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NOVA CORPORATION OF ALBERTA REPORTS SIX MONTHS RESULTS

 NOVA CORPORATION OF ALBERTA REPORTS SIX MONTHS RESULTS
 CALGARY, Alberta, July 30 /PRNewswire/ -- Net income of NOVA Corporation of Alberta (NYSE: NVA, Toronto, Montreal: NVA) more than doubled in the first half of 1992 compared with net income from continuing operations in the first half of 1991. Unaudited consolidated net income for the six months ended June 30, 1992, was $73 million or 18 cents per common share, compared with net income from continuing operations of $32 million or 8 cents per share for the same period last year. Net income after losses from discontinued operations was $8 million for the six months ended June 30, 1991.
 For the second quarter of 1992 net income was $41 million or 10 cents per share. This compares with a loss from continuing operations of $6 million or 4 cents per share and a net loss of $18 million or 8 cents per share including discontinued operations in the second quarter of 1991.
 The improved results from continuing businesses in the second quarter were primarily due to cost savings delivered by the restructuring program initiated in late 1991 and rate base growth from the expansion of the Alberta natural gas pipeline system. Improved sales volumes and productivity in chemicals and lower non-cost-of-service interest expense also contributed to the significant gains over last year's second quarter. The chemicals business met its key objective of delivering positive cash flow after funding its capital expenditures and financing costs despite continuing industrywide depressed prices for most products. Recently the combination of increased raw material costs and high operating rates have led to some firming in industry prices for certain chemicals.
 On June 26, 1992, the NOVA board of directors declared a quarterly dividend of 6 cents per common share payable Aug. 15, 1992, to shareholders of record at the close of business on July 31, 1992.
 NOVA is a widely held company operating internationally from headquarters in Calgary. NOVA builds its future on pipelines, and manufacturing and marketing of chemicals produced primarily from Alberta natural resources.
 NOVA CORPORATION OF ALBERTA
 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,
 1992 1991 1992 1991
 Revenue DLRS 750 778 1,496 1,627
 Operating expenses (537) (631) (1,089) (1,267)
 Depreciation (70) (72) (141) (145)
 Operating income 143 75 266 215
 Interest expense (85) (91) (175) (172)
 Allowance for funds used
 during construction 5 8 9 12
 Equity in earnings of 8 8 18 16
 affiliates
 General and corporate (17) (17) (29) (35)
 Income taxes (13) 11 (16) (4)
 Net income from continuing
 operations 41 (6) 73 32
 Discontinued operation - --- (12) --- (24)
 Husky
 Net income (loss) DLRS 41 (18) 73 8
 Preferred share DLRS 3 4 6 7
 dividends
 Average number of common
 shares outstanding
 (millions) 391 300 370 300
 Net income (loss) from
 continuing operations
 per common share DLRS 0.10 (0.04) 0.18 0.08
 Net income (loss) per
 common share DLRS 0.10 (0.08) 0.18 0.00
 Condensed Consolidated
 Balance Sheet
 June 30, Dec. 31,
 1992 1991
 Current assets DLRS 715 676
 Investments and other 282 280
 assets
 Plant, property and equipment (net) 4,958 4,846
 Total assets DLRS 5,955 5,802
 Current liabilities DLRS 849 903
 Long-term debt
 - cost-of-service 2,157 2,270
 - non-cost-of-service 507 786
 Other deferred credits 137 142
 Preferred shares 186 189
 Convertible debentures and
 common shareholders' equity 2,119 1,512
 Total liabilities and
 shareholders' equity DLRS 5,955 5,802
 Consolidated Statement of
 Cash Flows
