Business
NOVA Chemicals: Strong Cash Flow from Improved Operating Performance
NOVA Chemicals: Strong Cash Flow from Improved Operating Performance.
About this update from Northisle Copper And Gold Inc.
[{"type":"text","content":"\n\n\n\nPITTSBURGH, July 25 /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 net income of $80\nmillion ($0.96 per share diluted) for the second quarter of 2007. The results\ninclude after-tax restructuring charges totaling $9 million, or $0.11 per\nshare diluted related to NOVA Chemicals' ongoing fixed cost reduction actions.\n\n\nNet income for the second quarter compares to net income of $44 million\n($0.53 per share diluted) for the first quarter of 2007 and net income of $106\nmillion ($1.27 per share diluted) for the second quarter of 2006, which\nincluded a $60 million benefit related to Canadian tax rate reductions.\n\n\nNet income in the second quarter improved relative to the first quarter\ndue to significant margin improvement, particularly in the Olefins/Polyolefins\nbusiness unit. While North American ethylene and polyethylene price increases\nwere offset by higher feedstock costs on the U.S. Gulf Coast, NOVA Chemicals'\nfeedstock costs increased only slightly quarter-over-quarter resulting in\nimproved margins. The Alberta Advantage increased from an average of 7 cents\nper pound in the first quarter to 13 cents per pound in the second quarter,\nand widened to approximately 17 cents per pound in July.\n\n\n"Our businesses delivered $251 million of EBITDA in the second quarter,\nwhich resulted in $115 million in cash from operations," said Jeff Lipton,\nNOVA Chemicals' President and CEO. "Market conditions and our margins in\nOlefins and Polyolefins improved each month during the second quarter and are\nimproving further into the third quarter. In addition, our Alberta feedstock\nadvantage is widening again as it did last summer."\n\n\nAfter significantly appreciating in the first quarter, the value of NOVA\nChemicals' Corunna feedstock open positions did not change significantly in\nthe second quarter. As a result, the mark-to-market impact of these open\npositions was a $1 million loss in this quarter compared to a $26 million gain\nin the first quarter. These mark-to-market gains and losses are reflected in\nthe Corporate results.\n\n\n EBITDA from the Businesses Second Quarter First Quarter\n ($U.S. millions) 2007 2007\n\n Olefins/Polyolefins $228 $15...