | Cash flow hedges | ||
Disclosure of financial assets [line items] | ||
Hedging instrument, energy (in mmbtu) | MMBTU | 347,190 | 307,900 |
Notional amount | $ 1,183,319,000 | $ 1,014,264,000 |
Assets, fair value | 29,925,000 | 316,008,000 |
North american natural gas forward contract | Cash flow hedges | Other current assets | ||
Disclosure of financial assets [line items] | ||
Assets, fair value | 470,000 | 32,768,000 |
North american natural gas forward contract | Cash flow hedges | Other non-current assets | ||
Disclosure of financial assets [line items] | ||
Assets, fair value | 120,638,000 | 289,979,000 |
North american natural gas forward contract | Cash flow hedges | Other current liabilities | ||
Disclosure of financial assets [line items] | ||
Liabilities, fair value | (60,532,000) | (317,000) |
North american natural gas forward contract | Cash flow hedges | Other long-term liabilities | ||
Disclosure of financial assets [line items] | ||
Liabilities, fair value | $ (30,651,000) | $ (6,422,000) |
North american natural gas forward contract | Cash flow hedges | Bottom of range | ||
Disclosure of financial assets [line items] | ||
Hedging instrument, daily energy annualized (in mmbtu) | MMBTU | 50 | 50 |
North american natural gas forward contract | Cash flow hedges | Top of range | ||
Disclosure of financial assets [line items] | ||
Hedging instrument, daily energy annualized (in mmbtu) | MMBTU | 170 | 150 |
Financial instruments - Euro fo
Financial instruments - Euro forward exchange contracts (Details) € in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 EUR (€) | Dec. 31, 2022 EUR (€) | |
Disclosure of financial assets [line items] | ||||
Realized losses (gains) on foreign exchange hedges reclassified to revenue | $ 3,105,000 | $ (5,674,000) | ||
Euro forward exchange contracts | ||||
Disclosure of financial assets [line items] | ||||
Hedge ineffectiveness | 0 | 0 | ||
Euro forward exchange contracts | Cash flow hedges | ||||
Disclosure of financial assets [line items] | ||||
Notional amount | € | € 12.2 | € 21.1 | ||
Euro forward exchange contracts | Cash flow hedges | Current liabilities | ||||
Disclosure of financial assets [line items] | ||||
Liabilities, fair value | $ 500,000 | $ 1,700,000 |
Financial instruments - Changes
Financial instruments - Changes in cash flow hedges and excluded forward element (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financial Instruments [Abstract] | ||
Change in fair value of cash flow hedges | $ (276,619) | $ (27,742) |
Forward element excluded from hedging relationships | (33,837) | 406,029 |
Changes in cash flow hedges and excluded forward element | $ (310,456) | $ 378,287 |
Financial instruments - Fair va
Financial instruments - Fair value - Level 2 instruments, maturity (Details) - Level 2 - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities | $ 99,720 | $ 9,182 |
Within one year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities | 65,034 | 2,050 |
1-3 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities | 17,771 | 7,132 |
3-5 years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities | 5,537 | 0 |
Thereafter | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative financial liabilities | $ 11,378 | $ 0 |
Financial instruments - Fair _2
Financial instruments - Fair value - Level 2 instruments, narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of financial assets [line items] | ||
Financial assets | $ 1,130,036 | $ 1,694,248 |
Financial assets measured at fair value: | Derivative instruments | Cash flow hedges | ||
Disclosure of financial assets [line items] | ||
Financial assets | 121,108 | 322,748 |
Financial assets measured at fair value: | Derivative instruments | Cash flow hedges | Level 2 | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 121,100 | $ 322,700 |
Financial instruments - Fair _3
Financial instruments - Fair value - Level 2 instruments, carrying values of financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of fair value measurement of liabilities [line items] | ||
