Selected Financial Information

Selected financial information, in millions of U.S. dollars, is provided below.

 

2015 YTD
through Q2

2014 YTD
through Q2

2014

2013

Revenue

$   1,909

$      2,669

$      5,159

$      5,278

Operating profit – Olefins/Polyolefins

$      489

$         652

$      1,119

$      1,124

Operating profit – Expandable Styrenics

$          9

$             3

$             8

$             5

Profit

$      272

$         412

$          614

$         658

Cash provided by operating activities

$      451

$         366

$       1,204

$         954

Capital expenditures

$      194

$         243

$          595

$         487


 

June 30, 2015

December 31, 2014

December 31, 2013

Total assets

$     6,366

$      6,328

$       6,205

Total debt

$        999

$      1,000

$          862

Equity

$     3,630

$      3,345

$       3,521

Strong production at all of our Canadian manufacturing facilities continued through the first half 2015, supporting PE sales of just over 1.9 billion pounds during the first half of 2015 – a first six months record – and an increase of 13% from the first half of 2014. 

We continue to move our Ontario based growth projects forward. Engineering work continues for the conversion of our Corunna cracker to utilize 100% ethane feedstock, and we expect to complete tie-in work during our next scheduled Corunna turnaround in 2017, with project completion targeted for 2018. We are also moving forward with a study of the expansion of our Corunna cracker by approximately 50% and a corresponding second Advanced SCLAIRTECH™ technology facility (AST2) to be located in the Corunna area. We expect a final investment decision no sooner than 2017, with start-up targeted no later than 2022.

In June 2015, Fitch Ratings upgraded our rating to BBB-.

For the six months ended June 30, 2015 we generated profit of $272 million, compared to profit of $412 million for the six months ended June 30, 2014. The year-over-year decrease was primarily due to lower selling prices for all products, which more than offset higher ethylene and polyethylene sales volumes and lower feedstock costs.

The Olefins/Polyolefins business unit generated $489 million of operating profit in the first half of 2015, compared to operating profit of $652 million in the first half of 2014. The decrease for the first half of 2015 was primarily due to lower selling prices for all products, which more than offset higher ethylene and polyethylene sales volumes and lower feedstock costs.

The Expandable Styrenics segment generated $9 million of operating profit in the first half of 2015, compared to operating profit of $3 million in the first half of 2014. The increase for the first half of 2015 was primarily due to lower feedstock costs, which more than offset lower selling prices.

During the first half of 2015, our capital expenditures were nearly $200 million, approximately 20% lower than the first half of 2014, and primarily spent on NOVA 2020 growth projects. We expect our 2015 capital expenditure to reach approximately $700 million.

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 June 30, 2015, our total liquidity was $1,587 million.

At June 30, 2015, we had two revolving credit facilities totaling $650 million:

  • $550 million senior secured revolving credit facility provided by a syndicate of lenders, which matures on December 17, 2018. As of June 30, 2015, we had utilized $42 million; and
  • $100 million unsecured bilateral credit facility, which is undrawn and we plan to let expire in accordance with its terms on September 20, 2015.

We also have two accounts receivable securitization programs (one in the U.S. and one in Canada) with maximum funding of $225 million. The U.S. program expires in January 2017 and the Canadian program expires in February 2018. The programs were undrawn at June 30, 2015.

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 June 30, 2015.

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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.

Carolyn Rose
Senior Corporate Paralegal
E-mail: bondholder@novachem.com

Contact Us:

Investor inquiries, please contact:
Tracey Simpson
Leader, External Financial Reporting

Media inquiries, please contact:
Pace Markowitz
Director, Communications