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Methanex Continues to Deliver Strong Financial Results and Cash Generation

April 21, 2003

VANCOUVER, BRITISH COLUMBIA--Methanex Corporation recorded net income of US$75.5 million (US$0.60 per share) and generated EBITDA of US$125.1 million for the first quarter ended March 31, 2003. The first quarter 2003 results compare to a net loss of US$30.4 million (US$0.24 per share) and EBITDA of US$99.0 million for the fourth quarter 2002, and to a net loss of US$17.4 million (US$0.13 per share) and EBITDA of US$10.6 million for the same period in 2002. Results for the fourth quarter 2002 included a US$113.5 million non-cash after-tax asset restructuring charge related to the write-off of the Fortier, Louisiana methanol facility that was partially offset by a US$27 million reduction in the site restoration accrual for our New Zealand facilities. Income before unusual items (after-tax) for the fourth quarter of 2002 was US$55.3 million (US$0.44 per share).

Pierre Choquette, President and CEO of Methanex commented, "Methanol industry supply/demand fundamentals continue to create a very favorable pricing environment for us and we are pleased with our first quarter results. Reduced production from our New Zealand facilities, as a result of the recent Maui natural gas contract re-determination, put further upward pressure on prices and allowed us to minimize the effect of this lost production on our cash generation capability. Our average realized price for the first quarter 2003 was US$223 per tonne compared with US$188 per tonne for the previous quarter and US$111 per tonne for the first quarter 2002. Looking ahead, pricing strength appears to be continuing. In the United States, the Methanex non-discounted reference price for April 2003 is US$273 per tonne (US$0.82 per gallon), an increase of US$44 per tonne (US$0.13 per gallon) from January 2003. In Europe, the second quarter contract transaction price was settled at EURO 260, before discounts, or approximately US$272 per tonne (US$0.83 per gallon). This represents an increase of EURO 32 per tonne from the previous quarter."

Mr. Choquette continued, "Our excellent financial strength and flexibility is highlighted by US$465 million of cash on hand at the end of the first quarter 2003 and our undrawn US$291 million credit facility. This financial strength provided us with an excellent opportunity to reward shareholders with a special dividend of US$0.25 per share during the quarter. In addition, we also distributed US$0.05 per share as our regular quarterly dividend. We have the financial capacity to complete our capital maintenance spending program, fund the remaining equity contribution for Atlas, complete the construction of Chile IV and pursue new opportunities to enhance our strategic position in methanol. In addition, we are committed to returning excess cash to shareholders."

Mr. Choquette concluded, "The current tight methanol market needs additional supply. As new low cost capacity comes on stream, which could be partially offset by further shut downs of higher-cost production, we are optimistic that we can continue to generate significant cash during what could be an extended period of well-balanced market conditions."

A conference call is scheduled for Tuesday, April 22 at 11:00 am EDT (8:00 am PDT) to review these first quarter results. To access the call, dial the Telus Conferencing operator ten minutes prior to the start of the call at (416) 883-0139, or toll free at (888) 458-1598. The security passcode for the call is 75577. A playback version of the conference call will be available for seven days at (877) 653-0545. The reservation number for the playback version is 167820. There will be a simultaneous audio-only webcast of the conference call, which can be accessed from our website at www.methanex.com.

Methanex is a Vancouver based, publicly-traded company engaged in the worldwide production and marketing of methanol. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the Nasdaq National Market in the United States under the trading symbol "MEOH."

Information in this news release and the attached management's discussion and analysis may contain forward-looking statements. By their nature, such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. They include world-wide economic conditions, the availability and cost of gas feedstock, the ability to implement business strategies and pursue business opportunities, conditions in the methanol and other industries including the supply and demand for methanol and the risks attendant with producing and marketing methanol and carrying out major capital expenditure projects. Please also refer to page 40 of our 2002 Annual Report for more information on forward-looking statements.

Interim Report
For the three months ended March 31, 2003

At March 31, 2003, the number of common shares outstanding was 
126,495,364.

Contact Information

Methanex Investor Relations
1800 - 200 Burrard Street
Vancouver, BC Canada V6C 3M1

Share Information

Methanex Corporation's common shares are listed for trading on the 
Toronto exchange under the symbol MX and on The Nasdaq Stock Market 
under the symbol MEOH.

Transfer Agents & Registrars

CIBC Mellon Trust Company
393 University Avenue, 5th Floor
Toronto, Ontario, Canada M5G 2M7
Toll free in North America:
1-800-387-0825

Investor Information

All financial reports, news releases and corporate information can be
accessed on our web site at www.methanex.com. 

E-mail:
invest@methanex.com

Methanex Toll-Free:
1-800-661-8851

Management's Discussion and Analysis

Except where otherwise noted, all currency amounts are stated in United States dollars.

This first quarter 2003 Management's Discussion and Analysis should be read in conjunction with the annual consolidated financial statements and the Management's Discussion and Analysis included in the 2002 Annual Report.

