OMV’s New Zealand Exit Accelerates as New CEO Prepares to Reshape Strategy

OMV reports Q1 earnings amid early M?ui gas field closure, a fuel margin regulatory loss, and Borouge IPO delay, with EPS expected to triple despite operational headwinds.

OMV faces a pivotal week on multiple fronts. The Austrian energy group is due to publish first-quarter earnings tomorrow, but the headline numbers are only part of a much broader story that spans a contested regulatory settlement, an accelerated retreat from New Zealand, and a leadership transition that investors hope will refocus the company on its upstream gas roots.

M?ui Gas Field Shuts a Year Early, Leaving Unanswered Questions

The M?ui gas field off the Taranaki coast will cease production by the end of 2026 — roughly 12 months sooner than New Zealand’s government had pencilled in. OMV has formally notified the authorities and written down the remaining assets tied to the field, which has been the backbone of the country’s gas supply since 1979.

The early closure carries significant knock-on effects. Methanex, the methanol producer based in Taranaki and the largest single buyer of M?ui gas, could pull out of the country entirely. Meanwhile, Genesis Energy’s Huntly power plant is already burning more imported coal to compensate for dwindling domestic gas supplies.

Adding to the headache, the planned sale of a 69% stake in the Maari oil field to Jadestone Energy collapsed. That leaves the question of who will shoulder the decommissioning liabilities for the ageing offshore infrastructure unresolved.

Regulatory Clash Over Fuel Margins Ends in Defeat

Back in Austria, OMV has been forced to back down in a dispute over the government’s fuel price brake, which took effect on 1 April. The mechanism requires companies to absorb a margin reduction of 5 cents per litre. OMV initially passed on only 2.8 cents, citing high import costs.

The energy regulator E-Control stepped in and made clear that full compliance is mandatory — both at OMV’s own filling stations and in wholesale markets. Further checks on other companies are ongoing, with results expected in the first half of May.

Q1 Earnings Expected to Surge Despite Heavy Headwinds

The quarterly figures due on 30 April are expected to show a dramatic earnings jump, even as operational conditions deteriorated sharply. The refining margin slumped from €10.76 to €6.65 per barrel, daily production fell to 288,000 barrels of oil equivalent, and the fuels segment absorbed a €150 million hit from lower margins and planned maintenance shutdowns. Supply chain disruptions in the Middle East also triggered one-off hedging losses in the triple-digit millions.

Yet six analysts polled by the company forecast earnings per share of €1.32 — triple the €0.44 recorded in the same period last year. Revenue is expected to rise to around €7.7 billion. The stock closed yesterday at €58.85, up more than 21% since the start of the year.

Borouge Delay Pressures Dividend Outlook

The postponed initial public offering of the Borouge Group International joint venture on the Abu Dhabi Stock Exchange — now pushed back to 2027 — will halve OMV’s dividend income from the venture to $250 million for 2026. Once it does begin contributing, BGI is expected to add roughly €140 million per quarter from the second quarter onward.

Market observers now estimate that the dividend for the 2026 financial year could land as much as €0.70 per share below previous forecasts. For 2025, the board has proposed a total payout of €4.40 per share — comprising €3.15 in regular dividends and €1.25 as a special distribution. Shareholders will vote on the proposal at the annual general meeting in Vienna on 27 May, with the ex-dividend date set for 8 June.

Emma Delaney Takes the Helm in September

The most consequential change for the company’s direction will come in September, when Emma Delaney becomes chief executive. The Irish executive brings three decades of energy industry experience, most recently in a senior role at BP. She replaces Alfred Stern. Separately, the supervisory board extended finance chief Reinhard Florey’s contract through mid-2029.

Analysts expect Delaney to steer the group back toward gas production, responding to investor demands for longer-lived resource assets rather than an over-reliance on the chemicals business. Her appointment signals that OMV’s board recognises the need for a strategic recalibration as the company navigates the twin pressures of an accelerated exit from New Zealand and a regulatory clampdown at home.