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OMV Q2 Results Weaker Though Broadly In Line With Trading Update; Not A Spread Mover

ENERGY SECTOR

Rating: Baa2/NR/BBB


Report seems slightly credit negative though the weaknesses were well flagged by the trading update so the credit impact to these results is likely muted.


  • Clean CCS Op Result +4% YoY (+0.3% vs. consensus) despite a 9% decrease in largest segment Energy. Energy performance driven by significantly lower Gas Marketing/Power result (down to EUR 1mn from EUR 132mn last year on poor Romanian performance on regulatory changes as flagged after the trading update) despite a stronger result in E&P.
  • Chemicals fell short of consensus though weakness here was also flagged in the trading update and while the decline in Fuels and Feedstock wasn’t as bas as expected.
  • CFO excl. WC looks strong with EUR 890mn up from EUR -375mn in Q223 supported by lower tax payments. This fed through to organic FCF of EUR 405mn from EUR -595mn in Q223 though net FCF after dividends was EUR -1.5bn on the annual payment. Net debt +8% YoY with the chosen gearing ratio at 12% from 4% at Q1 and 11% at Q223.

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