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NOVA CORP. OF ALBERTA ANNOUNCES RESULTS

 NOVA CORP. OF ALBERTA ANNOUNCES RESULTS
 CALGARY, Alberta, April 16 /PRNewswire/ -- Cost savings from


restructuring actions, lower feedstock costs and higher sales volumes for some chemicals, and increased earnings from pipeline operations, led to increased net earnings for NOVA Corp. of Alberta (NYSE: NVA, Toronto, Montreal: NVA) in the first quarter of 1992 compared with the fourth quarter of 1991.
 For the three months ended March 31, 1992, unaudited consolidated net income was $32 million or 8 cents per common share, compared with net income from continuing operations before restructuring charge of $7 million or 1 cent per common share in the fourth quarter of 1991. Net income from continuing operations in the first quarter of 1991 was $38 million or 12 cents per common share.
 During the first quarter, NOVA generated funds from operations of $89 million, compared with $68 million from continuing operations before restructuring charge in the fourth quarter and $107 million from continuing operations in the first quarter of 1991. The portion of these funds generated by the chemicals businesses was more than sufficient to finance their operations and capital spending program.
 NOVA President J. E. Newall said one of NOVA's critical objectives for 1992 is to see its core chemicals businesses pay their own capital expenditures and financing costs while delivering cash flow break-even performance.
 "I'm pleased to note that these businesses met that objective in the first quarter, despite the fact that chemicals prices remain severely depressed by a cyclical industry-wide downturn," Newall said.
 On Feb. 28, 1992, the NOVA board of directors declared a quarterly dividend of 6 cents per common share, payable May 15, 1992, to shareholders of record at the close of business on April 24, 1992.
 Newall said the first quarter results show that a number of major steps taken over the past few months to strengthen NOVA and its core businesses are having a positive effect.
 NOVA is a widely held company operating internationally from headquarters in Calgary. NOVA builds its future on pipelines, and the manufacturing and marketing of chemicals produced primarily from Alberta natural resources.
 NOVA CORP. OF ALBERTA
 Financial Highlights
 (Unaudited)
 (Millions of dollars, except per share data)
 Condensed Consolidated Statement of Income
 Three Months Ended
 March 31,
 1992 1991
 Revenue $746 $849
 Operating expenses (552) (636)
 Depreciation (71) (73)
 Operating Income 123 140
 Interest expense (90) (81)
 Allowance for funds used
 during construction 4 4
 Equity in earnings of affiliates 10 8
 General and corporate (12) (18)
 Income taxes (3) (15)
 Net income from
 continuing operations 32 38
 Discontinued operation - Husky --- (12)
 Net income $32 $26
 Preferred share dividends $3 $3
 Average number of common shares
 outstanding (millions) 349 300
 Net income from continuing
 operations per common share $0.08 $0.12
 Net income per common share $0.08 $0.08
 Condensed Consolidated Balance Sheet
 March 31, Dec. 31,
 1992 1991
 Current assets $685 $676
 Investments and other assets 282 280
 Plant, property and equipment
 (net) 4,916 4,846
 Total assets $5,883 $5,802
 Current liabilities $878 $903
 Long-term debt
 -- cost-of-service 2,130 2,270
 -- non-cost-of-service 792 786
 Other deferred credits 124 142
 Preferred shares 187 189
 Convertible debentures and
 common shareholders' equity 1,772 1,512
 Total liabilities and
 shareholders' equity $5,883 $5,802
 Consolidated Statement of Cash Flows
 Three Months Ended
 March 31,
 1992 1991
 Operating Activities
 Net income from continuing
 operations $32 $38
 Depreciation 71 73
 Deferred income taxes --- 8
 Equity in earnings of affiliates (10) (8)
 Other (4) (4)
 Funds from continuing operations 89 107
 Changes in non-cash working capital (17) (53)
 Cash from continuing operations 72 54
 Cash used by discontinued operation --- (10)
 Total 72 44
 Investing Activities
 Plant, property and
 equipment additions (146) (209)
 Other assets and
 long-term investments --- (4)
 Changes in non-cash working capital --- (4)
 Total (146) (217)
 Financing Activities
 Common shares issued 241 2
 Long-term debt additions 119 176
 Long-term debt repaid (246) (36)
 Preferred shares purchased for
 cancellation (2) (3)
 Dividends (25) (43)
 Changes in current bank loans (8) 96
 Changes in non-cash working capital 2 (1)
 Total 81 191
 Increase in cash 7 18
 Cash at beginning of period 2 3
 Cash at end of period $9 $21
 Segmented Information
 Three Months Ended
 March 31,
 1992 1991
 Revenue
 Chemicals $527 $659
 Pipelines 219 190
 Total $746 $849
 Cost-of-service $326 $274
 Non-cost-of-service 420 575
 Total $746 $849
 Operating Income
 Chemicals $18 $56
 Pipelines 105 84
 Total $123 $140
 Capital Expenditures
 Chemicals $12 $24
 Pipelines 134 185
 Total $146 $209
 Contribution to Net Income from Continuing Operations
 Cost-of-service
 Operating income $125 $107
 Interest expense (55) (55)
 Allowance for funds used
 during construction 4 4
 Equity in earnings of affiliates 8 8
 Income taxes (23) (15)
 Total 59 49
 Non-cost-of-service
 Operating income (loss) (2) 33
 Interest expense (35) (26)
 Equity in earnings of affiliates 2 ---
 General and corporate (12) (18)
 Income taxes 20 ---
 Total (27) (11)
 Net Income from
 Continuing operations $32 $38
 Consolidated Capitalization
 March 31, Dec. 31,
 1992(a) 1991
 Pct. Pct.
 Cost-of-service(a)
 Long-term debt(b) $2,206 60 $2,347 65
 Preferred shares 187 5 89 3
 Common equity 1,306 35 1,150 32
 Total $3,699 --- $3,586 ---
 Non-cost-of-service(a)
 Long-term debt(b) $831 64 $815 64
 Preferred shares --- --- 100 8
 Common equity 467 36 362 28
 Total $1,298 --- $1,277 ---
 Total
 Long-term debt(b) $3,037 61 $3,162 65
 Preferred shares 187 4 189 4
 Common equity (c) 1,773 35 1,512 31
 Total $4,997 --- $4,863 ---
 Notes:
 (a) March 31, 1992, figures reflect changes in the deemed capital structure of NOVA's Alberta Gas Transmission Division which became effective Jan. 1, 1992. The deemed common equity component was increased to 35 percent from 32 percent and the preferred share component was increased by $100 million, thereby increasing the long- term debt for non-cost-of-service activities by approximately $200 million. The Public Utilities Board (PUB) is reviewing these changes and may decide to make further revisions which could affect the amount of non-cost-of-service long-term debt and equity recorded by NOVA. A decision is expected in the fall.
 (b) Includes current portion.
 (c) Includes NOVA's $150 million convertible debentures.
 -0- 4/16/92
 /CONTACT: A.T. Poole, 403-290-7714 or C.A. Read, 403-290-7807, both of NOVA/
 (NVA) CO: NOVA Corp. of Alberta ST: Alberta IN: OIL SU: ERN


EH -- LA047 -- 9609 04/16/92 20:42 EDT
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