04 February 2011 10:34 [Source: ICIS news]
PRAGUE (ICIS)--OMV’s petrochemical business was hit by depressed olefin margins in the fourth quarter of 2010, which were the lowest experienced during last year, the Austria-based oil, gas and petrochemical group said in a trading statement on Friday.
The statement noted that there were higher naphtha prices in the quarter.
According to an analysis by the bank Erste, growing prices of the feedstock naphtha put a stop to the recovery in the margin, which ended last year at €285/tonne ($390/tonne) compared with the pre-economic crisis level of €305/tonne.
Investment bank Wood & Company said the trading statement showed OMV’s petrochemical business had “deteriorated materially” in the final quarter of last year compared with the preceding quarter.
Following OMV’s acquisition of refined oil products marketing company Petrol Ofisi, through which OMV may channel some petrochemical investments, OMV’s financial gearing ratio moved above the group’s long-term target of 30%, the trading statement added.
A decision on refinancing to be made in the first half of this year would strengthen the company’s balance sheet, it added.
OMV is to report its financial results for the fourth quarter of 2010 on 23 February.
($1 = €0.73)
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