July 29 (Reuters) – Methanex (MX.TO), the world’s largest producer of methanol, posted a lower-than-expected quarterly profit late Wednesday, hurt by a lower price environment and a two-month outage at its Atlas plant in Trinidad.
For the second quarter, the company earned net income of $11.7 million, or 13 cents a share, compared with a loss of $5.7 million, or 6 cents a share in the year-ago period.
Analysts were expecting a profit of 17 cents a share, according to Thomson Reuters I/B/E/S.
While revenue jumped 83 percent to $448.5 million, cost of sales and operating expenses also rose 78 percent to $391.9 million. Average realized price per tonne fell to $284 from $305 in the first quarter.
The company said its produced product inventories at the end of the second quarter was lower by 135,000 tonnes compared to the first quarter due to the 60-day outage at its Atlas facility.
This will likely lead to lower sales volumes of produced product and higher cost of sales in the third quarter compared with the second quarter, the company said.
Shares of Methanex closed at C$23.55 Wednesday on Toronto Stock Exchange. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Valerie Lee)