--------------------------------------------------------------------
                                         2003             2002
                                        Three        Three     Three 
                                       months       months    months
                                        ended        ended     ended 
($ millions, except where noted)     March 31  December 31  March 31
--------------------------------------------------------------------
Sales volumes (thousands of tonnes)                                 
 Company produced                       1,194        1,347     1,431
 Purchased and commission                 510          475       352
--------------------------------------------------------------------
                                        1,704        1,822     1,783
Average realized methanol
 price ($ per tonne)                   $  223       $  188    $  111
Net income (loss)                      $ 75.5       $(30.4)   $(17.4)
Income (loss) before
 unusual items (after-tax) 1           $ 75.5       $ 55.3    $(17.4)
Operating income (loss)                $102.3       $ 72.9    $(17.5)
EBITDA 2                               $125.1       $ 99.0    $ 10.6
Cash flows from operating
 activities 3                          $111.5       $ 91.7    $ 10.0
Basic net income (loss) per
 share                                 $ 0.60       $(0.24)   $(0.13)
Basic income (loss) per
 share before unusual items
 (after-tax) 1                         $ 0.60       $ 0.44    $(0.13)
Weighted average number of
 common shares outstanding
 (millions of shares)                   125.9        125.2     129.6
--------------------------------------------------------------------

1 Unusual items for the three months ended December 31, 2002 included an asset restructuring charge related to the write-off of the Fortier, Louisiana methanol facility and a reduction to the accrual for site restoration in New Zealand. For a reconciliation of net income (loss) to income (loss) before unusual items (after-tax) and the basis for the calculation of basic income (loss) per share before unusual items (after-tax), refer to "Supplemental Earnings Measures" at the end of this Interim Report.

2 EBITDA represents net income (loss) before income taxes, interest expense, interest and other income, depreciation and amortization, asset restructuring charges and the adjustment to site restoration. For a reconciliation of net income (loss) to EBITDA, refer to "Supplemental Earnings Measures" at the end of this Interim Report.

3 Before changes in non-cash working capital and the utilization of prepaid natural gas.

----------------------------------------------------------------------

Strong Financial Results

For the first quarter ended March 31, 2003, we recorded net income of $75.5 million ($0.60 per share) and EBITDA of $125.1 million. This compares to a net loss of $30.4 million ($0.24 per share) and EBITDA of $99.0 million for the fourth quarter ended December 31, 2002 and a net loss of $17.4 million ($0.13 per share) and EBITDA of $10.6 million for the first quarter ended March 31, 2002. Our results for the fourth quarter of 2002 included a $113.5 million non-cash after-tax asset restructuring charge related to the write-off of the Fortier, Louisiana methanol facility that was partially offset by a $27 million reduction in the site restoration accrual for our New Zealand facilities. Income before unusual items (after-tax) for the fourth quarter of 2002 was $55.3 million ($0.44 per share).

EBITDA

The change in EBITDA resulted from:

($ millions)                                 Q1-2003         Q1-2003 
                                       compared with   compared with
                                             Q4-2002         Q1-2002
--------------------------------------------------------------------
                                          
Higher realized price of produced
 methanol                                         42             137
Higher cash cost                                  (4)            (13)
Lower sales volume of produced
 methanol                                        (14)             (5)
Higher (lower) margin on the
 sale of purchased methanol                        2              (5)
Other, net                                         -               1
--------------------------------------------------------------------
Increase in EBITDA                                26             115
--------------------------------------------------------------------

Higher realized price of produced methanol - Methanol prices are characterized by volatility and are affected by the methanol supply/demand balance, which is influenced by global industry capacity, industry operating rates and the strength of demand.

Supply disruptions during 2002 resulted in extremely tight market conditions and increased prices leading into 2003. The loss of a significant portion of our production capacity in New Zealand is also having an impact on the methanol market. Our average realized price for the first quarter of 2003 was $223 per tonne compared with $188 per tonne for the fourth quarter of 2002 and $111 per tonne for the first quarter of 2002. The higher average realized price for produced methanol increased EBITDA by $42 million in comparison with the fourth quarter of 2002 and increased EBITDA by $137 million in comparison with the first quarter of 2002.

Higher cash cost - The most significant components of our cash costs are natural gas and distribution costs associated with delivering methanol to customers from our production facilities. We purchase natural gas for our Kitimat facility on a short-term basis and the purchase price is set in a competitive market that can fluctuate widely. Natural gas costs for our Chilean facility are adjusted by a formula related to methanol prices on a twelve-month trailing average basis.

Our cash costs for the first quarter of 2003 increased by $4 million compared with the fourth quarter of 2002. This increase is primarily due to higher natural gas costs in Chile and North America. The increase in natural gas costs was partially offset by lower average costs during the first quarter of 2003 due to a higher proportion of sales volume from our low cost Chilean facility.

Our cash costs for the first quarter of 2003 increased by $13 million compared with the first quarter of 2002 due primarily to higher natural gas costs in North America and other costs impacted by higher methanol prices.

Lower sales volume of produced methanol - Lower sales volume of produced methanol decreased EBITDA for the first quarter of 2003 by $14 million compared with the fourth quarter of 2002 and decreased EBITDA by $5 million compared with the first quarter of 2002. The decrease in sales volume of produced methanol is primarily the result of lower production from our facilities in New Zealand during 2003.

Higher (lower) margin on the sale of purchased methanol - We incurred a loss of $4 million on the sale of 311,000 tonnes of purchased methanol in the first quarter of 2003 compared with a loss of $6 million in the fourth quarter of 2002 and income of $1 million in the first quarter of 2002.

