Business
NCX: Record PE Sales and Strong Cash Flow despite Volatile Market; Non-Cash STYRENIX Asset Charge
NCX: Record PE Sales and Strong Cash Flow despite Volatile Market; Non-Cash STYRENIX Asset Charge.
About this update from Northisle Copper And Gold Inc.
[{"type":"text","content":"\n\n\n\nPITTSBURGH, January 31 /CNW/ - NOVA Chemicals Corporation\n(NYSE:NCX)(TSX:NCX):\n\n\nAll financial information is in U.S. dollars unless otherwise indicated.\n\n\nNOVA Chemicals Corporation (NOVA Chemicals) reported a net loss of $781\nmillion ($9.46 per share loss) for the fourth quarter of 2006. The loss\nincludes a $772 million after-tax ($9.35 per share) non-cash restructuring\ncharge related to the write-down of assets in the STYRENIX business unit. This\nwrite-down reduces the carrying value of STYRENIX assets to reflect the\nestimated realizable value of the future cash flows from those assets (see\npage 4).\n\n\nThe fourth quarter results also include an unrealized gain on feedstock\nderivatives totaling $5 million after-tax ($0.06 per share). This\nmark-to-market adjustment was required to record positions that do not qualify\nfor hedge accounting treatment.\n\n\nThe net loss for the fourth quarter compares to a net loss of $24 million\n($0.29 per share loss) for the third quarter of 2006, and a net loss of $66\nmillion ($0.80 per share loss) for the fourth quarter of 2005. NOVA Chemicals\nreported a net loss of $703 million ($8.52 per share loss) for 2006 compared\nto a net loss of $101 million ($1.22 per share loss) for 2005.\n\n\n\"We were able to generate cash and reduce debt by about $100 million\ndespite the sharp decline in domestic prices and margins. Our inventory\ncontrol data and our logistics infrastructure allowed us to take rapid action\nto export a large amount of polyethylene to Asia with very good netbacks.\"\n\n\n\"The write-down of the STYRENIX assets is consistent with our\nrestructuring effort and clears the decks for action. We remain confident that\nwe will be able to finalize a shareholder value-building pathway for the\nbusiness,\" said Jeff Lipton, NOVA Chemicals' President and CEO.\n\n\nFourth quarter net loss from the businesses was $12 million ($0.14 per\nshare loss) versus net income of $83 million ($1.00 per share) in the third\nquarter of 2006.\n\n\nNOVA Chemicals' three business units have been further segmented for\nfinancial reporting purposes. See page 2 for the breakdown of net income by\nthe new reporting segments, and page 3 for additional details.\n\n\nNet Income (Loss) Fourth Quarter Full Year\n($U.S. Millions) 2006 2006\n Olefins/Polyolefins $35 $379\n Performance Styren...