OMV misses market expectations in Q2 2024 due to weak G&P segment
Key Message OMV reported a clean CCS-based operating result of EUR 1,232 mn, marking a
4% increase YoY, but a 17% decrease QoQ. The hydrocarbon price environment
was stable. Refining margins decreased, likely permanently, negatively impacting
the sector. Chemical market recovery is slow. The Gas & Power segment had a
challenging quarter, although mostly due to temporary effects.
Key positives
The key positive development for the quarter is a slight increase in hydrocarbon
prices compared to the previous quarter. Additionally, the Chemicals market
shows signs of recovery compared to the same period last year, with minimal
change from the previous quarter.
Key negatives
The Gas & Power segment had a terrible quarter, mostly due to temporary factors
like new legislative changes in Romania and seasonal effects. The segment is still
expected to deliver EUR 300 mn annually.
Refining margins normalized faster than market expectations but were offset by
stronger commercial and retail margins. Refining margins further decline in July
sinking slightly below 6 USD/bbl.
All evidence indicates that the market recovery for the chemical segment will be
slow
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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