Methanex Announces Increase to Quarterly Dividend for the Sixth Consecutive Year and a New 10% Share Repurchase Program
May 06 2008 - 1:46PM
Marketwired
VANCOUVER, BRITISH COLUMBIA (NASDAQ: MEOH)(SANTIAGO: Methanex)
announced today that its Board of Directors has approved an 11
percent increase in its quarterly dividend to shareholders, from
US$0.14 per share to US$0.155 per share. The increased dividend
will apply commencing with the dividend payable on June 30, 2008 to
holders of common shares of record on June 16, 2008.
Bruce Aitken, President and CEO of Methanex, commented, "This is
the sixth year in a row that we have increased our dividend since
its inception in 2002. The increase to our regular dividend
reflects our continued confidence in the outlook for our business
and the methanol industry."
In addition, Methanex's Board of Directors approved a new normal
course issuer bid that will commence on the expiration of the
Company's existing normal course issuer bid. Under the new bid, the
Company may repurchase up to 7,909,393 common shares of the
Company, representing 10 percent of the public float of the issued
and outstanding shares as at May 2, 2008. Under the existing bid,
which expires on May 16, 2008, the Company has purchased 8,422,100
shares as of May 2, 2008 at an average price of CDN$26.46
(US$25.97). As of May 2, 2008, there were 94,646,917 Methanex
common shares issued and outstanding.
Mr. Aitken added, "Our announcement of a new share repurchase
program reflects our balanced approach to the utilization of cash
and builds on our long track record of returning excess cash to
shareholders. Since 2000, we have reduced our shares outstanding
from about 170 million to under 95 million. With $465 million of
cash on hand at the end of the first quarter of 2008, we have the
financial strength and flexibility to meet our commitments for our
Egypt project, pursue investment opportunities to accelerate the
development of natural gas in southern Chile, invest in other
strategic initiatives and continue to return excess cash to
shareholders."
The normal course issuer bid repurchase program will be carried
out through the facilities of the TSX. Purchases under the program
will commence on May 20, 2008 and terminate on the earlier of May
19, 2009 and the date upon which the Company has acquired the
maximum number of common shares permitted under the purchase
program or otherwise decided not to make further purchases.
Purchases will be made from time to time at the then current market
price of the Company's common shares as traded on the TSX and the
common shares purchased will be cancelled. Daily repurchases under
the program will not exceed 102,841 shares per day (which is 25
percent of the Company's average daily trading volume for the six
month period ending April 30, 2008), subject to purchases made in
accordance with the block purchase exception under the TSX rules.
The Company has entered into an automatic securities purchase plan
with its broker in connection with purchases to be made under this
program.
Methanex is a Vancouver-based, publicly traded company and is
the world's largest supplier of methanol to major international
markets. Methanex shares are listed for trading on the Toronto
Stock Exchange in Canada under the trading symbol "MX"; on the
NASDAQ Global Market in the United States under the trading symbol
"MEOH"; and on the Foreign Securities Market of the Santiago Stock
Exchange in Chile under the trading symbol "Methanex". Methanex can
be visited online at www.methanex.com.
Information in this press release contains forward-looking
statements. Certain material factors or assumptions were applied in
drawing the conclusions or making the forecasts or projections that
are included in these forward-looking statements. Methanex believes
that it has a reasonable basis for making such forward-looking
statements. However, forward-looking statements, by their nature,
involve risks and uncertainties that could cause actual results to
differ materially from those contemplated by the forward-looking
statements. The risks and uncertainties include those attendant
with producing and marketing methanol and successfully carrying out
major capital expenditure projects in various jurisdictions, the
ability to successfully carry out corporate initiatives and
strategies, conditions in the methanol and other industries
including the supply and demand balance for methanol, the success
of natural gas exploration and development activities in southern
Chile and our ability to obtain any additional gas in that region
on commercially acceptable terms, actions of competitors and
suppliers, actions of governments, including changes in laws or
regulations, world-wide economic conditions and other risks
described in our 2007 Management's Discussion & Analysis. Undue
reliance should not be placed on forward-looking statements. They
are not a substitute for the exercise of one's own due diligence
and judgment. The outcomes anticipated in forward-looking
statements may not occur and we do not undertake to update
forward-looking statements.
Contacts: Jason Chesko Director, Investor Relations Methanex
Corporation (604) 661-2600 Website: www.methanex.com
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