- CCS operating profit before special items of EUR 1.1 billion due to lower contributions from the Fuels & Feedstock and Energy divisions, partially offset by better results in Chemicals
- Strong cash flow from operations of EUR 1.4 billion, an increase of 20% compared to the second quarter of 2024
- Solid balance sheet with low leverage of 12%
- Result in the Chemicals segment positively influenced by a more favorable market environment and a higher contribution from Borealis
- Lower Fuels & Feedstock result due to significantly lower refinery reference margins partially offset by strong performance in the retail business
- Energy result with lower contribution, mainly due to lower sales volumes due to outages in Libya
- Transformation process continued successfully in all three business areas
OMV today announced its third quarter 2024 results.(1) The company achieved sales of more than EUR 8.6 billion, a CCS operating result before special items of EUR 1.1 billion and a CCS net profit attributable to shareholders before special items of EUR 346 million. In the Chemicals division, the operating result before special items rose to EUR 135 million. The contribution from the Fuels & Feedstock division amounted to EUR 204 million and the contribution from the Energy segment amounted to EUR 702 million. CCS earnings per share before special items amounted to EUR 1.06. Cash flow from operating activities proved strong in the third quarter at around EUR 1.4 billion, up EUR 240 million compared to the second quarter of this year. With net debt of EUR 3.4 billion and a low leverage level of 12 percent as of the end of September 2024, OMV’s balance sheet remains solid.
Alfred Stern, Chairman and CEO of OMV: “OMV achieved robust results in the third quarter in a challenging market environment. Our cash flow proved to be strong and the balance sheet solid. It was the second consecutive quarter of recovery in our Chemicals segment, which benefited from improved earnings. While Fuels & Feedstock’s results were impacted by lower refinery reference margins, the Energy segment recorded lower sales volumes. This was primarily due to failures in Libya as a result of political disputes. We continued to focus on our transformation in the third quarter. All three business areas continually contribute to the implementation of the goals of our Strategy 2030. This means OMV remains on track. Our financial strength supports OMV’s development into an integrated sustainable chemicals, fuels and energy company.”
In the Chemicals segment, operating profit before special items increased significantly to EUR 135 million, primarily due to a more favorable market environment with increased margins for polyolefins and olefins. The basic chemicals and polyolefins business proved to be a driving force behind Borealis’ improved results. Increased sales volumes of specialty products and improved utilization of European crackers in Schwechat and Porvoo also contributed positively to Chemicals’ results. The Borealis joint ventures Borouge and Baystar contributed an additional improvement to the result. Borouge’s improved result was due to higher sales volumes. Baystar benefited from increased cracker utilization and the ramp-up of the new polyethylene plant based on Borealis’ state-of-the-art Borstar® 3G technology.
CCS operating profit before special items in the Fuels & Feedstock segment fell to EUR 204 million, mainly due to lower refinery reference margins for gasoline and middle distillates. The stable utilization rate of the European refineries and an improved result from the petrol station trading business were able to partially compensate for this. The positive contribution of the gas station trading business resulted from increased margins and higher sales volumes. This was due in part to the acquisition of additional gas stations in Austria and Slovakia. The contribution to earnings from the Commercial business was slightly lower as lower margins were offset by higher aviation fuel sales volumes. The contribution of ADNOC Refining and ADNOC Global Trading decreased primarily due to lower refining and trading margins.
The Energy segment’s operating profit before special items was EUR 702 million, mainly due to a lower contribution from Exploration & Production. The main reason for this was a decline in sales volumes. The improved result in Gas Marketing & Power was only able to partially compensate for the losses. Total hydrocarbon production was 332 kboe/d. Energy segment production declined in the third quarter due to unplanned outages in Libya. In addition, planned maintenance work and natural declines in production in Norway as well as lower production in New Zealand had a negative impact on production.
Transformation projects in the third quarter of 2024
Chemicals:
OMV and Clariant announced their planned collaboration to supply ethylene with a lower carbon footprint. In response to increasing consumer demand for more sustainable options, this partnership will help both companies achieve their sustainability goals and implement their customers’ carbon reduction strategies. The focus will be on Europe.
Borealis and Infinium reached an agreement to enable the production of low-carbon plastics. These materials are derived from carbon dioxide waste that would otherwise be released into the atmosphere. The new Infinium eNaphtha serves as a sustainable raw material alternative for plastics used to produce consumer goods such as packaging, household appliances, clothing and medical devices. With this new product, Borealis will produce plastics with an extremely low carbon footprint for customers and end users looking for more sustainable, environmentally conscious alternatives.
