Selected Financial Information
Year Ended December 31
In 2022, NOVA Chemicals recognized total EBITDA of $1,020 million and net income of $298 million compared to our 2021 record EBITDA of $2,345 million and record net income of $1,295 million. Numerous factors contributed to decreased earnings in 2022, including declining sales prices across the industry while commodity prices and feedstock costs increased significantly. In response to these challenging conditions and to align production with customer demand, we reduced operating rates at many of our sites in the fourth quarter of 2022. Total revenue of $4,472 million decreased by $589 million compared to 2021, primarily due to lower industry polyethylene selling price in the current year.
Despite the challenging market conditions experienced in 2022, we had several highlights throughout the year, including:
- We completed our Corunna cracker turnaround. These activities were a key precursor as we look ahead to a safe and successful start-up of our Advanced SCLAIRTECHTM technology facility (“AST2”).
- Our AST2 facility and the third phase of the Corunna Cracker Expansion each reached mechanical completion. Once operational, our AST2 facility will double the production of NOVA Chemicals’ highest performing and highest margin polyethylene resins, supporting products that can be more easily designed for recycling.
- We continued to prioritize the safety of our employees and contractors by improving our Total Recordable Case Rate (“TRCR”) from 0.27 in 2021 to a new Company annual record of 0.23 in 2022.
- In April, we announced a joint project with Enerkem to expedite production of a pilot-scale reactor system which will convert syngas produced from used, non-recyclable and non-compostable plastics to feedstocks for virgin-grade plastics. The project aims to utilize advanced recycling technology to expand the types of materials that can be recycled and increase recycling rates while reducing emissions.
- In June, we joined the United Nations Global Compact (“UNGC”). UNGC is the world’s largest corporate sustainability initiative and we believe this partnership aligns with global, societal interests for the welfare of the people, the environment and generations to come.
- In July, we were awarded a Silver rating from EcoVadis, which placed us in the top 15 percent of companies assessed by EcoVadis in our industry category.
- In October, we launched ASTUTETM, a new family of high-performance plastomer resins that leverage our Advanced SCLAIRTECHTM technology to produce polyethylene-based sealant resins. These resins will allow our customers to design high-performance, mono-material recyclable packaging which can become truly circular.
- In October, we launched a 100% post-consumer mechanically recycled polyethylene resin which allows converters and brand owners to meet their sustainability goals without compromising package performance in applications such as shrink, e-commerce, heavy-duty sacks, and protective packaging.
AST2, located at the new Rokeby Site and adjacent to the Corunna Site, will have a capacity of approximately 950 million pounds of polyethylene per year, and will allow us to continue growing our business by bringing new, premium-value plastics that support sustainable packaging solutions to the marketplace, while providing greater supply reliability for our customers. A safe and successful start-up of AST2 is anticipated in the first half of 2023, with a full ramp up in 2024.
As of December 31, 2022, our total liquidity was $1,675 million, including $160 million of cash and cash equivalents. We were in compliance with our covenants at December 31, 2022 and 2021, which govern our senior secured credit agreement and our accounts receivable securitization programs. We define liquidity as total available capacity under our senior secured credit agreement, plus total available capacity under our accounts receivable securitization programs, less utilization (including letters of credit), plus unencumbered cash and cash equivalents, net of any limitations as a result of covenant compliance.
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