OMV Shareholders Face Dividend Cut as Borouge IPO Slips and New CEO Takes the Helm

OMV proposes €4.40 per share dividend for 2025, but signals lower 2026 payout due to Borouge IPO delays and operational headwinds. New CEO Emma Delaney appointed.

OMV shareholders gathering in Vienna on May 27 will vote on a record dividend payout, but the celebration may be short-lived. The Austrian oil and gas group has already signalled a significantly lower distribution for 2026, as delays to a key IPO and operational headwinds cloud the outlook.

The board is proposing a dividend of €4.40 per share for the 2025 financial year, comprising a regular payout of €3.15 and a special dividend of €1.25. If approved, the ex-dividend date is set for June 8, with payment following on June 11, 2026. The stock has rallied roughly 21% since the start of the year, trading at €58.35 — just shy of its 52-week high of €63.20.

A New Dividend Model — and a Painful Adjustment

From the 2026 financial year, OMV is overhauling its distribution policy. The company plans to pay out 50% of dividends from its Borouge Group International (BGI) joint venture, supplemented by 20% to 30% of operating cash flow outside BGI.

The problem: BGI’s planned initial public offering on the Abu Dhabi Stock Exchange is now expected to slide into 2027. Instead of receiving $500 million from the joint venture, OMV will get just $250 million initially. Analysts estimate this will shave €0.60 to €0.70 per share off the 2026 dividend.

The quarterly results due on April 30 will provide an early test of how the new model holds up under pressure. OMV has already flagged headwinds in its fuels business, with hedging losses tied to disruptions in crude oil flows from the Middle East expected to weigh on the first quarter by roughly €100 million. A higher leverage ratio compared to the fourth quarter of 2025, driven by investment activity and inventory changes, adds to the strain.

A Historic Leadership Transition

The annual meeting comes weeks after a landmark boardroom decision. On April 20, the supervisory board appointed Emma Delaney as CEO — she takes the helm on September 1, 2026, becoming the first woman to lead the Austrian energy major. Delaney joins from bp, bringing over three decades of experience in the energy sector.

Finance chief Reinhard Florey will remain in place, with his mandate extended to at least June 30, 2029. He has also been named deputy chairman of the executive board.

Neptun Deep: The Long Game

While near-term headwinds dominate the narrative, OMV is betting on a major strategic shift. Natural gas from the Black Sea is expected to start flowing from 2027, with the Neptun Deep project positioning OMV Petrom as a cornerstone of European energy security. The infrastructure work is progressing on schedule, with initial output earmarked to meet domestic demand in Romania before expanding export capacity to neighbouring EU countries.

The geopolitical backdrop adds urgency: Europe’s push to reduce reliance on Russian gas supplies gives the project strategic weight. OMV Petrom’s management has emphasised the role Neptun Deep could play in building a more independent regional energy infrastructure.

For now, however, the market’s focus is on the immediate picture. The first-quarter numbers on April 30 will reveal just how deep the current headwinds cut — and whether the foundation for 2030, built on Neptun Deep and the Borealis chemicals integration, remains solid.