Carrying value | $ 3,805,825 | $ 3,714,666 |
Long-term debt excluding deferred financing fees | Level 2 | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Carrying value | 2,156,534 | 2,168,585 |
Fair value | $ 2,063,661 | $ 1,953,932 |
Financial instruments - Fair _4
Financial instruments - Fair value - Level 3 instrument, narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Derivative financial assets | $ 20,402 | $ 11,220 |
Fair value of Egypt gas supply contract derivative | Level 3 of fair value hierarchy | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Derivative financial assets | $ 20,400 | $ 11,200 |
Financial instruments - Fair _5
Financial instruments - Fair value - Level 3 instrument, inputs and the sensitivities, valuation to changes (Details) - Level 3 of fair value hierarchy $ in Millions | Dec. 31, 2023 USD ($) $ / Mt |
Input value or range | Methanol price volatility (before impact of mean reversion) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Significant unobservable input, assets | 0.35 |
Input value or range | Methanol price forecast | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Significant unobservable input, assets | $ / Mt | 300 |
Input value or range | Methanol price forecast | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Significant unobservable input, assets | $ / Mt | 415 |
Input value or range | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Significant unobservable input, assets | 0.076 |
Change in input | Methanol price volatility (before impact of mean reversion) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Significant unobservable input, assets | 0.05 |
Change in input | Methanol price forecast | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Significant unobservable input, assets | $ / Mt | 25 |
Change in input | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Significant unobservable input, assets | 0.01 |
Resulting change in valuation | Methanol price volatility (before impact of mean reversion) | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Significant unobservable input, assets | 7 |
Resulting change in valuation | Methanol price forecast | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Significant unobservable input, assets | 7 |
Resulting change in valuation | Methanol price forecast | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Significant unobservable input, assets | 5 |
Resulting change in valuation | Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Significant unobservable input, assets | 1 |
Financial risk management - Int
Financial risk management - Interest rate risk (Details) - Interest rate risk - Fixed interest rate - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of financial instruments by type of interest rate [line items] | ||
Long-term debt | $ 2,141,801 | $ 2,151,513 |
Reasonably possible change in risk variable, percent | 1% | |
Reasonably possible change in risk variable, impact on debt | $ 100,500 | 104,800 |
Unsecured notes | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Long-term debt | 1,985,660 | 1,983,374 |
Other limited recourse debt facilities | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Long-term debt | $ 156,141 | $ 168,139 |
Financial risk management - For
Financial risk management - Foreign currency risk (Details) - Currency risk - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of financial instruments by type of interest rate [line items] | ||
Net working capital asset | $ 74.4 | $ 69.9 |
Reasonably possible change in risk variable, percent | 10% | |
Impact on value of net working capital | $ 7.4 | $ 7 |
Financial risk management - Liq
Financial risk management - Liquidity risks (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Instruments [Abstract] | |||
Cash and cash equivalents | $ 458,015,000 | $ 857,747,000 | $ 932,069,000 |
Carrying amount | |||
Lease obligations | 872,120,000 | 870,163,000 | $ 717,101,000 |
Other long-term liabilities | 154,918,000 | 134,603,000 | |
Long-term debt | 2,141,801,000 | 2,151,513,000 | |
