OMV booked excellent earnings in 2022, partly thanks to the high oil and gas prices as a result of the Ukraine crisis – after taxes, a profit of 5.175 billion euros remains. OMV boss Alfred Stern does not feel guilty about this: an important contribution has been made to security of supply and “the Republic of Austria benefits most from a successful OMV”, he says.
“We at OMV are extremely proud that we were able to achieve a record year,” said Stern. Consolidated operating profit more than doubled to EUR 12.246 billion, net profit amounted to EUR 5.175 billion, 85 percent higher than last year. Group sales increased by 75 percent to EUR 62.3 billion, mainly due to higher market prices.
Stern: One billion delivered to the state
OMV has achieved a lot in the past year in its pursuit of diversification of the gas supply, emphasizes Stern. But the Republic also benefits financially: OMV will already pay 300 million euros in regular taxes and levies such as the subsidy interest before 2022.
About 620 million more would be paid to ÖBAG through dividends and special dividends, thus also to the Republic. In addition to the special dividend that has already been decided, OMV shareholders will receive a higher regular dividend of EUR 2.80 (2.30) per share. Together with other taxes, OMV generates about one billion euros for the state.
OMV services “make life possible at all”
“We contribute about 1.6 percent to the gross national product, we employ a lot of people and we also supply energy for the entire country, which makes life as we have it possible at all,” Stern emphasizes the economic importance of the state-owned oil, gas and chemical company. OMV, however, generates only about seven percent of the business results in Austria in the energy sector – and only this is affected by the “solidarity taxes”, ie subject to a special tax. “We estimate today that this will be around 90 million euros.”
Tightened oil embargo on Russia ‘will not improve situation’
The tightening of the oil embargo against Russia – EU sanctions against oil products from Russia come into effect on 5 February – will lead to further market shortages. Europe has so far imported a lot of diesel from Russia and diesel prices have been higher than petrol prices for some time.
“The situation will of course not get any better with what comes into effect on Sunday,” says Stern. However, the extension of the embargo is already largely priced in. To compensate for the loss of Russian oil products, one will have to rely on imports from other regions, such as the Middle East or Asia.
Forecast: Oil remains expensive despite slightly falling prices
In its planning for this year, OMV assumes a Brent oil price of above USD 80 per barrel. “That is less than last year, but still at a very high level.” The gas price at Trading Hub Europe is estimated at 60 to 70 euros per megawatt hour. “This is also less than what we had in 2022, but still significantly above the historical average.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
