Nova Chemicals posts marginal rise in Q3 income

Nova Chemicals posted a net income of US$98 mln ($1.18/share) for Q3 compared to the previous quarter's US$18 mln ($0.21/share) and US$97 mln ($1.16/share) for Q3 of 2007. Company's adjusted net income stood at US$83 mln ($1.00/share) relative to US$83 mln ($1.00/share) in Q2 2008, and US$85 mln ($1.01/share) for the Q3 2007 The Adjusted EBITDA (Earnings before Interest, Income Tax, Depreciation and Amortization) for Q3 from the businesses recorded US$261 mln approximately at the same strong level as the previous quarter's US$258 mln and the US$262 mln in the Q3 of 2007. The company's Olefins / Polyolefins business unit reported adjusted EBITDA of US$282 mln, the highest third quarter in history, and up significantly from US$258 mln in the Q2 2008 and US$280 mln in same quarter last year. The improvement was due to higher Joffre Olefins and Polyethylene segment margins, which were driven by higher selling prices and a record Alberta Advantage. NOVA Chemicals' 50% share of INEOS NOVA reported an adjusted EBITDA loss of US$13 mln in the Q3 2008, down from adjusted EBITDA of US$4 mln in the previous quarter. For the joint venture, higher feedstock costs more than offset higher selling prices, resulting in lower margins in the third quarter. The adjusted EBITDA loss of US$13 mln in the Q3 2008, compared to an adjusted EBITDA loss of US$22 mln in the Q3 2007, a period prior to the expansion of the JV in North America when flow-through feedstock costs were disadvantaged. The company's Performance Styrenics segment reported an adjusted EBITDA loss of US$8 mln in the Q3 2008 compared to an adjusted EBITDA loss of US$4 mln in previous quarter of 2008. Polymer margins declined as higher selling prices were more than offset by styrene monomer costs that increased 9% in the quarter and lower sales volumes. As compared to Q3 2007 EBITDA gain of US$4 mln, the segment reported an adjusted EBITDA loss of $8 mln in Q3 2008 due to higher feedstock costs and lower sales volume offsetting higher selling prices.
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