OMV quadruples Q4 profit, proposes 24% hike in dividend

Austrian energy company OMV on Thursday posted nearly a four-fold jump in its fourth quarter operating profit due to galloping oil prices, prompting the company to propose a 24 percent hike in its dividend for 2021 compared to the previous year.

Clean current cost of supplies (CCS) earnings before interest and tax (EBIT), which exclude special items and inventory gains or losses, rose to 2.00 billion euros (US $2.26 billion) in the quarter ending on December 31, 2021, the group said in a statement.

Cash flow from operating activities excluding net working capital effects more than quadrupled to 3.4 billion euros, primarily due to a more favorable market environment and the contribution for its subsidiary Borealis boosted by dividend distributions from Abu Dhabi Polymers Company Limited (Borouge), the company said.

OMV has proposed a dividend per share of 2.30 euros, up 24 percent compared to the previous year.

The company said it had received a 455-million-euro binding offer for the nitrogen business of its subsidiary Borealis from EuroChem, which aims to expand its global production and distribution capacities.

“The transaction would significantly enhance EuroChem’s nitrogen business in Europe, adding production assets in Austria, Germany and France as well as adding a comprehensive sales and distribution network utilising the Danube river,” OMV said.

The transaction should close during the second half of the year, the company said. OMV owns 75 percent of Borealis, while the remaining 25 percent is held by a holding company of Abu-Dhabi-based Mubadala.