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TURNAROUND IN CHEMICALS EARNINGS DELIVERS IMPROVED NOVA 1992 RESULTS

 CALGARY, Alberta, Jan. 28 /PRNewswire/ -- A substantial turnaround in chemicals earnings delivered significant gains in net income for NOVA Corporation of Alberta (NYSE: NVA; Toronto, Montreal, Calgary: NVA) in 1992. Earnings from chemicals operations were improved by $110 million over 1991 results (before restructuring charge). Lower operating, depreciation and interest expenses, together with higher sales volumes and a decrease in the value of the Canadian dollar, contributed to the improved performance.
 NOVA's net income for the year ended Dec. 31, 1992, was $164 million ($0.39 per common share), compared with a net loss of $923 million ($2.99 per common share) in 1991. The after-tax losses in 1991 included $294 million resulting from the sale of NOVA's interest in Husky Oil Ltd. and $675 million related to corporate reorganization and asset writedowns.
 NOVA's president and chief executive officer J.E. (Ted) Newall said: "1992 was a year of significant progress. What pleases me particularly was that these results weren't handed to us by the marketplace. We created the chemicals turnaround ourselves. We also greatly increased the rate base of our Alberta natural gas pipeline system. However, earnings from this business were only slightly higher than 1991 levels because of a reduction in our regulated rate of return."
 Unaudited fourth quarter net income for 1992 was $53 million, or $0.12 per common share. In the fourth quarter of 1991, the company recorded a net loss of $673 million ($2.07 per common share).
 NOVA CORPORATION OF ALBERTA
 (Unaudited)
 (Millions of dollars, except per share data)
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Net income from continuing
 operations (a) $53 $7 $164 $46
 Restructuring charge --- (675) --- (675)
 Discontinued operations --- (5) --- (294)
 Net income (loss) $53 ($673) $164 ($923)
 Net income (loss) to
 common shareholders $50 ($676) $152 ($937)
 Net income (loss) from
 continuing operations
 per share $0.12 ($2.06) $0.39 ($2.05)
 Net income (loss)
 per share $0.12 ($2.07) $0.39 ($2.99)
 Revenue $795 $735 $3,027 $3,074
 (a) Before restructuring charge.
 Supplementary Information
 Alberta Gas Transmission Division (AGTD)
 AGTD's regulated return on common equity for 1992 was lowered to 12.5 percent from 13.75 percent in 1991. This reduction reflected a drop in long-term interest rates.
 Steady growth in pipeline net income is expected in 1993 and for several years thereafter. This growth is predicated on planned average annual capital expenditures of about $500 million per year through 1995. System growth is in response to growing demand for Alberta natural gas.
 The Canadian Association of Petroleum Producers has requested that the Alberta Public Utilities Board review AGTD's rate of return and capital structure for 1993. This request follows a similar review completed in the fall of 1992. The results of this year's review will apply to the full calendar year. The regulators' decision is expected in the fall of 1993. NOVA is confident that any changes will be equitable and well-balanced for all concerned, including investors in NOVA's bonds and equity.
 Novacor Chemicals Ltd.
 Several low-capital-cost, high-return expansion projects were initiated in the fall of 1992, which put these businesses back on a growth track.
 Chemicals and plastics markets remained weak in 1992 and prices were lower than in 1991. Chemicals market conditions are expected to improve gradually in 1993 and 1994.
 Novacorp International Consulting Inc.
 In December 1992 NOVA announced that a consortium in which NOVA is a partner had acquired a 16.2 percent interest in Gas Invest S.A. This company owns 70 percent of the northern leg of Argentina's natural gas pipeline system. This pipeline has significant growth potential. NOVA's investment is approximately $50 million. A subsidiary of Novacorp International will be the operator of the pipeline system.
 Dividend Information
 On Dec. 11, 1992, NOVA's board of directors declared a quarterly dividend of $0.06 per common share, payable Feb. 15, 1993, to shareholders of record at the close of business Jan. 29, 1993.
 NOVA CORPORATION OF ALBERTA
 Financial Highlights
 (Unaudited)
 (Millions of dollars, except per share data)
 Condensed Consolidated Statement of Income
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Revenue $795 $735 $3,027 $3,074
 Operating expenses (572) (571) (2,202) (2,380)
 Depreciation (76) (78) (289) (300)
 Operating income 147 86 536 394
 Interest expense (75) (87) (330) (341)
 Allowance for funds used
 during construction 4 4 17 23
 Equity in earnings of
 affiliates 11 10 39 33
 Loss on investments --- --- --- (8)
