OMV: Higher net profit despite lower gas sales

OMV, the Austrian oil and gas group, reported a 20% increase in net profit for the first quarter of 2024, despite a notable drop in gas prices and overall demand.

Share:

OMV résultats T1 2024

OMV ‘s first-quarter net profit came to around €468 million, up from €390 million the previous year, mainly due to reductions in expenses. However, adjusted operating profit, excluding exceptional and inventory effects, fell by 29% to almost 1.5 billion euros.

Impact of lower gas prices

According to CEO Alfred Stern, gas prices have reached their lowest level since the start of the conflict in Ukraine. This drop was accompanied by weak demand from European consumers, partly due to an exceptionally mild winter , which also resulted in full inventories.

Chemicals sector and fertilizer market

OMV’s chemicals division saw an improvement, which was described as probably temporary. This upturn is underpinned by an increase in demand for the products of Borealis, a major subsidiary in fertilizer production, disrupted by import difficulties from Asia and the Middle East, exacerbated by attacks by Houthi rebels in the Red Sea.

Logistical challenges and payroll reduction

The Group was also affected by a drought in the Panama Canal, slowing down the transit of ships between Asia and the United States. OMV has significantly reduced its payroll, from 37,700 employees in 2010 to around 20,600 in 2024.

Diversification and divestment

Criticized for its close ties with Gazprom until 2040, OMV is seeking to diversify its activities. Recently, it sold its stake in Malaysian gas operator SapuraOMV to TotalEnergies for $903 million, marking an important step in its diversification strategy.

Despite facing significant challenges related to gas prices and demand, OMV shows a resilient ability to adapt and continue to grow, while navigating a complex global energy landscape.

Iberdrola strengthens its financial position with a new five-year credit facility, signed with 32 banks, to support investments in power grids and renewable energy, particularly in the United States.
Kinder Morgan, Inc. reports strong financial results for the second quarter of 2025, with net profit up 24% and a project backlog boosted by major new investments in natural gas transportation.
CenterPoint Energy remains vigilant as Invest 93L approaches, deploying emergency plans and pursuing upgrades to its electrical infrastructure across the Greater Houston area.
The Georgia Public Service Commission approves the 2025 Integrated Resource Plan, which includes major investments in generation, storage and the grid to address the strong rise in electricity demand.
Norwegian industrial group Aker ASA achieved a strong surge in its share price in the first half, expanded its diversification into real estate, and executed major transactions despite global energy market volatility.
ADNOC announces the transfer of 24.9% of its shares in OMV to its subsidiary XRG, continuing the streamlining of its international assets and preparing the creation of Borouge Group International.
The SMI China Forum brings together international and Chinese leaders for dialogue on supply chains, investment and energy innovation, marking a major step in public-private sector cooperation.
Mining group BHP sees low-emission iron production in Australia as unprofitable, just as Canberra and Beijing announce closer cooperation to decarbonise the global steel industry.
Aker Carbon Capture distributed $162mn in dividends to its shareholders, a direct consequence of significant asset disposals and a substantial restructuring of its balance sheet in the second quarter of 2025.
Equinor ASA acquired 2.1 mn of its own shares on the Oslo Stock Exchange for a total of $201 mn between July 7 and 11, continuing the second phase of its 2025 buyback programme.
Norwegian group Aker Horizons transfers all its activities to a subsidiary of Aker ASA, sells major assets and prepares its new strategy after a half-year net loss of $220mn.
South Texas Electric Cooperative is seeking proposals for the acquisition or purchase of energy for 500 MW of dispatchable capacity, aiming to strengthen long-term supply security in the ERCOT region.
A federal funding package of $16mn aims to accelerate grid modernisation, renewable energy development and carbon capture in Canada’s Maritime provinces.
RTE and Nexans announce the creation of a recycling chain dedicated to aluminium from electrical cables, targeting 600 tonnes annually and covering the entire industrial cycle from collection to production.
Three scientists from China, the United States and Russia are laureates of the 2025 Global Energy Prize, honoured for their work on high-voltage power lines, fuel-cell catalysts and pulsed energy technologies.
Rio Tinto’s new CEO inherits a significant stock market discount and will need to overcome major regulatory, operational, and financial hurdles to swiftly restore the company's appeal to international investors, according to a Wood Mackenzie analysis.
Westbridge Renewable Energy enters digital infrastructure market with Fontus, a 380 MW data centre campus in Colorado, positioned to meet strong growth in US cloud and artificial intelligence services.
Offshore drilling company Borr Drilling Limited announced the completion of an initial tranche issuance of 30 million ordinary shares out of the planned 50 million, raising $61.5mn towards the total goal of $102.5mn.
EDF announces a new internal organization with key executive appointments to enhance decision-making efficiency and expedite the revival of nuclear and hydroelectric projects central to its industrial strategy.
Rubis announces half-year results of its liquidity agreement managed by Exane BNP Paribas, totalling 241,328 shares exchanged for an aggregate amount of €6.5mn in the first half of 2025.