RSS   Newsletter   Contact   Advertise with us

OMV Group CAPEX was 34 percent lower

Staff writer ▼ | May 13, 2016
OMV Group posted its results for January – March 2016. Strong cash flow from operating activities was EUR 579 million, up by 43% vs. Q1 2015.
OMV Group
OMV Group   Cash flow from operating activities was EUR 579 million
Rainer Seele, CEO of OMV, said: "The year 2016 started with a further sharp decrease in oil prices, with average Brent price dropping 37% to USD 34/bbl in Q1/16 vs. Q1 2015, and exceptionally low gas prices.

"In this environment, as outlined in our strategy, we are focusing primarily on cash and costs. Group CAPEX was 34% lower, exploration expenditures were down by 24% and Upstream OPEX in USD/boe decreased by 13% compared to Q1 2015.

"The Downstream business achieved a solid result, supported by a strong petrochemical performance, continuing to show the benefits of our integrated business model.

"We also improved our cash flow from operating activities, driven by the cash generation in Downstream but also supported by increased production in Norway.

"In the past months, we have made further progress in implementing our strategy: We have agreed with Gazprom that a share in an OMV North Sea subsidiary will be discussed for the asset swap and we have signed a technical evaluation agreement with ADNOC.

"In restructuring our Downstream Gas business, we are currently preparing to fully integrate EconGas within OMV to enable us to develop a strong gas sales business in Northwest Europe."