Contact
OMV Websites
ar en
OMV Websites
OMV Websites
OMV Group www.omv.com/en Austria www.omv.at/de-at Bulgaria www.omv.bg/bg-bg Czech Republic www.omv.cz/cs-cz Germany www.omv.de/de-de Hungary www.omv.hu/hu-hu New Zealand www.omv.nz/en-nz Norway www.omv.no/no-no Romania www.omv.ro/ro-ro Serbia www.omv.co.rs/sr-rs Slovakia www.omv.sk/sk-sk Slovenia www.omv.si/sl-si Tunesia www.omv.tn/ar-tn Turkey www.omv.com.tr
OMV Gas Websites
OMV Gas www.omv-gas.com/de
Close

OMV Group Strategy 2025

Downstream: strengthening competitive position in Europe, internationalizing the refining business

The strategic measures implemented in the Downstream business made 2017 a record year. With a Clean CCS Operating Result of 1.8 billion euros, the unit achieved the best result in its history. Free cash flow underwent a two-fold increase to 1.7 billion euros from 2015 to 2017. The return on net assets (RONA) of 18% meant that Downstream achieved an industry-wide high in Europe.

OMV Downstream will further strengthen its competitive position in line with the waning demand for fuel and growing demand for petrochemicals in Europe. By 2025 a cumulative 1 billion euros will be invested in the Schwechat, Burghausen and Petrobrazi refineries, facilitating the production of more and higher quality petrochemical products and aviation fuels. In order to safeguard revenue and profitability in Europe, by 2025 more than half of the refineries’ production should be sold via reliable captive sales channels.

The move away from coal will mean an increase in demand for natural gas – the more environmentally sound option – on the European market. Together with the sharp rise in demand for imports, this will lead to a greater market potential in the medium and longer term. OMV thereby aims to establish itself as a strong market player from North West to South East Europe. Gas sales should grow to more than 20 billion cubic meters by 2025. Here OMV is aiming to secure a 10% share of the German market by 2025. Other plans include feeding additional equity gas from Norway and Romania into the European grid. The construction of Nord Stream 2 is of critical strategic importance for OMV as it will secure consistent, long-term gas supplies to Europe in combination with the Central European Gas Hub in Baumgarten and the pipeline network of Gas Connect Austria.

As part of the Downstream strategy, OMV will export its successful refining and petrochemicals business model to international growth markets. One goal here is to draw on the burgeoning demand in the Middle East and Asia for further growth, facilitated by higher production capacities coupled with better margins. Initial steps in this direction have already been taken, for example with the MoU signed with ADNOC in Abu Dhabi.
Approximately 5 billion euros have been earmarked for financing the international growth in Downstream through acquisitions by 2025.

In view of the global shortfalls in production capacities, OMV intends to practically double its refinery capacities long-term. OMV Downstream board member Manfred Leitner: “Today we stand as the most efficient Downstream oil business in Europe. We want to further strengthen this competitive position and use our knowhow to expand into promising international markets”.