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Operating Activities
 Net income (loss) from
 continuing
 operations DLRS 41 (6) 73 32
 Depreciation 70 72 141 145
 Deferred income taxes 9 (20) 9 (12)
 Equity in earnings of (8) (8) (18) (16)
 affiliates
 Other 9 4 5 ---
 Funds from continuing 121 42 210 149
 operations
 Changes in non-cash working 11 43 (6) (10)
 capital
 Cash from continuing 132 85 204 139
 operations
 Cash used by discontinued --- (6) --- (16)
 operation
 Total 132 79 204 123
 Investing Activities
 Plant, property and (112) (179) (258) (388)
 equipment additions
 Other assets and long-term 7 5 7 1
 investments
 Changes in non-cash working --- 1 --- (3)
 capital
 Total (105) (173) (251) (390)
 Financing Activities
 Common shares issued 325 2 566 4
 Long-term debt additions 48 140 167 316
 Long-term debt repaid (337) (11) (583) (47)
 Preferred shares purchased (1) - (3) (3)
 for cancellation
 Dividends (27) (42) (52) (85)
 Changes in current bank (41) (1) (49) 95
 loans
 Changes in non-cash working 3 (1) 5 (2)
 capital
 Total (30) 87 51 278
 Increase (decrease) in cash (3) (7) 4 11
 Cash at beginning of period 9 21 2 3
 Cash at end of period DLRS 6 14 6 14
 Segmented Information
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Revenue
 Pipelines DLRS 235 204 454 394
 Chemicals 515 574 1,042 1,233
 Total DLRS 750 778 1,496 1,627
 Cost-of-service DLRS 320 291 617 565
 Non-cost-of-service 430 487 879 1,062
 Total DLRS 750 778 1,496 1,627
 Operating income (loss)
 Pipelines DLRS 108 87 213 171
 Chemicals 35 (12) 53 44
 Total DLRS 143 75 266 215
 Capital Expenditures
 Pipelines DLRS 97 148 231 333
 Chemicals 15 31 27 55
 Total DLRS 112 179 258 388
 Contribution to Net
 Income from Continuing
 Operations
 Three Months Ended Six Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 Cost-of-Service
 Operating income DLRS 133 110 258 217
 Interest expense (59) (55) (114) (110)
 Allowance for funds 5 8 9 12
 used during
 construction
 Equity in earnings of 7 8 15 16
 affiliates
 Income taxes (26) (18) (49) (33)
 Total 60 53 119 102
 Non-Cost-of-Service
 Operating income (loss) 10 (35) 8 (2)
 Interest expense (26) (36) (61) (62)
 Equity in earnings of 1 --- 3 ---
 affiliates
 General and corporate (17) (17) (29) (35)
 Income taxes 13 29 33 29
 Total (19) (59) (46) (70)
 Net income (loss) from
 continuing operations DLRS 41 (6) 73 32
 Consolidated Capitalization
 June 30, Dec. 31,
 1992(a) Percent 1991 Percent
 Cost-of-Service(a)
 Long-term debt(b) DLRS 2,233 60 2,347 65
 Preferred shares 186 5 89 3
 Common equity 1,321 35 1,150 32
 Total DLRS 3,740 3,586
 Non-Cost-of-Service(a)
 Long-term debt(b) DLRS 520 39 815 64
 Preferred shares --- --- 100 8
 Common equity 798 61 362 28
 Total DLRS 1,318 1,277
 Total
 Long-term debt(b) DLRS 2,753 54 3,162 65
 Preferred shares 186 4 189 4
 Common equity(c) 2,119 42 1,512 31
 Total DLRS 5,058 4,863
 Notes:
 (a) June 30, 1992, figures reflect changes in the deemed capital structure of NOVA's Alberta Gas Transmission Division which has the effect of increasing non-cost-of-service long-term debt by approximately $200 million. As a result of the Alberta Public Utilities Board's review of these changes, the allocation of debt and equity between cost-of-service and non-cost-of-service may change.
 (b) Includes current portion.
 (c) Includes NOVA's $150 million convertible debentures.
 -0- 7/30/92
 /CONTACT: C.A. Read (investors), 403-290-7807, or S. O'Brien (public affairs), 403-290-7503, both of NOVA/
 (NVA) CO: NOVA Corporation of Alberta ST: Alberta IN: OIL SU: ERN


AL -- LA029 -- 5380 07/30/92 18:39 EDT
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