OMV records higher result in second quarter 2024

• Clean CCS Operating Result of EUR 1.2 bn up by 4% driven by Chemicals and Fuels & Feedstock segments vs. Q2/2023
• Operating Cash Flow rises strongly to EUR 1.2 bn vs. Q2/2023
• Chemicals results positively impacted by inventory effects and a higher contribution from the Borealis joint ventures
• Fuels & Feedstock results driven by a higher refinery utilization rate in Europe, positive supply effects and lower utility expenses
• Energy results affected by lower contribution from gas and power business
• Transformation journey continues across all three business segments

OMV today announced its second quarter earnings in 2024¹ , with sales exceeding EUR 8.5 billion, a Clean CCS Operating Result of EUR 1.2 billion and a Clean CCS Net Income attributable to stockholders of EUR 494 million. The clean CCS Operating Result of Chemicals increased to EUR 114 million and in Fuels & Feedstock to EUR 308 million. The contribution of the Energy segment was lower at EUR 817 million. Cash flow from operating activities was strong at approximately EUR 1.2 billion in the second quarter. OMV’s balance sheet remained very solid, with net debt amounting to EUR 3.3 billion and a low leverage ratio of 12 percent at the end of June 2024. OMV had a cash position of EUR 5.4 billion and EUR 4.3 billion in undrawn committed credit facilities at the end of June 2024. 

Alfred Stern, Chairman of the Executive Board and CEO of OMV: “OMV has achieved solid results in the second quarter. All three business segments are delivering on the goals of our Strategy 2030. Chemicals and Fuels & Feedstock have benefited from improved earnings, while the Energy segment was influenced primarily by lower results in the gas and power business and legislative changes. OMV remains on track and keeps generating solid cashflows. Our financial strength is supporting the biggest transformation in the history of our company. We are charting a course to become an integrated sustainable chemicals, fuels and energy company.”

OMV’s Chemicals segment reported substantial growth in operating profit year-on-year due to positive inventory effects. Indicator margins for polyethylene and polypropylene increased mainly as a result of fewer imports following bottlenecks in the Red Sea and Panama Canal, and growing concerns about the security of supply. There was also a higher result contribution from the Borealis joint ventures. The main driver was Borouge, the joint venture of Borealis and ADNOC, which generated substantially higher sales volumes. 

The Fuels & Feedstock segment saw a notable increase in operating profit mainly driven by a higher refinery utilization rate in Europe, positive supply effects and lower utility expenses. Additionally, the higher contribution from fuel sales in Europe had a positive impact on the second quarter’s results. 

The profit in the Energy segment fell due to lower contribution from the Gas Marketing & Power business. Lower margins, primarily due to a change in legislation for the gas and power sector in Romania, which came into effect in April 2024, negatively impacted the result in the second quarter. A better result in OMV’s Exploration & Production business could only partially offset this effect.

Transformation Projects in Q2/2024 

Chemicals: 

Borealis announced the construction of a compounding line for recyclate-based polyolefins in Belgium. This semi-commercial demonstration compounding line for the processing of recycled polyolefins (rPO) will use Borcycle™ M technology to convert mechanically recycled post-consumer waste into high-quality polypropylene and polyethylene materials.
Another innovative project is the agreement between Borealis, Neste and Covestro to enable the recycling of discarded tires into high-quality plastics for automotive applications. The joint collaboration aims at driving circularity in plastics value chains and the automotive industry. 

Fuels & Feedstock: 

OMV successfully commissioned its co-processing plant at the Schwechat refinery in Austria. More than EUR 200 million were invested in the project. The plant will convert up to 160,000 metric tons of liquid biomass per year into high-quality renewable diesel blending components, which will also be used for the latest generation of OMV MaxxMotion diesel. Consequently, OMV’s carbon footprint will decrease by up to 360,000 metric tons of fossil CO2 per year. 
OMV Petrom announced investments of around EUR 750 million in the Petrobrazi refinery to become the first major producer of sustainable fuels in Southeast Europe. This includes the building of a plant to produce sustainable aviation fuel (SAF) and renewable diesel (HVO) as well as two plants for the production of green hydrogen. From 2028, OMV Petrom will be able to supply around 250,000 metric tons of sustainable fuels per year.

