Market Analysis

Austrian energy conglomerate OMV announced on Tuesday that the average prices for energy experienced a decline during the first three months of the year, reflecting a 3.4% decrease in the average price of crude oil.

In its first-quarter trading update, OMV noted a significant decrease in retail and commercial margins compared to the previous quarter of 2023.

The average realized price for natural gas dropped by 18.3% to 21.9 euros per MWh.

While OMV's European refining reference margin saw a 8.5% increase compared to the previous quarter, it marked a substantial 27.34% decline year-on-year.

Petrochemical margins showed a mixed performance, with indicators for ethylene and propylene each falling by around 10%, while reference margins for polyethylene and polypropylene rose by 29% and 22% respectively.

OMV's chemicals division, which is considered a growth driver for the company's shift away from fossil fuels, produces chemicals used in various industries including gas and water pipes, automotive components, and medical equipment.

Erste Group analyst Tamás Pletser described the quarter's results as mixed, anticipating profitability to be either on par with or slightly below the levels of the fourth quarter.

OMV is scheduled to release its full first-quarter results on April 30.

Paraphrasing text from "Investing UK" all rights reserved by the original author.