OMV Shares Find Relief as Romanian Power Plant Resumes Operations

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The Austrian energy group OMV has resolved a pressing operational issue with the restart of its Brazi power plant in Romania. After being offline for two and a half days, the facility, which is critical to the national grid, is now generating electricity again. This development removes an immediate financial overhang, even as the company continues its strategic pivot against a backdrop of persistent geopolitical risks.

Romanian Energy Minister Bogdan Ivan confirmed the plant's return to service on Friday morning. The shutdown, which lasted from December 2nd to December 5th, was caused by issues with process water supply and related regulatory restrictions. The plant is currently feeding 300 megawatts into the grid, a significant contribution given its capacity to meet up to 15% of Romania's total electricity demand.

The swift resolution prevented prolonged financial strain on OMV. During the outage, more expensive coal-fired plants were required to bridge the supply gap, which would have negatively impacted earnings. The restart therefore alleviates concerns over a direct hit to the group's near-term operational results.

Strategic Shifts and Persistent Infrastructure Risks

Beyond this operational relief, OMV's broader transformation is taking shape. The planned merger of its chemicals subsidiary, Borealis, with ADNOC's Borouge unit is progressing. The transaction, expected to close in the first quarter of 2026, will create the new "Borouge Group International." With estimated annual synergies of approximately $500 million and a combined valuation exceeding $60 billion, this deal is central to OMV's future profit engine. Early signs of the strategic realignment bearing fruit were already visible in third-quarter results, which showed a 20% increase in adjusted operating profit to €1.3 billion.

However, geopolitical headwinds remain. Reports of another drone attack on the Druzhba pipeline—the fifth such incident this year—serve as a stark reminder of the vulnerabilities in European energy infrastructure. While pipeline operators state that oil flows remain stable, these events continue to support a higher risk premium across the sector, keeping investor caution elevated.

Share Performance and Capital Return

OMV's equity has demonstrated notable resilience. Trading at €47.72, the shares are within striking distance of their 52-week high of €49.36. Year-to-date, the stock has advanced by 24.14%, significantly outperforming the broader sector.

From a technical perspective, the price is supported by its key moving averages, currently trading above both the 50-day (€46.95) and 200-day lines. Further demand is being generated by an ongoing share buyback program. OMV plans to repurchase up to one million of its own shares by December 12, 2025, with a maximum budget of €60 million. A sustained breakout above the psychologically important €50 level would further solidify the positive technical picture for the stock.