Austria’s OMV petrochemical profit falls on major plant turnaround

10 August 2011 09:16  [Source: ICIS news]

LONDON (ICIS)--OMV’s operating profit of its petrochemical segment for the second quarter of 2011 fell by 70% to €11m ($15.7m) from €37m in the same period last year, the Austrian group said on Wednesday.

The group’s operating profit for the segment declined because of a six-week turnaround at its 500,000 tonne/year ethylene (C2) plant and other petrochemical units in Schwechat, Austria, OMV said in a statement.  

“An improvement in olefin margins was insufficient to offset the impact [of the petrochemical shutdown] at the Schwechat refinery,” the company said.

The group’s petrochemical sales volumes for the second quarter fell by 27% year on year to 390,000 tonnes, the statement added.

However, the company said its “petrochemical margins were very strong in the second quarter and are expected to remain attractive in the second half of the year”.

The company’s petrochemical net margin for the second quarter of the year was 19% above that in the second quarter of 2010 and 15% above that in the first quarter of this year, OMV added, without specifying the figures.

OMV’s overall second-quarter net profit fell by 20% year on year to €269m, with its oil production affected by the political conflict and instability in Libya and Yemen.

“The second quarter brought multiple challenges, some of which we were not able to influence,” said OMV CEO Gerhard Roiss.

“The political instability in north Africa and the Middle East is prevailing, costing us a significant amount of production every day,” Roiss said.

“Clearly, we will continue to face challenges in the future, but with our updated strategy to be announced in September, we will be strongly positioned to manage them,” Roiss added.        

($1 = €0.70)

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By: Will Conroy
+44 20 8652 3214

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