Cash flow hedges | 91,183,000 | 6,739,000 | |
Financial liabilities | 3,805,825,000 | 3,714,666,000 | |
Liquidity risk | |||
Carrying amount | |||
Trade and other payables | 659,723,000 | ||
Lease obligations | 872,120,000 | ||
Other long-term liabilities | 28,014,000 | ||
Long-term debt | 2,141,801,000 | ||
Cash flow hedges | 91,653,000 | ||
Financial liabilities | 3,793,311,000 | ||
Contractual cash flows | |||
Trade and other payables | 659,723,000 | ||
Lease obligations | 1,174,346,000 | ||
Other long-term liabilities | 53,348,000 | ||
Long-term debt | 2,932,911,000 | ||
Cash flow hedges | 99,720,000 | ||
Financial liabilities | 4,920,048,000 | ||
Liquidity risk | 1 year or less | |||
Contractual cash flows | |||
Trade and other payables | 659,723,000 | ||
Lease obligations | 172,197,000 | ||
Other long-term liabilities | 2,200,000 | ||
Long-term debt | 425,953,000 | ||
Cash flow hedges | 65,034,000 | ||
Financial liabilities | 1,325,107,000 | ||
Liquidity risk | 1-3 years | |||
Contractual cash flows | |||
Trade and other payables | 0 | ||
Lease obligations | 266,499,000 | ||
Other long-term liabilities | 4,400,000 | ||
Long-term debt | 220,901,000 | ||
Cash flow hedges | 17,771,000 | ||
Financial liabilities | 509,571,000 | ||
Liquidity risk | 3-5 years | |||
Contractual cash flows | |||
Trade and other payables | 0 | ||
Lease obligations | 220,681,000 | ||
Other long-term liabilities | 4,400,000 | ||
Long-term debt | 879,530,000 | ||
Cash flow hedges | 5,537,000 | ||
Financial liabilities | 1,110,148,000 | ||
Liquidity risk | Thereafter | |||
Contractual cash flows | |||
Trade and other payables | 0 | ||
Lease obligations | 514,969,000 | ||
Other long-term liabilities | 42,348,000 | ||
Long-term debt | 1,406,527,000 | ||
Cash flow hedges | 11,378,000 | ||
Financial liabilities | 1,975,222,000 | ||
Undrawn credit facility | |||
Disclosure of financial liabilities [line items] | |||
Undrawn credit facility | $ 300,000,000 | $ 300,000,000 |
Retirement plans - Defined bene
Retirement plans - Defined benefit pension plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Balance, beginning of year | $ 15,239 | |
Past service cost | (2,479) | $ 0 |
Balance, end of year | 16,973 | 15,239 |
Unfunded status | 16,973 | 15,239 |
Minimum funding requirement | 0 | 0 |
Accrued benefit obligations | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Balance, beginning of year | 53,586 | 62,208 |
Current service cost | 2,246 | 2,329 |
Past service cost | 2,479 | 0 |
Interest cost on accrued benefit obligations / income on assets | 2,549 | 2,007 |
Benefit payments | (4,280) | (5,760) |
Settlements | (3,738) | 0 |
Actuarial (gain) loss | 2,074 | (4,047) |
Foreign exchange gain (loss) | 265 | (3,151) |
Balance, end of year | 55,181 | 53,586 |
Fair values of plan assets | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Balance, beginning of year | 38,347 | 46,608 |
Interest cost on accrued benefit obligations / income on assets | 1,901 | 1,221 |
Benefit payments | (4,280) | (5,760) |
Settlements | (3,680) | 0 |
Contributions | 5,687 | 4,457 |
Return on plan assets | (705) | (5,173) |
Foreign exchange gain (loss) | 938 | (3,006) |
Balance, end of year | $ 38,208 | $ 38,347 |
Retirement plans - Narrative (D
Retirement plans - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Retirement obligation (asset) | $ 16,973,000 | $ 15,239,000 |
Weighted average duration of defined benefit obligation | 7 years | |
Minimum funding requirement | $ 0 | $ 0 |
Discount rates | 5.30% | 5.10% |
Defined contribution pension plans | $ 11,000,000 | $ 9,700,000 |
Discount rate | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Percentage of reasonably possible decrease in actuarial assumption | 1% | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ 3,600,000 | |
Unfunded | Chile | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Retirement obligation (asset) | 20,200,000 | 19,200,000 |
Estimate of contributions expected to be paid to plan for next annual reporting period | 11,300,000 | |
