“ ‘Forward for Good’ underlines our responsibility to society as well as OMV’s path to becoming a net zero company.”
A conversation with Alfred Stern, Chairman of the Executive Board and CEO of OMV
How was the year 2024 for OMV?
I am proud that team OMV generated strong results despite a volatile market environment. We achieved the fourth-best financial result in our Company’s history in 2024, demonstrating the strength of our integrated business model.
Can you summarize OMV’s 2024 annual results?
Group Sales reached 34 billion euros, and our clean CCS Operating Result was 5.1 billion euros. All three business segments contributed positively, with our Chemicals segment improving substantially over the previous year. The cash flow from operating activities, including net working capital effects, came in at 5.5 billion euros. This provides a solid basis for our dividend and strategic investments that drive our growth and transformation.
So, great news again for OMV shareholders?
Absolutely. This year, we are proposing a regular dividend of 3.05 euros per share and an additional dividend of 1.70 euros per share, resulting in a total dividend of 4.75 euros per share. In doing so, we have tripled our regular progressive dividend since 2015. We are continuing to share our success while reinforcing our commitment to financial resilience and sustainable growth. The payout will represent 28 percent of our cash flow from operating activities, consistent with our attractive shareholder distribution policy that has been in place since 2022.
What key progress has OMV made in executing its Strategy 2030?
There is good news from our Strategy 2030 implementation. OMV’s transformation journey is gaining momentum, and our strategic projects are setting the stage for more energy supplies to Europe and a more sustainable future. The Neptun Deep project in Romania is on schedule and on budget with all major execution contracts and 90% of the execution budget awarded. At our Baystar joint venture in the US, we saw further operational improvements in 2024. Additionally, in August, we made the major ‘Haydn/Monn’ gas discovery in the Norwegian Sea.
Also in 2024, drilling for the first geothermal plant started as part of our joint venture “deeep.” Through this, we plan to supply 20,000 Viennese households with climate-neutral heating by 2028. Another major achievement is the completion of our new 16,000 t ReOil® plant in the Schwechat refinery near Vienna. Our innovative chemical recycling technology processes used plastics that would otherwise end up in landfill or incinerators. Additionally, we are expanding our Sustainable Aviation Fuel business. OMV has been producing SAF from used cooking oil since 2022. We are now supplying major airlines like Ryanair and recently signed a collaboration agreement with Airbus. We made the final decision in 2024 to invest in sustainable fuels in the Petrobrazi refinery in Romania and started construction in February this year. As you can see, OMV is well on track – and there is more to come in 2025.
OMV’s transformation journey is gaining momentum, and our strategic projects are setting the stage for more energy supplies to Europe and a more sustainable future.
Which milestone from 2024 do you consider particularly important to highlight?
2024 was again an eventful year: OMV terminated its long-term Russian gas supply contract – this marks the start of a new chapter in our history. It is an important step in our diversification strategy, and makes our gas supply portfolio stronger than ever before. This is thanks to the successful work of our gas task force, which was established in March 2022. The group worked intensively on securing long-term energy supply for our customers. Our priorities were clear: first, ensuring the security of supply for our customers; second, maintaining OMV’s financial stability; and third, developing a strategic roadmap for the years ahead. But I would also like to highlight one other significant milestone which may not have been as visible: the recent update of OMV’s Code of Conduct which now extends to workers in our value chain.
Is it right to say that natural gas will remain an important part of OMV’s energy portfolio?
Indeed. All indicators suggest that Europe will remain a net gas importer until at least 2050. It is essential to continue expanding and diversifying supply sources, and OMV has the ability to support and reduce import volumes by utilizing local resources. This is the best way to help secure the current energy needs while also reducing external dependencies and maintaining the competitiveness of our economy during the transition to a low carbon future.
And how can OMV support in achieving this?
OMV actively contributes to Europe’s energy security by ensuring more secure, affordable, and sustainable energy. Proof of our commitment to this are our own gas production activities in Norway, Austria, and Romania. The Neptun Deep project will transform Romania into one of the biggest gas producers in the EU.
OMV introduced a new brand identity in 2024. What role does OMV’s rebranding play in its transformation and the Company’s vision for the future?
As we undergo the biggest transformation in our Company’s history, we have renewed our brand identity to reflect our dedication to creating a more sustainable and circular future. Our claim ‘Forward for Good’ underlines our responsibility to society as well as OMV’s path to becoming a net zero company. By implementing the rebranded visual identity across all OMV touchpoints – including around 1,000 filling stations in seven countries – we ensure a unified and recognizable presence that supports OMV’s transformation. Overall, the brand identity serves as a powerful tool to communicate OMV’s strategic shift and strengthen our position as a leader in sustainable energy solutions.
OMV has set ambitious climate targets, but the global sentiment appears to be fading – What is your view?
We remain committed to our goals: the plan sets out an emission reduction target of 30 percent in operations (Scopes 1 & 2) and a 20 percent reduction target in the product portfolio (Scope 3) for 2030. By 2050, we aim to achieve net zero emissions. This transformation is both a major challenge and an opportunity to drive innovation. Climate protection must be economically viable – companies and investors expect sustainable projects to be not only good for the environment but also profitable. At OMV, when we develop new sustainable solutions, we expect double-digit returns in the mid-term. While this means that we cannot implement every project solely because it reduces CO2 emissions, it also secures the future profitability of OMV and its ability to transform.
Why did OMV update its Code of Conduct, and what are some of the key changes?
Our Code of Conduct was updated to align with our Strategy 2030 and new regulatory requirements, such as supply chain due diligence and sustainability management best practices. We strengthened our existing commitments, particularly related to climate change and human rights, and introduced new ones to address emerging material topics like biodiversity, ecosystems, and the rights and welfare of workers in our value chain. These commitments are fundamental to our operations and continued success.
Please tell us also about OMV’s new SpeakUp Channel.
Every individual deserves a professional, safe, and inclusive work environment, free from discrimination or harassment. Our SpeakUp Channel, which we launched in October 2024, offers our employees and our value chain workers a safe, anonymous way to report work-related grievances through our OMV Integrity Platform. Through this, we aim to identify and rectify work-related misconduct, fostering a culture of transparency, accountability and trust.
You recently announced the formation of Borouge Group International. How does this fit into OMV’s long-term strategy?
The combination of Borealis, Borouge, and NOVA Chemicals into Borouge Group International is a core pillar of our Strategy 2030. We are accelerating our responsible transformation and our journey to become an integrated, sustainable chemicals, fuels, and energy company. It’s a game-changer for us and the industry. Today, with Borealis, we have a valuable company that is rooted in Europe. With Borouge Group International, we will hold a stake in a global market leader, the world’s fourth-largest polyolefins company. This is something we have achieved together with our long-term partner ADNOC.
Since this report also marks an important change, what are your thoughts on OMV’s new combined report?
It is a great step forward for OMV. Integrating financial and non-financial information into one combined report allows us to provide a complete view of our performance to our stakeholders, enhancing transparency, and emphasizing our commitment to both, financial success and sustainability. Drawing on the strengths and experiences of both financial and non-financial teams, we strengthen our data-driven processes and controls to ensure transparency and reliability in our reporting, driving us forward for good.
Many thanks for the talk, Mr. Stern.
Vienna, March 20, 2025
Alfred Stern m.p.