OMV

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For other uses, see OMV (disambiguation).
OMV Aktiengesellschaft
Type Joint stock company
Traded as WBAGOMV
Industry Oil and gas
Founded 1956
Key people Gerhard Roiss (CEO)
Products Oil and gas exploration and production, natural gas trading and transportation, oil refining, electricity generation
Services Fuel stations
Employees 26,863 employees (2013)[1]
Website www.omv.com

OMV (formerly "Österreichische Mineralölverwaltung", ÖMV), is an integrated international oil and gas company, headquartered in Vienna. Its main businesses are exploration and production of oil and gas, natural gas distribution and power generation, and refining and marketing oil products. With group sales of €42.41 billion, a global workforce of 26,800 in 2013 and a market capitalization of € 11.35 billion (end of 2013), OMV is the largest listed manufacturing company in Austria.[1]

History[edit]

The new OMV headoffice in the Hoch Zwei skyscraper in Vienna

OMV (ÖMV as it was known then) originated in 1956 as a joint-stock company formed out of "Sowjetischen Mineralölverwaltung" (SMV). Four years later, in 1960, the company opened the Schwechat refinery near Vienna.[2] At the end of 1987, 15% of OMV was privatized, making it the first public listing of a state-owned company in Austria. In 1989, OMV acquired a 25% stake in plastics group, Borealis.

In 1990 the company opened its first filling station in Vienna-Auhof on 24 June 1990.

The International Petroleum Investment Company (IPIC) of Abu Dhabi acquired an initial 19.6% interest in the group at the end of 1994. The following year, the group changed its name from "ÖMV" to "OMV" because the umlaut on the "Ö" is not commonly used in many languages. In the early 2000s, OMV expanded into Eastern Europe, by acquiring around 10% of Hungarian oil company, MOL and in 2003 it acquired the upstream division of Germany’s Preussag Energie, expanding its filling station networks.

In 2004, OMV became the market leader in Central and Eastern Europe following the acquisition of 51% of Romanian oil and gas group Petrom which constitutes the largest acquisition in OMV’s history.

In the same year, OMV increased its share capital, meaning that more than 50% of the company’s shares were in free float for the first time. Following the sale of 50% of the subsidiary company Agrolinz Melamine International GmbH to IPIC in 2005, the Borealis group was taken over in full together with IPIC.

In 2006, OMV acquired a 34% stake in Turkish oil group Petrol Ofisi - the largest Austrian investment in Turkey to date. In the same year, the board members of OMV and Verbund, the Austrian utility group announced plans for a merger. However, this collapsed due to resistance from Austrian MPs.

OMV increased its stake in Hungarian oil group MOL to 20.2% in 2007. OMV then sold its entire stake in March 2009 after MOL rejected a takeover bid in 2008 and the European Commission imposed tough restrictions for an approval of the deal. OMV acquired the stake held by Dogan Holding in Petrol Ofisi in late 2010, which further increased its stake in the company to 95.75%. In 2011, this stake was increased again to 97%.

In September 2011, the company unveiled its revised corporate strategy, ‘profitable growth’. According to the strategy, OMV intends to increasingly divert its investments from the refining and filling-station business to the upstream business (Exploration & Production), where two thirds of future investments will be made. OMV’s plan is to increase the E&P weighting in the overall portfolio to up to 60% by 2021. On a regional level, the investment focus is to be on the Black Sea, the North Sea region, the Caspian region, the Middle East and Sub-Saharan-Africa.

In 2012, the Domino-1 well in the Romanian Black Sea exploration license Neptun was the most significant discovery in that year, which has the potential to be OMV´s most important gas discovery ever.[2]

On October 31, 2013 the acquisition deal with Norwegian Statoil containing participations in oil and gas fields and in development projects in Norway and the UK was closed. Proven and probable reserves will climb by about 320 mn boe. With 2.65 bn USD, this is the largest transaction in OMV’s history. [3] [4]

A divestment agreement for the 45% stake in Bayernoil was signed in December 2013.[1]

Finance information[edit]

Key figures 2013[edit]

With Group sales of EUR 42.41 bn, a workforce of 26,863 employees and a market capitalization of EUR 11.35 bn at year-end, OMV Aktiengesellschaft is Austria’s largest listed industrial company.[1]

Shareholder structure 2013[edit]

