OMV’s value-driven finance strategy aims to enable growth, drive performance, and reward shareholders. A set of strategic and financial criteria are taken into account when making an investment decision. Growth will be achieved on a robust financial base, with solid long-term targets forming the foundation of OMV’s finance strategy. As part of its growth strategy, OMV aims to increase the clean Operating Result to at least  4 by 2020 (based on a Brent oil price of  70/, a price of EUR 20/ and an indicator refining margin of USD 5/bbl) and to at least EUR 5 bn by 2025. Following a tremendous turnaround period since 2016, OMV’s cash generation increased to more than EUR 4 bn in 2019 and has the potential to exceed EUR 5 bn in the medium term. The growth will be supported by a strong financial framework focused on returns and cash flow. OMV’s profitable growth strategy aims for a of at least 12% in the medium to long term, a positive free cash flow after dividends, and a growing clean CCS attributable to stockholders. At the same time, the without leases will be kept at or below 30% in the long term. A strong investment grade rating is also part of OMV’s financial framework.

OMV’s strategy pursues profitable growth. The main financial cornerstones are the following:

  • ROACE target of at least 12% in the medium and long term
  • Positive free cash flow after dividends
  • Grow clean CCS net income attributable to stockholders
  • Increase clean CCS Operating Result to at least EUR 5 bn by 2025
  • Increase cash flow generation 1 to above  5 bn in the medium term
  • Long-term gearing ratio without leases ≤30%
  • Competitive shareholder return with progressive dividend policy
  • Maintain a strong investment grade rating

OMV targets attractive shareholder returns and aims to increase dividends every year or to at least maintain them at the respective previous year’s level. Further growth will be enabled through organic and inorganic investments. For the period 2020 to 2025, OMV plans to make annual investments averaging EUR 2.0 to 2.5 . In the last years, a number of acquisitions in Upstream and Downstream have substantially strengthened the portfolio and its profitability.

OMV’s capital allocation priorities are as follows:

  1. Organic
  2. Dividends
  3. Debt reduction
  4. Acquisitions

In 2019, important milestones for the achievement of long-term financial objectives were reached:

  • at EUR 3.5 bn despite a weaker market environment
  • rose to EUR 1.6 bn
  • Cash generation 1 increased to EUR 4.3 bn
  • of 11%
  • Dividend Per Share of EUR 2.00 proposed 2; increase of 14% compared to the previous year
  • Strong balance sheet maintained, with a gearing ratio of 28%, despite the payment of the major acquisition of a 15% share in ADNOC Refining and Trading JV as well as the first-time adoption of 16 Leases
  • Fitch Ratings confirmed OMV rating of A, outlook stable, following the ADNOC Refining transaction

1 Cash flow from operating activities excluding net working capital effects

2 As proposed by the Executive Board and confirmed by the Supervisory Board; subject to confirmation by the Annual General Meeting 2020

CCS/CCS effects/inventory holding gains/(losses)
Current Cost of Supply; inventory holding gains and losses represent the difference between the cost of sales calculated using the current cost of supply and the cost of sales calculated using the weighted average method after adjusting for any changes in valuation allowances in case the net realizable value of the inventory is lower than its cost. In volatile energy markets, measurement of the costs of petroleum products sold based on historical values (e.g. weighted average cost) can have distorting effects on reported results (Operating Result, net income, etc.). The amount disclosed as CCS effect represents the difference between the charge to the income statement for inventory on a weighted average basis (adjusted for the change in valuation allowances related to net realizable value) and the charge based on the current cost of supply. The current cost of supply is calculated monthly using data from supply and production systems at the Downstream Oil level
US dollar
Barrel (1 barrel equals approximately 159 liters)
Central European Gas Hub
Megawatt hour
Return On Average Capital Employed; NOPAT divided by average capital employed expressed as a percentage
net income
Net operating profit or loss after interest and tax
gearing ratio
Net debt divided by equity, expressed as a percentage
Capital Expenditure
Clean CCS Operating Result
Operating Result adjusted for special items and CCS effects. Group clean CCS Operating Result is calculated by adding the clean CCS Operating Result of Downstream Oil, the clean Operating Result of the other segments and the reported consolidation effect adjusted for changes in valuation allowances, in case the net realizable value of the inventory is lower than its cost
Clean CCS net income attributable to stockholders
Net income attributable to stockholders, adjusted for the after tax effect of special items and CCS
Clean CCS Return On Average Capital Employed is calculated as NOPAT (as a sum of current and last three quarters) adjusted for the after-tax effect of special items and CCS, divided by average capital employed (%)
International Financial Reporting Standards