OMV profits rise with output, markets

Austrian integrated energy firm OMV reported April 29 a 24% year-on-year rise in Q1 profit on a current cost of supplies basis, at €870mn ($1.1bn). Production was overall up, notably in Libya where it was at full capacity, but its sales revenues now include output from chemicals firm Borealis. Consolidated sales revenues were up 35% to €6.429bn.

The average Brent price rose 22% to $61.12/barrel while the average gas price at the Central European Gas Hub was up almost 70% at €18/MWh. OMV has raised its forecast for both: it now expects crude to trade between $60-65/barrel, up from $50-55/barrel, with gas forecast at above €11/MWh, compared with above €10/MWh.

Upstream earnings were up almost threefold, at €361mn, compared with €137mn in Q1 2020. Total hydrocarbon production expanded by 23,000 barrels of oil equivalent (boe)/day to 495,000 boe/d. Output in Malaysia and Tunisia grew on the back of the commissioning of new gas fields. 

The contribution of the gas business decreased to €70mn from  €92mn, mainly as a consequence of a weaker storage and supply result. Natural gas sales volumes rose by 23% from 48.0 TWh to 59.0 TWh, the increase being mainly in Germany and the Netherlands, and were partly offset by less in Romania.