Depreciation and Amortization

Depreciation and amortization expense for the first quarter of 2003 was $23 million compared with $28 million for the same period in 2002. Depreciation expense was lower during the first quarter of 2003 due primarily to reduced sales volume of produced product. In addition, we wrote-off our Fortier facility during the fourth quarter of 2002 and this has resulted in lower depreciation expense for 2003.

Interest Expense and Interest and Other Income

Interest expense - Interest expense for the first quarter of 2003 was $8 million compared with $7 million for the first quarter of 2002. The increase relates primarily to a higher level of long-term debt in 2003 compared with 2002.

Interest and other income - Interest and other income for the first quarter of 2003 was $4 million compared with $2 million for the same period in 2002. The increase in interest and other income relates primarily to foreign exchange gains due to a weaker United States dollar.

Income Taxes

The effective income tax rate for the first quarter ended March 31, 2003 was 23% compared with 20% for the same period in 2002. The proportion of income earned in regions where we record accounting income taxes impacts our effective income tax rate. During the first quarter of 2003 we earned a higher proportion of our earnings from product produced in Chile, where we record accounting income taxes, and this resulted in a higher effective tax rate compared with the first quarter of 2002.

Operating Performance

(thousands of      Quarterly
tonnes, except     Operating    Q1-2003     % of    Q4-2002     % of
percentages)        Capacity Production Capacity Production Capacity
--------------------------------------------------------------------
                                       
Chile                    750        708       94%       735       98%
New Zealand              608        356       59%       552       91%
Kitimat                  125        127      102%       126      101%
--------------------------------------------------------------------
                       1,483      1,191       80%     1,413       95%
--------------------------------------------------------------------

We continue to achieve excellent operating performance at our facilities. For the first quarter of 2003 we operated our Kitimat facility and our Chilean facilities at 95% of capacity (on a combined basis) compared with 98% during the fourth quarter of 2002. Production from our New Zealand facilities was reduced to 59% of capacity for the first quarter due to gas supply constraints.

The Maui natural gas field has been the primary source of natural gas for our New Zealand facilities. A contractual process was initiated in December 2001 to re-determine the economically recoverable reserves in the Maui field. On February 6, 2003, a final determination report of the economically recoverable reserves in the Maui field was released and based on this report we have lost substantially all of our remaining contractual entitlements from this field. Natural gas exploration in New Zealand is ongoing and we are continuing to pursue acquisitions of additional gas to supplement contracted gas. However, there can be no certainty that we will be able to secure additional gas on commercially acceptable terms. Based on currently contracted gas, we estimate that the New Zealand facilities will produce approximately 0.6 million tonnes during the remainder of 2003.

Supply/Demand Fundamentals

Supply disruptions during 2002 resulted in extremely tight market conditions and increased prices leading into 2003. Two Venezuelan methanol plants, representing approximately 1.5 million tonnes, or five percent, of annual global demand temporarily shut down in mid-December 2002 and re-commenced production in March. With no new supply expected to impact the market in 2003 and reduced production from our New Zealand facilities, we believe that favourable market conditions and strong pricing should continue throughout the year. These tight market conditions are also minimizing the impact of the phase-out of MTBE by California gasoline producers.

As a result of tight industry supply/demand fundamentals, methanol prices continued to strengthen in the first quarter of 2003 and into the second quarter. The Methanex non-discounted U.S. reference price for April 2003 is $273 per tonne ($0.82 per gallon) an increase of $44 per tonne ($0.13 per gallon) over January 2003. In Europe, the second quarter contract transaction price was settled at EURO 260 before discounts (US$272 per tonne at the time of settlement), an increase of EURO 32 per tonne compared with first quarter. Currently, spot prices in the United States are approximately $265 per tonne ($0.80 per gallon). Prices in Asia are currently between $290 and $325 per tonne.

We expect that the 1.7 million tonne Atlas methanol facility, a joint venture with BP in which we have a 63.1% interest, will be the first increment of new capacity in early 2004. Atlas will provide us with production capacity to replace lost production from our New Zealand facilities. We also continue to expect higher-cost North American capacity to shut down. During 2004, we will have certain production rights to Lyondell's 750,000 tonne per year methanol facility in Texas. NPC in Iran is also planning for new capacity in 2004.

Strategic Initiatives

Low-cost methanol production capacity - Construction of Atlas is continuing and we expect this facility to start production in early 2004. Chile IV, an 840,000 tonne per year expansion to our low-cost Chilean methanol production facility, is progressing and we expect to complete construction in early 2005.

During the first quarter of 2003 we announced that we were re-examining our proposed 2.0 million tonne per year methanol project in Northwest Australia. Northwest Australia remains an attractive location to build a methanol plant and we are evaluating several alternatives including installing capacity in smaller more manageable increments.

Liquidity and Capital Projects

Cash flows from operating activities before changes in non-cash working capital and the utilization of prepaid natural gas in the first quarter of 2003 were $111 million compared with $10 million for the same period in 2002.

Our proportionate share of capital expenditures during the first quarter of 2003 for the Atlas methanol project, was $22 million. Our share of the amount drawn on the Atlas joint venture debt facilities during the first quarter was $12 million and our estimated remaining equity contribution to complete the construction of Atlas and fund other related commitments is approximately $43 million.

