OMV posts 70% drop in net profit for Q1 2025

Austrian group OMV sees profits collapse amid halted Russian gas flows, strategic repositioning in chemicals and shift toward new industrial partnerships.

Share:

Oil and gas group OMV reported a net profit of €143mn ($152mn) in the first quarter of 2025, down 70% compared to the same period last year. This sharp decline follows the cessation of Russian gas deliveries and a corporate restructuring in the chemical sector, according to a statement released on April 30.

Decline in operating profit and industrial transition

Operating profit excluding exceptional and inventory effects (Clean CCS Operating Result), closely watched by analysts, fell 22% to €1.16bn ($1.23bn). Total revenue remained stable at €6.2bn ($6.59bn), following the exclusion of the Borealis subsidiary’s activities, now classified as an asset held for sale. OMV plans a gradual divestment of this unit as part of a broader reorganisation of non-core operations.

In March, OMV announced a major agreement with Abu Dhabi National Oil Company (ADNOC) to establish Borouge Group International. The new polyolefins-focused company will consolidate selected stakes held by OMV and Borealis, with its headquarters located in Vienna. OMV contributed €1.6bn ($1.7bn) to the new entity, while anticipating the loss of control over Borealis.

End of Russian supply and Black Sea exploration

The group, 31.5% owned by the Austrian state, terminated six decades of commercial ties with Russian gas giant Gazprom at the end of 2024, despite a contract valid until 2040. This decision followed an arbitration ruling in January in which the Stockholm Chamber of Commerce awarded OMV €48mn ($51mn) in partial compensation for supply disruptions.

Meanwhile, OMV is expanding its exploration activity in Eastern Europe. In March, the company launched the first of ten planned drilling operations under the Neptun Deep gas project in the Black Sea off the Romanian coast. The first delivery is expected in 2027, with an annual production target of 8 billion cubic metres.

Workforce reduction and focus shift

The group’s strategic shift has been accompanied by a continued reduction in workforce. Between 2010 and 2025, the number of global employees fell from 37,700 to 23,500. This decrease is part of an efficiency-driven realignment towards higher-value segments.

“This is a key milestone for the global chemical industry,” said OMV Chief Executive Officer Alfred Stern regarding the launch of Borouge Group International. He noted that the new entity is set to become the world’s fourth-largest polyolefins producer.

Petro-Victory Energy announces the completion of drilling operations for the AND-5 well in the Andorinha field, Brazil, with positive reservoir results and next steps for production.
The Colombian prosecutor’s office has seized two offices belonging to the oil company Perenco in Bogotá. The company is accused of financing the United Self-Defense Forces of Colombia (AUC) in exchange for security services between 1997 and 2005.
Indonesia has signed a memorandum of understanding with the United States to increase its energy imports. This deal, involving Pertamina, aims to diversify the country's energy supply sources.
VAALCO Energy continues to operate the Baobab field by renovating its floating platform, despite modest production. This strategy aims to maintain stable profitability at low cost.
An empty reservoir exploded at a Lukoil-Perm oil facility in Russia, causing no injuries according to initial assessments pointing to a chemical reaction with oxygen as the cause of the accident.
The British Lindsey refinery has resumed fuel deliveries after reaching a temporary agreement to continue operations, while the future of this strategic site remains under insolvency proceedings.
BP and Shell intensify their commitments in Libya with new agreements aimed at revitalizing major oil field production, amid persistent instability but rising output in recent months.
The private OCP pipeline has resumed operations in Ecuador following an interruption caused by heavy rains, while the main SOTE pipeline remains shut down, continuing to impact oil exports from the South American country.
McDermott secures contract worth up to $50 million with BRAVA Energia to install subsea equipment on the Papa-Terra and Atlanta oil fields off the Brazilian coast.
Saudi Aramco increases its oil prices for Asia beyond initial expectations, reflecting strategic adjustments related to OPEC+ production and regional geopolitical uncertainties, with potential implications for Asian markets.
A bulk carrier operated by a Greek company sailing under a Liberian flag suffered a coordinated attack involving small arms and explosive drones, prompting an Israeli military response against Yemen's Houthis.
The Canadian government is now awaiting a concrete private-sector proposal to develop a new oil pipeline connecting Alberta to the Pacific coast, following recent legislation intended to expedite energy projects.
Petrobras is exploring various strategies for its Polo Bahia oil hub, including potentially selling it, as current profitability is challenged by oil prices around $65 per barrel.
Brazilian producer Azevedo & Travassos will issue new shares to buy Petro-Victory and its forty-nine concessions, consolidating its onshore presence while taking on net debt of about USD39.5mn.
Major oil producers accelerate their return to the market, raising their August quotas more sharply than initially expected, prompting questions about future market balances.
Lindsey refinery could halt operations within three weeks due to limited crude oil reserves, according to a recent analysis by energy consultancy Wood Mackenzie, highlighting an immediate slowdown in production.
The flow of crude between the Hamada field and the Zawiya refinery has resumed after emergency repairs, illustrating the mounting pressure on Libya’s ageing pipeline network that threatens the stability of domestic supply.
Libreville is intensifying the promotion of deep-water blocks, still seventy-two % unexplored, to offset the two hundred thousand barrels-per-day production drop recorded last year, according to GlobalData.
The African Export-Import Bank extends the Nigerian oil company’s facility, providing room to accelerate drilling and modernisation by 2029 as international lenders scale back hydrocarbon exposure.
Petronas begins a three-well exploratory drilling campaign offshore Suriname, deploying a Noble rig after securing an environmental permit and closely collaborating with state-owned company Staatsolie.