“OMV continues to deliver on its strategic targets. We further optimized our portfolio by selling a 49% stake in Gas Connect Austria, the gas transportation business. This will bring us sales proceeds of EUR 601 mn at closing in Q4/16. We also continued to optimize our North Sea portfolio. OMV signed an agreement for the sale of 100% of the shares in its wholly owned Upstream subsidiary, OMV UK, to Siccar Point Energy Limited for up to USD 1 bn.
In the third quarter, OMV also continued to stringently implement its cost reduction program. OMV will achieve cost reductions of EUR 100 mn in 2016 and EUR 150 mn in 2017. In Upstream, we continue to focus our investments on projects delivering profitable barrels. This enabled OMV to reduce its CAPEX program from the initially targeted EUR 2.4 bn to EUR 2.0 bn in 2016. In 2017, we now plan to invest EUR 2.2 bn, a decrease of EUR 200 mn.
All our efforts are reflected in OMV’s resilient earnings development despite the continuously challenging market environment. OMV delivered a robust clean CCS EBIT of EUR 415 mn in Q3/16. Moreover, OMV generated a positive cash flow, with an operating cash flow of EUR 652 mn and a free cash flow of EUR 239 mn.”- said Rainer Seele, CEO of OMV.
These are results:
Q3/16: Clean CCS EBIT at EUR 415 mn; clean CCS net income attributable to stockholders at EUR 447 mn
Positive free cash flow after dividends at EUR 239 mn in Q3/16
Upstream production of 301 kboe/d
Robust clean CCS EBIT contribution from Downstream Oil and Downstream Gas
Sale agreement for 49% stake in Gas Connect Austria signed
OMV divests its wholly owned Upstream subsidiary in the UK for up to USD 1 bn
Source: omv.com
