OMV records Group Sales of EUR 8.6 bn with continuously strong Cash Flow in Q3 2024 amid challenging market environment

• Clean CCS Operating Result at EUR 1.1 bn due to a lower contribution from Fuels & Feedstock and Energy, partially offset by higher results in Chemicals
• Cash Flow from Operating Activities strong at EUR 1.4 bn at 20% higher than in Q2 2024
• Robust balance sheet with a low leverage ratio of 12%
• Chemicals results positively impacted by a more favorable market environment and a higher contribution from Borealis
• Fuels & Feedstock results lower due to significantly reduced refining indicator margins, partly compensated by strong retail performance
• Energy results with lower contribution mainly due to lower sales volumes affected by Libya outage
• Transformation journey continues across all three business segments

Vienna, October 29, 2024 – OMV today announced its results for the third quarter of 2024¹, with sales exceeding EUR 8.6 billion, a Clean CCS Operating Result of EUR 1.1 billion and a Clean CCS Net Income attributable to stockholders of EUR 346 million. The Clean Operating Result of the Chemicals segment increased to EUR 135 million. The contributions of Fuels & Feedstock were at EUR 204 million and the Energy segment were at EUR 702 million. The Clean CCS Earnings per share were at EUR 1.06. Cash Flow from Operating Activities was strong at approximately EUR 1.4 billion in the third quarter, with an increase of EUR 240 million compared to the second quarter of this year. OMV’s balance sheet remains solid, with net debt amounting to EUR 3.4 billion and a low leverage ratio of 12 percent at the end of September 2024.

Alfred Stern, Chairman of the Executive Board and CEO of OMV: “Amid a challenging market environment OMV has achieved solid results in the third quarter. Our cash flow has been strong and the balance sheet robust. It is the second consecutive quarter where we see a recovery in our Chemicals segment, which has benefited from improved earnings. Lower refining indicator margins impacted the result of Fuels & Feedstock, while the Energy segment accounted lower sales volumes mainly due to outages in Libya caused by political disputes. In the third quarter, we continued to focus on our transformation, and all three business segments are delivering on the objectives of our Strategy 2030. OMV remains on track. Our financial strength is supporting OMV’s ambition to become an integrated sustainable chemicals, fuels and energy company.”

The Clean Operating Result of the Chemicals segment rose substantially to EUR 135 million, mainly in light of an improved market environment with better margins for polyolefins and olefins. The base chemicals and polyolefins portfolios were the driving force in the improved Borealis performance. Higher specialty sales volumes and an improved European cracker utilization in Schwechat and Porvoo also supported the results of Chemicals. An additional result improvement came from the Borealis joint ventures Borouge and Baystar. The performance of Borouge was driven by higher sales volumes while Baystar profited from a higher cracker utilization and the ramp-up of the new polyethylene unit featuring the state-of-the-art proprietary Borstar® 3G technology.

The Clean CCS Operating Result of the Fuels & Feedstock segment decreased to EUR 204 million, mainly as a result of lower refining indicator margins driven by gasoline and middle distillates. A stable utilization rate at the European refineries and an improved retail result had a partially offsetting effect. The positive contribution of the retail business was driven by improved margins as well as higher volumes, partly due to the acquisition of additional filling stations in Austria and Slovakia. The result of the commercial business was marginally lower, as decreased margins were offset by higher sales volumes of aviation fuels. The contribution from ADNOC Refining and ADNOC Global Trading decreased, impacted by lower refining and trading margin.

The Clean Operating Result of the Energy segment was at EUR 702 million, primarily due to a lower contribution from the Exploration & Production business. This was mainly due to a drop in sales volumes. An improved Gas Marketing & Power result could only partially offset reductions. Total hydrocarbon production volumes were at 332 kboe/d. Energy production decreased in Libya due to the unplanned outages in the third quarter along planned maintenance activities and natural decline in Norway as well as lower well delivery and natural decline in New Zealand.

