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Polyethylene sales drive excellent operating results for Nova

26
Apr '08

“NOVA Chemicals' businesses have delivered almost $1.1 billion of EBITDA for the last four quarters, principally as a result of our continuing record Alberta Advantage and increasing polyethylene sales,” said Jeff Lipton, NOVA Chemicals' CEO.

“We see very positive supply/demand balances going forward, and good prospects for strong ongoing financial performance in our core ethylene and polyethylene business.”

The Olefins/Polyolefins business unit reported adjusted EBITDA of $246 million in the first quarter of 2008, the highest first quarter in history and significantly higher than the $159 million in the first quarter last year.

The year-over-year improvement was due to higher margins, driven by a record first quarter Alberta Advantage, and record polyethylene sales.

Results improved significantly despite higher fixed costs due to a stronger Canadian dollar, which averaged parity with the U.S. dollar in the first quarter of 2008 as compared to $0.86 in the first quarter of 2007.

Adjusted EBITDA of $246 million was down from a record $308 million in the fourth quarter of 2007. Margins from the Alberta based ethylene and polyethylene assets remained strong but were lower than the fourth quarter due to higher natural gas costs.

Margins from the Ontario based ethylene and polyethylene assets were lower than the fourth quarter of 2007 due to higher crude oil flow-through costs that outpaced price increases in energy and chemical co-products, and ethylene.

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