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Sunday, April 30, 2017
Austrian energy group OMV's first-quarter underlying operating profit fell by half to 333 million euros (US$380.3 million) as oil prices dropped, beating market expectations.The average estimate in a poll of analysts for OMV's clean current cost of supplies earnings before interest and tax (clean CCS EBIT) - which strips out special items and inventory holding gains or losses - was 322 million euros.OMV added on Monday that its refining margins, which had benefited from low oil prices, are expected to come down due to overcapacity in European markets.Low oil prices, which slumped to about US$45 per barrel at the start of the quarter, forced OMV to lower its investment plans last year and to give up on its aim of reaching output of 400,000 barrels of oil equivalent per day by 2016.It expects 2015 Brent crude oil prices to average between US$50 and US$60 per barrel.OMV, which wants to stay cash flow neutral after dividends, said it had entered into oil price hedges between July 2015 and June 2016 for a volume of 50,000 barrels per day. OMV's first-quarter output fell to 303,000 boe/d from 318,000 in the previous quarter.OMV is expecting its output to suffer from the difficult situation in Libya and Yemen, where armed conflict has hit output. It had declared force majeure on all its blocks in Yemen last month, it said.
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