OMV
With a total turnover of 23.3 bn Euro and 31 398 employees, OMV is one of the largest Austrian industrial companies. Its production and research is mainly focused in Austria. 22.3 m t go through OMV refineries annually and it also operates a network of 4 700 filling stations in 13 countries including Turkey. OMV is a leading world producer of quality oils and lubricants.
OMV – Strategy 2021
In September, the new OMV Executive Board presented a new strategy based on the pillars of ‘growth – integration – change – performance’ in Istanbul: Strategy 2021 ‘Profitable Growth’. In the coming years, OMV will develop into an integrated international company focused on oil and gas with clearly improved profitability and strong growth in the exploration and production sector (‘E&P’).
Activities in the E&P segment, the exploration of oil and gas, will assume a far more significant role in the new strategy. OMV will also experience strong growth in the gas sector, from its extraction and production to its sale. The planned Nabucco gas pipeline will connect OMV markets from gas fields in the Caspian Sea region and the Middle East with downstream markets in Turkey and Romania up to Baumgarten in Austria. From Baumgarten, all of Europe can be reached. Modern gas-fired power plants will complete our portfolio. The R&M (Refinery and Marketing) division will continue to be an important business division, but will be of lesser relative significance in the portfolio.
The OMV Group portfolio will be more focused and emphasis will be placed on profitability in order to optimally meet the challenges of the future.
Summary of the key points of OMV’s strategy:
- Strengthening the E&P sector
- Integrated gas
- Restructured oil segment in the R&M division
- Improved performance across the entire group
- Strengthened E&P sector
E&P is the growth driver within the OMV Group portfolio. OMV will direct approximately two-thirds of future investments towards exploration and production of oil and gas, with the foundation being an increased performance of the existing E&P segment portfolio. There will also be shortening of the interval between the discovery of a new field and the beginnings of extraction. Targeted acquisitions will not only yield further production volumes, but will also add additional development and exploration opportunities. Strengthening exploration efforts will ensure the sustainability of the E&P portfolio and provide a foundation for long-term growth. E&P's key areas are the Caspian Sea region, the Middle East and Africa.
Integrated gas
In Europe and Turkey, the gas business in particular will continue to experience strong growth. Natural gas is the cleanest fossil fuel and will be the most significant energy source of the future, and thus OMV's gas sector will gain significance. OMV will act in a fully integrated way – from the gas field to transport infrastructure and storage all the way to distribution channels. Gas supplied in its raw state to the E&P division from the Caspian Sea, Middle East and Africa regions will continue to be offered by the Gas&Power division (G&P). An important aspect of the whole process is the strengthening of the Baumgarten gas hub and the Central European Gas Hub (CEGH) trading platform. The conversion of gas into electricity extends the value chain and ensures, aside from the selling and trading of gas, an additional important and profitable marketing platform for gas. The most important project continues to be the Nabucco gas pipeline project, which OMV operates in a leading role and which ensures the long-term gas supply for Europe.
Restructured oil segment in the R&M division
As a result of contracting downstream markets for the sale of oil in Europe, the R&M position in the segment will be adjusted: in the coming years, the division will reduce its assets by up to 1 billion EUR. In addition, the product yield will be adjusted towards market demand for middle distillates and petrochemical feedstock, especially propylene. The modernization of existing assets will be finalized in Petrobrazi. Enhanced asset backed trading activities will support the optimal use and capacity utilization of existing assets. Special emphasis will be put on effective management of capital and cost efficiency.
Improved performance across the entire group
To support the path to profitable growth, OMV will launch an ambitious programme focused on performance improvement to increase profitability significantly by 2014. The program will target margin improvements, cost reduction and capital management.
OMV Česká republika, s.r.o.
OMV has been operating in the Czech Republic since 1991 through OMV Česká republika, s.r.o, and is based in Prague. The core of its business activities involves oil and oil derivatives trade within the Czech Republic. A milestone in the company’s history was reached in 2005 when OMV Česká republika took over the Aral filling stations, thus achieving a 14% share of the market, as a result of which it became the local market leader. OMV Česká republika indirectly employs more than 2 000 people through its network of 217 filling stations.
