OMV results for June and Q2 2016

• Q2/16: Clean CCS EBIT at €214 million, down by 43% versus Q2/15, Clean CCS net income attributable to stockholders at €222 million, down by 39% versus Q2/15.
• Strong cash flow from operating activities at €1036 million, up by 21% versus Q2/15; positive free cash flow after dividends in Q2/16.
• Cost reduction of €100 million planned for 2017, to be achieved ahead of schedule in 2016.
• Norway production contribution continues to increase, supported by ramp-up of Edvard Grieg and additional wells in Gullfaks and Gudrun.
• Sale agreement for a 30% stake in the Rosebank field (UK) signed.

Rainer Seele, CEO of OMV:

“In a challenging market environment, in Q2/16 OMV delivered a strong cash flow from operating activities exceeding €1 billion and a positive free cash flow after dividends. However, decreased oil and gas prices and lower refining margins have impacted the results of OMV Group. Clean CCS EBIT dropped by 43% and clean CCS net income attributable to stockholders decreased by 39%. In line with our strategy to optimise the Upstream portfolio, we are divesting a 30% stake in the Rosebank field in the UK. This sale reduces OMV’s related future investment commitments. In addition, we continue to focus on cash and costs. The cost reduction programme that started this year aimed for a reduction of €100 million in 2017, but we expect to reach this goal already in 2016. Thus, we have set a new cost reduction target of more than €150 million in 2017 versus 2015. We have also continued with our rigorous CAPEX discipline and thus reduced our CAPEX guidance to €2.2 billion in 2016. This is lower than the initially announced target of €2.4 billion.”

Adapted from a press release by David Bizley

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/10082016/omv-results-for-june-and-q2-2016/