Transformation Projects in Q3/2024

Chemicals:

OMV and Clariant announced their intended collaboration for the supply of ethylene with a lower carbon footprint. In response to increasing consumer demand for more sustainable options, and with a particular focus on Europe, this partnership will help both companies meet their sustainability targets and deliver on the carbon reduction strategies of their customers.
Borealis and Infinium have signed an agreement to enable the production of low-carbon-footprint plastics generated from waste carbon dioxide emissions that would otherwise be released into the atmosphere. The new Infinium eNaphtha serves as sustainable feedstock alternative for plastics used to manufacture consumer goods, such as packaging, appliances, apparel and medical devices. With this new product, Borealis will create plastics with an ultra-low carbon footprint for customers and end consumers seeking more sustainable, environmentally conscious alternatives.

Fuels & Feedstock:

OMV and Siemens announced a cooperation for the electrification of freight transport. Together, the two companies will establish CO2-neutral electric vehicle depots for heavy goods vehicles and logistics companies. These so-called eDepots provide a customized charging infrastructure that enables efficient and sustainable electrification. They include infrastructure planning, charging infrastructure, grid usage optimization and analytics. These complete solutions are to be implemented in Austria, Romania, Slovakia, and Hungary and will reduce both CO2 emissions and operating costs, while increasing fleet availability.

Energy:

OMV continued to pursue the ongoing diversification of gas supply sources and routes. At the auction for European natural gas transport capacities, OMV obtained additional transport rights for 29 TWh to Austria until 2029.
OMV completed the drilling of the deepwater exploration well “Haydn/Monn” in the Norwegian Sea targeting the “Haydn/Monn” exploration prospects. The well encountered gas with estimated recoverable volumes between 30 and 140 million boe in total. OMV is the operator with a 40 percent working interest.
OMV and Wien Energie, through their joint venture deeep, have reached an important milestone for Vienna's first deep geothermal plant. The necessary approval procedures have been completed. Now the well site in Vienna is being prepared with drilling expected to start in winter 2024/2025. The project is designed to generate climate-neutral district heating for the equivalent of up to 20,000 Viennese households by 2028. The joint venture deeep has the potential of reaching up to 200.000 households in the future.

Key Performance Indicators Q3/2024 vs. Q3/2023

Group:

• Sales of EUR 8,645 mn, down 9% 
• Clean CCS Operating Result of EUR 1.051 bn, down 21% 
• Clean CCS Net Income attributable to stockholders at EUR 346 mn, down 20% 
• Clean CCS Earnings per share of EUR 1.06, down 20% 
• Cash flow from operating activities of EUR 1,421 mn, down 17%

Chemicals:

• Ethylene indicator margin Europe EUR 522/t, up 15% 
• Propylene indicator margin Europe EUR 406/t, up 23% 
• Polyethylene indicator margin Europe EUR 447/t, up 45% 
• Polypropylene indicator margin Europe EUR 407/t, up 23% 
• OMV steam crackers utilization rate 83%, up 14 percentage points 
• Clean Operating Result EUR 135 mn, up EUR 146 mn

Fuels & Feedstock:

• OMV refining indicator margin Europe USD 5/bbl, down 64%
• OMV refinery utilization rate Europe 84%, unchanged
• Fuels and other sales volumes Europe 4.35 mn t, up 2% 
• Clean CCS Operating Result EUR 204 mn, down 51%

Energy:

• Average Brent price USD 80.3/bbl, down 7% 
• Average realized natural gas price EUR 24.9/MWh, down 3% 
• Hydrocarbon Production 332 kboe/d, down 9% 
• Production cost USD 10.6/boe, up 18% 
• Clean Operating Result EUR 702 mn, down 26%

Outlook 2024 

• OMV Group Organic CAPEX remains around EUR 3.8 bn
• Average Brent price outlook to be between USD 80/bbl and USD 85/bbl vs. previous forecast of 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 EUR 25/MWh, with a THE price forecast of EUR 30-35/MWh
• OMV refining indicator margin Europe expected to be at around USD 7/bbl vs. previous forecast of around USD 8/bbl
• Utilization rate of European refineries expected to be slightly below 90% vs. previous forecast of around 90%
• Steam cracker utilization rate in Europe maintained expected to be around 85%

¹ The figures stated relate to third 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