Nova Chemicals reports “record breaking” year

Calgary, Alta.-based Nova Chemicals Corporation announced a net income of US$126 million in Q4 2007, compared to a net income of US$97 million in the Q3 2007 and a net loss of US$781 million for Q4 2006.

Overall, Nova reported net income of US$347 million for 2007, compared to a net loss of US$703 million for 2006. Additionally, cash from operations for the quarter totaled US$205 million, which allowed the company to reduce its net debt by US$105 million.

“Nova Chemicals just finished the best quarter and the best year in our history,” said CEO Jeff Lipton. “Based on our record breaking feedstock advantages, modernized and energy efficient plants, and unique new product portfolio, we expect an ongoing step-up of performance in the high oil price environment we foresee for many years to come.”

Nova’s olefins/polyolefins business unit reported record adjusted EBITDA of $308 million in Q4 2007, up from US$280 million in Q3 due to higher polyethylene sales volumes and a record Alberta advantage of US$0.27 per pound in the quarter.

The company is also well on its way to achieving its annual synergy target from its North American Ineos Nova styrenics joint venture. The venture recently announced the closure of two polystyrene facilities — in Montreal, Que. and Belpre, Ohio — with a total annual production capacity of 340 million pounds.