The drop in the price of oil is having a hard time for the listed oil and gas company OMV.
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Despite unchanged production
of 472,000 barrels per day turned the quarterly result in the first
Quarter from EUR 354 million to EUR -159 million in the red. Have along
especially the inventory effects (CCS effects) with -453 million euros
impacted negatively, as the company on Wednesday
announced.
CCS Operative adjusted for these inventory effects
Earnings before special items decreased 8 percent from 759
Million euros to 699 million euros. Group sales fell by 12 percent
to 4.76 billion euros.
In view of the corona virus crisis, OMV is driving a massive one this year
Savings program – a total of more than 4 billion euros should be saved
will. Among other things, the organic investments in this
Year to 1.8 billion euros – originally goods
2.4 billion euros planned. Projects with a total volume of 1.5 billion
Euros are to be postponed. The 4.1 billion euro purchase price at
Acquisition of another 39 percent of the chemical group Borealis will be made in installments
transferred by the end of 2021.
OMV expects an average for this year
Brent crude oil price of $ 40 a barrel. Last one was 60
Out of dollars per barrel. The gas price is likely from 11.9 euros each
MWh in the previous year decrease to 10 euros per megawatt hour, according to the
Expectation.
OMV boss Seele: Do not expect any refinery downtime or short-time work
Given the fall in oil prices and the
Coronavirus pandemic turns OMV boss Rainer Seele on many
Screws to keep expenses as low as possible this year:
Investments are cut back, entry into the Russian one
Achimov gas field postponed and the Borealis acquisition in installments
dead. The Schwechat refinery and
Short-time working is currently not planned, says Seele.
One thing is clear: OMV should be high
No longer win this year, the slump in oil prices is making it difficult for her
create. Last one is from one for this year
average oil price of $ 60 a barrel assumed, well
the expectation was reduced to $ 40, said soul on
Wednesday in conversation with the APA.
The drop in prices is also reflected in the profit for the period
first quarter due to negative inventory effects (CCS
Effects) in the amount of EUR 453 million to EUR -68 million under the
Zero line was pressed. That attributable to shareholders
Profit for the period fell from EUR 354 million in the comparable period of the
Last year to EUR -159 million. “But that reported
The result of the period only happens on paper “, emphasized Seele
adjusted result (CCS operating result before special items)
one lies with almost 700 million euros in the plus. The expected
Refining margins have risen from over $ 5 a barrel to around 4
Dollar adjusted. In 2019, it was $ 4.4 per barrel.
However, OMV’s promotional business will be more of the gas price
determined as from the oil price. “Two thirds of our production is yes
already natural gas. “The gas price is expected to be EUR 11.9 per megawatt hour
in the previous year to 10 euros per MWh, so the assumption.
One is badly hit by the cessation of production in
Libya. “That was over 100 million euros in previous quarters.”
Also in the second quarter there would be no production in Libya,
“everything stands still”.
Short-time work or a refinery shutdown are currently, however
not planned, emphasized the OMV boss. “We see that now
Utilization risk not as high, especially in Schwechat
last. According to the current numbers, where we also the
Refinery sales in Austria with a slight recovery in demand
a refinery shutdown is very recognizable
unlikely.”
Now OMV is benefiting from its investments in the
Flexibility, especially in petrochemicals. “You can see how
Borealis is important. “The kerosene demand is largely
broken away, “the stocks are getting fuller, but the kerosene is getting
only partially accepted “. The refineries in Europe are only 50
Utilized up to 60 percent, while that of the chemical company
Borealis, in which OMV increased its stake from 36 to 75 percent
increased to 94 percent and over 80 percent for the full year
will be.
OMV is reacting to the fall in oil prices and Corona in particular
Spending cuts. So they decided to get started with
Moving the Russian Achimov gas field would bring one this year
Expenditure relief of 1.5 billion euros. “We have Gazprom around this
Postponement asked, “said soul. Furthermore, one had
Saving program of 500 million euros, with investments this year
shortened or postponed. Furthermore, they had 200 million
Savings in operational costs, for example in the area of
Exploration in seismics and in the search for new fields.
The 4.1 billion euro purchase price for another 39 percent of Borealis
will be transferred in installments by the end of 2021. “That leads us
this year will only charge our cash with half the amount
have to.”
Today, Seele announced another savings program
Investment cuts amounting to 200 million euros. One got
seen that competitors average their investments by
Cut 25 percent and have your own investment cuts
adjusted accordingly, explained soul.
Overall, the focus is on spending and cost reductions, none
Downsizing, stressed soul.
In Vienna stock exchange trading, the OMV share has now climbed 7.05 percent to EUR 29.44.
APA
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