Capital expenditures for Chile IV during the first quarter of 2003 were $13 million. The total project is estimated to cost $275 million, including $25 million of capitalized interest, and total capital expenditures to March 31, 2003 were $39 million.

During the first quarter of 2003 we paid a quarterly dividend of $0.05 per share, or approximately $6 million.

We have excellent financial capacity and flexibility. Our cash balance at March 31, 2003 was $465 million and we have an undrawn $291 million credit facility. Based on this financial strength, we paid a special dividend of $0.25 per share, or approximately $31 million in February 2003. The planned capital maintenance expenditure program directed towards major maintenance, turnarounds and catalyst changes is estimated to total approximately $75 million for the period to the end of 2005. We have the financial capacity to complete the capital maintenance spending program, fund the remaining equity contribution for Atlas, complete the construction of Chile IV and pursue new opportunities to enhance our strategic position in methanol.

Short-term Outlook

Methanol market conditions are currently very favourable and supply limitations have lead to a strong pricing environment. The loss of a significant portion of our production capacity in New Zealand is having an impact on the methanol market and we expect these tight conditions to continue throughout the year. We are continuing our focus on maximizing the value generated from our low cost facilities and maintaining our global market position. The methanol price will ultimately depend on industry operating rates and the strength of global demand. We believe that our excellent financial position and financial flexibility, outstanding global supply network and low cost position will ensure that Methanex continues to be the leader in the methanol industry.

Supplemental Earnings Measures

In addition to providing measures in accordance with Canadian Generally Accepted Accounting Principles (GAAP), Methanex presents certain supplemental earnings measures. These are EBITDA, Income (loss) before unusual items (after-tax) and Basic income (loss) before unusual items (after-tax) per share. These measures do not have any standardized meaning prescribed by GAAP and therefore are unlikely to be comparable to similar measures presented by other companies. The supplemental earnings measures are provided to assist readers in evaluating the operating performance of the Company's ongoing business. The supplemental earnings measures should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), cash flows and other measures of financial performance reported in accordance with GAAP.

Income (loss) before Unusual Items (after-tax) and Basic Income (loss) before Unusual Items (after-tax) Per Share

These supplemental earnings measures are provided to assist readers in comparing earnings from one period to another without the impact of unusual items that are considered to be non-operational and/or non-recurring. Income (loss) before unusual items (after-tax) differs from net income because it does not include the after-tax impact of asset restructuring charges and other unusual items. Basic income (loss) before unusual items (after-tax) per share has been calculated by dividing income (loss) before unusual items (after-tax) by the weighted average number of common shares outstanding.

EBITDA

This supplemental earnings measure is provided to assist readers in determining the ability of Methanex to generate cash from operations. EBITDA differs from cash flows from operating activities before changes in non-cash working capital and the utilization of prepaid natural gas primarily because it does not include cash flows from interest, income taxes, asset restructuring charges and other unusual items.

Reconciliation

The following table shows a reconciliation of net income (loss) to income (loss) before unusual items (after-tax) and to EBITDA:

--------------------------------------------------------------------
                                        2003              2002
                                       Three        Three      Three 
                                      months       months     months
                                       ended        ended      ended 
($ thousands)                       March 31  December 31   March 31
--------------------------------------------------------------------
                                       
Net income (loss)                   $ 75,536    $ (30,382)  $(17,377)
Add (deduct) unusual items:                                         
 Asset restructuring charge                -      115,387          -
 Site restoration adjustment               -      (26,972)         -
 Income tax recovery related to
  the unusual items                        -       (2,700)         -
--------------------------------------------------------------------
Income (loss) before unusual
 items (after-tax)                  $ 75,536     $ 55,333   $(17,377)
Add (deduct):                                                       
 Income tax expense (recovery)
  excluding the amounts related
  to unusual items                    22,919       13,325     (4,390)
 Interest expense                      7,722        5,945      6,651
 Interest and other income            (3,892)      (1,665)    (2,365)
 Depreciation and amortization        22,831       26,084     28,053
--------------------------------------------------------------------
EBITDA                              $125,116     $ 99,022   $ 10,572
--------------------------------------------------------------------



Methanex Corporation                                       
                                       
                                       
Consolidated Statements of Income
 and Retained Earnings              3 months ended    3 months ended
(unaudited)                               March 31          March 31
--------------------------------------------------------------------
(thousands of U.S. dollars, except            2003              2002
 number of shares and per share amounts) 
                                                                     
                                                                     
Revenue                                 $  336,657        $  181,727
                                                                     
Cost of sales and operating
 expenses                                  211,541           171,155
Depreciation and amortization               22,831            28,053
--------------------------------------------------------------------
Operating income (loss) before
 undernoted items                          102,285           (17,481)
                                                                    
Interest expense (note 7)                   (7,722)           (6,651)
Interest and other income                    3,892             2,365
--------------------------------------------------------------------
Income (loss) before income
 taxes                                      98,455           (21,767)
                                                                    
Income tax recovery (expense)              (22,919)            4,390
--------------------------------------------------------------------
Net income (loss)                       $   75,536         $ (17,377)
                                                                    
