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Investing.com -- Shares of OMV (VIE:OMV) dropped 4% following the company’s first-quarter earnings report, which missed consensus estimates for net income and EBIT, with all key divisions underperforming expectations.
The energy company reported a first-quarter Clean CCS Net Income of €413 million, falling short of the €555 million consensus by 15%. Similarly, Clean CCS EBIT was €1,160 million, a 6% miss compared to the expected €1,232 million.
The Energy division’s EBIT of €910 million was slightly below the consensus of €923 million. Fuels & Feedstock EBIT came in at €117 million, lower than the anticipated €151 million, partly due to a less than expected contribution from ADNOC. The Chemicals & Materials (C&M) segment reported an EBIT of €126 million, missing the consensus of €145 million, which could be attributed to the reclassification of Borealis and a lower than expected inventory effect.
Despite the earnings miss, OMV’s cash flow from operations (CFFO) before working capital changes was €1,356 million, 9% ahead of consensus, helped by lower cash taxes. However, this was offset by higher capital expenditures of €1,092 million, versus the consensus estimate of €900 million. Net debt remained largely unchanged at €3,207 million.
Looking forward, the company’s full-year 2025 guidance remains largely unchanged, with capital expenditures expected to be around €3.6 billion on an accrual basis and €3.5 billion on a cash basis, aligning with company-compiled estimates.
Production is forecasted at 300,000 barrels of oil equivalent per day, slightly below the consensus of 305,000. Refining margins are projected at $6 per barrel, with utilization rates between 85-90%.
Jefferies analysts said that this was "always going to be a difficult quarter to predict due to Borealis reclassification and one-off impacts from gas in Energy.
CFFO pre-WC generation tells a much better story, showing a 9% beat of consensus which allows ND and leverage to remain relatively unchanged in the quarter."
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