OMV amends dividend policy with special dividends as new, additional instrument
OMV decided to amend its shareholder distribution policy and add special dividends as a new, additional instrument to the existing dividend policy. The progressive regular dividend policy is maintained and unaffected by this amendment.
When OMV’s leverage ratio is below 30%, OMV aims to distribute approximately 20% to 30% of OMV Group's operating cash flow (including net working capital effects) per year to its shareholders through its regular dividend, as a priority, and additionally, if sufficient funds are available, through the new instrument of a special dividend. In case of a leverage ratio of 30% or higher, OMV’s progressive regular dividend will be maintained, but no special dividend shall be paid.
Alfred Stern, OMV Chairman and CEO: “Our progressive dividend policy remains the core of our shareholder distributions and our main priority. We have been very consistent and reliable for the last seven years despite the market volatility and we remain committed to it in the future. While the previously introduced priorities in the capital allocation framework remain unchanged, the special dividend is introduced as an additional tool. This new tool will allow us to share our financial success with our shareholders, while maintaining strategic flexibility for our growth plans. Our company has a strong cash generation capability, and with this new framework we will enhance our ability to return a significant portion of our cash flow to shareholders across a variety of market conditions.”
Please note: This dividend policy represents the current aim of the Executive Board and the Supervisory Board of OMV and may be revised in the future. Also, the dividend payments in any given year are subject to specific dividend proposals by the Executive Board and the Supervisory Board, each of which may elect to deviate from this dividend policy if appropriate under the then prevailing circumstances, as well as to the decision of the Annual General Meeting.
Background information:
OMV Aktiengesellschaft
With Group sales revenues of EUR 36 bn and a workforce of around 22,400 employees in 2021, OMV is amongst Austria’s largest listed industrial companies.
In Chemicals & Materials, OMV through its subsidiary Borealis, is one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilizers, and plastics recycling. Together with its two major joint ventures – Borouge (with ADNOC, in the UAE and Singapore) and Baystar™ (with TotalEnergies, in the USA) – Borealis supplies products and services to customers across the globe. OMV’s Refining & Marketing business produces and markets fuels as well as feedstock for the chemical industry, operates three refineries in Europe, and holds a 15% stake in a refining joint venture in the UAE. OMV operates around 1,800 filling stations in ten European countries. In addition, the activities include Gas & Power Eastern Europe where it also operates a gas-fired power plant in Romania. In Exploration & Production, OMV explores and produces oil and gas in the four core regions of Central and Eastern Europe, Middle East and Africa, North Sea, and Asia-Pacific. Average daily production in 2021 included production from a joint venture in Russia and amounted to 486,000 boe/d with a focus on natural gas (~60%). As of March 1, 2022, Russian entities are no longer consolidated. Its activities include Gas Marketing Western Europe, where it also operates gas storage facilities in Austria and Germany.
OMV intends to transition from an integrated oil, gas, and chemicals company to become a leading provider of innovative and sustainable fuels, chemicals, and materials, while taking a leading global role in the circular economy. By switching over to a low-carbon business, OMV is striving to achieve net zero in all three Scopes by 2050 at the latest.