Retained earnings, beginning
 of period                                 386,868           397,310
Excess of repurchase price
 over assigned value of common
 shares                                          -            (6,563)
Dividend payments                          (37,774)                -
--------------------------------------------------------------------
Retained earnings, end of
 period                                 $  424,630        $  373,370
--------------------------------------------------------------------
                                                                    
                                                                    
Weighted average number of
 common shares outstanding(i)          125,941,204       129,633,320
Diluted weighted average
 number of common shares
 outstanding(i)                        129,867,049       129,633,320
                                                                    
                                                                    
Basic net income (loss) per
 common share                           $     0.60        $    (0.13)
Diluted net income (loss) per
 common share                           $     0.58        $    (0.13)
                                                                    
                                                                    
(i) number of common shares outstanding at March 31, 2003:
    126,495,364 (March 31, 2002: 128,329,942)                    



Methanex Corporation                                                
                                                                    
                                                                    
Consolidated Balance Sheets               March 31       December 31
(unaudited)                                   2003              2002
--------------------------------------------------------------------
(thousands of U.S. dollars)                                         
                                                                    
Assets                                                              
                                                                    
Current assets:                                                     
 Cash and cash equivalents              $  464,910        $  421,387
 Receivables                               202,823           201,037
 Inventories                               136,049           119,125
 Prepaid expenses                            7,035            12,079
--------------------------------------------------------------------
                                           810,817           753,628
                                                                    
Property, plant and equipment (note 1)   1,004,397           979,935
                                                                    
Other assets                                83,412            85,748
--------------------------------------------------------------------
                                        $1,898,626        $1,819,311
--------------------------------------------------------------------
                                                                    
Liabilities and Shareholders' Equity                                
                                                                    
Current liabilities:                                                
 Accounts payable and accrued
  liabilities                           $  149,961        $  136,035
 Current maturities on other
  long-term liabilities                      8,231             6,079
--------------------------------------------------------------------
                                           158,192           142,114
                                                                    
Limited recourse long-term
 debt (note 3)                             109,546            97,578
                                                                    
Long-term debt                             449,680           449,646
                                                                    
Other long-term liabilities                 51,282            52,980
                                                                    
Future income taxes                        184,328           172,915
                                                                    
Shareholders' equity:                                               
 Capital stock (note 4)                    520,968           517,210
 Retained earnings                         424,630           386,868
--------------------------------------------------------------------
                                           945,598           904,078
--------------------------------------------------------------------
                                        $1,898,626        $1,819,311
--------------------------------------------------------------------



Methanex Corporation                                                
                                                                    
                                                                    
Consolidated Statements of Cash Flows
                                    3 months ended    3 months ended
(unaudited)                               March 31          March 31
--------------------------------------------------------------------
(thousands of U.S. dollars)                   2003              2002
                                                                    
Cash flows from operating
 activities:                                                        
Net income (loss)                       $   75,536        $  (17,377)
Add (deduct):                                                       
Depreciation and amortization               22,831            28,053
Future income taxes                         11,413            (2,702)
Other                                        1,711             2,071
--------------------------------------------------------------------
                                                                    
Cash flows from operating
 activities before undernoted
 changes                                   111,491            10,045
                                                                    
Receivables and accounts
 payable and accrued
 liabilities                                 4,849            (8,796)
Inventories and prepaid
 expenses                                  (11,771)            9,079
Utilization of prepaid natural
 gas                                           230              (210)
--------------------------------------------------------------------
                                           104,799            10,118
--------------------------------------------------------------------
Cash flows from financing
 activities:                                                        
Proceeds on issue of limited
 recourse long-term debt                    11,968                 -
Issue of shares on exercise of
 stock options                               3,758             1,145
Dividend payments                          (37,774)                -
Payment for shares repurchased                   -           (19,304)
Repayment of other long-term
 liabilities                                  (860)             (524)
--------------------------------------------------------------------
                                           (22,908)          (18,683)
--------------------------------------------------------------------
Cash flows from investing
 activities:                                                        
Plant and equipment under
 construction or development               (40,311)          (30,855)
Property, plant and equipment               (5,229)           (1,396)
Accounts payable and accrued
 liabilities related to capital
 expenditures                                7,292            (4,674)
Other assets                                  (120)              (23)
--------------------------------------------------------------------
                                           (38,368)          (36,948)
--------------------------------------------------------------------
Increase (decrease) in cash
 and cash equivalents                       43,523           (45,513)
Cash and cash equivalents,
 beginning of period                       421,387           332,129
--------------------------------------------------------------------
Cash and cash equivalents, end
 of period                              $  464,910        $  286,616
--------------------------------------------------------------------
                                                                    
Supplementary cash flow
 information:                                                       
--------------------------------------------------------------------
Interest paid, net of
 capitalized interest                   $   18,319        $   13,846
Income taxes paid, net of
 amounts received                       $    1,192        $      377
--------------------------------------------------------------------

Methanex Corporation
Notes to Consolidated Financial Statements 
(unaudited)

Three months ended March 31, 2003

The consolidated financial statements are prepared in accordance with generally accepted accounting principles in Canada. The consolidated financial statements have been prepared from the books and records without audit, however, in the opinion of management, all adjustments which are necessary to the fair presentation of the results of the interim period have been made.

