Nova reports profit boost in Q2 2013

It seems that Nova Chemicals Corporation’s recent investments at its site in Corunna, Ont. is paying off.

The Calgary-based chemical and resin supplier posted a profit of $201 million in the second quarter of 2013, compared to profit of $186 million for the second quarter of 2012, “primarily due to increased operating profit in the Corunna olefins and polyethylene segments”.

Other results were more mixed, however. “The olefins/polyolefins business unit generated $328 million of operating profit in the second quarter of 2013 versus operating profit of $338 million in the second quarter of 2012,” Nova said in a statement. “The decrease was primarily due to lower margins in the Joffre [Alta.] olefins and Corunna olefins segments, offset somewhat by higher margins and increased sales volumes in the polyethylene segment.”

The company saw other declines in Q2 2013, as well. “The performance styrenics segment reported operating profit from continuing operations of nil in the second quarter of both 2013 and 2012,” Nova said. “For the six months ended June 30, 2013, the segment generated operating profit from continuing operations of nil compared to $5 million for the six months ended June 30, 2012. The year-over-year decline was primarily due to higher feedstock costs that were somewhat offset by higher sales prices.”

The Q2 2013 numbers come on the heels of Nova’s recent official groundbreaking of the construction phase of the so-called Polyethylene 1 Expansion Project at the Joffre complex, described by Nova as “a key component of the NOVA 2020 growth strategy of adding value to emerging cost-competitive feedstocks and to support growing North American polyethylene demand.”