2030 Strategic Priorities
The aim of OMV’s financial strategy is to increase the Company’s value and offer attractive shareholder returns, while ensuring a robust balance sheet, along with a financially resilient portfolio that thrives in a low-carbon world and has attractive growth potential well into the future. The value-driven finance strategy operates according to a clear framework to enable long-term profitable and resilient growth.
OMV’s Financial Framework is Underpinned by Five Cornerstones:
- Grow clean CCS EPS
- Achieve positive (organic) free cash flow after dividends
- Ensure a strong balance sheet with a leverage ratio below 30%
- Generate value with a clean CCS ROACE of at least 12% in the medium to long term
- Achieve net zero by 2050
2030 Financial Targets of OMV:
- Clean CCS Operating Result of ≥ EUR 6.5 bn
- Operating cash flow of ≥ EUR 7.5 bn, thereof 20% to come from sustainable projects
- Clean CCS EPS of around EUR 10
- Organic investments of up to EUR 3.8 bn p.a., thereof 40–50% in sustainable projects
- Clean CCS ROACE of ≥ 12% in the medium to long term
- Leverage ratio below 30% and a strong investment credit rating
- Progressive regular dividend policy and additional variable dividend framework
The Group’s strong financial position, combined with consistently strong organic cash flow, enables it to provide substantial financing headroom for growth investments and realigning its business model. OMV remains committed to strict adherence to well-defined investment criteria and proven cost discipline in all business segments.
OMV has set a sound capital allocation policy: first, investing in its organic portfolio; second, paying attractive regular dividends; third, pursuing inorganic spending for an accelerated transformation; fourth, deleveraging; and fifth, additional variable dividends. In its capital allocation, OMV has defined specific investment criteria including IRR and payback periods by business, reflecting the respective risk and return profiles. For all sustainable projects, OMV has established a competitive minimum IRR threshold of 10%.
OMV has planned a yearly average organic CAPEX of up to EUR 3.8 bn for the period from 2024 to 2030. Overall, OMV intends to allocate 40–50% of its organic CAPEX in this period to sustainable projects such as geothermal, Carbon Capture and Storage, renewable electricity, chemical and mechanical recycling, and biofuels to achieve its ambitious decarbonization targets. It is anticipated that the remaining organic CAPEX will be allocated to traditional business with the following split: around 30% in Energy, around 10% in F&F, and around 15% in Chemicals. In addition, OMV will consider inorganic growth in areas of strategic importance. However, this will depend on the Group’s indebtedness headroom.
OMV increased its 2030 targets for clean CCS Operating Result and cash flow from operations. The expected clean CCS Operating Result by 2030 grew from EUR 6 bn to at least EUR 6.5 bn, while the cash flow from operating activities is forecast to increase from EUR 7 bn to at least EUR 7.5 bn by 2030. The Group anticipates a higher clean CCS Operating Result contribution from Energy, accounting for around 45%, while Chemicals will comprise around 35–40% of the overall portfolio and F&F around 15–20%.
The 2030 Strategy is intended to enable the Group to grow its operating cash flow to at least EUR 7.5 bn, of which around 40% will be generated by the Chemicals segment, 20% by Fuels & Feedstock, and around 40% by Energy. To help achieve its targets and address significant inflationary cost increases between 2022 and 2024, as well as a trough in the chemicals market, OMV launched an efficiency program. The program is expected to generate at least EUR 0.5 bn of annual sustainable additional operating cash flow by the end of 2027.
OMV is committed to ensuring a robust balance sheet and an investment-grade credit rating. OMV aims to achieve a leverage ratio (ratio of net debt including leases to capital employed (equity plus debt including leases)) of below 30% in the medium to long term. Depending on portfolio measures, the leverage ratio can exceed 30%; however, this will then be followed by a deleveraging program to ensure the balance sheet is strengthened.
During the strategy period, OMV is committed to delivering attractive shareholder distributions. OMV has a progressive policy for its regular dividends and a clear framework for additional variable dividends. OMV aims to increase the regular dividend each year or at least maintain it at the previous year’s level, showing a strong commitment to delivering sustained and growing value to its shareholders and reflecting the resilience of the business and confidence in the future. In addition, OMV aims to pay additional variable dividends when its leverage ratio is below 30%. Together with the regular dividend, the total dividend payout will amount to 20–30% of operating cash flow. The dividend payments in any given year are subject to specific dividend proposals by the Executive Board and the Supervisory Board of OMV, as well as approval by the Annual General Meeting.