OMV Q1 Adjusted Operating Profit Falls By Half

Reuters

VIENNA, May 11 (Reuters) - Austrian oil and gas group OMV's adjusted operating profit in the first quarter fell 50 percent to 167 million euros ($190 million), slightly above expectations, as low oil prices kept gnawing at its upstream profit, it said on Wednesday.

OMV is increasingly cutting costs rather than aiming at boosting its output, which it expects will come in at 300,000 barrels of oil equivalent per day this year, more or less flat on 2015.

OMV is slashing investment, which fell to 467 million euros in the first quarter from 707 million a year earlier.

"We also improved our cash flow from operating activities, driven by the cash generation in Downstream but also supported by increased production in Norway," Chief Executive Rainer Seele said, referring to a 43 percent rise in cash flow to 579 million euros.

OMV's downstream business, including refining and marketing, has buoyed its results, but margins in that unit are also shrinking, weighing further on its results.

The average estimate in a Reuters poll of analysts for clean current cost of supplies (CCS) earnings before interest and tax (EBIT) was 158 million euros. This measure strips out special items and inventory holding gains or losses.

(Reporting By Shadia Nasralla; Editing by Michael Shields)

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Executive Director
Expertise: Business Development|Executive|Project Management
Location: Houston, TX
 
Senior Accounting Analyst Job
Expertise: Accounting|Budget / Cost Control|Financial Analyst
Location: Denver, CO
 
Associate Product Portfolio Manager Job
Expertise: Business Development|Marketing|Sales
Location: Denver, CO
 
search for more jobs

Brent Crude Oil : $54.33/BBL 0.81%
Light Crude Oil : $51.5/BBL 1.29%
Natural Gas : $3.75/MMBtu 1.35%
Updated in last 24 hours