OMV trading statement outlines slightly worse Q2 for Borealis

20 July 2012 09:51  [Source: ICIS news]

LONDON (ICIS)--Austria-based plastics producer Borealis will report a slightly lower financial result in the second quarter compared with the first quarter, OMV group, a 36%-stakeholder in the company, said on Friday.

Austrian gas, oil and petrochemical group OMV added in a trading statement that Borealis was “burdened by unfavourable inventory effects and lower polyolefin volumes and margins, but was again supported by a strong positive contribution from Borouge, Borealis’ joint venture with the Abu Dhabi National Oil Company”.

In May, Borealis reported a 20% year-on-year drop in net profit to €140m ($173m) in the first quarter of 2012.

In the trading statement, OMV said its overall petrochemical division during the second quarter of this year “was supported by higher product prices, which together with lower naphtha spreads improved the result substantially vs. Q1/12”.

OMV's second-quarter results would include net special charges of approximately €140m, mainly concerning an impairment for its Austrian Strasshof gas field and workforce restructurings in Romania and Austria, the group said.

In Libya during the second quarter, OMV's oil production nearly increased to the level it stood at before the civil conflict, OMV added.

OMV is scheduled to release its second-quarter financial results on 8 August.

($1 = €0.81)

By: Will Conroy
+44 20 8652 3214

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