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NOVA ANNOUNCES SECOND QUARTER 1993 RESULTS

 CALGARY, Alberta, July 29 /PRNewswire/ -- NOVA Corp. of Alberta had net income of $72 million (17 cents per common share) in the second quarter of 1993 compared with $37 million (9 cents per common share) in the second quarter of 1992.
 During the second quarter of 1993 NOVA sold its 31.7 percent interest in Grove Italia S.p.A., a valve manufacturer in Italy. A gain of $25 million (6 cents per common share) was recorded on the disposal of this investment.
 Excluding this gain, net income in the second quarter of 1993 was $10 million higher than for the same quarter last year because of improved pipelines and chemicals earnings. Pipelines earnings have increased as a result of the continuing expansion of the Alberta natural gas pipeline system and earnings from joint ventures in Argentina and Malaysia. Chemicals earnings have improved primarily because of a reduction in debt levels.
 Chemicals margins remain depressed because of low levels of capacity utilization in the industry worldwide. Market conditions are not expected to improve significantly before some time in 1994 at the earliest.
 NOVA CORP.
 Financial Highlights
 (millions of dollars, except per share data)
 (unaudited)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Revenue $820 $741 $1,620 $1,477
 Net income $72 $37 $122 $64
 Net income to common
 shareholders $70 $34 $117 $58
 Funds from operations $116 $112 $250 $191
 Capital expenditures $138 $112 $298 $258
 Net income per common
 share $0.17 $0.09 $0.29 $0.16
 NOVA CORP.
 Financial Highlights
 (unaudited)
 (millions of dollars, except per share data)
 Condensed Consolidated Statement of Income
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Revenue $820 $741 $1,620 $1,477
 Operating expenses (616) (537) (1,200) (1,089)
 Depreciation (81) (70) (161) (141)
 Operating Income 123 134 259 247
 Interest expense (80) (85) (157) (175)
 Allowance for funds used
 during construction 4 5 7 9
 Equity in earnings of
 affiliates 10 8 21 18
 Gain on investments 25 --- 25 ---
 General and corporate (3) (17) (12) (29)
 Income taxes (7) (8) (21) (6)
 Net income 72 37 122 64
 Preferred share dividend (2) (3) (5) (6)
 Net income to common
 shareholders $70 $34 $117 $58
 Average number of common
 shares outstanding
 (millions) 407 391 407 370
 Net income per common
 share $0.17 $0.09 $0.29 $0.16
 NOVA CORP.
 Condensed Consolidated Balance Sheet
 June 30, Dec. 31,
 1993 1992
 Current assets $732 $750
 Investment and other assets 343 343
 Plant, property and equipment (net) 5,267 5,096
 Total Assets $6,342 $6,189
 Current Liabilities $809 $841
 Long-term debt
 Cost-of-service 2,428 2,353
 Non-cost-of-service 472 453
 Other deferred credits 203 188
 Preferred shares 179 182
 Convertible debentures and common
 shareholders' equity 2,251 2,172
 Total liabilities and shareholders'
 equity $6,342 $6,189
 NOVA CORP.
 Consolidated Statement of Cash Flows
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Operating Activities
 Net income $72 $37 $122 $64
 Depreciation 81 70 16 141
 Deferred income taxes 3 4 14 (1)
 Equity in earnings of
 affiliates (10) (8) (21) (18)
 Gain on investments (25) --- (25) ---
 Others (5) 9 (1) 5
 Funds from operations 116 112 250 191
 Changes in non-cash
 working capital (14) 20 (25) 13
 Total 102 132 225 204
 Investing Activities
 Plant, property and
 equipment additions (138) (112) (298) (258)
 Other assets and long-term
 investments (10) (3) (12) (6)
 Cash received from long-term
 investments 11 10 20 13
 Sale of investments 25 --- 25 ---
 (112) (105) (265) (251)
 Financing Activities
 Common shares issued 5 325 8 566
 Long-term debt additions 111 48 261 167
 Long-term debt repaid (80) (337) (158) (583)
 Preferred shares purchased
 for cancellation (2) (1) (3) (3)
 Dividends (27) (27) (55) (52)
 Changes in current bank
 loans 3 (41) (26) (49)
 Changes in non-cash
 working capital --- 3 --- 5
 Total 10 (30) 27 51
 Increase (decrease) in cash --- (3) (13) 4
 Cash at beginning of period 4 9 17 2
 Cash at End of Period $4 $6 $4 $6
 NOVA CORP.
 Consolidated Capitalization
 June 30, Percent Dec. 31, Percent
 1993 1992
 Cost-of-service
 Long-term debt $2,504 63 $2,425 63
 Preferred shares 179 4 182 5
 Common equity 1,326 33 $1,265 32
 Total $4,009 $3,872
 Non-cost-of-service
 Long-term debt(a) $475 34 $462 34
 Common equity(b) 925 66 907 66
 $1,400 $1,369
 (a) Includes current portion.
 (b) Includes NOVA's $150 million convertible debentures.
 NOVA CORP.
 Segmented Information
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Revenue
 Pipelines $252 $227 $495 $436
 Chemicals 568 514 1,125 1,041
 Total $820 $741 $1,620 $1,477
 Cost-of-service $317 $310 $639 $598
 Non-cost-of-service 503 431 981 879
 Total $820 $741 $1,620 $1,477
 Operating Income
 Pipelines $105 $99 $214 $194
 Chemicals 18 35 45 53
 Total $123 $134 $259 $247
 Capital Expenditures
 Pipelines $95 $97 $237 $231
 Chemicals 43 15 61 27
 Total $138 $112 $298 $258
 NOVA CORP.
 Contribution to Net Income
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Cost-of-service
 Operating income $120 $124 $243 $239
 Interest expense (56) (61) (114) (116)
 Allowance for funds used
 during construction 4 5 7 9
 Equity in earnings of
 affiliates 7 7 14 15
 Income taxes (19) (21) (39) (39)
 Total 56 54 111 108
 Non-cost-of-service
 Operating income 3 10 16 8
 Interest expense (24) (24) (43) (59)
 Equity in earnings of
 affiliates 3 1 7 3
 Gain on investments 25 --- 25 ---
 General and corporate (3) (17) (12) (29)
 Income taxes 12 13 18 33
 Total 16 (17) 11 (44)
 Net Income $72 $37 $122 $64
 Pipelines $46 $40 $89 $80
 Chemicals 3 --- 9 (12)
 Corporate and other 23 (3) 24 (4)
 Net Income $72 $37 $122 $64
 -0- 7/29/93
 /CONTACT: Pat Jewison, financial reporting, 403-290-8979, or Jeff Flood, public affairs, 403-290-7657, both of NOVA/


CO: NOVA Corp. of Alberta ST: Alberta IN: OIL SU: ERN

LM-LS -- LA043 -- 7504 07/29/93 18:15 EDT
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Date:Jul 29, 1993
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