Unfunded | Egypt | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Retirement obligation (asset) | 2,500,000 | 0 |
Estimate of contributions expected to be paid to plan for next annual reporting period | 100,000 | |
Funded | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Retirement obligation (asset) | (5,300,000) | (3,600,000) |
Estimate of contributions expected to be paid to plan for next annual reporting period | 0 | |
Funded | Europe | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Retirement obligation (asset) | (400,000) | $ (400,000) |
Estimate of contributions expected to be paid to plan for next annual reporting period | $ 500,000 |
Retirement plans - Expense reco
Retirement plans - Expense recognized in income statement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net defined benefit pension plan expense: | ||
Current service cost | $ 2,246 | $ 2,329 |
Past service cost | 2,479 | 0 |
Net interest cost | 648 | 786 |
Cost of settlement | (58) | 0 |
Total net defined benefit pension plan expense | $ 5,315 | $ 3,115 |
Retirement plans - Expense re_2
Retirement plans - Expense recognized in other comprehensive income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Benefits [Abstract] | ||
Actuarial loss | $ (2,827) | $ (726) |
Retirement plans - Asset alloca
Retirement plans - Asset allocation (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Employee Benefits [Abstract] | ||
Equity securities | 15% | 20% |
Debt securities | 52% | 49% |
Cash and other short-term securities | 33% | 31% |
Total | 100% | 100% |
Commitments and contingencies -
Commitments and contingencies - Minimum purchase contract commitment (Details) - Take-or-pay purchase contracts $ in Thousands | Dec. 31, 2023 USD ($) |
2024 | |
Disclosure of contingent liabilities [line items] | |
Minimum estimated commitment | $ 438,284 |
2025 | |
Disclosure of contingent liabilities [line items] | |
Minimum estimated commitment | 517,793 |
2026 | |
Disclosure of contingent liabilities [line items] | |
Minimum estimated commitment | 324,251 |
2027 | |
Disclosure of contingent liabilities [line items] | |
Minimum estimated commitment | 254,155 |
2028 | |
Disclosure of contingent liabilities [line items] | |
Minimum estimated commitment | 215,417 |
Thereafter | |
Disclosure of contingent liabilities [line items] | |
Minimum estimated commitment | $ 923,105 |
Commitments and contingencies_2
Commitments and contingencies - Other commitments (Details) - Contractual obligations $ in Thousands | Dec. 31, 2023 USD ($) |
2024 | |
Disclosure of other provisions [line items] | |
Other commitments | $ 94,534 |
2025 | |
Disclosure of other provisions [line items] | |
Other commitments | 4,665 |
2026 | |
Disclosure of other provisions [line items] | |
Other commitments | 1,314 |
2027 | |
Disclosure of other provisions [line items] | |
Other commitments | 560 |
2028 | |
Disclosure of other provisions [line items] | |
Other commitments | 358 |
Thereafter | |
Disclosure of other provisions [line items] | |
Other commitments | $ 1,183 |
Commitments and contingencies_3
Commitments and contingencies - Narrative (Details) - t t in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Purchase commitment of methanol supply | Within one year | |||
Disclosure of associates [line items] | |||
Purchase commitments (in tonnes) | 0.8 | ||
Atlas Plant | |||
Disclosure of associates [line items] | |||
Percentage of marketing rights in production | 100% | ||
Percentage of ownership interest in associates | 63.10% | 63.10% | |
Atlas Plant | Purchase commitment of methanol supply | |||
Disclosure of associates [line items] | |||
Purchase commitments (in tonnes) | 0.6 | ||
Atlas Plant | Purchase commitment of methanol supply | Forecast | |||
Disclosure of associates [line items] | |||
Purchase commitments (in tonnes) | 0.4 | ||
Atlas Plant | Trinidad | |||
Disclosure of associates [line items] | |||
Percentage of ownership interest in associates | 63.10% | ||
Atlas Plant | Egypt | |||
Disclosure of associates [line items] | |||
Percentage of ownership interest in associates | 50% | ||