Shareholdings[edit]

The most important shareholdings of OMV Aktiengesellschaft are listed below, with other shareholdings held by the appropriate business segments:

  • OMV Refining & Marketing GmbH (100%)
  • OMV Deutschland (100%)
  • OMV Exploration & Production GmbH (100%)
  • OMV Gas & Power GmbH (100%)
  • OMV Solutions GmbH (100%)
  • Gas Connect Austria (100%)
  • Petrol Ofisi (97%)
  • Petrom SA (51%)
  • Borealis (36%)

Business segments[edit]

Exploration and production[edit]

World location of the OMV company, for exploration and production activities

OMV's exploration and production business segment has a strong base in Romania and Austria and is growing its international portfolio steadily. OMV had proven reserves of 1,131 million barrels (179.8×10^6 m3) at year-end and a production of 288,000 barrels per day (45,800 m3/d) in 2013. Around 70% of its production came from Romania and Austria, the remainder from a growing international portfolio. The oil/gas split in production is roughly 50/50.[1]

Gas and power[edit]

OMV's integrated gas and power business segment operates across the entire gas value chain. The gas supply portfolio consists of equity gas and is complemented by contracted volumes. The gas is brought to the market through a 2,000 km (1,200 mi) gas pipeline network as well as own gas storage facilities with a capacity of 2.6 bcm and sold via own sales channels. The Central European Gas Hub (CEGH) is established as an important gas trading platform on the gas routes from East to West and also operates a gas exchange. The gas distribution node in Baumgarten is Central Europe’s largest node for gas from Russia. OMV also operates two gas-fired power plants in Romania and Turkey.[1]

Refining and marketing[edit]

The OMV refinery in Schwechat

The business segment refining and marketing including petrochemicals operates three refineries: Schwechat (Austria) and Burghausen (Germany), both with integrated petrochemical complexes, as well as the Petrobrazi (Romania). A divestment agreement for the 45% stake in Bayernoil (Germany) was signed in December 2013. OMV has an annual processing capacity of 17.4 mn t (360,000 bbl/d), excluding Bayernoil. The retail network consists of approximately 4,200 filling stations in 11 countries with a strong brand portfolio. Together with a high-quality non-oil retail business (VIVA) and an efficient commercial business, OMV has a leading position in its markets.[1]

Controversies[edit]

Petrom[edit]

The acquisition of 51% stake in Petrom was considered controversial as the privatization contract was not been made public and it consists of several disputed clauses.[5] The privatization allegedly produced a market monopoly. Critics say that OMV can use the resources Petrom owns until their exhaustion. Also fixing of tax for gas and oil exploration at 3 to 13.5 percent from the final delivery price for 10 years was criticized. Some critics claimed, that the price €1.5 billion was too low.[5]

MOL[edit]

In June 2007 OMV made an unsolicited bid to take over MOL, which was rejected by the Hungarian company. MOL criticized OMV's advertisement in which OMV had suggested the two had already worked together on the European market. MOL thought that to be misleading and unethical and asked OMV to remove the name MOL from those advertisements. OMV dismissed its bid after negative results of the investigation by the European competition authorities.[6][7]

OMV sold its entire stake to Surgutneftegas in March 2009.[8]

See also[edit]

References[edit]

  1. ^ a b c d e f g h OMV Annual Report 2013
  2. ^ a b "OMV History". OMV. Retrieved 31 March 2014. 
  3. ^ OMV Press Release. OMV agreed on a major asset acquisition in Norway and the United Kingdom (UK) with Statoil. Retrieved on March 27, 2014.
  4. ^ OMV Press Release. OMV closes acquisition deal with Statoil. Retrieved on March 27, 2014.
  5. ^ a b Cristina Muntean (18 December 2006). "Petrom deal examined". CBW. Retrieved 7 December 2008. [dead link]
  6. ^ "European Commission closes door on OMV-MOL merger plan". Realdeal.hu. 7 August 2008. Retrieved 7 December 2008. 
  7. ^ "OMV gets EU objections statement over MOL takeover bid". Forbes. 24 June 2008. Archived from the original on 24 May 2011. Retrieved 6 December 2008. 
  8. ^ "OMV sells MOL stake". OilVoice. 30 March 2009. Retrieved 30 March 2009. 

External links[edit]