OMV’s net profit for the first quarter reached around 468 million euros, up from 390 million euros a year earlier, mainly due to expense reductions. However, adjusted operating profit, excluding one-off and inventory effects, fell 29% to almost 1.5 billion euros.
Impact of falling gas prices
According to CEO Alfred Stern, gas prices have reached their lowest level since the start of the conflict in Ukraine. The drop comes alongside weak demand from European consumers, partly due to an unusually mild winter which also led to full stocks.
Chemical sector and fertilizer market
OMV’s chemical division saw an improvement, described as probably temporary. This improvement is supported by an increase in demand for the products of Borealis, a major subsidiary in the production of fertilizers, disrupted by difficulties in imports from Asia and the Middle East, exacerbated by rebel attacks Houthis in the Red Sea.
Logistical challenges and reduction in payroll
The group was also affected by a drought impacting the Panama Canal, slowing the transit of ships between Asia and the United States. OMV has reduced its payroll significantly, from 37,700 employees in 2010 to around 20,600 in 2024.
Diversification and divestment
Criticized for its close ties with Gazprom until 2040, OMV is seeking to diversify its activities. Recently, it sold its stake in Malaysian gas operator SapuraOMV to TotalEnergies for $903 million, marking an important step in its diversification strategy.
Although facing significant challenges related to gas prices and demand, OMV demonstrates a resilient ability to adapt and continue to grow, while navigating a complex global energy landscape.
