Consumables
NOVA Chemicals Reports 2010 Fourth Quarter and Full Year Results
Thursday 10. March 2011 - Strong Financial Performance - Solid Business Operations - New Feedstock Sources
Fourth Quarter and Full Year 2010 Results
In the fourth quarter of 2010, we generated income from continuing operations of $48 million, compared to $28 million for the fourth quarter of 2009. For the full year 2010, we generated income from continuing operations of $233 million compared to income from continuing operations of $9 million for the period July 6 to December 31, 2009 and a loss from continuing operations of $235 million for the period January 1 to July 5, 2009. The year-over-year improvement for these periods was primarily due to higher margins and improved demand for our products.
The Olefins/Polyolefins business unit generated $213 million of operating income in the fourth quarter of 2010, compared to $111 million in the fourth quarter of 2009. For the full year 2010, the business unit generated operating income of $788 million, compared to $223 million for the period July 6 to December 31, 2009 and $43 million for the period January 1 to July 5, 2009. The improvement during these periods was due to selling prices that rose more than feedstock costs, and greater demand.
The Performance Styrenics segment reported operating income from continuing operations of $1 million in the fourth quarter of 2010, compared to $1 million in the fourth quarter of 2009. For the full year 2010, the segment had $2 million of operating income from continuing operations, compared to operating income from continuing operations of $5 million in the period July 6 to December 31, 2009 and an operating loss from continuing operations of $19 million for the period January 1 to July 5, 2009. Our 2009 business restructuring delivered lower operating costs, which led to improvement in 2010 versus 2009.
Highlights
On January 31, 2011, we entered into definitive agreements with Hess Corporation (Hess) and affiliates of Mistral Energy Inc. (Mistral) to purchase and transport ethane production from Hess Tioga Gas Plant in North Dakota via a proposed pipeline to Alberta, Canada to be constructed, owned and operated by affiliates of Mistral. We have the right to purchase 100% of the ethane produced at the Tioga Gas Plant under a long-term arrangement. The pipeline, called the Vantage Pipeline, will allow for the transport of up to 60,000 barrels per day of ethane and is expected to start-up by the end of 2012, subject to receipt of customary regulatory and other approvals.
On February 15, 2011, we signed a memorandum of understanding with Caiman Energy LLC (Caiman) for the supply of up to 20,000 barrels per day of ethane from Caimans Fort Beeler Plant near Cameron, West Virginia, in the Marcellus Basin.
On February 28, 2011, we completed the sale of our 50% interest in the INEOS NOVA joint venture to an affiliate of INEOS Group Ltd.
On March 1, 2011, we and a subsidiary of AltaGas Ltd. (AltaGas) entered into definitive agreements for long-term, cost-competitive ethane and other natural gas liquids supply from AltaGas Harmattan-Elkton Gas Plant. We expect to receive ethane and other natural gas liquids from AltaGas Harmattan Co-Stream Project starting in the first quarter of 2012.
NOVA Chemicals Financial Highlights
These highlights should be read in conjunction with NOVA Chemicals 2010 annual report on Form 20-F. Prior periods have been restated for discontinued operations.
(millions of U.S. dollars) Three Months Ended Dec. 31,
Full Year
2010
Jul. 6-Dec. 31,
2009
Restated
Jan. 1-Jul. 5,
2009
Restated
2010 2009
Restated
Revenue from continuing operations $ 1,170 $ 841 $ 4,576 $ 1,612 $ 1,345
Operating income from the businesses from
continuing operations
$ 214 $ 112 $ 790 $ 228 $ 24
Corporate costs from continuing operations
$ (85 ) $ (28 ) $ (200 ) $ (129 ) $ (235 )
Operating income (loss) from continuing
operations
$ 129 $ 84 $ 590 $ 99 $ (211 )
Income (loss) from continuing operations $ 48 $ 28 $ 233 $ 9 $ (235 )
Net income (loss) $ 60 $ 17 $ 259 $ (2 ) $ (239