OMV AG

OMV reported clean CCS operating result of more than EUR 1 billion, down 12% year on year; clean CCS EPS was EUR 1.0; cash flow from operations excluding net working capital was more than EUR 1.6 billion; and operating cash flow was almost EUR 800 million versus a year ago. Reported net income was more than EUR 1.6 billion versus EUR 288 million in the prior-year quarter, mainly due to an EUR 886 million Borealis deconsolidation gain; clean CCS net income was EUR 495 million versus EUR 561 million a year earlier. Segment-wise, Energy clean operating result fell 21% to EUR 723 million, Fuels was EUR 113 million, and Chemicals rose to EUR 245 million. For the full year 2026, OMV now forecasts Dated Brent at $85-$95/bbl, THE gas at around EUR 45/MWh, realized gas at EUR 35-EUR 40/MWh, production at 280,000-290,000 boe/d, unit production cost around $11/bbl, refining indicator margin at $10-$15/bbl, ethylene margin above EUR 550/tonne, propylene margin above EUR 420/tonne, and clean tax rate slightly below 50%.

Alfred Stern emphasized that the quarter showed resilience in an exceptionally volatile and challenged energy market, especially after the Strait of Hormuz closure. He framed Borouge International as a transformative step in Strategy 2030, saying it creates the fourth-largest polyolefin player and should materially strengthen OMV’s long-term earnings quality and cash generation. His tone was upbeat but cautious, repeatedly stressing security of supply, operational excellence, and the need to manage through geopolitical volatility.

Reinhard Florey focused on the cash flow and balance sheet effects of the quarter and the Borouge transaction. He said operating cash flow excluding working capital was EUR 1.6 billion, while the EUR 850 million working-capital build reduced reported operating cash flow to around EUR 800 million; organic investing cash flow was around EUR 900 million, leaving organic free cash flow before dividends at minus EUR 125 million. He highlighted a very strong balance sheet, with leverage rising only from 14% to 17%, cash of EUR 3.5 billion, and EUR 3.1 billion of undrawn committed facilities, while noting the group remains well below its 30% leverage threshold.

Analysts focused on refining margins, crude differentials, storage, jet fuel availability, Borouge International reporting, U.S. chemicals exposure, UAE production, dividend timing, and the risk of European windfall taxes. Management said April refining margins started around $16/bbl but kept full-year refining guidance at $10-$15/bbl because crude differentials, logistics, and possible regulatory interventions could weigh on Fuels. On chemicals, they said NOVA should contribute positively in the new equity-accounted structure and that Borouge 4 remains on plan, with the first XLPE line already online. On dividends, Reinhard Florey said OMV still expects ADNOC Refining, ADNOC Global Trading, and Borouge International dividends, with only 50% of the anticipated minimum Borouge dividend expected in 2026 and the remaining half in the second half of the year.