Selected Financial Information
Year Ended December 31
While we achieved record polyethylene sales volumes, our results were negatively impacted by lower market prices for our products due to global economic growth slowdown, rising trade tensions, and supply and demand imbalance.
During 2019, we generated profit of $214 million, compared to a loss of $171 million during 2018. The year-over-year increase was due to the legal provision that we recorded in the first quarter of 2018, somewhat offset by lower polyethylene and ethylene selling prices. Lower polyethylene selling prices were due to an oversupply in the market from new polyethylene units in North America and negative impacts on pricing from China’s tariffs on U.S. polyethylene. Ethylene selling prices decreased primarily due to softening of domestic demand combined with supply length and low feedstock costs on the U.S. Gulf Coast.
Capital spending increased by 77%, compared to 2018, due to spending on our growth projects for our Ontario operations. We are expanding our Corunna cracker to provide ethylene to a new Advanced SCLAIRTECHTM technology facility that will increase our annual polyethylene nameplate capacity by approximately 950 million pounds per year. Construction is progressing well for both projects, with start-up targeted for late 2021.
We define liquidity as total available capacity under our senior secured credit agreement, less utilization (including letters of credit), plus cash and cash equivalents. As of December 31, 2019, our total liquidity was $1,304 million, including $374 million of cash and cash equivalents. We were in compliance with our covenants at December 31, 2019 and 2018, which govern our senior secured credit agreement and our accounts receivable securitization programs.
In early January 2020, we announced that we had entered into an agreement with Borealis AG (“Borealis”) to sell our 50% interest in the Novealis Holdings LLC joint venture to Borealis and thereby exit the Bayport Polymers LLC joint venture. Closing of the sale is subject to customary regulatory approvals and other conditions but is not subject to any financing condition. We expect the transaction to close in the first half of 2020.
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.
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