OMV 3Q Performance Boosted by Higher Prices -- Update

By Giulia Petroni

Austrian oil-and-gas major OMV AG reported a jump in profit and sales in the third quarter as performance was boosted by significantly higher prices, and said it will propose a special dividend for the full year.

Net profit in the quarter came in at 833 million euros ($830.1 million), compared with EUR279 million a year earlier, the company said Friday. Adjusted net profit was EUR1.21 billion.

Total hydrocarbon production fell to 381,000 barrels of oil equivalent a day from 470,000 boe/d a year earlier, mainly due to the change in the consolidation method of Russian operations. The company confirmed it expects production at 390,000 boe/d in the full year.

Sales doubled to EUR17.17 billion from EUR8.51 billion, it said.

In regard to Russia, OMV said it purchased an average of 2.5 terawatt hours a month of natural gas under long-term supply agreements with Gazprom PJSC in Germany and Austria in the quarter, and continuously experienced curtailments of volumes. This required buying replacement volumes on the market, resulting in a negative financial impact for the company.

"The uncertainty regarding future curtailments remains and could result in further losses," OMV said. "In the event of further or even full gas supply disruptions from Russia, OMV can use gas in storage to supply customers and has access to other liquid gas market hubs in Europe."

For the full year, OMV said it expects the average Brent crude-oil price to be above $100 a barrel and the average realized gas price in the range of between EUR55 and EUR60 a megawatt-hour. Organic capital expenditure is projected at around EUR3.7 billion.

Late Thursday, OMV said it will propose a special dividend of EUR2.25 a share for 2022, which will be distributed in addition to and at the same time as the regular dividend. The company said it also aims to amend the existing dividend policy so that special dividends can be considered in the future.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

October 28, 2022 02:19 ET (06:19 GMT)

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