Canada's NOVA sees Q4 profit rise to $60m on olefins demand, pricing

09 March 2011 22:23  [Source: ICIS news]

HOUSTON (ICIS)--NOVA Chemicals more than tripled its 2010 fourth-quarter net income to $60m (€43.2m) as demand and selling prices increased for olefins and polyolefins, the Canadian petrochemicals major said on Wednesday.

NOVA earned $17m in the fourth quarter of 2009.

Sales in the 2010 fourth quarter were $1.17bn, up 39% from $841m in the year-earlier period.

NOVA’s olefins/polyolefins business unit generated $213m in operating income in the 2010 fourth quarter, nearly doubling the $111m it earned in the 2009 period.

For full year 2010, the olefins/polyolefins unit posted an operating income of $788m, up from $266m in 2009.

“The improvement during these periods was due to selling prices that rose more than feedstock costs, and greater demand,” the company said.

Meanwhile, NOVA’s performance styrenics segment reported fourth-quarter operating income from continuing operations of $1m, roughly flat year on year.

For the full year 2010, the segment had $2m of operating income from continuing operations, improving from an operating net loss of $14m in 2009 amid lower operating costs.

On the whole, NOVA's 2010 net income was $259m, up from a loss of $241m in 2009.

NOVA is a wholly-owned subsidiary of Abu Dhabi’s International Petroleum Investment Company (IPIC), which acquired the company in 2009 for $2.3bn.

($1 = €0.72)

For more on NOVA Chemicals visit ICIS company intelligence

By: Ben DuBose
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