Dow Chemical will receive a larger-than-expected cash boost in 2025 from damages awarded in a long-running legal dispute with Nova Chemical over the two companies' joint venture ethylene cracker in Joffre, Alberta, Canada.
"We're extremely confident that the total amount significantly surpasses our prior expectations of approximately $500 million," Chief Financial Officer Jeff Tate said at the J.P. Morgan industrials conference, citing a recently received draft decision. "We expect a public decision to be released in the coming weeks."
Dow has been awaiting a ruling on damages related to lost ethylene production during 2013-2018, according to its 2024 annual report.
In 2018, a Canadian court ruled that Nova failed to operate the Joffre cracker at full capacity for more than 10 years and violated several contractual agreements related to Dow receiving its share of the ethylene produced.
Dow has filed another lawsuit in the same Alberta court to account for damages due to lost ethylene after June 2018.
A previous judgment in 2019 awarded Dow around $1.08 billion for lost ethylene supply in the period through 2012.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
--Reporting by David Barry, dbarry@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
March 13, 2025 11:43 ET (15:43 GMT)
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