Austria’s OMV Q4 petchem op profit down on higher feedstock costs

21 February 2013 08:43  [Source: ICIS news]

LONDON (ICIS)--The clean operating profit of OMV’s petrochemical division fell by 31% year on year to €9m ($12m) in the fourth quarter of 2012, with higher feedstock costs countering better margins, the Austrian group said on Thursday.

“At €9m, the clean petrochemicals EBIT [earnings before interest and tax] was below the €13m recorded in the fourth quarter of 2011, despite higher WECP [West European Contract Price] margins, since the actual margins were burdened by higher input prices,” the oil, gas and petrochemicals company said in a commentary on its financial results.

Petrochemical sales volumes in the fourth quarter of last year stood at 550,000 tonnes, a 10% improvement year on year and flat quarter on quarter, OMV added.

The company also saw a fourth-quarter WECP ethylene/propylene net margin of €345/tonne, compared to €297/tonne in the same quarter of the previous year and €257/tonne in the third quarter of 2012.

In its outlook for 2013, OMV said: “In the petrochemical business, margins are expected to remain at the 2012 level with modest economic growth in the key markets anticipated to weigh on profitability.”

Overall, OMV achieved a Q4 net profit of €317m, up from €211m in the same quarter of the previous year and €311m in the previous quarter, with rising sales volumes in Libya a driving factor.

Sales revenues climbed by 22% year on year to €11.4bn.

($1 = €0.75)

By: Will Conroy
+44 20 8652 3214

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