Financial Review of the Year

Consolidated sales increased by 2% to  23,461 . Higher Upstream sales volumes, following OMV’s acquisitions in New Zealand, Malaysia and the United Arab Emirates, were partially offset by unfavorable market environment developments. The clean Operating Result slightly decreased from EUR 3,646 mn in 2018 to EUR 3,536 mn. The Upstream result went down to EUR 1,951 mn (2018: EUR 2,027 mn), whereas in Downstream the clean CCS Operating Result slightly rose from EUR 1,643 mn to  1,677 in 2019. In 2019, the clean Group tax rate was 38% (2018: 39%). The clean CCS was nearly flat at EUR 2,121 mn (2018: EUR 2,108 mn). The clean CCS net income attributable to stockholders amounted to EUR 1,624 mn (2018: EUR 1,594 mn). The were EUR 4.97 (2018: EUR 4.88).

Net of EUR (64) mn were recorded in 2019 (2018: EUR (149) mn). In Upstream, net special items in 2019 amounted to EUR (71) mn (2018: EUR 95 mn). In 2019, net special items were mainly related to the re-evaluation of the redetermination payment in the Yuzhno Russkoye field (EUR (58) mn) and the negative impact triggered by the reclassification of marginal fields in Romania to held for sale following a divestment process (EUR (46) mn), partially offset by temporary hedging effects of EUR 53 mn.

In Downstream, net special items amounted to EUR 31 mn (2018: EUR (219) mn) and were mainly related to temporary hedging effects (EUR 135 mn), largely offset by environmental provisions at OMV Petrom in the amount of EUR (43) mn and impairments of assets of EUR (30) mn.

In Corporate and Other, net special items amounted to EUR (24) mn in 2019 (2018: EUR (26) mn). Positive CCS effects of EUR 110 mn (2018: EUR 27 mn) were recognized in 2019.

The OMV Group’s reported Operating Result slightly rose to EUR 3,582 mn (2018: EUR 3,524 mn). The net financial result improved to EUR (129) mn (2018: EUR (226) mn). With a Group tax rate of 38% (2018: 40%) the net income amounted to EUR 2,147 mn (2018: EUR 1,993 mn). The net income attributable to stockholders was EUR 1,678 mn compared to EUR 1,438 mn in 2018. Earnings Per Share increased to EUR 5.14 compared to EUR 4.40 in 2018.

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Key financials

 

 

 

 

 

 

 

2019

2018

Δ

1

Sales excluding petroleum excise tax

2

Adjusted for special items; clean CCS figures exclude fuels’ inventory holding gains/losses (CCS effects) resulting from the fuels of refineries

3

After deducting net income attributable to hybrid capital owners and net income attributable to non-controlling interests

Sales revenues 1

in EUR mn

23,461

22,930

2%

Clean CCS Operating Result 2

in EUR mn

3,536

3,646

(3)%

Clean Operating Result Upstream

in EUR mn

1,951

2,027

(4)%

Clean CCS Operating Result Downstream 2

in EUR mn

1,677

1,643

2%

Clean Operating Result Corporate and Other

in EUR mn

(67)

(21)

(220)%

Consolidation: elimination of inter-segmental profits

in EUR mn

(25)

(3)

n.m.

Clean Group tax rate 2

in %

38

39

(1)

Clean CCS net income 2

in EUR mn

2,121

2,108

1%

Clean CCS net income attributable to
stockholders 2,3

in EUR mn

1,624

1,594

2%

Clean CCS EPS 2

in EUR

4.97

4.88

2%

 

 

 

 

 

Special items

in EUR mn

(64)

(149)

n.m.

thereof Upstream

in EUR mn

(71)

95

n.m.

thereof Downstream

in EUR mn

31

(219)

n.m.

thereof Corporate and Other

in EUR mn

(24)

(26)

n.m.

CCS effects: inventory holding gains/(losses)

in EUR mn

110

27

n.m.

Operating Result Group

in EUR mn

3,582

3,524

2%

Operating Result Upstream

in EUR mn

1,879

2,122

(11)%

Operating Result Downstream

in EUR mn

1,847

1,420

30%

Operating Result Corporate and Other

in EUR mn

(91)

(47)

(93)%

Consolidation: elimination of inter-segmental profits

in EUR mn

(54)

28

n.m.

Net financial result

in EUR mn

(129)

(226)

43%

Group tax rate

in %

38

40

(2)

Net income

in EUR mn

2,147

1,993

8%

Net income attributable to stockholders

in EUR mn

1,678

1,438

17%

Earnings Per Share (EPS)

in EUR

5.14

4.40

17%

 

 

 

 

 

Cash flow from operating activities

in EUR mn

4,056

4,396

(8)%

Free cash flow before dividends

in EUR mn

(583)

1,043

n.m.

Free cash flow after dividends

in EUR mn

(1,441)

263

n.m.

Organic free cash flow before dividends

in EUR mn

2,119

2,495

(15)%

Organic free cash flow after dividends

in EUR mn

1,261

1,715

(27)%

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Special items and CCS effect

In EUR mn

 

 

 

 

2019

2018

Δ

Clean CCS Operating Result

3,536

3,646

(3)%

Special items

(64)

(149)

n.m.

thereof: Personnel restructuring

(34)

(40)

n.m.

thereof: Unscheduled depreciation

(39)

51

n.m.

thereof: Asset disposal

5

3

n.m.

thereof: Other

4

(164)

n.m.

CCS effect

110

27

n.m.

Operating Result

3,582

3,524

2%

More details on special items and CCS effects can be found in Note 4 – Segment Reporting – of the Consolidated Financial Statements.

EUR
Euro
mn
Million
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
EUR
Euro
mn
Million
net income
Net operating profit or loss after interest and tax
Clean CCS EPS
Clean CCS Earnings Per Share is calculated as clean CCS net income attributable to stockholders divided by weighted number of shares
Special items
Special items are expenses and income reflected in the financial statements that are disclosed separately, as they are not part of underlying ordinary business operations. They are being disclosed separately in order to enable investors to better understand and evaluate OMV Group’s reported financial performance