OMV improves performance across all segments in Q3
Austrian oil and gas producer OMV reported on October 29 a surge in earnings in the third quarter on the back of higher oil and gas prices and increased demand for its products.
The company's clean current cost of supply (CCS) operating result came in at €1.79bn ($2.1bn), OMV said, up from €317mn a year earlier. Free cash flow before dividends increased 175% to €1.01bn, thanks to a 130% increase in revenues to €8.51bn.
The clean operating result from OMV's upstream business soared to €816bn from a loss of €24mn, supported by an increase in its realised oil price to $69.57/barrel from $37.35/b, and a growth in its realised gas price to $5.66/'000 m3 from $2.64. The company also reported a 6% climb in hydrocarbon production to 470,000 barrels of oil equivalent/day, of which 272,000 boe/d was natural gas.
At OMV's refining and market segment, the clean CCS operating result increased 53% to €361mn, on strong margins, higher demand and a positive result at its ADNOC Refining joint venture in the UAE. At its chemicals and materials business, the clean operating result grew nearly sixfold to €623mn, reflecting OMV's acquisition of an extra stake in Borealis, and higher polyolefin and olefin margins in Europe.
Looking ahead, OMV expects Brent to average $70/b in 2021 versus $42/b last year. And it expects to fetch an average of €15/MWh for its gas, versus €12/MWh in 2020. Organic capital expenditure is expected to come to €1.1bn this year, and production should average more than 480,000 boe/d, implying growth during the rest of the year. But the flow rate will depend on the security situation in Libya, it said.