Austrian oil and gas player OMV has posted group sales of E4.6 billion in Q1 2007, up 7% compared to the same quarter in 2006. However, earnings before interest and taxes fell 5% to E512 million in the same period.
The group’s net income in Q1 2007 fell 7% over Q1 2006 to E401 million. OMV put this down to the challenging environment faced by its exploration and production arm as a result of sinking crude oil prices and lower sales volumes.
OMV said that the exploration and production unit’s earnings before interest and taxes decreased by 29% to E421 million, mainly due to a lower contribution from the groups’ Petrom business, which also was affected by lower crude oil prices.
However, OMV benefited from higher sales volumes in its fuel retail business. OMV said that its strategy to increase efficiency across its filling station network had had a positive effect in the quarter. To date, 47 stations have been modernized to PetromV standards and 400 stations have been adapted to the modern full agency system.
OMV revealed that, as of the end of March 2007, the group, including its Petrom arm, was operating 2,511 filling stations. In total, the group’s market share in central Europe amounts to 20%, which OMV said makes it the region’s number one player.
OMV revealed that, looking forward, it hopes to focus on expanding its commercial road transport initiative. The group intends to establish a new filling station network in central Europe, custom-made to the requirements of transport companies. The first of these filling stations were opened in March 2007.
OMV’s CEO, Wolfgang Ruttenstorfer, said: The environment in the first quarter was challenging. However, as an integrated oil and gas group we are well positioned and have a very stable basis to utilize further growth potential in our core markets.