05:31 PM EDT, 04/24/2024 (MT Newswires) -- Methanex ( MEOH ) was at last look up 2.2% in New York after-hours trading after the company said its first-quarter profit before items fell 42% on lower methanol production and weaker prices but beat expectations.

The company said its adjusted profit, which excludes one-time items fell to US$44 million, or US$0.65 per share, in the period, down from US$76 million, or US$1.11, in the year-prior quarter. The result topped the consensus analyst estimate for the measure of US$0.31 per share, according to Capital IQ.

Revenue fell 12% to US$916 million from US$1.04 billion as its methanol sales fell 4.8% to 2.67-milion tonnes from 2.81-million, while its average price per tonne fell 7.6% to US$343.

In the first quarter, the company returned US$12.5 million to shareholders through the regular dividend. It ended the quarter with US$407 million in cash, or approximately US$378 million in cash excluding non-controlling interests and including its share of cash in the Atlas joint venture. It also has an undrawn US$300 million revolving credit facility with a new US$200 million tranche that was added to provide additional financial flexibility.

Of note, the company said work is "progressing to safely repair" the Geismar 3 plant and it believes that the plant is "on track" to start up in the third quarter of 2024. Repair costs are expected to be US$15 million and the total capital cost for the project is expected to remain at approximately US$1.30 billion. It said the remaining capital cost of US$70 million is fully funded with cash on hand. The operating cost impact of the delay is approximately $5 million per month and in the first quarter delay costs were approximately US$25 million due to take-or-pay on utilities contracts, the organization build-up of fixed costs, and the accounting recognition of over-hedged gas costs. These operating costs are included in Adjusted EBITDA.

"Our global team responded well to the delay in the start-up of G3, maintaining safe operations and a flexible supply chain while we investigated the root cause of the incident. We will continue to focus on safety and ensuring the G3 plant meets our quality expectations. Our business delivered a strong operational and financial quarter in the midst of a dynamic global landscape," chief executive Rich Sumner said in a release.