OMV 2Q Profit Slumped Amid Lower Market Prices

   By Mauro Orru 
 

OMV posted lower profit and sales for the second quarter, in a context marked by significantly lower market prices.

The Austrian oil-and-gas company said Friday that its net profit slumped to 380 million euros ($417.2 million) from EUR1.95 billion in last year's second quarter. On an adjusted basis, net profit fell 67% to EUR472 million.

Natural-gas prices have fallen from record-high levels but remain volatile, particularly in Europe, and oil prices have also declined.

Sales declined 39% to EUR8.98 billion. Hydrocarbon production climbed 2% to 353,000 barrels of oil equivalent a day, an improvement that OMV attributed to the commissioning of new production wells in New Zealand and output in Libya being affected by force majeure in the quarter.

For the year, OMV expects total production of around 360,000 barrels of oil equivalent a day, an average Brent crude oil price of $75 to $80 a barrel, and an average realized gas price of around EUR30 a megawatt hour.

The group continues to expect organic capital expenditure should total around EUR3.8 billion in 2023.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

July 28, 2023 01:38 ET (05:38 GMT)

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