Strategy

OMV’s goal is to transform from an integrated oil, gas, and chemicals company into a leader in innovative sustainable fuels, chemicals, and materials, leveraging opportunities in the circular economy. The Group aims to become a net-zero emissions company by 2050 for all three scopes of greenhouse gas emissions. By taking this path, OMV expects to deliver an operating cash flow excluding net working capital effects of around EUR 6 bn by 2025 and at least EUR 7 bn by 2030, a ROACE of at least 12%, and to grow the distributions to its shareholders. Re-inventing essentials for sustainable living is OMV’s purpose.

To drive sustainable growth and innovation, starting with January 1^st, 2023, OMV reorganized its corporate structure in three business segments: Chemicals & Materials, Fuels & Feedstock, and Energy. Chemicals & Materials continues to cover the entire chemicals value chain, including responsibility for capturing value from the circular economy. Fuels & Feedstock combines the previously distinct Executive Board areas of Refining and of Marketing & Trading. The Energy segment includes the traditional Exploration & Production (E&P) business as well as the entire gas business and the new Low-Carbon business focused on geothermal energy and carbon capture and storage (CCS). As part of the introduction of the new corporate structure, Gas & Power Eastern Europe, which includes supply, marketing and trading of gas in Romania and Turkey and one gas-fired power plant in Romania, was transferred from Fuels & Feedstock to the Energy business segment.

Strategic cornerstones

OMV’s goal is to transform from an integrated oil, gas, and chemicals company into a leader in innovative sustainable fuels, chemicals, and materials, leveraging opportunities in the circular economy. An integral part of the Group’s strategy is its ambition to become a net-zero emissions company by 2050 for Scope 1, 2, and 3 emissions. In view of the ongoing transformation in the energy industry and a global goal of net-zero emissions, OMV is building on its strengths and seizing opportunities to position itself competitively.

2030 strategic priorities

• Become a net-zero emissions company by 2050; reduce Scope 1 and 2 emissions by 30% and Scope 3 emissions by 20% by 2030
• Develop into a global leader in specialty polyolefin solutions
• Establish a global leadership position in circular economy solutions
• Become a leading European producer of sustainable fuels and chemical feedstocks
• Reduce fossil production and shift to gas
• Enhance OMV’s shareholder value: deliver growth with strong financials and reward its shareholders through progressive regular dividend and special dividends

OMV is committed to becoming a net-zero emissions company by 2050 (Scopes 1, 2, and 3) and has set interim targets for 2030 and 2040, with well-defined actions to meet the targets by 2030. By 2030, OMV aims to reduce its Scope 1 and 2 emissions by 30% and its Scope 3 emissions by 20%. The Group also aims to reduce its intensity in energy supply by 20% by 2030. This will be achieved by decreasing fossil fuel sales, increasing zero-carbon energy sales, increasing polyolefin recycling and sustainable feedstocks and products, as well as using neutralization measures such as CCS.

This path will enable OMV to deliver operating cash flow excluding net working capital effects of around EUR 6 bn by 2025 and at least EUR 7 bn by 2030, a ROACE of at least 12% in the mid and long term, and continuation of its attractive shareholder distributions. These are supported by sound capital allocation priorities and a strong balance sheet, with a mid/long-term leverage ratio of below 30%.

Building on its current strengths and a vision of leadership in technology and innovation, OMV will be well positioned to thrive sustainably in a world with low greenhouse gas (GHG) emissions. This strategy enhances OMV’s shareholder value, as its transformation path allows for a sustainable growth business model, showing the Group’s commitment to cutting GHG emissions and delivering strong financials and attractive shareholder distributions.

The Chemicals & Materials business will be the core growth engine of the Group. OMV aims to become a global leader in specialty polyolefin solutions, with a significantly stronger position in the Middle East, Asia, and North America. The Group will strengthen its existing polyolefins business, while also building a strong and diversified chemicals and materials portfolio, by expanding into adjacent businesses and new product groups. To achieve this, OMV will target investments and initiatives that improve its returns and carbon footprint. Moreover, OMV will expand its geographical reach, pursuing high-growth markets, such as Asia and North America. This will be achieved through in-market investments and partnerships based on differentiated technologies and application portfolios. Furthermore, the Company will diversify its presence beyond polyolefins by entering into specialty chemicals and materials to build leadership positions.

An important pillar of OMV’s strategy is the ambition to become a leader in renewable and circular chemicals and materials. The Group will capture the potential of emerging renewable and circular markets by leveraging its integrated technology platform and end-to-end position to develop innovative products and new business models. The circular economy is crucial for a long-term sustainable chemicals business. Thus, a transition toward an economically viable commercial scale is needed. In this context, the Group’s target is to deliver around 2 mn t of sustainable Chemicals & Materials products by 2030. 80% of these volumes are planned to be produced in Europe, which represents around 40% of OMV’s polyolefin production capacity in Europe.

OMV also aims to become a leading innovative producer of sustainable fuels and chemical feedstocks. To achieve this, the Company will optimize the interface between oil and chemicals, with a focus on the integrated Schwechat and Burghausen sites, by redesigning plants to maximize high-value fossil resources, and with a growing share of sustainable fuels and feedstocks for chemicals production. This will significantly reduce diesel product output by 2030, while increasing the chemical yield to around 24%. The production of renewable fuels and sustainable feedstocks will increase to approximately 1.5 mn t, while crude oil distillation throughput will decrease by 2.6 mn t. Furthermore, OMV aims to become the first choice of our customers for energy, mobility, and convenience, focusing on the sale of sustainable aviation fuels, building an EV charging network and growing its non-fuel retail business.

In the Energy business, OMV is focusing on maximizing value and harvesting cash. OMV Energy will gradually reduce its fossil production to ~350 kboe/d by 2030, with a share of around 60% of natural gas. In the same period, OMV will make significant investments in low-carbon solutions, namely in around 10 TWh of renewable energy (e.g., geothermal) and around 5 mn t p.a. of CCS capacity by 2030 to reduce its GHG footprint. The Energy business will act as a cash engine for the Group and will support the transformation.

Note: The financial targets for 2025 are based on the following market nominal price assumptions: Brent oil price of USD 65/bbl, THE (Trading Hub Europe) gas price of EUR 22/MWh, refining indicator margin Europe of USD 4.3/bbl, ethylene/propylene indicator margin Europe of EUR 430/t, polyethylene/polypropylene indicator margin Europe of EUR 420/t. The financial targets for 2030 are based on the following market nominal price assumptions: Brent oil price of USD 70/bbl, THE (Trading Hub Europe) gas price of EUR 24/MWh, refining indicator margin Europe of USD 4.3/bbl, ethylene/propylene indicator margin Europe of EUR 500/t, polyethylene/polypropylene indicator margin Europe of EUR 480/t.