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NOVA CHIEF EXECUTIVE OFFICER CREDITS COST-CUTTING AND PRODUCTIVITY GAINS FOR IMPROVED 1992 PERFORMANCE

 Ted Newall Defends Canada/U.S. Trade
 Agreement and Transportation Deregulation
 CALGARY, Alberta, April 23 /PRNewswire/ -- In an address at the annual meeting of NOVA Corporation of Alberta, President and Chief Executive Officer J.E. (Ted) Newall pointed to cost-cutting as a major factor in NOVA's improved financial results in 1992. Last year, NOVA increased its net income to $164 million, compared with net income of $46 million in 1991. After a restructuring charge and a loss on discontinued operation, NOVA recorded a net loss of $923 million in 1991.
 "Two-thirds of the $170 million gain in last year's pre-tax earnings came from reducing costs and increasing productivity in chemicals," said Newall. He also pointed to productivity gains within NOVA's Alberta Gas Transmission Division. "The combination of improved productivity and increased volumes has allowed us to hold the cost of transporting gas to between 25 and 26 cents per thousand cubic feet for three years in a row."
 Shareholders also heard Newall comment on four fundamental principles which will drive NOVA's continued progress:
 Exceeding Customer Expectations:
 "In the late 1950s, management educator Peter Drucker observed that the only valid purpose for any business is to create satisfied customers. Today, each of NOVA's businesses is strengthening its focus on customer needs. We are determined to continuously exceed customer expectations."
 Outstanding Leadership of NOVA's Employees:
 "The surest route to pace-setting customer satisfaction is through outstanding leadership of our NOVA team of employees. Well- trained, well-led, highly motivated, turned-on employees are a must if we are to deliver exceptional results to our customers."
 Low-Cost Excellence:
 "Our pipeline customers have told us they need additional capacity. At the same time, they continue to emphasize that we must do everything we can to reduce our costs to maximize their wellhead net-backs. Our pipeline's commitment to cost reduction and productivity is undiminished."
 Concentrating Business Resources:
 "We will increasingly concentrate our resources on the businesses where we can deliver results comparable to the best in North America. In some areas, we know that our expertise is world-class. In 1992, this led us into two attractive international initiatives: an engineering joint venture in Malaysia and an interest in a major gas pipeline in Argentina."
 Newall noted that the pursuit of these four principles will help NOVA achieve one of its most critical objectives -- to deliver well- above-average gains, both near and long term, for its shareholders.
 Near-Term Business Outlook
 Newall went on to characterize the near-term business outlook for petrochemicals and plastics as "very difficult." He said that NOVA remains hopeful that markets will continue to improve slowly through the balance of 1993, with much better conditions emerging in 1994 and 1995. He noted that the Alberta pipeline system is again setting record deliveries -- up 12 percent over 1992 average-day deliveries to date.
 Newall Defends Free Trade and Transportation Deregulation
 Newall also commented briefly on the Canada/U.S. Free Trade Agreement (FTA) and transportation deregulation. "Transportation deregulation is making a very important contribution to the success of Canadian-based manufacturing businesses," said Newall. "The Free Trade Agreement is critically important to each of NOVA's Canadian facilities. It's not an overstatement to say that any action which threatens to undo either the FTA or deregulation threatens future investment in Canada.
 "Free trade and deregulation deserve wholehearted support from each of us," Newall added. "The critics of free trade and the critics of deregulation put forward no viable or sensible alternatives. To retreat to previous practice would be a big setback for Alberta and for Canada."
 -0- 4/23/93
 /CONTACT: J.E. (Ted) Newall, president and CEO, 403-290-7777; or Jeff Flood, 403-290-7657, both of NOVA/
 (NVA.)


CO: NOVA Corporation of Alberta ST: Alberta IN: OIL SU:

JB -- LA017 -- 0125 04/23/93 13:53 EDT
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Publication:PR Newswire
Date:Apr 23, 1993
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