Canada NOVA Q4 profit rises 22% on higher olefins margins

TORONTO (ICIS)–NOVA Chemicals’ 2011 fourth-quarter profit rose by 22% year on year to $77m (€59m), primarily driven by higher olefins margins, the Canada-based petrochemicals producer said on Tuesday.

NOVA’s sales for the three months ended 31 December were almost unchanged at $1.102bn, compared with $1.170bn in the same period a year ago, the company said.

NOVA’s olefins/polyolefins business recorded a fourth-quarter operating profit of $190m, down from $210m in the 2010 fourth quarter, as increased olefins margins were more than offset by a decline in margins for polyethylene (PE), the company said.

For the full 12 months of 2011, NOVA generated a profit of $615m, compared with $263m in 2010, with the increase again largely due to higher margins in the company’s core olefins business, it said.

Full-year 2011 sales were $5.2bn, up 14.5% year on year from 2010.

During the fourth quarter of 2011, NOVA’s cash balance rose by $86m to finish the year with a cash balance of $960m, the company said.

In January 2012, NOVA repaid $400m 6.5% notes using cash-on-hand, it added.

($1 = €0.76)