OMV post better than expected Q1 profits

OMV post better than expected Q1 profits

May 11, 2017
2 min read
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Austria's OMV has posted better-than-expected profits for the three months to 31 March at €816 million with strong contribution from both the upstream and downstream sectors.

The upstream segment helped boost results with a stronger production levels with OMV reaching a ten-year-high quarterly production of 335 kboe/d and decreased the production cost further to below USD 9/boe.

Rainer Seele, CEO and Chairman of the OMV Executive Board said: “OMV had a successful start to 2017 with very good operational and financial performance."

On the downstream side OMV said that its petrochemical business and Borealis strongly contributed to this favourable result.

Seele added: "OMV continued on its path of value-added growth and signed an agreement to acquire a 24.99 per cent interest in the Yuzhno Russkoye gas field in Russia at the beginning of March, 2017. At the same time, OMV signed the sale of its Turkish subsidiary, OMV Petrol Ofisi, to the Vitol Group. On April 24, OMV and four other European energy companies signed financing agreements for the Nord Stream 2 pipeline project.”

Looking to the rest of the year OMV said that production is expected to be lower in the following quarters due to planned maintenance activities. The Austrian oil and gas firm expects total production at 320 kboe/d in 2017. With production in Libya expected to contribute on average 10 kbbl/d in 2017.