OMV - Bet On Integration
- We trimmed our long-term Brent oil price estimates from USD 65/bbl to USD 60/bbl due to increasing growth fears in the aftermath of the coronavirus pandemic and plenty of ready-to-be utilized crude supply once the price of oil starts recovering. Our new Brent oil price assumptions for 2020 and 2021 are USD 40/bbl and USD 52/bbl (reduced from USD 50/bbl and USD 60/bbl, respectively). European hub gas prices may hover around EUR 10/MWh this year because of a glut of supply and warm weather conditions causing storage facilities to be filled up to two-third of their capacities. OMV’s refining margin is also posed to decline to the neighbourhood of USD 4/bbl this year due to sluggish demand for fuels (particularly for jet), and to recover gradually in the outer years. We expect additional positive contributions from the middle distillate hedges over the coming quarters this year. Petrochemical margins have recovered from the low levels of the fourth quarter of 2019 and now they are expected to remain at around the prior-year level on average in 2020.
OMV is an international energy company with activities in Exploration and Production (E&P), Refining and Marketing including petrochemicals (R&M), and Gas and Power (G&P). Co. explores and develops oil and gas resources and supply energy to over 100 million people. OMV has three operating segments: Exploration and Production (E&P), Refining and Marketing, including petrochemicals (R&M), and Gas and Power (G&P), as well as the segment Corporate and Other (Co&O).
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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