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VANCOUVER - Methanex Corporation (TSX:MX) (NASDAQ:MEOH), a $3.02 billion market cap company with robust financials including a healthy 2.13 current ratio, announced Tuesday strategic partnerships to expand its methanol bunkering operations in the Amsterdam-Rotterdam-Antwerp (ARA) region and South Korea, two major global fueling hubs. According to InvestingPro analysis, the company appears undervalued at current trading levels.
In the ARA region, the company is partnering with TankMatch to provide barge-to-ship methanol bunkering services. This arrangement builds upon a previous bunkering operation that Methanex acquired through its purchase of OCI.
Simultaneously, Methanex has established partnerships with Alpha Maritime and Hyodong Shipping in South Korea to enable last-mile bunkering operations in the Asian market.
"These partnerships allow us to safely and reliably fuel ships with methanol in two of the busiest global trade corridors that are pivotal to maritime decarbonization," said Mark Allard, Methanex’s Senior Vice President of Low Carbon Solutions, according to the company’s press release.
Methanex stated that all partners undergo thorough vetting to meet its operational and safety standards. The company has developed a comprehensive methanol bunkering safety package based on its decade-long experience operating methanol-fueled tankers through its subsidiary, Waterfront Shipping.
Andre Nieman, Chief Executive Officer of TankMatch, said the partnership would "accelerate the safe adoption of methanol bunkering in the ARA region."
Methanex, which describes itself as the world’s largest producer and supplier of methanol, is headquartered in Vancouver, British Columbia. The company’s strategic expansion of bunkering services comes as maritime regulations on emissions continue to evolve globally. With a 24-year track record of consistent dividend payments and an "GREAT" financial health score from InvestingPro, which offers comprehensive analysis and 8 additional key insights about the company’s prospects, Methanex appears well-positioned for future growth.
In other recent news, Methanex has seen several significant developments impacting its business outlook. RBC Capital upgraded Methanex from Sector Perform to Outperform, setting a price target of $50.00. This upgrade follows Methanex’s completion of its acquisition of OCI’s methanol assets, which RBC Capital believes provides improved visibility for the company’s future performance. Additionally, Raymond James raised its price target for Methanex from $40.00 to $45.00, maintaining an Outperform rating. The firm attributed this increase to better-than-expected methanol price trends, driven by ongoing global supply disruptions in key regions like Iran. These recent developments reflect a positive outlook from analysts regarding Methanex’s market position and future prospects.
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