These consolidated financial statements should be read in conjunction with the consolidated financial statements included in the Methanex 2002 Annual Report.

1. Property, plant and equipment


                                             Accumulated    Net Book
($ thousands)                         Cost  Depreciation       Value
--------------------------------------------------------------------
                                       
March 31, 2003                                       
Plant and equipment             $2,113,725    $1,383,508  $  730,217
Plant and equipment under
 construction or development       251,016             -     251,016
Other                               44,479        21,315      23,164
--------------------------------------------------------------------
                                $2,409,220    $1,404,823  $1,004,397
--------------------------------------------------------------------
December 31, 2002                                                   
Plant and equipment            $ 2,111,575    $1,363,277  $  748,298
Plant and equipment under
 construction or development       210,705             -     210,705
Other                               41,548        20,616      20,932
--------------------------------------------------------------------
                                $2,363,828    $1,383,893  $  979,935
--------------------------------------------------------------------

Included in property, plant and equipment is the idled Medicine Hat Plant 3 which is being maintained in a position to restart if conditions warrant. At March 31, 2003 this facility had a net book value of $62 million (December 31, 2002 - $65 million).

2. Interest in Atlas joint venture

The Company has a 63.1% joint venture interest in Atlas Methanol Company ("Atlas"). The joint venture is constructing a 1.7 million tonne per year methanol plant in Trinidad. Construction is expected to be completed in early 2004.

The consolidated financial statements include the following amounts representing the Company's interest in the Atlas joint venture:

($ thousands)                              March 31,    December 31,
                                               2003            2002
-------------------------------------------------------------------
                                               
Consolidated Balance Sheets                                     
 Cash and cash equivalents                 $  5,081         $ 7,168
 Other current assets                         1,803           1,349
 Property, plant and equipment              183,839         161,808
 Other assets                                 5,996           5,996
 Current liabilities                          4,340           3,847
 Limited recourse long-term
  debt (note 3)                             109,546          97,578
-------------------------------------------------------------------



($ thousands)                  Three months ended  Three months ended
                                   March 31, 2003      March 31, 2002
---------------------------------------------------------------------
                                                
Consolidated Statements of 
 Cash Flows                                                
 Cash inflows from financing
  activities                            $ 11,968             $      -
 Cash outflows from investing
  activities                             (21,992)             (29,065)
---------------------------------------------------------------------

To March 31, 2003, the joint venture had no revenue and all expenditures were capitalized.

The Company estimates that its remaining share of capital expenditures, including capitalized interest, to complete the construction of Atlas and other commitments will be approximately $95 million. The Company expects that these expenditures will be funded from cash generated from operations, cash and cash equivalents and the proceeds from the limited recourse debt facilities. The Company estimates its future cash equity contribution to complete the project will be approximately $43 million.

3. Limited recourse long-term debt

The consolidated financial statements include the Company's proportionate share of limited recourse long-term debt of the Atlas joint venture. These loans are described as limited recourse as they are secured only by the assets of the Atlas joint venture. The Company's proportionate share of the total limited recourse facility is $159 million and the facility will be utilized to fund the construction of Atlas pro rata with equity contributions.

The terms of the limited recourse long-term debt facilities and the Company's proportionate share of the limited recourse long-term debt issued as at March 31, 2003 and December 31, 2002 are as follows:

($ thousands)                               March 31,   December 31,
                                                2003           2002
-------------------------------------------------------------------
                                       
a) Senior commercial bank loan facility 
   to a maximum amount of $72 million with 
   interest rates based on LIBOR plus a 
   spread ranging from 2.25% to 2.75%. 
   Principal will be paid in twelve semi-
   annual payments commencing six months 
   after the earlier of completion of 
   construction and December 31, 2004.      $ 48,497       $ 43,513
b) Senior secured notes to a maximum
   amount of $63 million bearing an
   interest rate based on the yield to
   maturity on a ten-year U.S. treasury
   security plus 3.85% with semi-annual
   interest payments. Principal will be
   paid in nine semi-annual payments
   commencing six years after the
   earlier of completion of construction
   and December 31, 2004.                     42,829         38,432
c) Senior fixed rate bonds to a maximum
   amount of $15 million bearing an
   interest rate of 8.25% with
   semi-annual interest payments.
   Principal will be paid in four
   semi-annual payments commencing
   eleven years after the earlier of
   completion of construction and
   December 31, 2004.                         11,735          9,825
d) Subordinated loans to a maximum
   amount of $9 million with an interest
   rate based on LIBOR plus a spread
   ranging from 2.25% to 2.75%.
   Principal will be paid in twenty
   semi-annual payments commencing six
   years after the earlier of completion
   of construction and December 31, 2004.      6,485          5,808
-------------------------------------------------------------------
                                            $109,546       $ 97,578
-------------------------------------------------------------------

Interest costs incurred during construction are capitalized to property, plant and equipment.

