We announced today that we have made a final investment decision to proceed with the relocation of the Chile III facility to the Geismar site (Geismar II). We expect the 1.0 million tonne Geismar II plant to be operational in early 2016. Estimated project costs are $550 million.
FINANCIAL RESULTS
For the first quarter of 2013 we recorded Adjusted EBITDA of $149 million and Adjusted net income of $88 million ($0.92 per share on a diluted basis). This compares with Adjusted EBITDA of $119 million and Adjusted net income of $61 million ($0.64 per share on a diluted basis) for the fourth quarter of 2012.
For the first quarter of 2013, we reported net income attributable to Methanex shareholders of $60 million ($0.63 per share on a diluted basis) compared with a net loss attributable to Methanex shareholders for the fourth quarter of 2012 of $140 million ($1.49 loss per share on a diluted basis). Our results for the fourth quarter of 2012 were impacted by a non-cash before-tax asset impairment charge of $297 million related to the carrying value of our Chile assets.
Effective January 1, 2013, we adopted new IFRS standards related to consolidation and joint arrangement accounting. Under these new standards, our 63.1% interest in the Atlas entity, which was previously proportionately consolidated in our financial statements, is accounted for using the equity method. This change has been applied retrospectively. As a result, amounts related to Atlas are no longer included in individual line items in our consolidated financial statements and the net assets and net earnings are presented separately. For purposes of analyzing our consolidated financial results in this MD&A, the adjusted EBITDA from our 63.1% interest in the Atlas entity is included in Adjusted EBITDA. Our analysis of depreciation and amortization, finance costs, finance income and other expenses and income taxes is consistent with the presentation of our consolidated statements of income and excludes amounts related to Atlas.
We calculate Adjusted EBITDA and Adjusted net income by including amounts related to our equity share of the Atlas (63.1% interest) and Egypt (60% interest) facilities and by excluding the mark-to-market impact of share-based compensation as a result of changes in our share price and items which are considered by management to be non-operational. Refer to the Additional Information - Supplemental Non-GAAP Measures section for a further discussion on how we calculate these measures.
A reconciliation from net income (loss) attributable to Methanex shareholders to Adjusted net income and the calculation of Adjusted net income per common share is as follows:
Three Months Ended ----------------------------------------($ millions except number of shares Mar 31 Dec 31 Mar 31 and per share amounts) 2013 2012 2012--------------------------------------------------------------------------------------------------------------------------------------------------------Net income (loss) attributable to Methanex shareholders $ 60 $ (140) $ 22 Mark-to-market impact of share- based compensation, net of tax 28 8 17 Asset impairment charge, net of tax - 193 -----------------------------------------------------------------------------Adjusted net income (1) $ 88 $ 61 $ 39----------------------------------------------------------------------------Diluted weighted average shares outstanding (millions) 96 94 95Adjusted net income per common share (1,2) $ 0.92 $ 0.64 $ 0.41----------------------------------------------------------------------------(1) These items are non-GAAP measures that do not have any standardizedmeaning prescribed by GAAP and therefore are unlikely to be comparable tosimilar measures presented by other companies. Refer to the AdditionalInformation - Supplemental Non-GAAP Measures section for a description ofeach non-GAAP measure and reconciliations to the most comparable GAAPmeasures.(2) For the three months ended December 31, 2012, stock options have beenexcluded from the calculation of diluted net loss per common share(attributable to Methanex shareholders) as their effect would be anti-dilutive. However, for the calculation of adjusted net income per commonshare (attributable to Methanex shareholders) stock options have beenincluded in the denominator and the diluted weighted average number ofcommon shares is 95 million.