Energy: 

OMV was awarded a second Carbon Capture and Storage (CCS) license by the Norwegian Ministry of Energy. The license in partnership with Vår Energi (40 percent) and Lime Petroleum (30 percent) can store around 215 million metric tons of CO2, with the injection capacity expected to exceed 7.5 million metric tons of CO2 per year. 
OMV Petrom signed a new acquisition of photovoltaic projects in Romania. It is expanding its partnership with Renovatio by acquiring a 50 percent stake in 130 MW of renewable energy projects. This transaction increases the combined portfolio of both partners to over 1.1 GW.

Key Performance Indicators Q2/2024 vs. Q2/2023

Group:

• Sales of EUR 8,584 mn, down 4% 
• Clean CCS Operating Result of EUR 1,232 mn, up 4% 
• Clean CCS Net Income attributable to stockholders at EUR 494 mn, up 5% 
• Clean CCS Earnings per share of EUR 1.51, up 5% 
• Cash flow from operating activities of EUR 1,182 mn, +EUR 956 mn

Chemicals:

• Ethylene indicator margin Europe EUR 512/t, down 10% 
• Propylene indicator margin Europe EUR 397/t, down 13% 
• Polyethylene indicator margin Europe EUR 438/t, up 37% 
• Polypropylene indicator margin Europe EUR 405/t, up 9% 
• OMV steam crackers utilization rate 83%, unchanged
• Clean Operating Result EUR 114 mn, up EUR 107 mn

Fuels & Feedstock:

• OMV refining indicator margin Europe USD 7/bbl, down 8%
• OMV refinery utilization rate Europe 89%, up 16 percentage points 
• Fuels and other sales volumes Europe 4.19 mn t, up 4% 
• Clean CCS Operating Result EUR 308 mn, up 9% 

Energy:

• Average Brent price USD/bbl 84.97, up 9% 
• Average realized natural gas price EUR/MWh 23.24 down 19% 
• Hydrocarbon Production 338 kboe/d, down 4% 
• Production cost USD 10.12/boe, up 3% 
• Clean Operating Result EUR 817 mn, down 9% 

Outlook 2024 

• OMV Group Organic CAPEX remains around EUR 3.8 bn
• Average Brent price outlook to be maintained around USD 85/bbl
• OMV total hydrocarbon production forecast maintained at between 330 kboe/d and 350 kboe/d
• Average realized natural gas price around around EUR 25/MWh vs. previous forecast of around EUR 20–25/MWh, with THE price forecast of EUR 30-35/MWh vs. previous forecast of below EUR 30/MWh 
• OMV refining indicator margin Europe maintained at around USD 8/bbl
• Utilization rate of European refineries expected to be around 90% vs. previous forecast of around 95%
• Steam cracker utilization rate in Europe maintained at around 85%

Business Segment Quarterly Performance

Chemicals:

The clean CCS Operating Result increased substantially to EUR 114 million mainly due to a positive impact from inventory effects, and a better result from the Borealis joint venture Borouge. The Chemicals segment profited from an improved margin environment for polyolefins, higher sales volumes, and the absent negative contribution of the divested nitrogen business. A negative impact came from the less favorable market environment for olefins.

Fuels & Feedstock:

The clean CCS Operating Result increased to EUR 308 million, mainly as a result of the higher utilization rate at the European refineries, positive supply effects and lower utility expenses. This was partially offset by the significantly decreased contribution from ADNOC Refining, as well as lower commercial margins, decreased refining indicator margins and the missing contribution from the divested Slovenian retail and wholesale business.

Energy:

The clean CCS Operating Result declined to EUR 817 million, primarily due to a lower contribution from the Gas & Power business. An improved contribution of the Exploration & Production business could only partially offset this. Total hydrocarbon production volumes decreased to 338 kboe/d. This was mainly a consequence of lower production in New Zealand due to unplanned outages and lower well productivity, as well as natural decline and planned maintenance in Norway and Romania. The increased output in the United Arab Emirates in Q2/24 compared to the prior year quarter was the main offsetting factor.

¹ The figures stated relate to second quarter 2024; unless otherwise stated, the comparison is to the previous year.

About OMV

At OMV, we are re-inventing essentials for sustainable living. OMV is transitioning to become an integrated sustainable chemicals, fuels and energy company with a focus on circular economy solutions. By gradually switching over to low-carbon businesses, OMV is striving to achieve net zero by latest 2050. The company achieved revenues of EUR 39 billion in 2023 with a diverse and talented workforce of around 20,600 employees worldwide. OMV shares are traded on the Vienna Stock Exchange (OMV) and as American Depository Receipts (OMVKY) in the U.S. Further information at www.omv.com