The energy company is repositioning itself, further selling off assets, restructuring the board
“The world has turned. The course has been set for a new and larger OMV. ”On Thursday, OMV boss Rainer Seele outlined the transformation of the state-owned energy company from a company focused on oil and gas into a petrochemical and plastics group. The basis is the four billion euro majority takeover of the Borealis chemical group.
OMV plans to invest around three billion euros in Austria by 2025, the majority of it in Lower Austria. A billion is to flow into sustainable projects, in plastic recycling, biofuels and the production of hydrogen. Investments will be made in the refinery in Schwechat as well as in domestic oil and gas production, announced OMV Vice President Johann Pleininger. Around ten percent of domestic oil and gas requirements are covered by domestic production, “we want to maintain this level over the next five years”.
In order to reduce the debt, the sale of parts of the company continues cheerfully. The first part of the two billion euro sales program has been implemented and brought in around one billion. Achieved through the sale of the domestic gas network Gas Connect Austria, the filling station business in Germany and the production in Kazakhstan.
Further sale
Part two provides for the sale of the 120 filling stations in Slovenia as well as the Borealis subsidiary Agrolinz (nitrogen, fertilizers, melamine). Around 2,000 employees are affected. Two years ago, an attempt to sell it failed because of the price. Today, Seele argues, the chances are better. Agrolinz is more profitable and the market environment has improved.
Soul offered a third “divestment package”, but did not want to give any details.
According to the focus on chemistry, the board of directors is being restructured, the KURIER has already reported in detail. Borealis boss Alfred Stern, 56, will join the Group's executive board on April 1st. The internationally renowned top manager will be responsible for Chemicals & Materials. Soul did not want to comment on whether the previously responsible board member Thomas Gangl will then be transferred to Borealis as CEO.
Russia
The production target of 600,000 barrels per day and the doubling of the oil and gas reserves will “no longer be pursued strategically,” emphasized Seele. They want to level off at 480,000 to 500,000 barrels. Soul left the future of the long overdue major investment in the Siberian oil and gas field Urengoy completely open. Originally an asset swap was planned, the last to be acquired was the 25 percent stake for 905 million euros in cash. On Thursday, Seele spoke only vaguely of an “option”.
The situation at the Nord Stream 2 pipeline project has not changed for the time being with the assumption of office of the new US president, Seele said. He hoped for diplomatic talks from Berlin with the USA and France.
The Corona crisis also hit OMV a lot. The consolidated profit fell by 31 percent to 1.478 billion euros. The shareholders can still look forward to a slightly higher dividend of 1.85 euros. The economy is not expected to pick up until the second half of 2021. A total of 2.7 billion will be invested this year. For 2021, OMV is calculating with a crude oil price of 50 to 55 dollars.
