Home / Knowledge / News / Textiles / Outstanding performance from Nova Olefins/Polyolefins unit
Outstanding performance from Nova Olefins/Polyolefins unit
24
Jul '08
Nova Chemicals announces outstanding operating results and outlook for the second half.

Second Quarter 2008 Results
• Net income of $18 million ($0.21 per share) compares to $80 million ($0.96 per share) for the second quarter of 2007, and $50 million ($0.60 per share) for the first quarter of 2008.

• Adjusted net income of $83 million ($1.00 per share) compares to $84 million ($1.00 per share) in the second quarter of 2007, and $71 million ($0.85 per share) in the first quarter of 2008. See Supplemental Measures on page 22 for details.

• Adjusted EBITDA from the businesses of $258 million, the highest second quarter in history. Results compare to $251 million in the second quarter of 2007, and $256 million in the first quarter of 2008.
Second Quarter 2008 Highlights

• Olefins/Polyolefins adjusted EBITDA was $258 million, the highest second quarter EBITDA in history. Adjusted EBITDA in the first half of 2008 was $504 million, significantly higher than the $387 million recorded in the first half of 2007, and the best first half in history.

• Alberta Advantage average of 17¢ per pound, the highest second quarter Alberta Advantage in history.

“NOVA Chemicals' businesses again delivered EBITDA at an annualized rate of $1.1 billion, in spite of unprecedented energy price volatility and economic uncertainty. With the Alberta Advantage surging, polyethylene prices moving up sharply, and indications that the styrenics business is improving, I am confident that the second half of the year will be stronger than the first,” said Jeff Lipton, NOVA Chemicals' CEO.

Review of Operations:
The Olefins/Polyolefins business unit reported adjusted EBITDA of $258 million in the second quarter of 2008, the highest second quarter in history and significantly higher than the $228 million in the second quarter last year. The year-over-year improvement was due to higher polyethylene volumes and olefin chain margins, which resulted mainly from a stronger Alberta Advantage in the second quarter of 2008. Results improved significantly despite higher operating costs due to a stronger Canadian dollar and higher energy prices.

Adjusted EBITDA of $258 million was up from $246 million in the first quarter of 2008. Higher ethylene and polyethylene prices more than offset higher feedstock and operating costs. Polyethylene sales volume exceeded nameplate capacity for the third consecutive quarter, despite planned maintenance outages at both Joffre polyethylene production facilities.
Joffre Olefins

Second Quarter 2008 Versus First Quarter 2008:
The Joffre Olefins segment reported adjusted EBITDA of $185 million in the second quarter of 2008, up from $168 million in the first quarter of 2008. Margins increased as higher prices for ethylene and co-products outpaced increases in feedstock and operating costs, and due to a gain of $8 million ($6 million after-tax) that represented a true-up of results from a linear alpha olefins margin sharing arrangement. Industry prices for ethylene increased 8%, driven primarily by higher feedstock costs.


Must ReadView All

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Apparel/Garments | On 15th Dec 2017

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Strategic location, modern factory facilities and proximity to the...

Courtesy: 2XU

Apparel/Garments | On 15th Dec 2017

L Catterton Asia announces JV of GXG and 2XU

L Catterton Asia, the Asian unit of the largest and most global...

15 trade associations urge nations to safeguard WTO system

Apparel/Garments | On 15th Dec 2017

15 trade associations urge nations to safeguard WTO system

Fifteen trade and industry associations from across the world have...

Interviews View All

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search