OMV (OMV) Q2 2024 earnings summary

Executive summary

• Clean CCS operating result rose 4% year-over-year to EUR 1.23 billion in Q2 2024, driven by Chemicals and Fuels & Feedstock, while Energy declined.

• Clean CCS EPS increased 5% to EUR 1.51 per share; net income attributable to stockholders up to EUR 494 million.

• Cash flow from operations in H1 2024 reached EUR 3 billion, up 3% year-over-year, supporting shareholder distributions and investments.

• Free cash flow in H1 2024 was negative due to dividend outflows, but improved versus H1 2023.

• Strategic progress included completion of the ReOil recycling plant, FID for a HVO/SAF plant in Romania, and acquisition of Romania's largest EV charging network.

Financial highlights

• Brent crude averaged $85/bbl in Q2 2024, up 9% year-over-year; European gas prices averaged EUR 31/MWh, down 12% year-over-year.

• Polyolefin indicator margins rose 37% year-over-year; Clean CCS EPS increased 5% with a stable 46% tax rate.

• Refinery utilization rose to 89%; polyolefin sales volumes up 13% year-over-year.

• Energy segment operating result fell 9% to EUR 817 million due to lower gas marketing and power contributions.

• Net debt increased to EUR 3.3 billion; leverage ratio at 12% after dividend and bond payments.

Outlook and guidance

• Full-year Brent price estimate maintained at $85/bbl; gas price guidance upgraded to EUR 30–35/MWh.

• Polyolefin margin outlook raised to above EUR 400/ton for polyethylene; polypropylene around EUR 400/ton.

• Hydrocarbon production for 2024 guided between 330–350 kboe/d, down from 364 kboe/d in 2023.

• Organic CAPEX for 2024 guided at EUR 3.8 billion.

• Progressive regular and special dividend for 2024 anticipated.