4. Capital stock

a) Changes in the capital stock of the Company during the period January 1, 2003 to March 31, 2003 were as follows:

                                          Number of    Consideration
                                      Common Shares     ($ thousands)
--------------------------------------------------------------------
                                                   
Balance, December 31, 2002              125,651,639        $ 517,210
Issued on exercise of stock options         843,725            3,758
--------------------------------------------------------------------
Balance, March 31, 2003                 126,495,364        $ 520,968
--------------------------------------------------------------------

5. Net income per share

A reconciliation of the weighted average number of common shares is as follows:

                              Three months ended  Three months ended
                                  March 31, 2003      March 31, 2002
--------------------------------------------------------------------
                                                   
Denominator for basic net 
 income per share                    125,941,204         129,633,320
Effect of dilutive stock
 options                               3,925,845                   -
--------------------------------------------------------------------
Denominator for diluted net
 income per share                    129,867,049         129,633,320
--------------------------------------------------------------------

6. Stock-based compensation

(a) Stock options:

(i) Incentive stock options:

Common shares reserved for incentive stock options at March 31, 2003 were as follows:

                       Options denominated   Options denominated
                                   in CAD$                in US$
                       -----------------------------------------
                                  Weighted              Weighted
                       Number of   Average   Number of   Average
                           Stock  Exercise       Stock  Exercise
                         Options     Price     Options     Price
----------------------------------------------------------------
                                       
Outstanding at 
 December 31, 2002     6,848,328   $ 10.53   2,432,000   $  6.47
Granted                        -         -   1,194,000      9.23
Exercised               (650,725)     6.96     (61,000)     6.45
Cancelled                (14,000)     8.89     (10,000)     6.45
----------------------------------------------------------------
Outstanding at 
 March 31, 2003        6,183,603   $ 10.91   3,555,000   $  7.40
----------------------------------------------------------------

As at March 31, 2003, 5,467,753 incentive stock options denominated in CAD$ and 1,137,500 incentive stock options denominated in US$ had vested and were exercisable at an average price of CAD$11.08 and US$6.45, respectively.

(ii) Performance stock options:

Common shares reserved for performance stock options at March 31, 2003 were as follows:

                                       Number of    Average Exercise 
                                   Stock Options         Price (CAD$)
--------------------------------------------------------------------
                                       
Outstanding at December 31, 2002       1,662,200              $ 4.47
Exercised                               (132,000)               4.47
--------------------------------------------------------------------
Outstanding at March 31, 2003          1,530,200              $ 4.47
--------------------------------------------------------------------

The vesting of the performance stock options is tied to the market value of the Company's common shares subsequent to the date of grant. Pursuant to the terms of the option agreements, on October 1, 2002, 699,000 options vested and became exercisable as the Company's shares had traded above CAD $10 per share. A total of 594,800 performance stock options have been exercised to March 31, 2003. Approximately 713,000 options will vest if the Company's shares trade at or above CAD $15 per share and the remaining options will fully vest if the Company's shares trade at or above CAD $20 per share.

(iii) Fair value method disclosure:

The Company does not recognize compensation expense when stock options are granted and instead provides pro forma disclosure as if a fair value based method had been used. The Company uses the Black-Scholes option pricing model to estimate the fair value of each stock option at the date of grant.

If the fair value based method had been used to measure and recognize stock-based compensation, the Company's net income and net income per share for the three-month period ended March 31, 2003 and the three-month period ended March 31, 2002 would have been as follows:

                             Three months ended   Three months ended
                                 March 31, 2003       March 31, 2002
                             ---------------------------------------
($ thousands, except               As       Pro         As       Pro
 per share amounts)          Reported     Forma   Reported     Forma
--------------------------------------------------------------------
Net income (loss)            $ 75,536  $ 74,526   $(17,377) $(17,718)
Basic net income (loss)
 per share                   $   0.60  $   0.59   $  (0.13) $  (0.14)
Fully diluted net income
 (loss) per share            $   0.58  $   0.57   $  (0.13) $  (0.14)
--------------------------------------------------------------------

The pro forma amounts exclude the effect of stock options granted prior to January 1, 2002.

The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:

                                                   2003         2002
--------------------------------------------------------------------
                                            
Risk-free interest rate                               5%           5%
Expected dividend yield                               2%           -
Expected life                                   5 years      5 years
Expected volatility                                  35%          35%
Weighted average fair value of
 options granted ($US/share)                      $2.85        $2.46
--------------------------------------------------------------------

(b) Restricted share units:

Commencing in 2003, executive officers may elect to receive 50% or 100% of the value of their annual long-term incentive award in the form of restricted share units (RSU's) and non-executive directors are granted RSU's as part of their compensation. RSU's are grants of notional shares that are non-dilutive to shareholders. Holders of RSU's are entitled to dividend-equivalents in the form of additional RSU's. Upon vesting, RSU's are redeemed at a value based on the trading price of the Company's shares. Compensation expense for RSU's is measured at fair value based on the market value of the Company's shares at the date of grant and is recognized, together with changes in fair value, over the period from the date of grant to the date of vesting. The Company granted 534,000 RSU's during the three-month period ended March 31, 2003. The RSU's vest on December 1, 2005.

7. Interest expense

($ thousands)                 Three months ended  Three months ended
                                  March 31, 2003      March 31, 2002
--------------------------------------------------------------------
                                                
Interest expense before 
 capitalized interest                    $11,164             $ 8,151
Less: capitalized interest                (3,442)             (1,500)
--------------------------------------------------------------------
Interest expense                         $ 7,722             $ 6,651
--------------------------------------------------------------------

Interest expense before capitalized interest includes the Company's proportionate share of interest expense related to the limited recourse long-term debt facilities of Atlas.

