Surprisingly strong results from the refining and sales division cushioned the unexpectedly sharp decline in the underlying profit of the Austrian oil and gas group OMV in the second quarter.
OMV announced on Tuesday that its results were adversely affected by reduced sales volumes and lower crude oil prices, a weak dollar, and write-offs, primarily in the exploration and production segment on which it is focused.
Like its competitors, the Austrian company is facing a decline in European demand. In its latest business report, they stated that their underlying operating profit (clean CCS EBIT) decreased by 15 percent to 733 million euros. Underlying net profit slipped 29 percent to 321 million euros.
According to OMV, their profit was impacted by reduced sales volumes in Libya, the United Kingdom, and New Zealand, as well as a surge in exploration costs by as much as 72 percent to 98 million euros, primarily due to debt write-offs in Tunisia and the United Kingdom and increased seismic activity in Norway.
The exploration and production division, which they have begun to expand, achieved disappointing results, as did the gas and electricity division, while the refining and sales division increased its underlying profit by 24 percent.
Sales activities, including the gas stations they have started to sell, reportedly made a strong contribution to the results thanks to better cost positions and higher retail margins.
