Methanex $MEOH stock broke above its 200 day moving average as of January 8, 2023. Caution is warranted until we get a confirmation of the break. Methanex $MEOH stock also is testing an Ascending Triangle breakout (purple lines on the chart below). $MEOH stock is in a technical uptrend.
Methanex price target lowered at Jefferies
On December 19, 2022, Jefferies analyst Laurence Alexander maintained a Buy rating on Methanex’s shares and lowered the company’s price target from $56 to $47, noting that he is revising his estimates to more accurately account for the negative effects of the fourth quarter’s high natural gas prices. Beginning in Q2 2023, the ban on Russian methanol will probably increase demand, but this will probably only partially offset overall macroeconomic weakness, according to Alexander, who also notes that while North American demand is currently intact, a downturn seems likely.
Waterfront Shipping Enters Into Time-Charter Agreement With Trafigura for Methanol Dual-Fuel Vessel Co-owned by Clean Sea
On December 6, 2022, Methanex’s subsidiary Waterfront Shipping announced that it had signed a time-charter contract with Trafigura, one of the biggest physical commodity trading groups in the world. In accordance with the contract, Trafigura will manage Mari Innovator, a medium-range product tanker jointly owned by Waterfront Shipping and Clean Sea, as part of its extensive network of ships used on clean products trade routes. This contract demonstrates Waterfront Shipping’s leadership in assisting the rising demand for methanol as a marine fuel and supports the parties’ efforts to assist the marine shipping sector’s transition toward decarbonization.
“We’re pleased to partner with Trafigura to share our global experience and knowledge with operating and bunkering vessels using methanol fuel technology,” said Paul Hexter, President of Waterfront Shipping. “Trafigura plays a vital leadership role in the energy transition and for it to recognize that methanol marine fuel offers a clear pathway towards a low carbon shipping industry will help build the platform to drive change.”
As the largest operator of methanol dual-fuel vessels in the world and a leader in the use of methanol as a marine fuel, Waterfront Shipping has racked up more than 123,000 operating hours proving the ease of use and safety of methanol as a cleaner burning marine fuel. Waterfront Shipping currently has 18 methanol dual-fuel vessels, and an additional vessel will be delivered by the spring of 2023, making up about 60% of its 30-vessel fleet.
With 24-hour coverage of the freight and physical commodity markets, Trafigura’s shipping and chartering operations are run out of regional hubs in Athens, Geneva, Houston, Lima, Montevideo, and Singapore.
“We’re advocating for industry-wide action on shipping emissions and investing in new technologies and vessels to help achieve a more sustainable shipping industry,” said Andrea Olivi, Head of Wet Freight for Trafigura. We’re excited about the cooperation with Waterfront Shipping and Clean Sea as we explore and learn also how methanol technology can integrate with our fleet to achieve our carbon intensity reduction goal of 25 per cent by 2030 across our entire chartering operation.”
“As a cleaner-burning marine fuel, conventional methanol already meets the International Maritime Organization’s (IMO) pollutant emissions regulations, significantly reducing sulphur oxides by 99 per cent, nitrogen oxides by up to 80 per cent, and particulate matter by 95 per cent compared to heavy fuel oil. Methanol is also liquid at ambient temperature, safe, easy to handle, widely available, fully compliant with IMO Tier III regulations and can be produced from renewable sources—offering a clear transition pathway to decarbonization,” added Paul Hexter.
Modi Mano, CEO at Clean Sea Transport, said, “The Mari Innovator is our third-generation dual-fuel vessel and offers a number of advantages to Trafigura including the flexibility to diversify fuel options or consume methanol for potential cost savings. It is equipped with the latest technological innovations and fuel consumption is particularly low for a medium-range tanker.”