NOVA Chemicals Reports 2012 Second Quarter Results
(Thomson Reuters ONE) -
NOVA Chemicals Corporation, 1000 Seventh Avenue S.W., Calgary, Alberta, Canada
T2P 5L5
www.novachemicals.com | 403.750.3600 tel | 403.269.7410 fax
NOVA Chemicals Reports 2012 Second Quarter Results
For immediate release, Thursday, August 9, 2012, Calgary, Alberta, Canada
Strong first half results
2012 Second Quarter Results
In the second quarter of 2012, we generated profit of $189 million compared to
record profit of $225 million for the second quarter of 2011. For the six
months ended June 30, 2012, we generated profit of $380 million, nearly matching
the record profit of $388 million for the six months ended June 30, 2011. The
modest declines were primarily due to an increase in depreciation expense and a
decline in the mark-to-market values of our open feedstock derivatives, offset
slightly during the six month period by higher margins in our
Olefins/Polyolefins business unit.
In the second quarter of 2012, our operating activities provided $401 million of
cash, compared to $213 million in the second quarter of 2011. In the first half
of 2012, our operating activities provided $633 million of cash, compared to
$258 million in the first half of 2011. The increases in cash were driven by
continued strong earnings and a decrease in working capital.
The Olefins/Polyolefins business unit generated $340 million of operating profit
in the second quarter of 2012 versus operating profit of $367 million in the
second quarter of 2011. The quarter-over-quarter decline was due to an increase
in depreciation expense and lower margins which were partially offset by higher
sales volumes. For the six months ended June 30, 2012, the business unit
generated operating profit of $648 million, equal to the operating profit for
the six months ended June 30, 2011.
The Performance Styrenics segment reported operating profit from continuing
operations of $1 million in the second quarter of 2012 versus operating profit
from continuing operations of $2 million in the second quarter of 2011. For the
six months ended June 30, 2012, the segment generated operating profit from
continuing operations of $6 million compared to $5 million for the six months
ended June 30, 2011. The year-over-year improvement was due to higher
expandable polystyrene ("EPS") margins.
Highlights
In June 2012, we began utilizing ethane/propane ("E/P") mix as one of the
feedstocks for our Corunna cracker. Utilizing E/P feedstock is another crucial
step in the diversification of Corunna feedstock sources as we convert the
facility to consume up to 100% natural gas liquids.
In May 2012, we announced that we signed a letter of intent with PFB Corporation
("PFB"), for a subsidiary of PFB to acquire NOVA Chemicals' Performance
Styrenics business, including the EPS and ARCEL(®) resin products. NOVA
Chemicals expects to acquire an equity stake in PFB and hold two seats on PFB's
Board of Directors following closing.
Financial Highlights
These highlights should be read in conjunction with our unaudited interim
condensed consolidated financial statements, as at and for the period ended June
30, 2012, our other 2012 unaudited interim condensed consolidated financial
statements and our annual audited consolidated financial statements as at and
for the year ended December 31, 2011 contained in our annual report on Form 20-
F.
------------------------------------------------- ------------------------------
(millions of U.S. Three Months Ended June 30 Six Months Ended June 30
dollars)
2012 2011 2012 2011
------------------------------------------------- ------------------------------
Revenue $ 1,421 $ 1,392 $ 2,762 $ 2,691
Operating profit
from the
businesses from
continuing
operations $ 341 $ 369 $ 654 $ 653
Corporate costs $ (49) $ (21) $ (73) $ (44)
------------------------------------------------- ------------------------------
Operating profit
from continuing
operations $ 292 $ 348 $ 581 $ 609
------------------------------------------------- ------------------------------
Profit for the
period $ 189 $ 225 $ 380 $ 388
Cash provided by
operating
activities $ 401 $ 213 $ 633 $ 258
------------------------------------------------- ------------------------------
NOVA Chemicals' 2012 second quarter earnings report can be viewed on the System
for Electronic Document Analysis and Retrieval (SEDAR), at www.sedar.com, the
Electronic Data Gathering Analysis and Retrieval System (EDGAR) at
www.sec.gov/edgar.shtml or on NOVA Chemicals' website at www.novachemicals.com.
Media and Investor inquiries, please contact:
Pace Markowitz
Director, Communications
Tel: 412.490.4952
E-mail: markowp(at)novachem.com
NOVA Chemicals will host a conference call, Thursday, August 9, 2012 at 11:30
a.m. ET (9:30 a.m. MT). The dial-in number for this call is (416) 406-6419
(Passcode 4125078) and the replay number is (905) 694-9451 (Passcode 4125078).
The call is available on the internet at
http://www.novachem.com/pages/financials-investor/financials-investor.aspx.
About NOVA Chemicals
NOVA Chemicals develops and manufactures chemicals, plastic resins and end-
products that make everyday life safer, healthier and easier. Our employees
work to ensure health, safety, security and environmental stewardship through
our commitment to sustainability and Responsible Care(®). NOVA Chemicals is a
wholly owned subsidiary of International Petroleum Investment Company ("IPIC")
of the Emirate of Abu Dhabi, United Arab Emirates.
is a registered trademark of NOVA Brands Ltd.; authorized use.
Responsible Care(®) is a registered trademark of the Chemistry Industry
Association of Canada ("CIAC") in Canada and is a registered service mark of the
American Chemistry Council ("ACC") in the United States. ARCEL(®) is a
registered trademark of NOVA Chemicals Inc.
Forward looking information: This news release contains forward-looking
information with respect to NOVA Chemicals. Specific forward-looking
information contained in this news release includes, among others, statements
regarding our letter of intent with PFB Corporation for a subsidiary of PFB to
acquire our Performance Styrenics business and our expected equity stake in PFB
on PFB's Board of Directors following closing. By its nature, forward-looking
information requires NOVA Chemicals to make assumptions and is subject to
inherent risks and uncertainties. Some of the risks that could affect NOVA
Chemicals' future results and could cause results to differ materially from
those expressed in the forward-looking information are detailed in the publicly
filed disclosure documents and securities commissions' reports of NOVA
Chemicals. NOVA Chemicals' forward-looking information is expressly qualified in
its entirety by this cautionary statement. In addition, the forward-looking
information is made only as of the date of this news release, and except as
required by applicable law, NOVA Chemicals undertakes no obligation to publicly
update this forward-looking information to reflect new information, subsequent
events or otherwise.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: NOVA Chemicals Corporation via Thomson Reuters ONE
[HUG#1632870]
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Datum: 09.08.2012 - 14:41 Uhr
Sprache: Deutsch
News-ID 173308
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