Austrian oil company OMV's consolidated sales decreased by 10 percent to €4.977 million in the first quarter of 2018 compared to the same period of 2017, due to the divestment of its Turkish Petrol Ofisi retail station network, the company announced Thursday in its quarterly report.
"The downstream clean current cost of supplies (CCS) operating result decreased to €376 million from €494 million in first quarter of 2017. The downstream oil result was mainly affected by the divestment of OMV Petrol Ofisi in Q2/17 and a weaker refining market environment in Q1/18," the report showed.
According to OMV, "Clean CCS before interest and tax (EBIT)" is a key financial figure and helps make comparisons to previous years and to the performance of the company's peers.
The decrease in the whole downstream business was partially due to the divestment of OMV Petrol Ofisi, which contributed €53 million to the Clean CCS Operating Result in Q1/17, according to OMV's report.
In June 2017, OMV completed the sale of Petrol Ofisi, the largest retail station network in Turkey, to VIP Turkey Enerji, a subsidiary of Vitol Investment Partnership. The €1.37 billion agreement was signed on March 3, 2017.
Despite the decrease in downstream activities, OMV's CCS earnings before EBIT, which excludes special items and inventory gains or losses, increased by 2 percent to €818 million in the first quarter of 2018, according to the quarterly report.
The report shows that the 2 percent increase was a result of a new stake in a Russian gas field and from production rises in Libya.
"Total hydrocarbon production rose by 31 percent to 437 thousand barrels of oil equivalent, (kboe/d), primarily due to Russia’s contribution of 106 kboe/d and a higher Libyan production by 15 kboe/d." the report read.
Petrol Ofisi, with over 1,709 fuel dispensing facilities across Turkey, was put for sale in February 2016 due to financial difficulties.
€1=$1.19
By Muhsin Baris Tiryakioglu
Anadolu Agency
energy@aa.com.tr
