OMV made sturdy income because of excessive oil and fuel costs

“In Germany, deliveries through Nord Stream 1 have been decreased to twenty% of regular portions. 40% of regular deliveries arrive in Austria,” Stern stated. “It is greater than handed throughout this common overhaul of the Nord Stream 1 fuel pipeline, however lower than what was really delivered as a common rule,” defined the boss of OMV. “We’re contractually entitled to bigger supply portions.” There are contractual mechanisms to compensate for each day or periodic fluctuations, “nonetheless, these rules at the moment are greater than exhausted”. Stern wouldn’t say if any penalties are contractually stipulated for this case, or if OMV intends to demand compensation from Gazprom.

Nonetheless, the fuel provide in Austria is safe, Stern confused. “As a result of summer time demand is under the annual common, we’re totally in a position within the present state of affairs to provide our prospects and proceed to inventory them.” OMV’s fuel storage amenities, which account for round 1 / 4 of the storage capability in Austria, are already greater than 80% full. OMV at the moment has pure fuel saved for a price of 1.5 billion euros.

These storage volumes could be utilized by numerous Austrian and worldwide firms, reminiscent of industrial firms or fuel merchants. OMV additionally saved its personal storage volumes because it additionally acts as a fuel dealer out there. These portions of fuel could be delivered in response to the contractually agreed circumstances. “If a real emergency arises, different mechanisms will after all come into impact, however these are not inside OMV’s scope of choice.”

OMV additionally produces pure fuel in Austria itself, “which accounts for about 7% of Austria’s fuel wants,” Stern defined. As well as, not solely the transmission capacities from Germany and Italy to Austria have been secured at 40 terawatt hours (TWh) for the subsequent fuel 12 months (October to September), but additionally the portions of fuel to make use of these skills. On the one hand, OMV produces fuel itself in Norway, the place it’s concerned in fuel fields. As well as, the corporate has provide contracts with Norwegian fuel firm Equinor, long-term capability on the LNG terminal in Rotterdam and a longer-term contract with Qatar to carry liquefied fuel to Rotterdam. “These 40 TWh are necessary as a result of we will use them to cowl all of the OMV supply obligations that we really provide in the present day from Gazprom contracts.”

Within the first half of the 12 months, OMV largely benefited from uncertainty and excessive oil and fuel costs, roughly doubling its gross sales and income. Within the second quarter, CCS’ personal working revenue (adjusted for stock results) reached a report results of 2.9 billion euros, in comparison with 5.6 billion euros within the first half. Earnings per share (EPS) additionally doubled within the first half, from EUR 3.90 to EUR 7.63. The three segments contributed to this good revenue state of affairs, particularly the oil and fuel sector, but additionally the refining exercise and the chemical substances and supplies sector.

“Clearly I see the emotion round inflation on the whole, but additionally round power costs that we’re seeing now,” Stern stated. Nonetheless, OMV operates in a cyclical market surroundings. Through the Corona 12 months 2020, Brent oil costs have been regular under 25 {dollars} and fuel costs under 10 and even 5 euros per MWh. “We might want to make investments round 3.7 billion euros this 12 months to proceed to take care of the provision of our merchandise.”

For this 12 months, OMV expects a median worth of Brent crude oil of greater than 100 US {dollars} per barrel, till now an oil worth of 95 {dollars} had been assumed, final 12 months it averaged 71 {dollars} per barrel (159 liters) . The common fuel worth for this 12 months ought to be round 45 euros per megawatt hour (MWh), after 16.5 euros per MWh final 12 months. “These are the fuel costs achieved by OMV”, we aren’t solely energetic in Europe, however internationally, the place fuel is traded at native costs.

OMV’s complete oil and fuel manufacturing has fallen 19% this 12 months to 400,000 barrels per day. On the one hand, that is defined by the sale of E&P actions in Kazakhstan and oil belongings in Malaysia, in addition to decrease manufacturing volumes in sure international locations reminiscent of Romania, New Zealand and Libya. Above all, since March, OMV not contains its industrial actions in Russia within the Group’s key working figures. Stern expects OMV to provide about 390,000 barrels of oil and fuel per day all year long. In Libya, manufacturing had been held again by unrest, and manufacturing can now be elevated once more.

Refineries are seeing very sturdy demand, the refining margin for this 12 months is estimated at $15 a barrel. Repairs to the Schwechat refinery ought to be accomplished by the tip of September or October. The refinery is at the moment nonetheless working at about 20%, and gas has additionally been bought in the marketplace, which is now transported to Austria by rail, highway and water. As well as, the federal government launched short-term gas reserves. “With that, we now see a secure provide state of affairs.” Additional reserve releases aren’t at the moment being mentioned.

The Vienna Chamber of Labour, the union-affiliated Momentum Institute and the environmental group Greenpeace accuse OMV of creating “extreme income” and are calling for the introduction of a particular tax to skim off these income. Related allegations are additionally directed in opposition to the group. The 2 partially state-owned firms already pay a big a part of their income to the general public sector within the type of dividends. OMV is 31.5% owned by the Republic of Austria, whereas over 80% of Verbund’s shares are held by the general public sector or majority-owned firms.

A attainable particular dividend, as within the case of the affiliation, is due to this fact additionally underneath dialogue, however this topic “is just not at the moment actively mentioned”, stated OMV chief monetary officer Reinhard Florey. OMV used a big a part of the funds to contribute to safety of provide in Austria. “Within the second quarter, we needed to improve our web working capital by round 1.9 billion, and that is mainly fuel storage.” Subsequently, no concrete concepts have been launched relating to a particular dividend, “however we additionally stated that we aren’t ruling something out right here.”

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