MOSCOW (MRC) -- OMV, the international, integrated oil, gas and chemicals company headquartered in Vienna, Austria, presents its Strategy 2030 today, said the company.
The firm has set out to transform itself into a sustainable fuels, chemicals, and materials company with a strong focus on circular economy solutions. Based on this new strategy representing the most fundamental strategic shift in the company’s history, OMV aims to become a net-zero emissions company by no later than 2050. The business segment Chemicals & Materials will be the growth engine of the company. It is to be substantially strengthened, expanded, and diversified, with the aim to establish a globally leading position in circular economy solutions.
The Refining & Marketing business is to become a leading European provider of sustainable fuels, feedstock, and mobility solutions. In line with the ambition to become a net-zero company, OMV will reduce its oil and gas production by around 20% by 2030 and will completely cease oil and gas production for energy use by 2050. At the same time Exploration & Production business segment will invest in geothermal energy and carbon capture and storage (CCS) leveraging existing assets and capabilities and contribute to a more sustainable society.
OMV’s goal is to become a leading global supplier of specialty polyolefin solutions. Important strategic guidelines include expanding the business in attractive markets, particularly in North America and Asia, as well as building sustainable polyolefin production, representing up to 40%of total polyolefin production in Europe. On top of this, the OMV Group intends to take a leading position in the field of renewable and circular economy solutions. Growth is also set to be achieved by diversifying the portfolio towards adjacent products and new product groups.
The company can build on a strong position. As a global, backward-integrated polyolefin producer with a base chemical capacity of 7 mn metric tons per year and around 6 mn metric tons of polyolefins, the OMV Group is among the top 10 polyolefin producers worldwide. Extensive innovation capabilities with innovation centers in Austria, Sweden, Finland, and Abu Dhabi, as well as 10,000 successfully filed and granted patents are a strong foundation for future success.
OMV has had a solid financial track record in recent years and expects its transformation strategy to lead not only to strong sustainability performance, but also to higher profitability and improved earnings quality. The Clean CCS Operating Result is expected to reach at least EUR 6bn by 2030. Operating Cash Flow (excl. net working capital effects) should reach over EUR 7 bn by that time. Following clear priorities in capital allocation – capex first, followed by dividend, inorganic growth, and deleveraging –investments of EUR 3.5 bn each year are planned to support organic growth. At least 40% has been earmarked for low-carbon projects.
As per MRC, OMV reported utilization of 83% at its European refineries in H1, 2021, down by 3% on the year yet "relatively resilient in light of the COVID-19 impact". It expects the utilization rates at its European refineries to remain at the 2020 level this year. Last year its refineries reported 86% utilization. The company's refineries in Europe ran at 85% utilization in Q2, up from 81% in the year-ago quarter.
As MRC wrote before, OMV is investing EUR40 million (USD48 million) to expand and modernize a steam cracker and associated units at its refining and petrochemicals complex at Burghausen, Germany. The upgrade will increase the site’s ethylene and propylene production capacity by 50,000 metric tons/year. Following a planned turnaround of the refinery, the revamped cracker and petchem units are expected to start operations in the third quarter of 2022. Initial groundwork is already underway ahead of the upgrade.
OMV produces and markets oil and gas, innovative energy and high-end petrochemical solutions – in a responsible way. With Group sales of EUR 23 bn and a workforce of around 20,000 employees in 2019, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies.