Nova Chemicals posts US$123 mln Q1 net loss; awaits regulatory go-ahead for Abu Dhabi acquisition

Canadian plastics producer Nova Chemicals posted a net loss of US$123 mln ($1.48 loss per share) in first quarter of 2009 compared to a net profit of US$52 mln ($0.63 per share) for the same period last year. The company's Q1 sales revenue stood at US$818 mln compared to US$1.9 bln in the same period previous year. Shareholders of Nova Chemicals Corp. agreed to the sale of the company to International Petroleum Investment Co (IPIC), an investment arm of the government of UAE at US$6/common share last week. The deal is valued at US$2.3 bln, and is to be completed in late May or early June. The deal will allow NOVA to work independently of the Abu Dhabi state-run concern and awaits Canadian and US regulatory approvals. The Olefins/Polyolefins business segment reported adjusted EBITDA profit of US$13 mln, up significantly from the adjusted EBITDA loss of US$210 mln in the Q4 - 2008 but was significantly lower than adjusted EBITDA of US$246 mln reported in the Q1 - 2008. The year-on-year decline was due to lower margins, as selling prices fell more than flow-through feedstock costs, and lower sales volumes. The company's 50% share of INEOS NOVA provided an adjusted EBITDA profit of US$6 mln for the period compared to an adjusted EBITDA loss of US$77 mln in Q4 - 2008 due to higher margins and higher sales volume across all product lines and regions. In Performance Styrenics segment, the company reported an adjusted EBITDA loss of US$13 mln compared to an adjusted EBITDA profit of US$2 mln in Q4 - 2008. The decline was due to lower sales volumes and lower margins, as selling prices declined more than flow-through feedstock costs.
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