OMV 4Q loss widens. 2015 capex reduced

Austrian oil company OMV has reported a net loss for the last quarter of 2014, citing turbulent year for the industry, with oil prices falling by roughly 50% in the second half of the year and security issues in Libya and Yemen.

The company’s net loss in the fourth quarter of 2014 was 308 million euros, versus a reported net loss of 78 million euros in the corresponding quarter of 2013.

OMV reported that its production increased by 15% compared to the 4Q 2013 levels, mainly reflecting contribution from the company’s assets in Norway.

Exploration expenses decreased to 64 million euros from 221 million euros in Q4/13, as the corresponding quarter of last year included write-offs in the Kurdistan Region of Iraq and in Norway.

In line with its industry peers, the company is responding to the unfavorable market conditions – low oil prices and Libyan uncertainty – by reducing capital expenditure.

OMV’s capex in 2014 decreased to 3.8 billion euros from 5.2 billion euros in 2013. Worth noting, in 2013 investments included the purchase of Statoil assets.

In its quarterly report, the company has said that capex for 2015 is expected to be in the range of 2.5 to 2.8 billion euros.

“OMV has started a program to ensure the company’s fitness for a potentially prolonged low oil price environment by implementing cost cutting measures and focusing on capital efficiency,” the company has said.

Upstream capital expenditure for 2015 is expected to be roughly 80% of total Group capex and includes the following major investment projects: Gullfaks, Aasta Hansteen, Edvard Grieg and Gudrun in Norway, field redevelopments in Romania, Nawara in Tunisia and Schiehallion in the UK.

“While we remain committed to the major projects expected to contribute to our previously stated 2016 production target of ~400 kboe/d, the changes to the investment program will inevitably lead to a delay in reaching this production level,” OMV added.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply