NOVA Chemicals posts Q3 op profit of $188m
24 October 2007 14:34 [Source: ICIS news]
TORONTO (ICIS news)--Canada’s NOVA Chemicals on Wednesday reported a sharply improved third-quarter operating profit - $188m versus $13m for the year-ago-period - on a strong olefins/polyolefins business and due to the absence of big restructuring charges which burdened last year’s third quarter.
Net income for the three months ended 30 September was $97m, compared with a loss of $24m in the 2006 third quarter, on revenues of $1.755bn, essentially flat from $1.712bn in the 2006 third quarter.
“We believe the very strong third quarter market conditions for our olefins/polyolefins business will continue into the fourth quarter and well beyond,” said NOVA chief executive Jeff Lipton.
He added: “We are experiencing strong domestic and export demand and improving margins due to price increases that exceed feedstock cost changes.”
NOVA’s core olefins/polyolefins business recorded earnings before interest, tax, depreciation and amortisation (EBITDA) of $280m, up from $271m in the 2006 third quarter and $228m in the 2007 second quarter.
The company’s performance styrencis business recorded EBITDA of $3m, compared with EBIDTA losses of $2m in the 2006 third quarter and $6m in the 2007 second quarter.
Nova’s STYRENIX business had an EBITDA loss $21m, compared with a loss of $4m in the 2006 third quarter and positive EBITDA of $29m in the 2007 second quarter.
During the third quarter, NOVA's expanded INEOS NOVA styrenics joint venture with INEOS was approved by US competition authorities. The venture, which includes STYRENIX, started operations on 1 October, NOVA said.
In addition, INEOS NOVA agreed to acquire the exclusive production rights to Sterling Chemicals’
"The combination of the formation of the expanded joint venture and the agreement with
By: Stefan Baumgarten
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