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Gas prices help OMV cushion Nord Stream impairments in Q1

Published 04/29/2022, 01:40 AM
Updated 04/29/2022, 01:55 AM
© Reuters. FILE PHOTO: The logo of Austrian oil and gas group OMV is pictured at a gas station in Vienna November 6, 2014.  REUTERS/Heinz-Peter Bader/File Photo/File Photo
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FRANKFURT (Reuters) -Austrian oil and gas group OMV reported better-than-expected first-quarter results on Friday as higher market prices and gains across all units more than offset a hit from impairments related to the discontinued Nord Stream 2 project.

OMV said its adjusted operating income grew to 2.62 billion euros ($2.76 billion), almost 15% above analysts' average forecast in a company-provided poll, and adjusted net income came in around 7% above expectations.

This was possible as sales jumped 146% to 15.83 billion euros due to booming market prices, especially for natural gas, though its unadjusted net loss widened to 1.04 billion euros due to the write-down of a Nord Stream 2 loan, OMV said.

Germany halted the Nord Stream 2 Baltic Sea gas pipeline project, designed to double the flow of Russian gas direct to Germany, as Russia formally recognised two breakaway regions in eastern Ukraine just before invading the country.

OMV had funded Nord Stream 2 together with BASF's Wintershall Dea, Uniper, Shell (LON:RDSa) and Engie. Other financiers had also announced writedowns of their contributions.

($1 = 0.9492 euros)

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