Egypt Plant | Purchase commitment of methanol supply | |||
Disclosure of associates [line items] | |||
Purchase commitments (in tonnes) | 0.6 |
Related parties - Subsidiaries
Related parties - Subsidiaries and joint ventures (Details) | 12 Months Ended | ||
Feb. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Methanex Asia Pacific Limited | |||
Disclosure of subsidiaries [line items] | |||
Interest % | 100% | 100% | |
Methanex Services (Shanghai) Co., Ltd. | |||
Disclosure of subsidiaries [line items] | |||
Interest % | 100% | 100% | |
Methanex Europe NV | |||
Disclosure of subsidiaries [line items] | |||
Interest % | 100% | 100% | |
Methanex Methanol Company, LLC | |||
Disclosure of subsidiaries [line items] | |||
Interest % | 100% | 100% | |
Egyptian Methanex Methanol Company S.A.E. ("Methanex Egypt") | |||
Disclosure of subsidiaries [line items] | |||
Interest % | 50% | 50% | |
Methanex Chile SpA | |||
Disclosure of subsidiaries [line items] | |||
Interest % | 100% | 100% | |
Methanex New Zealand Limited | |||
Disclosure of subsidiaries [line items] | |||
Interest % | 100% | 100% | |
Methanex Trinidad (Titan) Unlimited | |||
Disclosure of subsidiaries [line items] | |||
Interest % | 100% | 100% | |
Methanex USA LLC | |||
Disclosure of subsidiaries [line items] | |||
Interest % | 100% | 100% | |
Methanex Louisiana LLC | |||
Disclosure of subsidiaries [line items] | |||
Interest % | 100% | 100% | |
Methanex Geismar III LLC | |||
Disclosure of subsidiaries [line items] | |||
Interest % | 100% | 100% | |
Waterfront Shipping Limited | |||
Disclosure of subsidiaries [line items] | |||
Interest % | 60% | 60% | |
Waterfront Shipping Limited | Mitsui O.S.K. Lines, Ltd. (MOL) | |||
Disclosure of subsidiaries [line items] | |||
Interest % | 40% | ||
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, 2023 | Dec. 31, 2022 | |
Disclosure of associates [line items] | ||
Revenue | $ 3,723,475 | $ 4,311,188 |
Atlas Methanol Company Unlimited | ||
Disclosure of associates [line items] | ||
Percentage of marketing rights in production | 100% | |
Loans outstanding from related party transactions | $ 76,328 | 76,328 |
Associates | Atlas Methanol Company Unlimited | ||
Disclosure of associates [line items] | ||
Revenue | 466,000 | 532,000 |
Receivables from related party transactions | 74,000 | 73,000 |
Payables from related party transactions | 172,000 | 198,000 |
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, 2023 | Dec. 31, 2022 | |
Related Party [Abstract] | ||
Short-term employee benefits | $ 9,034 | $ 11,760 |
Post-employment benefits | 681 | 656 |
Other long-term employee benefits | 59 | 52 |
Share-based compensation expense | 10,046 | 6,142 |
Total | $ 19,820 | $ 18,610 |
Non-controlling interests - Fin
Non-controlling interests - Financial position (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of subsidiaries [line items] | ||
Current assets | $ 1,480,321 | $ 1,876,374 |
Non-current assets | 4,946,234 | 4,755,106 |
Current liabilities | (1,302,306) | (942,617) |
Non-current liabilities | (2,951,232) | (3,259,406) |
Carrying amount of Methanex non-controlling interests | 242,090 | 317,444 |
Total | ||
Disclosure of subsidiaries [line items] | ||
Current assets | 283,628 | 313,726 |
Non-current assets | 1,313,220 | 1,363,563 |
Current liabilities | (309,428) | (168,774) |
Non-current liabilities | (820,725) | (849,037) |
Net assets | 466,695 | 659,478 |
Carrying amount of Methanex non-controlling interests | 242,090 | 317,444 |
Methanex Egypt | ||
Disclosure of subsidiaries [line items] | ||
Current assets | 129,320 | 133,499 |
Non-current assets | 521,708 | 557,484 |
Current liabilities | (123,969) | (56,689) |
Non-current liabilities | (101,810) | (104,101) |
Net assets | 425,249 | 530,193 |
Carrying amount of Methanex non-controlling interests | 214,568 | 251,949 |
Waterfront Shipping Limited | ||
Disclosure of subsidiaries [line items] | ||
Current assets | 154,308 | 180,227 |
Non-current assets | 791,512 | 806,079 |
Current liabilities | (185,459) | (112,085) |
