OMV Intensifies Investment, Cost Cuts As Oil Price Weighs

Reuters

VIENNA, Aug 10 (Reuters) - Austrian energy group OMV said on Wednesday it was cutting its investments and costs further to counteract low oil prices which have sent its adjusted second-quarter operating profit down 43 percent to 214 million euros ($238.67 million).

OMV will spend 200 million euros less on investments than the planned 2.4 billion this year. It has already cut its cost ahead of schedule by 100 million euros a year and is increasing its savings target to 150 million in 2017 compared with 2015.

The Average estimate in a Reuters poll of analysts for clean current cost of supplies (CCS) earnings before interest and tax (EBIT) was 190 million euros. This measure strips out special items and inventory holding gains or losses.

(Reporting By Shadia Nasralla; Editing by Maria Sheahan)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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