For the second quarter of 2014, Canada-based Nova Chemicals Corp, a producer of Olefins & Polyolefins, including ethylene, saw its profit slip to $167 million compared to profit of $201 million for the second quarter of 2013, down 16.91 percent.
The decrease was primarily due to lower margins in the Joffre Olefins and Corunna Olefins segments, partially offset by higher margins in the Polyethylene segment, Nova said.
Revenues also slipped to $1,290 in the quarter under review from $1,370 in the corresponding quarter of 2013.
Operating profit in the Olefins & Polyolefins segments too declined to $275 million in second quarter of 2014 from $328 million in second quarter of 2013. Nova attributed the decrease to lower margins in the Joffre Olefins and Corunna Olefins segments.
The Performance Styrenics segment at Nova Chemical generated break even operating profit during the second quarter of 2014. Higher polymer sales prices in the second quarter of 2014 were offset by higher feedstock costs and lower product sales volumes.
In June 2014, Nova began to utilize ethane supplied from natural gas associated with oil production from Bakken Shale.
This new feedstock source, together with its current ethane supply portfolio and those currently in development, should enable Nova to run its existing polyethylene plants at full capacity, as well as support our PE1 Expansion project in Joffre and position it for other potential growth opportunities.
