Austria’s OMV has achieved oil and gas production growth despite divesting assets in Kazakhstan and Malaysia, and having maintenance at a Russian gas field.
The company reported a 6% increase in production to 470,000 barrels of oil equivalent per day between July and September compared with the previous year.
Production in Libya was at full capacity during the entire third quarter, whereas it was severely affected by a force majeure situation in the same period last year.
Output in the United Arab Emirates grew on the back of revised Opec+ quota restrictions, while production in Norway profited from higher natural gas volumes.
Meanwhile, maintenance works at the South Russkoye field to expand infield condensate processing capacity reduced OMV’s share of output to 89,000 boepd in the third quarter —down from 96,000 boepd in the first three months and 92,000 boepd in the second quarter.
However, new chief executive Alfred Stern said that after completion of the capacity upgrade, the company’s share of production in Russia is expected to grow to more than 100,000 boepd.
OMV holds a 25% stake in a joint venture with Russian gas monopoly Gazprom that is operating South Russkoye in the Yamal-Nenets region of West Siberia.
Another output loss came in Romania, where production at fields operated by OMV Petrom declined year on year by 8% to 123,000 boepd.
However, divestment of oil-producing assets in Kazakhstan and Malaysia that had high operating costs resulted in OMV’s average hydrocarbon production costs falling to $6.70 per barrel of oil equivalent in the third quarter from $7.50 a year earlier.
Higher energy prices enabled OMV to report record quarterly revenues of €8.8 billion ($10.2 billion) against €3.8 billion in 2020.
However, strong prices for energy and commodities have begun to affect the bottom line as purchase costs soared.
OMV reported net income of €279 million for the quarter.
Although it was better than the net loss of €487 million in the third quarter of 2020, it was a fall from the net income of €622 million in the second quarter this year.
OMV has maintained a positive outlook for the rest of the year despite expressing concerns about the declining demand for gas as a result of extremely high European prices.
With the decline in gas demand, Stern said OMV feels comfortable in fulfilling supply obligations to customers in Austria despite lower-than-usual reserves of gas in underground storage.
Subsidiary OMV Gas Storage said it held 1.78 billion cubic metres as at the end of October, compared with 2.1 Bcm a year earlier.
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