OMV (OMV) Q4 2023 earnings summary

Executive summary

• FY 2023 clean CCS Operating Result was EUR 6,024mn, down 46% YoY amid lower market prices and weaker results across all three segments.

• FY cash flow from operating activities was EUR 5,709mn; 2023 DPS was EUR 5.05, including a EUR 2.10 special dividend.

• Q4 clean CCS Operating Result was EUR 1,432mn, up QoQ but down 32% YoY; attributable clean CCS net income was EUR 665mn and EPS was EUR 2.03.

• Proposed FY 2023 dividend was EUR 5.05/share, comprising EUR 2.95 regular and EUR 2.10 special, subject to shareholder approval.

Financial highlights

• FY sales revenue fell 37% to EUR 39,463mn and reported Operating Result declined 57% to EUR 5,226mn.

• FY net income was EUR 1,917mn, attributable net income EUR 1,480mn and EPS EUR 4.53, versus EUR 5,175mn, EUR 3,634mn and EUR 11.12 in 2022.

• Q4 sales revenue decreased 31% to EUR 10,047mn; attributable clean CCS net income was EUR 665mn versus EUR 700mn in Q4 2022 and EUR 431mn in Q3 2023.

• FY cash flow from operating activities excluding net working capital effects was EUR 4.6bn; working capital contributed EUR 1.1bn, versus negative EUR 2.1bn in 2022.

Outlook and guidance

• 2024 planning assumptions: Brent ~USD 80/bbl, THE gas EUR 30–35/MWh and average realized gas price ~EUR 25/MWh.

• 2024 organic CAPEX is ~EUR 3.8bn, including ~EUR 0.2bn in non-cash leases; Energy organic CAPEX is ~EUR 1.9bn.

• Energy production guidance is 330–350 kboe/d, subject to Malaysia asset divestment timing, Libya conditions and natural decline.

• European refining margin is forecast at ~USD 8/bbl with refinery utilization ~95%; European steam cracker utilization is expected at ~85%.

• 2024 European indicator margin assumptions: ethylene EUR 490/t, propylene EUR 370/t, polyethylene EUR 320/t and polypropylene EUR 320/t.