Austria’s OMV posts €7m operating profit in petrochemical segment

23 February 2011 09:54  [Source: ICIS news]

PRAGUE (ICIS)--Austria’s OMV managed a small petrochemical segment operating profit of €7m ($9.6m) in the fourth quarter of 2010 despite the adverse affects of an end-of-year decline in margins, the oil, gas and petrochemical group said on Wednesday.

The profit (excluding the figures of Romanian subsidiary Petrom) compared with a breakeven operating result of €0m in the same quarter of 2009, said OMV, adding that petrochemical sales volumes grew 7% year-on-year to 530,000 tonnes.

“The petrochemical environment was better than in Q4 ’09, however with a downward trend towards the year-end ... The petrochemical result was above the level of Q4 ’09 due to better propylene margins and the higher sales volumes,” the company said in a commentary on its results.

However, OMV warned that “it is anticipated petrochemical margins will decrease this year compared to 2010, impacted by additional global petrochemical capacity”.

The petrochemical business would also this year see a six-week routine turnaround of its plants at the Schwechat refinery in Austria scheduled for the second quarter of this year, OMV added.

For the full year of 2010, the petrochemical operating result more than doubled year on year to €95m compared with €40m reported in 2009, as sales volumes edged up 3% to 2.1m tonnes, the company said.

OMV's overall businees in the fourth quarter of 2010 reported a net income after minorities of €88m, down 15% year-on-year. The company said the decrease was mainly due to its acquisition of Turkey’s Petrol Ofisi. Total sales for period rose 38% year on year to €6.64bn.

Wolfgang Ruttenstorfer, who is set to retire as CEO of OMV at the end of March, said: “We look back at 2010 as a year of outstanding operational performance coupled with transformational acquisition steps in line with our integrated growth strategy. On the operational side, 2010 earnings before interest and tax (EBIT) have increased 66% vs. 2009 [to €2.3bn] on the back of a more favourable oil price and refining margin environment as well as a strong contribution from the gas and power business.”

($1 = €0.73)

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By: Will Conroy
+44 20 8652 3214

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