- Q4/15: Clean CCS net income attributable to stockholders at €180 million, down by 48% vs. Q4/14, clean CCS EBIT at €187 million, down by 66% vs. Q4/14.
- 2015 Clean CCS Earnings Per Share increased by 1% to EUR 3.52, vs. 2014.
- Strong result contribution from Downstream offset by negative Upstream result in Q4/15 vs. Q4/14.
- Capital expenditure at €2,769 million in 2015, down by 28% vs. 2014.
- Broadly neutral free cash flow before dividends reached in 2015.
- Divestment process for OMV Petrol Ofisi initiated.
- The Executive Board proposes a dividend of €1.00 per share for 2015.
Rainer Seele, CEO of OMV:
“The year 2015 was dominated by the reduction in the oil price of close to 50%. Despite OMV’s strong integrated business model, providing some resilience in this very challenging market environment, the drop was inevitably reflected in the financial results with OMV’s Clean CCS EBIT down by 38%. The low level of profits in Upstream was partly compensated by a strong contribution from Downstream Oil. With a utilisation rate of 93%, our refining business was able to capture the favorable refining margins and benefited additionally from increased petrochemical margins. Clean CCS net income was further supported by the strong contribution of Borealis with full year Clean CCS Earnings Per Share reaching €3.52, up by 1% vs. 2014. In Upstream, measures were taken to reduce costs and investments, achieving an OPEX decrease in US$/boe of 20% and a CAPEX reduction of 28% versus 2014. We also continued to deliver projects in execution and started production at the Edvard Grieg field in Q4/15. The sharp decrease in oil and gas prices during the year, however, has led to the revision of our future price assumptions, triggering special charges of €3 billion during 2015. Despite these special charges, gearing improved to 28% at year-end, supported by the issuance of hybrid notes in December 2015. Cash flow generation remains the priority and we ended the year with a broadly neutral free cash flow before dividends. The continued volatility in the market outlook has led the Executive Board to propose a reduced dividend of €1.00 per share for the financial year 2015. With our new strategy, we will focus on cash and costs, pursue a sustainable position in Upstream focusing on value over volume growth, continue to strengthen the competitiveness of the Downstream Oil business and restructure the Downstream Gas business to position it for the future.“
Adapted from a press release by David Bizley
Read the article online at: https://www.oilfieldtechnology.com/special-reports/18022016/omv-q4-2015-results-highlights/