Non-current liabilities | (718,915) | (744,936) |
Net assets | 41,446 | 129,285 |
Carrying amount of Methanex non-controlling interests | $ 27,522 | $ 65,495 |
Non-controlling interests - Inc
Non-controlling interests - Income statement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of subsidiaries [line items] | ||
Revenue | $ 3,723,475 | $ 4,311,188 |
Net and total comprehensive income | 284,122 | 462,288 |
Sale of partial interest in non-controlling interests and equity contributions by non-controlling interest | 0 | 148,990 |
Distributions made and accrued to non-controlling interests | (185,336) | (84,713) |
Total | ||
Disclosure of subsidiaries [line items] | ||
Revenue | 929,616 | 789,149 |
Net and total comprehensive income | 184,839 | 175,045 |
Net and total comprehensive income attributable to Methanex non-controlling interests | 109,982 | 108,458 |
Sale of partial interest in non-controlling interests and equity contributions by non-controlling interest | 0 | 22,545 |
Distributions made and accrued to non-controlling interests | (185,336) | (84,714) |
Methanex Egypt | ||
Disclosure of subsidiaries [line items] | ||
Revenue | 258,782 | 212,339 |
Net and total comprehensive income | 55,428 | 107,375 |
Net and total comprehensive income attributable to Methanex non-controlling interests | 56,310 | 77,133 |
Sale of partial interest in non-controlling interests and equity contributions by non-controlling interest | 0 | 0 |
Distributions made and accrued to non-controlling interests | (93,696) | (75,996) |
Waterfront Shipping Limited | ||
Disclosure of subsidiaries [line items] | ||
Revenue | 670,834 | 576,810 |
Net and total comprehensive income | 129,411 | 67,670 |
Net and total comprehensive income attributable to Methanex non-controlling interests | 53,672 | 31,325 |
Sale of partial interest in non-controlling interests and equity contributions by non-controlling interest | 0 | 22,545 |
Distributions made and accrued to non-controlling interests | $ (91,640) | $ (8,718) |
Non-controlling interests - Cas
Non-controlling interests - Cash flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of subsidiaries [line items] | ||
Cash flows from operating activities | $ 660,269 | $ 987,349 |
Cash flows from (used in) financing activities | (551,418) | (508,534) |
Cash flows from (used in) investing activities | (508,583) | (553,137) |
Total | ||
Disclosure of subsidiaries [line items] | ||
Cash flows from operating activities | 382,957 | 321,002 |
Cash flows from (used in) financing activities | (400,314) | (205,602) |
Cash flows from (used in) investing activities | (2,874) | (34,895) |
Methanex Egypt | ||
Disclosure of subsidiaries [line items] | ||
Cash flows from operating activities | 131,667 | 226,647 |
Cash flows from (used in) financing activities | (99,490) | (152,806) |
Cash flows from (used in) investing activities | (5,560) | (35,110) |
Waterfront Shipping Limited | ||
Disclosure of subsidiaries [line items] | ||
Cash flows from operating activities | 251,290 | 94,355 |
Cash flows from (used in) financing activities | (300,824) | (52,796) |
Cash flows from (used in) investing activities | $ 2,686 | $ 215 |
Sale of interest in subsidiary
Sale of interest in subsidiary (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of subsidiaries [line items] | ||
Increase (decrease) through change in equity of subsidiaries, equity | $ 148,990 | |
Waterfront Shipping Limited | ||
Disclosure of subsidiaries [line items] | ||
Proportion of ownership interests sold | 40% | |
Sale of partial interests in subsidiary | $ 149,000 | |
Ownership rate | 60% | 60% |
Increase (decrease) through change in equity of subsidiaries, equity | $ 126,000 |
Egypt gas redirection and sal_2
Egypt gas redirection and sale proceeds (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Oil and Gas Assets [Abstract] | ||
Egypt gas redirection and sale proceeds, agreement period | 3 months | |
Egypt gas redirection and sale proceeds | $ 0 | $ 117,946 |
Egypt gas redirection and sale proceeds, parent | $ 59,000 |