Austria's OMV Q3 petchem profit up 42% on better C2/C3 net margin

07 November 2013 08:45  [Source: ICIS news]

LONDON (ICIS)--OMV's third-quarter clean petrochemical operating profit grew to €27m ($37m) from €19m in the same quarter of a year ago, driven by an improved ethylene (C2)/propylene (C3) net margin, the Austrian group said on Thursday.

Petrochemical sales volumes were flat year on year at 560,000 tonnes, OMV said.

OMV's ethylene/propylene net margin was €349/tonne in the third quarter of this year, compared with €257/tonne in the third quarter of last year and €382/tonne in the second quarter of this year, the company said.

“The petrochemical result was at €27m, below the level of Q2 2013 [€47m], mainly due to lower margins which were negatively affected by increasing naphtha prices and despite higher sales volumes,” the company said in a commentary on its latest financial results.

For 2013 as a whole, petrochemical margins were expected by the company to reach slightly higher levels than were seen in 2012, OMV added.

The company said the clean operating profit of its petrochemical business in the third quarter benefited from a strong contribution delivered by Borealis, the Austria-based petrochemical producer 36%-owned by OMV. The contribution increased by €1m to €47m compared to the third quarter of 2012, thanks to improved polyolefins business, said.

OMV, also a refiner and a gas producer, saw its third-quarter net profit fall to €375.4m from €401.3m in the same period of 2012, with oil production in Libya and Yemen affected by political unrest. Sales revenues declined to €10.7bn from €10.9bn.

($1 = €0.74)

By: Will Conroy
+44 20 8652 3214

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