Lower Profits and Sales for OMV in Q2

Vienna, Austria - OMV, the Austrian oil-and-gas company, experienced a decline in both profit and sales for the second quarter of this year due to significantly lower market prices. While natural-gas and oil prices have suffered declines, the situation remains unstable, particularly in Europe.

Financial Performance

OMV reported a net profit of EUR380 million ($417.2 million), a substantial decrease from last year's second quarter figure of EUR1.95 billion. On an adjusted basis, net profit fell by 67% to EUR472 million.

Sales also took a hit, declining by 39% to EUR8.98 billion. However, there was a silver lining with hydrocarbon production showing a modest increase of 2% to 353,000 barrels of oil equivalent per day. OMV credits this improvement to the commissioning of new production wells in New Zealand and the impact of force majeure on output in Libya during the quarter.

Future Expectations

Despite the challenging environment, OMV remains cautiously optimistic about its future prospects. The company anticipates total production of approximately 360,000 barrels of oil equivalent per day for the year. Moreover, they estimate an average Brent crude oil price ranging from $75 to $80 per barrel and an average realized gas price of around EUR30 per megawatt hour.

Looking ahead, OMV plans to continue investing in organic capital expenditure, with expectations that it will reach around EUR3.8 billion by 2023.