 General and corporate (5) (9) (48) (58)
 Income taxes (29) 3 (50) 3
 Net income from continuing
 operations before
 restructuring charge 53 7 164 46
 Restructuring charge
 (net of tax of
 $75 million) --- (675) --- (675)
 Net income (loss) from
 continuing operations 53 (668) 164 (629)
 Discontinued operation
 - Husky Oil Ltd. --- (5) --- (294)
 Net income (loss) 53 (673) 164 (923)
 Preferred share dividends (3) (3) (12) (14)
 Net income (loss) to common
 shareholders $50 ($676) $152 ($937)
 Average number of common
 shares outstanding
 (millions) 406 326 388 313
 Net income (loss) from
 continuing operations
 per common share $0.12 ($2.06) $0.39 ($2.05)
 Net income (loss) per
 common share $0.12 ($2.07) $0.39 ($2.99)
 Condensed Consolidated Balance Sheet
 Dec. 31, Dec. 31,
 1992 1991
 Current assets $750 $676
 Investments and other assets 343 280
 Plant, property and equipment (net) 5,096 4,846
 Total assets $6,189 $5,802
 Current liabilities $841 $903
 Long-term debt
 -Cost-of-service 353 2,270
 -Non-cost-of-service 453 786
 Other deferred credits 188 142
 Preferred shares 182 189
 Convertible debentures and
 common shareholders' equity 2,172 1,512
 Total liabilities and
 shareholders' equity $6,189 $5,802
 Consolidated Statement of Cash Flows
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Operating Activities
 Net income (loss) from
 continuing operations $53 ($668) $164 ($629)
 Depreciation 76 78 289 300
 Deferred income taxes 25 (83) 34 (99)
 Equity in earnings of
 affiliates (11) (10) (39) (33)
 Loss on investments --- --- --- 8
 Non-cash items in
 restructuring charge --- 683 --- 683
 Other 3 1 3 (7)
 Funds from continuing
 operations 146 1 451 223
 Changes in non-cash
 working capital (29) 8 (22) 23
 Cash from continuing
 operations 117 9 429 246
 Cash used by discontinued
 operation --- (8) --- (35)
 Total 117 1 429 211
 Investing Activities
 Proceeds on sale of
 investments --- 325 --- 325
 Plant, property and
 equipment additions (161) (147) (530) (666)
 Other assets and long-term
 investments (40) 13 (19) 17
 Changes in non-cash
 working capital --- --- --- (3)
 Total (201) 191 (549) (327)
 Financing Activities
 Common shares issued 1 2 568 205
 Long-term debt additions 460 218 727 714
 Long-term debt repaid (352) (355) (1,010) (663)
 Preferred shares purchased
 for cancellation (3) (2) (7) (6)
 Dividends (28) (22) (107) (134)
 Changes in current
 bank loans 25 (48) (40) 20
 Changes in non-cash
 working capital (2) --- 4 (21)
 Total 101 (207) 135 115
 (Increase) decrease in cash 17 (15) 15 (1)
 Cash at beginning of period --- 17 2 3
 Cash at end of period $17 $2 $17 $2
 Consolidated Capitalization
 Dec. 31, Dec. 31,
 1992 1991
 Percent Percent
 Cost-of-Service
 Long-term debt (a) $2,425 63 $2,347 65
 Preferred shares 182 5 89 3
 Common equity 1,265 32 1,150 32
 Total $3,872 --- $3,586 ---
 Non-Cost-of-Service
 Long-term debt $462 34 $815 64
 Preferred shares --- --- 100 8
 Common Equity (b) 907 66 362 28
 Total $1,369 --- $1,277 ---
 (a) Includes current portion.
 (b) Includes convertible debentures.
 Segmented Information
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Revenue
 Pipelines $220 $221 $877 $821
 Chemicals 575 514 2,150 2,253
 Total $795 $735 $3,027 $3,074
 Cost-of-service $300 $306 $1,198 $1,163
 Non-cost-of-service 495 429 1,829 1,911
 Total $795 $735 $3,027 $3,074
 Operating income (loss)
 Pipelines $111 $102 $406 $365
 Chemicals 36 (16) 130 29
 Total $147 $86 $536 $394
 Capital Expenditures
 Pipelines $128 $115 $451 $555
 Chemicals 33 32 79 111
 Total $161 $147 $530 $666
 Contribution to Net Income from Continuing
 Operations before Restructuring Charge
 Three Months Ended Year Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Cost-of-Service
 Operating income $129 $123 $488 $455
 Interest expense (58) (59) (232) (224)
 Allowance for funds used
 during construction 4 4 17 23
 Equity in earnings of
 affiliates 9 9 32 33
 Income taxes (28) (24) (89) (78)
 Total 56 53 216 209
 Non-Cost-of-Service
 Operating income (loss) 18 (37) 48 (61)
 Interest expense (a) (17) (28) (98) (117)
 Equity in earnings of
 affiliates 2 1 7 ---
 Loss on investment --- --- --- (8)
 General and corporate (5) (9) (48) (58)
 Income taxes (1) 27 39 81
 Total (3) (46) (52) (163)
 Net income from continuing
 operations before
 restructuring charge $53 $7 $164 $46
 Pipelines $45 $43 $167 $160
 Chemicals 9 (30) 2 (108)
 Corporate and other (1) (6) (5) (6)
 Total $53 $7 $164 $46
 (a) Includes interest on convertible debentures and short-term bank loans.
 -0- 1/28/93
 /CONTACT: Bill Rowe, Investor Relations, 403-290-7807, or Sheila O'Brien, Public Affairs, 403-290-7503, both of NOVA Corp./
 (NVA.)


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

JB -- LA043 -- 0545 01/28/93 19:18 EST
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