OMV net income surges on gas prices amid Nord Stream 2 writeoff

Austrian oil and gas major OMV reported on Friday a strong operating income of US $2.76 billion (2.6 billion euros) at the current cost of supplies for the first quarter of 2022, and a net profit of 855 million euros due to Nord Stream 2-linked impairments.

The company attributed the above par results to gains across all its units with a focus on sustainable and circular solutions, supported by what it called a “more favourable market environment” in the exploration and production segment.

OMV’s operating income is nearly 15 percent above analysts’ average forecast in a company-provided poll, while adjusted net profit is around 7 percent above expectations.

The profits helped offset OMV’s non-cash impairment charges and value adjustments of around 2 billion euros related to Russian operations and the now-abandoned Nord Stream 2 project.

Germany halted the Nord Stream 2 gas pipeline project following Russia’s invasion of Ukraine. The pipeline was designed to double the flow of Russian gas directly to Germany.

The surging demand for gas, however, helped OMV in other segments. The company said in a statement that its sales jumped 146 percent to 15.83 billion euros due to booming market prices, especially for natural gas.

The company posted robust growth in the Chemicals & Materials segment, driven by a better market environment and a higher contribution from ADNOC. It also benefited substantially from rising hydrocarbon prices despite decreased production.

In refining, the company’s refining indicator margin in Europe improved to $9.75 per bbl, with a utilisation rate of refineries at 94 percent. Fuels and other sales volumes in Europe increased to 3.66 million tonnes, the company said.