Austria’s OMV Q2 petchem profit surges sixfold on better margins

08 August 2012 09:23  [Source: ICIS news]

LONDON (ICIS)--OMV saw the clean operating profit of its petrochemical division climb to €66m ($53m) in the second quarter of this year, against the €11m recorded a year ago, due to higher olefin margins and a completed turnaround of main facilities, the Austrian group said on Wednesday.

The clean profit, which excludes special items and inventory holding gains and losses,  was made on the back of a 38.5% improvement in petrochemical sales volumes to 540,000 tonnes in the second quarter, OMV said in a statement.

The company’s second-quarter ethylene/propylene net margin gained 7% year on year to reach €436/tonne, based on West European Contract Prices, the company said.

However, in its outlook for the remainder of 2012, OMV cautioned that “petrochemical margins are anticipated to come down from recent highs as a subdued economic environment weighs on prices”.

On its Romanian subsidiary OMV Petrom, OMV said that in line with management’s decision to exit the chemicals business, Petrom continued the closure of the chemical fertilizer and methanol unit Doljchim and made further progress with the dismantling and decontamination of the plant in compliance with European environmental and safety standards.

OMV, also an oil and gas company, said it recorded an overall clean net income of €455m in the second quarter, compared with €240m in the same quarter of last year, with a spike in refining margins boosting profits.
Sales revenues gained 25% year on year to reach €9.99bn, it added.

The company added in its results announcement that it has begun a performance improvement programme, designed to push up the return on average capital employed (ROACE) by 2% points by 2014.

"I am glad to see our strategy implementation is gathering pace," said OMV CEO Gerhard Roiss.

($1 = €81)

By: Will Conroy
+44 20 8652 3214

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