OMV reports drop in Q2 earnings as oil, gas prices fall
BERLIN, July 28 (Reuters) - Austrian oil and gas company OMV reported on Friday a stronger-than-forecast drop in its second-quarter core earnings because of falling energy prices.
The company reported a clean current cost of supplies (CCS) operating result of 1.18 billion euros ($1.29 billion) for the April-to-June period, down 60% from the same period a year prior.
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Analysts had forecast a second-quarter clean CCS operating result of 1.27 billion euros, according to a company-provided consensus.
Sales revenues in the second quarter fell 39% year-on-year to 8.98 billion euros.
The company lowered its forecast for the price of Brent crude oil price this year to an average of $75-80 per barrel from a previous forecast above $80 per barrel. Last year, the Brent crude oil price was $101 per barrel.
Core earnings in OMV's energy segment halved, hit by hedging losses due to volatility in natural gas supply from Russia, as the company flagged ongoing uncertainty regarding future deliveries from the Russian state-owned gas producer Gazprom.
The company also faced significant headwinds in its chemicals and materials segment, including at petrochemicals subsidiary Borealis.
OMV is in talks with the state-owned Abu Dhabi National Oil Company (ADNOC) over a possible merger of their petrochemical divisions.
Core earnings in OMV's chemicals and materials segment fell 99% year-on-year to 7 million euros, with the company pointing to a slowdown in the chemicals sector.
Borealis incurred a loss of 58 million euros in the second quarter. ($1 = 0.9116 euros) (Reporting by Rachel More Editing by Miranda Murray and Christian Schmollinger)