8. New Zealand natural gas

The Maui natural gas field has been the primary gas supply source for the Company's New Zealand plants. A contractual process was initiated in December 2001 to re-determine the economically recoverable reserves in the Maui field. On February 6, 2003, the independent expert, who was appointed by the parties to the Maui gas contract, released a final determination report of economically recoverable reserves and based on this report, the Company has lost substantially all of its remaining contractual entitlements from the Maui field. Natural gas exploration in New Zealand is ongoing and the Company is continuing to pursue acquisitions of additional gas to supplement contracted gas. However, there can be no certainty that we will be able to secure additional gas on commercially acceptable terms and that the New Zealand operations will generate sufficient cash to recover their carrying value.

---------------------------------------------------------------------
Quarterly History                                          
(unaudited)                2003 Q1   2002     Q4     Q3     Q2     Q1
---------------------------------------------------------------------
                                          
                                                                     
Methanol sales volume                                                
(thousands of tonnes)                                                
                                                                     
 Company produced product    1,194  5,686  1,347  1,419  1,489  1,431
 Purchased product             311    809    278    207    129    195
 Commission sales (1)          199    725    197    188    183    157
---------------------------------------------------------------------
                                                                     
                             1,704  7,220  1,822  1,814  1,801  1,783
---------------------------------------------------------------------
                                                                     
Methanol production                                                  
(thousands of tonnes)                                                
                                                                     
 North America                 127    478    126    125    103    124
                                                                     
 New Zealand                   356  2,281    552    593    601    535
                                                                     
 Chile                         708  2,932    735    748    743    706
---------------------------------------------------------------------
                                                                     
                             1,191  5,691  1,413  1,466  1,447  1,365
---------------------------------------------------------------------
                                                                     
Methanol price (2)                                                   
 ($/tonne)                     223    155    188    182    138    111
 ($/gallon)                   0.67   0.47   0.57   0.55   0.42   0.33
                                                                     
Per share information                                                
 Net income (loss)          $ 0.60   0.21  (0.24)  0.47   0.12  (0.13)
                                                                     
                                                                     
---------------------------------------------------------------------
Quarterly History                                                    
(unaudited)                          2001     Q4     Q3     Q2     Q1
---------------------------------------------------------------------
                                                                     
                                                                     
Methanol sales volume                                                
(thousands of tonnes)                                                
                                                                     
 Company produced product           5,390  1,522  1,327  1,296  1,245       
 Purchased product                  1,280    170    301    404    405       
 Commission sales (1)                 720    169    184    146    221       
--------------------------------------------------------------------
                                                                     
                                    7,390  1,861  1,812  1,846  1,871       
--------------------------------------------------------------------
                                                                     
Methanol production                                                  
(thousands of tonnes)                                                
                                                                     
 North America                        445    127    123     93    102       
                                                                      
 New Zealand                        2,133    592    520    447    574       
                                                                     
 Chile                              2,783    662    710    708    703       
--------------------------------------------------------------------
                                                                     
                                    5,361  1,381  1,353  1,248  1,379       
--------------------------------------------------------------------
                                                                     
Methanol price (2)                                                   
 ($/tonne)                            172    115    147    200    225       
 ($/gallon)                          0.52   0.35   0.44   0.60   0.68       
                                                                     
Per share information                                                
 Net income (loss)                 $ 0.46  (0.10) (0.15)  0.25   0.43       
                                                                     
                                                                     
---------------------------------------------------------------------
Quarterly History                                                    
(unaudited)                          2000     Q4     Q3     Q2     Q1       
--------------------------------------------------------------------
                                                                     
                                                                     
Methanol sales volume                                                
(thousands of tonnes)                                                
                                                                     
 Company produced product           5,815  1,324  1,398  1,548  1,545       
 Purchased product                    814    305    245    133    131       
 Commission sales (1)                 142    142      -      -      -       
---------------------------------------------------------------------
                                                                     
                                    6,771  1,771  1,643  1,681  1,676       
---------------------------------------------------------------------
                                                                     
Methanol production                                                  
(thousands of tonnes)                                                
                                                                     
 North America                        685    108    114    223    240       
                                                                     
 New Zealand                        2,410    593    620    607    590       
                                                                     
 Chile                              2,912    716    666    778    752       
--------------------------------------------------------------------
                                                                     
                                    6,007  1,417  1,400  1,608  1,582       
--------------------------------------------------------------------
                                                                     
Methanol price (2)                                                   
 ($/tonne)                            160    202    187    141    112       
 ($/gallon)                          0.48   0.61   0.56   0.42   0.34       
                                                                     
Per share information                                                
 Net income (loss)                 $ 0.85   0.40   0.35   0.17  (0.06)


1 Sales of product from the Titan Methanol Company plant in Trinidad.
  Methanex markets 100% of Titan's production.
2 Produced and purchased product.



FOR FURTHER INFORMATION PLEASE CONTACT:

Methanex Corporation
Chris Cook
Director, Investor Relations
(604) 661-2600 or Toll Free 1-800-661-8851
Website: www.methanex.com