OCI Global Sells $173M of Methanex Stock Amid Financial Headwinds

AMSTERDAM, NL – March 16, 2026 – OCI Global has sold a significant portion of its stake in Methanex Corporation, netting approximately US$172.6 million in a move that underscores the intense financial pressures facing both chemical giants. The transaction, announced today, comes as both companies grapple with recent disappointing earnings and a turbulent global market.

In a press release, Amsterdam-based OCI Global confirmed its subsidiary, OCI Chemicals B.V., sold 3,331,346 common shares of Methanex in a block trade on March 13. The sale, priced at US$51.80 per share, reduces OCI’s ownership in the methanol producer from a commanding 12.9% to a still-substantial 8.6%.

While OCI framed the disposition as being for “investment purposes,” the timing of the sale coincides with significant financial challenges for the company. The cash infusion arrives shortly after OCI reported a staggering net loss of $344 million for the full year 2025 and a levered free cash flow deficit of over $843 million, raising concerns about its rate of cash burn. The market reacted swiftly to OCI's recent earnings report, with its stock price falling by 8.44%.

A Tale of Two Tumultuous Quarters

The move to liquidate a portion of its Methanex holdings appears to be a direct response to OCI's pressing need for capital. The company is navigating a broad strategic transformation that includes the divestment of major business units, such as its ammonia distribution and terminal business, in an effort to stabilize its finances.

Meanwhile, Methanex Corporation is weathering its own storm. The Vancouver-based company, the world's largest producer and supplier of methanol, posted a significant earnings miss for the fourth quarter of 2025. It reported an earnings per share (EPS) of -$0.14, starkly contrasting with the forecasted $0.71. Revenue also fell short of expectations, coming in at $968.81 million against a predicted $1.03 billion.

The disappointing results, attributed to lower realized pricing, plant outages, and soaring ocean freight costs, triggered an 8.51% drop in Methanex's stock during after-hours trading. The company's stock had already plunged 12.7% to $49.83 on March 9 following the news, dipping below the price OCI managed to secure for its block trade days later. Further analysis of Methanex's financial health reveals an Altman Z-Score of 1.69, placing it in a “distress zone” that suggests potential financial instability despite a healthy current ratio.

Strategic Shift or Financial Necessity?

OCI’s relationship with Methanex as a major shareholder is relatively new, adding another layer of complexity to the sale. OCI acquired its initial 12.9% stake less than a year ago, in June 2025, as part of a larger transaction where it sold its international methanol business to Methanex for approximately US$2.05 billion. The deal was composed of cash, assumed debt, and the issuance of nearly 10 million Methanex shares to OCI.

The rapid decision to cash out a portion of that equity stake suggests that OCI's primary motivation may be less about a strategic re-evaluation of the methanol market and more about bolstering its own strained balance sheet. The proceeds from the sale provide OCI with crucial liquidity as it continues its corporate restructuring, which includes a planned strategic sale of its remaining OCI Nitrogen business.

In its official statement, OCI maintained that it may “in future acquire securities of Methanex or sell some or all of the securities of Methanex that it may own,” leaving its future intentions deliberately ambiguous. This standard forward-looking language does little to quell speculation that the sale was driven by immediate financial necessity rather than a long-term investment thesis.

Headwinds in the Global Methanol Market

The backdrop for this corporate drama is a global methanol market entering 2026 under significant pressure. The market is characterized by a structural mismatch of ample supply—driven by new low-cost capacity in Iran and the United States—and subdued demand, particularly from the key chemical sectors in Europe and Asia. This oversupply continues to exert downward pressure on prices and margins for producers like Methanex.

Geopolitical factors are adding to the volatility. U.S. sanctions are redirecting Iranian methanol flows towards China, potentially depressing prices in the Asian market. Simultaneously, tensions in the Middle East have disrupted some supply chains, causing temporary price spikes in other regions. While North American methanol prices saw an 8.1% rise in February 2026, South America experienced a 5.9% decline, highlighting the fragmented nature of the current market.

Despite the short-term challenges, the long-term outlook for methanol demand remains positive. The push for decarbonization is accelerating the adoption of methanol as a cleaner marine and transport fuel. Furthermore, the development of “green methanol” produced from renewable sources represents a significant growth opportunity. This dichotomy between a challenging present and a promising future may explain why OCI reduced its stake rather than exiting its position entirely.

A Shifting Power Dynamic

OCI’s move to reduce its holding from nearly 13% to 8.6% significantly alters the shareholder landscape at Methanex. While an 8.6% stake is still considerable, the reduction diminishes OCI’s influence over corporate governance and strategic decisions. The drop in ownership could transition OCI from a highly active strategic partner to a more passive, albeit large, financial investor.

For other Methanex investors, the sale by a major, well-informed shareholder could be interpreted as a bearish signal. However, some analysts remain cautiously optimistic. Following its Q4 results, Methanex’s stock maintained an “Outperform” rating from BMO with a US$65 price target, and RBC held its price target at US$55, suggesting that some believe the company can navigate the current headwinds.

The partial divestment ultimately highlights the precarious position of major players in the global chemical industry. For OCI, it provides a timely cash lifeline during a period of intense financial restructuring. For Methanex, it represents a vote of reduced confidence from a key partner at a time when it must prove its resilience in a difficult and rapidly evolving market.