OMV, an Austrian oil-and-gas company, announces decline in fourth-quarter earnings and revenue due to market price slump. Exploration and development production also declined. Future projections and dividend proposal discussed.
Troy D. Hanson
February 01, 2024
OMV, the Austrian oil-and-gas company, has announced a decline in its fourth-quarter earnings and revenue due to a slump in oil and gas market prices. The company has reported quarterly net profit of 236 million euros ($255.3 million), compared to 308 million euros in the same period last year. Adjusted net profit for the quarter decreased by 5% to 665 million euros, surpassing analysts' expectations of 481 million euros. OMV's revenue for the period dropped by 31% to 10.05 billion euros.
Exploration and Development Production Decline
OMV also highlighted a decline in exploration and development production, which decreased by 21,000 barrels of oil equivalent per day to 365,000 boe/d. The company explained that this decline is a natural occurrence in several countries.
Looking ahead, OMV expects Brent crude oil prices to be around $80 per barrel in 2024, as compared to $83/bbl in 2023. The average realized gas price is projected to come in at around EUR25 per megawatt hour, compared to EUR29/MWh last year. The company anticipates total hydrocarbon production in 2024 to be between 330,000 boe/d and 350,000 boe/d.
OMV has announced its proposal for dividends for the year 2023. It plans to propose a regular dividend of EUR2.95 per share and a special dividend of EUR2.10 per share.