Quebec govt fund posts big loss on petchem investments

09 April 2009 19:41  [Source: ICIS news]

TORONTO (ICIS news)--Quebec’s provincial government investment fund SGF has recorded a net loss of Canadian dollars (C$) 261m ($210m) in 2008, largely due to losses and closure costs at petrochemicals producers Petromont and PTT Poly, it said on Thursday.

Petromont and PTT Poly Canada are SGF joint ventures with Dow Chemical and Shell, respectively.

The Societe generale de financement du Quebec (SGF) said losses of C$238m were solely due to operating losses, closure costs and write-downs of its investments in petrochemicals producers Petromont and PTT Poly Canada, as well as forestry firm Temlan. It did not provide a breakdown.

Without the cited losses, SGF’s 2008 rate of return would have been minus 1.2%, instead of minus 14.3%, it said.

Most of SGF's portfolio companies are in Quebec’s manufacturing sector, which was hit hard by the crisis, it said.

"The speed and scope of this crisis that hit us in 2008 was unprecedented,” SGF head Pierre Shedleur said.

($1 = C$1.24)

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By: Stefan Baumgarten
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