Lower prices per tonne received for their commodity, lower net earnings, but Geismar 3 is 90% complete. Which way is a shareholder to feel about all of this?
EPS of $0.6 beat estimates of $0.5377 and revenues of $939M beat estimates of $886.52M. Net income was slightly lower than the prior year, at $57M vs. $60M in the previous year. It pays a decent yield of 1.3% and has a strong buyback program in place, although it has stopped share repurchases which expires September 2023 due to continued macro uncertainty. It has a solid cash balance of $645.7M, a decent forward sales multiple of 0.8X, although a fairly expensive forward P/E of 21.4X. We feel the completion of its G3 project is a positive catalyst while global methanol supply outpacing demand growth is a near-term headwind, which can offset each other. These were decent results, but its forward P/E is fairly high and there are some near-term headwinds. We feel neutral on the name after these results, but for a decent yield and exposure to the sector, we would be OK accumulating the name gradually.