Fuels & Feedstock:
OMV and Siemens announced a cooperation to electrify freight transport. Together, the two companies will set up CO2-neutral electric vehicle depots for heavy-duty transport and logistics companies. These so-called eDepots offer a tailor-made charging infrastructure and thus enable efficient and sustainable electrification. This also includes various services – from infrastructure planning and the use of charging stations to optimizing network usage and detailed analyses. These complete solutions are now to be introduced in Austria, Romania, Slovakia and Hungary. This means companies can not only reduce operating costs and CO2 emissions, but also increase fleet availability.
Energy:
OMV has continued to diversify gas supply sources and delivery routes. At the auction for European natural gas transport capacities, OMV was awarded additional transport rights of 29 TWh to Austria until 2029.
OMV has completed the “Haydn/Monn” deep-sea exploration well in the Norwegian Sea, targeting the exploration area of the same name. The well encountered gas with an estimated total recoverable volume of between 30 and 140 million boe. OMV is the operator with a share of 40 percent.
OMV and Wien Energie reached an important milestone for the first deep geothermal energy plant in Vienna with their joint venture deeep. The necessary approval procedures have been completed. The drilling site in Vienna is currently being prepared for deep drilling, which is scheduled to start in winter 2024/2025. The system is expected to generate climate-neutral district heating for the equivalent of up to 20,000 Viennese households from 2028. The joint project deeep has the potential to supply up to 200,000 households with climate-neutral heat in the future.
Key figures in the third quarter of 2024 compared to the third quarter of 2023
Group:
- Sales of EUR 8,645 million, decrease of 9%
- CCS operating profit before special items of EUR 1.051 billion, decrease of 21%
- CCS net profit attributable to shareholders before special items of EUR 346 million, decrease of 20%
- CCS earnings per share before special items of EUR 1.06, decrease of 20%
- Cash flow from operating activities of EUR 1,421 million, decrease of 17%
Chemicals:
- Ethylene reference margin for Europe at EUR 522/t, up 15%
- Propylene reference margin Europe at EUR 406/t, up 23%
- Polyethylene reference margin Europe at EUR 447/t, up 45%
- Polypropylene reference margin Europe at EUR 407/t, up 23%
- OMV steam cracker utilization rate at 83%, increase of 14 percentage points
- Operating result before special items of EUR 135 million, an increase of EUR 146 million.
Fuels & Feedstock:
- OMV European refinery benchmark margin at USD 5/bbl, down 64%
- OMV refinery utilization rate in Europe unchanged at 84%
- Fuel and other sales volumes in Europe of 4.35 million t, an increase of 2%
- CCS operating profit before special items of EUR 204 million, decrease of 51%
Energy:
- Average Brent price of USD 80.3/bbl, down 7%
- Average realized natural gas price of EUR 24.9/MWh, decrease of 3%
- Hydrocarbon production of 332 kboe/d, down 9%
- Production costs of USD 10.6/boe, up 18%
- Operating result before special items of EUR 702 million, decrease of 26%
Outlook 2024
- Organic investment expenses of the OMV Group remain at around EUR 3.8 billion.
- Average Brent price expected between USD 80/bbl and USD 85/bbl, compared to previous forecast of around USD 85/bbl
- Expected hydrocarbon production from OMV remains between 330 kboe/d and 350 kboe/d
- Average realized natural gas price of around EUR 25/MWh, with a THE price forecast of EUR 30-35/MWh
- OMV European refinery reference margin expected to be around USD 7/bbl, versus previous forecast of around USD 8/bbl
- Capacity utilization of European refineries expected to be just under 90%, compared to previous forecast of around 90%
- Steam cracker utilization rate in Europe expected to remain unchanged at around 85%
You can find the OMV Group report January – September and Q3 2024 here.
About OMV
Our corporate purpose is to reinvent the foundations for sustainable living. OMV is transforming into an integrated sustainable chemicals, fuels and energy company with a key role in the circular economy. By gradually transitioning to a low-carbon business, OMV aims to achieve net-zero emissions by 2050 at the latest. The company achieved sales of EUR 39 billion in 2023 and employed around 20,600 diverse and talented employees worldwide. OMV shares are traded on the Vienna Stock Exchange (OMV) and as American Depository Receipts (OMVKY) in the USA. Further information on www.omv.com
(1) The values mentioned refer to the third quarter of 2024; Unless otherwise stated, the quarterly values from the previous year serve as comparison figures.