OMV Shares Surge on Robust Annual Performance and Strategic Moves

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The Austrian energy and chemical group OMV has delivered a set of full-year results that surpassed market forecasts. The company's adjusted net profit for 2025 hit €1.94 billion, exceeding analyst consensus estimates by 2.6%. In a further positive surprise for investors, the board has proposed a dividend that is higher than anticipated.

Key Financial Highlights:

• Adjusted operating result: €4.6 billion
• Operating cash flow: €5.2 billion
• Net debt: €3.6 billion, with a low gearing ratio of 14%
• Proposed total dividend per share: €4.40 (Consensus: €4.35)

A segmental breakdown reveals a varied performance across OMV's business units. The Chemicals division saw its operating result surge by 71% to €784 million. This significant increase was driven by the reclassification of the Borealis Group and improved olefin margins.

Conversely, the Energy segment experienced a decline, with its contribution falling 29% to €2.7 billion. This was attributed to lower oil prices and negative market effects.

The Fuels & Marketing business, however, posted strong growth. Its adjusted operating result advanced by 20% to €1.1 billion, benefiting from higher refinery margins.

Dividend Commitment and Financial Strength

A central point for shareholders is the enhanced dividend proposal. The regular dividend of €3.15 per share will be supplemented by a special dividend of €1.25. This continues a four-year trend that has seen OMV increase its regular payout by more than 30%. The final decision rests with the Annual General Meeting scheduled for May 27.

The company's solid balance sheet provides ample room for this shareholder return. With a gearing ratio of just 14%, OMV maintains considerable financial stability.

Major Corporate Development: Borouge IPO on the Horizon

CFO Reinhard Florey confirmed significant strategic progress, notably regarding the merged Borouge Group International. The entity, formed from the merger of OMV's and ADNOC's stakes in Borealis and Borouge agreed in March 2025, is slated for a listing on the Vienna Stock Exchange by the end of 2027. This will follow an initial public offering in Abu Dhabi. The new global polyolefins company carries an enterprise value of $60 billion.

Outlook for the Coming Year

Looking ahead to 2026, OMV's guidance includes organic investments of approximately €3.2 billion. The company expects its hydrocarbon production to remain slightly below 300,000 barrels of oil equivalent per day, while targeting a refinery utilization rate in Europe of over 90%.

Management's planning assumes an average Brent crude oil price of around $65 per barrel. Market experts view the overall performance as a solid achievement within a challenging industry environment.