07 May 2013 15:06 [Source: ICIS news]
TORONTO (ICIS)--NOVA Chemicals 2013 first-quarter profit fell by $3m (€2.3m) year on year to $185m, mainly because of a write-off related to early repayment of debentures, the Canada-based petrochemicals major said on Tuesday.
The decline was partly offset by increased margins in NOVA’s olefins/polyolefins business, it said.
NOVA’s sales for the three months ended 31 March fell by 6.7% year on year to $1.25bn.
NOVA’s olefins/polyolefins business unit generated $336m in first-quarter operating profit, up from $305m in the first quarter of 2012.
The increase in olefins/polyolefins operating profit was primarily due to higher margins in NOVA’s Corunna, Ontario-based olefins and polyethylene segments, offset somewhat by decreased olefins margins at operations in Joffre, Alberta.
NOVA said that Corunna olefins operating profit hit an "all-time record" in the first quarter and "we expect [Corunna olefins] operating profit to increase further as we begin to utilise Marcellus Shale Basin ethane beginning in the third quarter of 2013".
Meanwhile, NOVA’s performance styrenics segment reported first-quarter operating profit from continuing operations of nil, compared with $5m in operating profit in the first quarter of 2012. The decline was primarily due to lower margins resulting from higher feedstock costs, the company said.
($1 = €0.76)
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