Methanex Corporation
Notes to Condensed Consolidated Interim Financial Statements (unaudited)
Except where otherwise noted, tabular dollar amounts are stated in thousands of U.S. dollars.
1. Basis of presentation:
Methanex Corporation (the Company) is an incorporated entity with corporate offices in Vancouver, Canada. The Company's operations consist of the production and sale of methanol, a commodity chemical. The Company is the world's largest supplier of methanol to major international markets in Asia Pacific, North America, Europe and Latin America.
These condensed consolidated interim financial statements are prepared in accordance with International Accounting Standards (IAS) 34, Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB) on a basis consistent with those followed in the most recent annual consolidated financial statements, except as described in note 11 below. As described in note 11, the Company has adopted new IFRS standards effective January 1, 2013 with retrospective application and as a result the comparative periods have been restated.
These condensed consolidated interim financial statements do not include all of the information required for full annual financial statements and were approved and authorized for issue by the Audit, Finance & Risk Committee of the Board of Directors on April 24, 2013.
2. Inventories:
Inventories are valued at the lower of cost, determined on a first-in first-out basis, and estimated net realizable value. The amount of inventories included in cost of sales and operating expenses and depreciation and amortization for the three months ended March 31, 2013 is $469 million (2012 - $495 million).
3. Property, plant and equipment:
Buildings, Plant Installations Plants Under Oil & Gas & Machinery Construction Properties Other Total--------------------------------------------------------------------------------------------------------------------------------------------------------Cost at March 31, 2013 $ 2,887,814 $ 120,104 $ 82,436 $ 80,379 $ 3,170,733Accumulated depreciation at March 31, 2013 1,251,572 - 75,448 30,193 1,357,213----------------------------------------------------------------------------Net book value at March 31, 2013 $ 1,636,242 $ 120,104 $ 6,988 $ 50,186 $ 1,813,520----------------------------------------------------------------------------Cost at December 31, 2012 $ 2,866,013 $ 75,238 $ 80,368 $ 68,906 $ 3,090,525Accumulated depreciation at December 31, 2012 1,225,202 - 74,151 28,299 1,327,652----------------------------------------------------------------------------Net book value at December 31, 2012 $ 1,640,811 $ 75,238 $ 6,217 $ 40,607 $ 1,762,873----------------------------------------------------------------------------Cost at January 1, 2012 $ 2,816,808 $ 1,326 $ 77,486 $ 88,642 $ 2,984,262Accumulated depreciation at January 1, 2012 933,808 - 32,990 40,771 1,007,569----------------------------------------------------------------------------Net book value at January 1, 2012 $ 1,883,000 $ 1,326 $ 44,496 $ 47,871 $ 1,976,693----------------------------------------------------------------------------
The Company is in the process of relocating an idle Chile facility to Geismar, Louisiana. During the three months ended March 31, 2013, the Company incurred $43 million in relation to this project under construction, excluding capitalized interest. Remaining capital costs to complete the project are estimated to be $420 million, excluding capitalized interest.
