OMV's petchem Q4 earnings nearly triple on better C3 margins

19 February 2014 08:54  [Source: ICIS news]

LONDON (ICIS)--OMV's fourth-quarter 2013 clean petrochemical operating profit improved to €25m from €9m in the same period in 2012, driven by better propylene (C3) margins, the Austrian group said on Thursday.

Petrochemical sales volumes edged down to 540,000 tonnes from 550,000 tonnes, OMV said.

The company's ethylene/propylene net margin was €356/tonne in the fourth quarter of last year, compared with €349/tonne in the third quarter of 2013 and €345/tonne in the fourth quarter of 2012, it said.

OMV described the fourth-quarter petrochemical margins overall as “relatively stable”.

For the whole of 2014, the company expects margins in its petrochemical business to remain at similar levels seen in 2013.

The company also noted that the clean operating profit of its petrochemical business in the fourth quarter benefited from a strong contribution from Borealis, the Austria-based petrochemicals producer 36%-owned by OMV.

Borealis’ contribution rose to €53m from €40m compared to the third quarter of 2012, thanks to improved polyolefins business and a solid contribution from Borouge in Abu Dhabi, it said.

OMV also reported a full-year 2013 petrochemicals clean operating result of €140m, compared to €102m in 2012, stating that higher ethylene and propylene margins “more than compensated for lower butadiene margins”.

The company, also a refiner and a gas producer, saw its fourth-quarter net profit decline to €59m from €403m in the same period of 2012, with business hit by low refining margins, political unrest that disrupted oil production in Libya and challenging gas storage markets. Sales revenues declined to €10.4bn from €11.4bn.

By: Will Conroy
+44 20 8652 3214

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