OMV (OMV) Q4 2024 earnings summary

Executive summary

• Clean CCS Operating Result for 2024 was €5.1 billion, down 15% year-over-year, with strong Chemicals performance offsetting declines in Fuels & Feedstock and Energy.

• Achieved record polyolefin sales volumes, robust cash flow, and maintained a 12.7% dividend yield despite challenging market conditions.

• Successfully diversified gas supply after terminating the long-term Gazprom contract, eliminating significant risk exposure.

• Advanced major projects in chemicals, fuels, and energy, including Baystar ramp-up, ReOil plant startup, and Neptune Deep progress.

• Major divestments included Malaysia E&P and SapuraOMV, strengthening liquidity.

Financial highlights

• Full-year 2024 clean CCS operating result reached €5.1 billion; cash flow from operating activities (excl. net working capital) up 14% to €5.3 billion.

• Net debt at year-end was €3.2 billion; leverage ratio at 12%; cash position €6.2 billion.

• Organic Capex for 2024 at €3.7 billion, slightly below plan; total capital expenditure was €4.1 billion.

• Proposed total dividend of €4.75 per share for 2024, yielding 12.7% and representing 28% of CFFO.

• Group-wide efficiency measures delivered €180 million in 2024.

Outlook and guidance

• 2025 organic Capex expected at €3.6 billion, with €900 million for chemicals, €700 million for fuels/feedstock, and €1.9 billion for energy.

• Brent price forecasted at $75/bbl; European gas prices expected above 2024 levels; realized gas price forecast at €35/MWh.

• Polyolefin margins projected at ~€400/ton; European cracker utilization to rise to ~90%.

• Energy production expected at 300,000 BOE/day in 2025; unit production cost to rise to ~$11/bbl.

• Clean tax rate for 2025 expected around 50%.