Ontario blackout costs NOVA US$9 million

Polyolefins and styrenics supplier NOVA Chemicals Corp. reported a net loss of US$65 million for the third quarter of 2003. The company says results were reduced by US$9 million due to the effects of the Ontario blackout in August which shut down four sites for 10 days.
A further US$10 million of expenses is associated with the permanent closure of a polyethylene line at NOVA’s St. Clair River site in Corunna, ON, planned for mid-2004.
Excluding these items, NOVA’s operating performance improved in the third quarter compared with the previous quarter.
"Operating performance actually improved slightly from the second quarter, and we saw clear month-over-month improvement in demand and margins through the period, which began with a very weak July," said Jeff Lipton, NOVA Chemicals’ president and CEO.
The olefins/polyolefins business reported a net loss of US$8 million. NOVA reports that average polyethylene prices were lower, but were offset by lower feedstock costs and higher ethylene selling prices. Sales volumes were reduced by the power disruption in August.
In styrenics, average prices fell but were offset by lower feedstock costs. Sales volumes were up compared with the previous quarter. The styrenics business reported a net loss of US$40 million for the quarter.