NOVA Chemicals Reports 2013 First 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 2013 First Quarter Results
For immediate release, Tuesday, May 7, 2013, Calgary, Alberta, Canada
A Strong Start to the Year and Construction Underway for Future Growth
First Quarter 2013 Results
In the first quarter of 2013, we generated a profit of $185 million compared to
a profit of $188 million in the first quarter of 2012. The slight decline was
primarily due to the $22 million write-off of an unamortized discount related to
early repayment of our 2025 debentures, offset somewhat by increased margins in
our Olefins/Polyolefins business unit.
The Olefins/Polyolefins business unit generated $336 million of operating profit
in the first quarter of 2013 versus operating profit of $305 million in the
first quarter of 2012. The increase was primarily due to higher margins in the
Corunna Olefins and Polyethylene segments, offset somewhat by a decrease in
margins in the Joffre Olefins segment.
The Performance Styrenics segment reported operating profit from continuing
operations of nil in the first quarter of 2013 versus operating profit from
continuing operations of $5 million in the first quarter of 2012. The decline
was primarily due to lower margins resulting from higher feedstock costs.
Highlights
In March 2013, we repaid early our $100 million 7.875% debentures due 2025 using
cash-on-hand.
In March 2013, our Board of Directors approved full implementation funding of
approximately $1 billion for the Polyethylene 1 expansion project at our Joffre
complex (the "R3 Project"). Construction on the R3 Project has begun and
includes the addition of a world-scale polyethylene reactor and associated
equipment, along with substantial infrastructure investments to support this
project and existing polyethylene production.
In the first quarter of 2013, our Corunna Olefins segment continued its move to
utilize up to 100% natural gas liquids ("NGLs"), which we expect will be fully
achieved in early 2014 with the completion of the cracker revamp project. During
this quarter, the cracker continued to consume a high percentage of NGLs
including increased quantities of ethane/propane ("E/P") mix, in addition to
propane and butane, while utilizing existing and partially upgraded equipment.
Operating profit was an all time record for the Corunna Olefins segment. We
expect the operating profit to increase further as we begin to utilize Marcellus
Shale Basin ethane beginning in the third quarter of 2013.
Financial Highlights
These highlights should be read in conjunction with our unaudited interim
consolidated financial statements as of and for the three months ended March 31,
2013 and our audited consolidated financial statements and MD&A for the year
ended December 31, 2012 contained in our annual report on Form 20-F. On January
1, 2013, we adopted certain new and amended IFRSs, which were required to be
applied retrospectively. Refer to Note 2 of our unaudited interim condensed
consolidated financial statements as of and for the three months ended
March 31, 2013 for details of the new and amended IFRSs and impacts to our
consolidated financial statements.
Three Months Ended
----------------------
March 31 March 31
(millions of U.S. dollars) 2013 2012
------------------------------------------------------------------ -----------
Restated
((1))
-----------
Revenue $ 1,251 $ 1,341
Operating profit from the businesses from continuing
operations $ 336 $ 310
Corporate costs (46 ) (25 )
----------- -----------
Operating profit from continuing operations $ 290 $ 285
-------------------------------------------------------------------------------
Profit for the period $ 185 $ 188
Cash provided by operating activities $ 46 $ 232
-------------------------------------------------------------------------------
1. Restated for new and amended IFRSs adopted January 1, 2013.
NOVA Chemicals' 2013 first quarter earnings report can be viewed on the
Electronic Data Gathering Analysis and Retrieval System (EDGAR) at
www.sec.gov/edgar.shtml or on NOVA Chemicals' website at www.novachemicals.com.
NOVA Chemicals will host a conference call, Tuesday, May 7, 2013 at 11:30 a.m.
ET (9:30 a.m. MT). The dial-in number for this call is (416) 406-6419 (passcode
4161585) and the replay number is (905) 694-9451 (passcode 4161585). The call is
available on the internet at http://www.novachem.com/pages/financials-
investor/financials-investor.aspx.
Media and Investor inquiries, please contact:
Pace Markowitz
Director, Communications
Tel: 412.490.4952
E-mail: markowp(at)novachem.com
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.
NOVA Chemicals' logo is a registered trademark of NOVA Brands Ltd.; authorized
use.
Responsible Care(®) is a registered trademark of the Chemistry Industry
Association of Canada.
Forward-Looking Statements
This news release contains forward-looking statements including statements
regarding the timing of completion of our Corunna cracker revamp project and our
ability to utilize up to 100% NGLs at our Corunna facility, and our expectation
that our Corunna Olefins' operating profit will increase as we begin to use
Marcellus Shale based ethane. By their nature, forward-looking statements
require NOVA Chemicals to make assumptions and are subject to inherent risks and
uncertainties. Some of the risks that could affect NOVA Chemicals' future
results are detailed in the publicly filed disclosure documents and securities
commissions' reports of NOVA Chemicals. NOVA Chemicals' forward-looking
statements are expressly qualified in their entirety by this cautionary
statement. In addition, the forward-looking statements are 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 the forward-looking
statements 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
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Datum: 07.05.2013 - 14:39 Uhr
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News-ID 257068
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