Selected Financial Information
During 2016, we sold record polyethylene volumes of just over 4 billion pounds; an increase 7% over 2015, which is the result of continued outstanding operating performance and production at our plants.
In December 2016, we started-up the new gas phase polyethylene reactor at our Joffre complex, and in January 2017, the new reactor was fully operational. The addition of this reactor increases our polyethylene capacity by 25%, providing 950 million pounds of new linear low density polyethylene capacity.
The second phase of the NOVA 2020 growth plan includes the conversion of the Corunna cracker to allow it to utilize 100% ethane feedstock. We expect to complete a significant amount of project construction during our next Corunna turnaround, expected to begin in August 2017, and target project completion in early 2018. See NOVA 2020 for further information about our NOVA 2020
During 2016, we generated profit of $649 million, compared to profit of $532 million during 2015. The increase in profit was primarily due to higher operating profit in both our Olefins/Polyolefins business unit and our Expandable Styrenics segment. Operating profit increased for our Olefins/Polyolefins business unit primarily due to higher polyethylene, ethylene and most co-products sales volumes and lower feedstock costs, which more than offset lower selling prices for most products. Operating profit for our Expandable Styrenics segment increased primarily due to higher margins and sales volumes. The increase in profit also included the reversal of a legal provision of approximately $31 million and lower finance costs, somewhat offset by higher income tax expense.
Capital spending during 2016 increased 6%, compared to 2015, due to increased spending on NOVA 2020 growth projects. We expect 2017 capital expenditures to be around $700 million, which includes spending related to planned turnarounds.
Liquidity and Credit Facilities
We define liquidity as total available capacity under revolving credit facilities, less utilization (including letters of credit), plus cash and cash equivalents. As of December 31, 2016, our total liquidity was $1,646 million, including $891 million of cash and cash
We have an $800 million senior secured revolving credit facility provided by a syndicate of lenders, which we amended in 2016 to
extend the maturity date one year to December 16, 2021 and increase the availability from $550 million to $800 million. As of December 31, 2016, we had utilized $45 million.
We also have two accounts receivable securitization programs (one in the U.S. and one in Canada) with maximum funding of $225 million. In January 2017, we amended our U.S. accounts receivable securitization program to extend the term three years to January 30, 2020. The Canadian program expires in February 2018. The programs were undrawn at December 31, 2016.
Our senior secured revolving credit facility and our accounts receivable securitization programs are governed by a maximum senior
debt-to-cash flow financial covenant and a debt-to-capitalization financial covenant. We were in compliance with these financial covenants at December 31, 2016.
NOVA Chemicals Corporation (the “Company”) no longer makes its financial statements available to the general public. However, (1) holders of notes of the Company, (2) bona fide prospective investors who are either qualified institutional buyers or are non-US persons, (3) securities analysts, or (4) market makers in Company notes, can access Company information through the Company’s password-protected online data system. If you are included in any one of the above categories and wish to view Company information, please contact Carolyn Rose per the contact information provided below. Prior to providing log-in details, Ms. Rose may require proof that you fall within one of the above categories and are entitled to access to the data site.
Senior Corporate Paralegal