OMV’s fourth-quarter (Q4) clean operating result for its Chemicals & Materials division sank 89%, year on year, to EUR57m on weaker margins and demand, said the company.
A stronger result contribution from OMV base chemicals was more than offset by substantial negative inventory valuation effects in the nitrogen and polyolefins business, a strong decline in polyolefin indicator margins in Europe, lower sales volumes in Europe, and a lower contribution from the Borealis joint ventures (JV), OMV said.
The contribution of Borealis excluding JV dropped sharply by EUR360m to minus EUR23m versus EUR337m in Q4 of 2021.
Results were weighed by negative inventory valuation effects that were around EUR200m lower compared to Q4 of 2021, lower polyolefin indicator margins compared to the strong levels of the final quarter of the previous year, and lower polyolefin sales volumes in Europe, said OMV.
The contribution of the Borealis JVs decreased by EUR119m to EUR19m versus EUR138m in Q4 of 2021, mainly due to a negative contribution from its Baystar JV with Total in the US as well as a lower contribution from Abu Dhabi’s polymers complex Borouge, OMV said.
PE sales volumes from Borealis’ JVs decreased by 6%, while polypropylene (PP) sales volumes from JV grew by 33%.
Compared to Q4 2021, sales volumes at Borouge grew, with PP sales volumes in particular benefiting greatly from the full ramp-up of the new PP unit (PP5).
We remind, OMV has announced its new corporate structure, designed to fully enable the delivery of Strategy 2030. OMV’s new strategy evolves around its long-term goal of becoming a net-zero company by 2050 at the latest and driving its transition towards becoming a leading integrated sustainable fuels, chemicals and materials company. At the same time, OMV is striving to become a global leader in circular economy solutions and will also build a low-carbon business in the energy sector, which includes geothermal energy and carbon capture and storage (CCS) in particular.
mrchub.com