NOVA Chemicals Reports 2013 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 2013 Second Quarter Results
For immediate release, Friday, August 2, 2013, Calgary, Alberta, Canada
A Strong First Half and Record Quarterly Polyethylene Sales
Second Quarter 2013 Results
In the second quarter of 2013, we generated a profit of $201 million compared to
profit of $186 million for the second quarter of 2012. The increase was
primarily due to lower finance costs in the second quarter of 2013. For the six
months ended June 30, 2013, we generated profit of $386 million, compared to
profit of $374 million for the six months ended June 30, 2012. The year-over-
year increase was primarily due to increased operating profit in the Corunna
Olefins and Polyethylene segments, partially offset by lower operating profit in
the Joffre Olefins segment.
The Olefins/Polyolefins business unit generated $328 million of operating profit
in the second quarter of 2013 versus operating profit of $338 million in the
second quarter of 2012. The decrease was primarily due to lower margins in the
Joffre Olefins and Corunna Olefins segments, offset somewhat by higher margins
and increased sales volumes in the Polyethylene segment. For the six months
ended June 30, 2013, the business unit generated operating profit of $664
million compared to operating profit of $643 million for the six months ended
June 30, 2012. The increase was primarily due to improved margins in the Corunna
Olefins and Polyethylene segments and increased sales volumes in the
Polyethylene segment, partially offset by lower margins in the Joffre Olefins
segment.
The Performance Styrenics segment reported operating profit from continuing
operations of nil in the second quarter of both 2013 and 2012. For the six
months ended June 30, 2013, the segment generated operating profit from
continuing operations of nil compared to $5 million for the six months ended
June 30, 2012. The year-over-year decline was primarily due to higher feedstock
costs that were somewhat offset by higher sales prices.
Highlights
On July 30, 2013, we closed our offering of $500 million 5.25% senior notes due
2023. The net proceeds of the offering were used to purchase $279 million of our
outstanding $350 million 8.375% senior notes due 2016 that were tendered
pursuant to a cash tender offer and consent solicitation and to pay related
transaction fees and expenses. The remainder will be used for general corporate
purposes, which may include, among other things, the repurchase, redemption or
other acquisition of any of the 8.375% senior notes due 2016 that were not
tendered in the tender offer.
On June 7, 2013, we held the official groundbreaking event for the PE1 Expansion
to celebrate a growth milestone at our Joffre, Alberta complex. This event
marked the official start of the construction phase of the Polyethylene 1
("PE1") Expansion Project - a key component of our NOVA 2020 growth strategy of
adding value to emerging cost-competitive feedstocks and to support growing
North American polyethylene demand.
Financial Highlights
These highlights should be read in conjunction with our unaudited interim
consolidated financial statements as of and for the three and six months ended
June 30, 2013 and our audited consolidated financial statements and management
discussion and analysis 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 International Financial Reporting Standards ("IFRS"), 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 and six
months ended June 30, 2013 for details of the new and amended IFRSs and impacts
to our consolidated financial statements.
Three Months Ended Six Months Ended
---------------------- -----------------------
June 30 June 30 June 30 June 30
(millions of U.S. dollars) 2013 2012 2013 2012
------------------------------------------ ----------- ----------- -----------
Restated Restated
((1)) ((1))
----------- -----------------------
Revenue $ 1,370 $ 1,421 $ 2,621 $ 2,762
Operating profit from the
businesses from continuing
operations $ 328 $ 338 $ 664 $ 648
Corporate costs (41 ) (50 ) (87 ) (75 )
----------- ----------- ----------- -----------
Operating profit from
continuing operations $ 287 $ 288 $ 577 $ 573
-------------------------------------------------------------------------------
Profit for the period $ 201 $ 186 $ 386 $ 374
Cash provided by operating
activities $ 371 $ 400 $ 417 $ 632
-------------------------------------------------------------------------------
1. Restated for new and amended IFRSs adopted January 1, 2013.
NOVA Chemicals' 2013 second 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, Friday, August 2, 2013 at 11:30 a.m.
ET (9:30 a.m. MT). The dial-in number for this call is (416) 340-8061 (passcode
4167505) and the replay number is (905) 694-9451 (passcode 4167505). 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.
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originality of the information contained therein.
Source: NOVA Chemicals Corporation via Thomson Reuters ONE
[HUG#1720751]
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Datum: 02.08.2013 - 14:42 Uhr
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News-ID 284341
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