Reduced methanol production led to a 24% drop in third-quarter revenue for Methanex Corp. (TSX:MX) and a sharp drop in the Vancouver-based energy company's quarterly profits for the period ending September 30.
Revenue fell to US$395.1 million compared with US$519.6 million in the same period in 2006.
Methanol production dropped 27.4% in the third quarter to 1.1 million tonnes compared with 1.5 million tonnes in 2006's third quarter. Production was down 34% at Methanex's Chilean facilities due to continued curtailment of the plant's natural gas supply from Argentina.
As a result, the company's net income fell sharply to US$23.6 million from US$113.2 million.
However, Methanex had a positive outlook for its fourth quarter because the drop in supply has raised methanol prices.
Methanex's share price range during the past week: between $26.15 and $26.92; 52-week high: $34.87; 52-week low: $20.90.