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Nova Chemicals surges to post profit in Q1 2010

Material supplier Nova Chemicals Corp. recorded a first-quarter 2010 profit of US$94 million, compared with ...


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May 28, 2010 by Canadian Plastics

Material supplier Nova Chemicals Corp. recorded a first-quarter 2010 profit of US$94 million, compared with a loss of US$123 million in the year-ago quarter.

The Calgary, Alta.-based company posted revenue of US$1.4 billion, up from US$818 million in the year-ago quarter.

The company’s Olefins/Polyolefins business unit generated US$185 million of operating income in the first quarter of 2010 versus an operating loss of US$38 million during the first quarter of 2009 – an improvement due to higher sales volumes and selling prices that increased more than feedstock costs, Nova Chemicals said.

The Performance Styrenics segment, meanwhile, reported an operating loss of US$2 million in the first quarter of 2010 versus an operating loss of US$20 million in the first quarter of 2009. This improvement was due to sales prices that increased more than feedstock costs and lower operating costs resulting from restructuring in 2009.

Nova Chemicals was acquired by International Petroleum Investment Co. for US$500 million last July. Three months later, the company named Randy Woelfel its new CEO.