OMV Sees 3Q Profit Hit From Libya Oil Disruptions
Osterreichische Mineralolverwaltung AG (OMV AV)
- 3Q clean operating result to be reduced by more than EU200m ($220m)
- Libyan oilfields, export terminals reopened after central bank dispute resolved
- Force majeure declared at Sharara, Elfeel oilfields in August, September
- One-off expenses, lower refining margins also weigh on results
- Chemicals division a bright spot amid shift from fossil fuels
- Shares fall 1.9%
- Erste Group analysts say 3Q looks weaker than 2Q
(Updates with analyst comment in seventh paragraph.)
OMV AG expects a hit of more than 200 million euros ($220 million) to its third-quarter clean operating result following disruptions to Libyan oil production, the Austrian energy company said Tuesday.
The warning comes after the reopening of Libyan oilfields and export terminals following the resolution of a leadership dispute at the nation’s central bank. Libya’s National Oil Corp. declared force majeure at the Sharara and Elfeel oilfields on Aug. 7 and Sept. 2 respectively, impacting OMV’s operations.
The company also cited one-off expenses and declining refining margins, particularly in its fuels and feedstock sectors. However, OMV reported higher margins in its chemicals division, which continues to grow as the company shifts away from fossil fuels.
Shares fell 1.9% after the announcement. Erste Group analysts said the third quarter appears “weaker” than the second, “mainly due to reduced Libyan output and a less favorable refining environment.”
OMV’s average crude oil price dropped 3.8% in the quarter, while its realized natural gas price rose 7.3%.
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