Borden Chemicals And Plastics declares 10-cent per unit distribution, posts 16-cent per unit net loss for first quarter.

COLUMBUS, Ohio--(BUSINESS WIRE)--April 23, 1996--Borden Chemicals and Plastics Limited Partnership (NYSE: BCU), a leading producer of polyvinyl chloride (PVC) resins, methanol and derivatives, and nitrogen products, today announced a cash distribution of 10 cents per unit for its first quarter ended March 31, 1996, despite a net loss of 16 cents per unit for the period.

This compares with a distribution of $1.77 per unit and earnings of $2.25 per unit for the first quarter of 1995. The quarterly cash distribution is based on available cash generated during the quarter and differs from net income primarily because of depreciation (a non-cash reduction in income.)

The partnership reported revenues for the first quarter of $170.6 million, compared to $214.8 million for the same period in 1995. The decrease in total sales dollars reflects significantly lower selling prices for PVC resins and methanol when compared with the year-ago period. Sales volumes were comparable to last year's levels, excluding the effects of the Addis plant acquired in May 1995.

The distribution was declared at a meeting of the board of directors of BCP Management, Inc., the general partner, and is payable May 15 to unitholders of record May 3. The ex-dividend date is May 1.

"As previously anticipated, this was a difficult quarter in which we were hit by much higher costs for natural gas, yet we and the industry were largely unsuccessful in recovering these costs through price increases on our products," said Joseph M. Saggese, chairman, president and chief executive officer. "In addition, the partnership experienced substantial curtailment of natural gas supplies during portions of February due to severe cold weather. The gas curtailment, coupled with weather-related operating problems, led to lost production and increased operating and maintenance costs."

Prices for natural gas, a key raw material and plant fuel for the partnership, continued to be substantially higher than year-ago levels due to high demand caused by the severe winter. Industry contract prices for natural gas at the Henry Huub contract settlement point averaged $2.92 per mm BTU for the first quarter, versus $1.49 per mm BTU for the year-ago period.

While demand for PVC resins was solid during the quarter, pricing continued to be well below the year-ago period and on average declined from the previous quarter. The industry contract price for commodity grade PVC resins averaged 28.5 cents per pound for the first quarter, versus 40 cents per pound for the same period in 1995, according to Chemical Marketing Association (CMAI) statistics.

Also during the period, the partnership completed an incremental expansion of its PVC resin manufacturing plant in Addis, La., increasing the facility's rated capacity 39 percent to 625 million pounds.

The ethylene-based vinyl chlorine monomer (VCM) unit at the Geismar, Louisiana, manufacturing complex was not operating or functioned at a reduced rate for about two weeks in March while repairs were made to its furnace tubes and condenser system. The partnership was able to purchase VCM to partially offset the short-term reduction in availability of this raw material.

Methanol contract selling prices averaged 40 cents per gallon for the quarter, significantly below the average contract price of $1.26 per gallon for the first quarter of 1995, according to Petrochemical Consultants International (PCI) statistics. Demand for methanol was steady with ample supply available in the marketplace, and pricing did improve somewhat compared to the previous quarter.

In nitrogen products, demand and pricing for ammonia and urea were steady during the quarter and comparable to the first quarter of 1995, despite drought in the western wheat belt and continued cold in the Midwest, which slowed plantings. These products are used primarily as agricultural fertilizers. "As we look ahead, we are hopeful that gas prices will moderate during the coming months and that PVC pricing will continue to improve, which would have a positive effect on our overall business," Saggese said.

Borden Chemicals and Plastics Limited Partnership manufactures PVC resins, methanol and derivatives and nitrogen products at facilities located in Geismar and Addis, Louisiana, and Illiopolis, Illinois. BCP Management, Inc., a wholly-owned subsidiary of Borden, Inc., holds a two percent interest and serves as general partner. Publicly traded units account for 98 percent ownership. -0-

          BORDEN CHEMICALS AND PLASTICS LIMITED PARTNERSHIP
                  (In millions, except per Unit data)
                             (Unaudited)

                                           Three Months Ended
                                                March 31,
                                          1996           1995
                                         ______         ______

  Revenues                                170.6          214.8
  Cost of goods sold                      164.8          108.5
                                         ______         ______

   Gross profit                             5.8          106.3

  MG&A expense                              6.5            5.6
  Interest expense                          5.4            4.1
  Incentive distribution
   to General Partner                       0.0           13.1
                                         ______         ______

   Net (loss) income                      ($6.1)         $83.5
                                         ______         ______
                                         ______         ______

  Per Unit Data:
   Net (loss) income                     ($0.16)         $2.25
                                         ______         ______
                                         ______         ______

   Cash distribution declared              $0.10         $1.77
                                         ______         ______
                                         ______         ______

   Average units                            36.8          36.8
                                         ______         ______
                                         ______         ______

          BORDEN CHEMICALS AND PLASTICS LIMITED PARTNERSHIP
                 (In millions, except per Unit data)
                            (Unaudited)

                                             Periods Ended March 31,
  Other Selected Financial Data               1996           1995
                                             ______         ______
  Net cash (used in) provided by
   operating activities                       ($9.0)         $81.1
  Depreciation                                $12.2          $11.2
  Capital expenditures                         $3.1           $2.9

                                            At 03/31,      At 12/31,
                                              1996           1995
                                             ______         ______

  Current assets                             $140.4         $170.0
  Property, plant and equipment, net         $345.5         $354.6
  Total partners capital                     $206.7         $216.5
  Long-term debt                             $200.0         $200.0

CONTACT: Borden Chemicals and Plastics Limited, Columbus

Peter F. Loscocco, 614/225-4482