Austrian oil and gas company OMV posted a net income of €1.05 billion in the third quarter of 2018, marking a 31 percent rise on an annual basis, according to a financial report released by the group on Wednesday.
The company’s clean current cost of supplies (CCS) figures, which corresponds to the adjusted net income excluding special items and fuel inventory gains or losses, came from the fuels refineries and Turkey-based OMV Petrol Ofisi, the report said.
Clean CCS net income attributable to stockholders amounted to €455 million over the same period, down from €472 million in the third quarter of 2017. The clean CCS earnings per share was €1.39, down from €1.45 in the same period last year.
The group's upstream production rose by 65,000 barrels of oil equivalent per day (boe/d) to 406,000 boe/d in the period July-September. OMV expects total production to be above 420,000 boe/d in 2018, with production from Russia planned to contribute around 100,000 boe/d.
'Production in Q4/18 is expected to be strong, slightly higher than in the first quarter of 2018. This will be driven by the production start-up of the two fields in Abu Dhabi and of Aasta Hansteen in Norway,' the report said.
In the third quarter, total hydrocarbon production rose by 19 percent to 406,000 boe/d, primarily due to Russia’s contribution of 89,000 boe/d, and partially offset by maintenance work in Norway, the divestment of OMV’s upstream companies active in Pakistan in the second quarter and lower production from Romania and Austria due to natural decline.
OMV Petrom's total production was down by 4 percent to 160,000 boe/d, mostly because of natural decline, the report added.
Total sales volumes in the third quarter were up by 24 percent, mainly attributable to the contribution from Russia and supported by higher sales volumes in Libya.
'This was partially offset by lower sales volumes in Romania, Norway and New Zealand as well as the divestment of OMV’s upstream companies active in Pakistan in Q2/18,' the group said.
According to the report, the average Brent price rose by 44 percent to around $75 per barrel in the third quarter, mainly driven by strong demand growth, falling Iran exports ahead of secondary oil sanctions set to become effective from Nov. 4, and concerns about the market’s ability to absorb additional supply disruptions in a tightening market.
By Hale Turkes
Anadolu Agency
energy@aa.com.tr