OMV Q2 2024 sales exceed €8.5 billion

OMV announced its Q2 2024 earnings on July 31, with sales exceeding €8.5 billion, Clean CCS operating profit of €1.2 billion and Clean CCS net income attributable to shareholders of €494 million.

The operating result for Clean CCS Chemicals increased to €114 million and for Fuels & Feedstocks to €308 million. The contribution from the Energy Division was lower at €817 million. Cash flow from operating activities was strong at around €1.2 billion in the second quarter.

OMV's balance sheet remains very strong, with net debt of €3.3 billion and a leverage ratio of 12% at the end of June 2024. OMV's cash position was €5.4 billion at the end of June 2024 and undrawn committed credit facilities of €4.3 billion.

"OMV achieved solid results in the second quarter. All three business units are on track to achieve our 2030 strategy targets. The Chemicals and Fuels & Feedstocks businesses benefited from earnings growth, while the Energy division was mainly impacted by the lower performance in the Gas & Power business and legislative changes. OMV remains on track and continues to generate solid cash flows. Our financial strength is supporting the biggest transformation in the company's history. We are charting the path to becoming an integrated sustainable chemicals, fuels and energy company," said Alfred Stern, Chairman of the Executive Board and CEO of OMV.

OMV's Chemicals division reported a significant year-on-year increase in operating profit due to inventory effects. The indicator margins for polyethylene and polypropylene increased, mainly due to lower imports following bottlenecks in the Red Sea and Panama Canal, and growing concerns about security of supply. The performance contribution of the Borealis joint ventures was also higher. The main driver was Borouge, the joint venture between Borealis and Abu Dhabi National Oil Company, which saw a significant increase in volumes.

The Fuels & Feedstocks division saw a significant increase in operating profit, mainly due to higher refinery utilization in Europe, positive supply effects and lower utility bills. In addition, the higher contribution from fuel sales in Europe had a positive impact on the second quarter results.

Energy segment profit declined due to lower contributions from gas marketing and power businesses. The lower margin was mainly due to changes in Romanian gas and power sector legislation, which came into effect in April 2024 and had a negative impact on the second quarter results. This impact was only partially offset by better performance in OMV's exploration and production business.