Borealis, Owners and Joint Ventures
Austrias OMV Q4 petchem op profit down on higher feedstock costs
ICIS News : 21-Feb-13 08:43
LONDON (ICIS)--The clean operating profit of OMVs 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
icisnews.europe@icis.com
