OMV on the Capital Markets

Global equities continued their recovery in 2024 driven by technological advances, particularly in the AI realm, despite persistent geopolitical tension. Investors were cautious over the implications of the US presidential election and a mixed Chinese economic outlook. The energy sector faced challenges in 2024, such as a drop in natural gas prices and declining oil prices, which were reflected in the performance of the OMV share.

Financial markets

Global stock markets performed very well in 2024, with the global MSCI World Index up 17%. European equities also had a good year, with the EURO STOXX 600 up 6%. Against the backdrop of the ongoing war in Ukraine, a persistently weak Chinese economy, and high inflation, the turbulence on Wall Street in August and the conflict in the Middle East added insecurity and volatility. Overall, optimism about the resilience of the US economy and technological advances in artificial intelligence and automation far outweighed this.

Comparing sectors, technology and utilities fared best, driven by continuing excitement around artificial intelligence. Consumer goods lagged the most due to a general decline in consumer spending. Despite returned real income growth, private consumption remained subdued based on high levels of uncertainty. The energy sector underperformed as the 2022 commodity price surge driven by Russian supply concerns continued to normalize.

Stock prices in the global oil and gas sector showed slightly less volatility throughout 2024 than the Brent crude oil benchmark price itself. OPEC+ production cuts and geopolitical tension led to the year’s high for Brent in April, with the price rising from USD 78/bbl to a peak of USD 93/bbl on April 12, 2024. While the Brent crude oil price had increased by almost 12% by the end of June compared to the start of the year, the FTSEurofirst 300 Oil & Gas Index had increased by only 4% over the same period.

The Brent crude oil price generally declined through the remainder of 2024, with shorter price rallies driven by OPEC+ announcements regarding delayed production increases in June and September. Further conflict flare-ups and risks of armed conflict between Israel and Iran led to short-lived price increases. Oil companies’ share prices fell when Wall Street sharply declined in August, along with the commodity price. Subsequent demand concerns on the crude oil front with another low at USD 70/bbl in mid-September also trickled through into the equity space. In the final months of the year, Brent was mostly range-bound, with another OPEC+ meeting extending output cuts. Corporate valuations remained relatively stable as well. By the end of 2024, the FTSEurofirst 300 Oil & Gas Index had declined by over 7%, while Brent had dropped by more than 4% over the same period.

OMV share performance

Starting the year at EUR 39.92, the first notable high point of the OMV share occurred at the beginning of April, when the share price exceeded EUR 45. This increase was largely attributed to rising oil prices due to OPEC+ production cuts and geopolitical tensions in the Middle East. OMV’s highest closing price for 2024 came on May 21 at EUR 48.08, in anticipation of a very competitive regular dividend of EUR 2.95 per share and an additional dividend of EUR 2.10 per share, payable in June 2024, as well as promising macroeconomic data. However, the share price faced downward pressure in the following months due to broader market concerns. By mid-June, OMV’s share price had declined to approximately EUR 39, after the dividend ex-date and despite the first interest rate cut by the European Central Bank since September 2019.

The market downturn in summer, triggered by a significant crash in Japan on August 5 and repercussions on Wall Street, further impacted OMV’s share price, which fell to EUR 36.82. A strong decline in the oil price in the first half of the year then caused the share price to reach its annual low on September 16 at EUR 36.34. OMV’s share price saw a slight stabilization in the latter part of the year. This was supported by the rise in gas prices after the beginning of the third quarter, driven by supply uncertainties, combined with the onset of cold weather and increased demand from the power sector. The Company’s successful arbitration award regarding its German gas supplies from Gazprom Export was seen as a strategic advantage to enhance OMV’s financial stability amid ongoing geopolitical tensions and boosted investor confidence, leading to a share price of just below EUR 39 in November. After this, the share priced normalized again, closing the year at EUR 37.34. The average daily trading volume of OMV shares in 2024 was 374,294 shares (2023: 370,377). At year-end, OMV’s total market capitalization stood at EUR 12.2 bn, compared to EUR 13.0 bn at the end of 2023.

OMV share price performance 2024

In EUR

OMV’s share price declined by 6.1% across 2024, thus underperforming the wider market in Austria and Europe. The Vienna Stock Exchange’s blue chip index ATX was up by 6.6% and the FTSE Eurotop 100 Index was up by 5.8% over the same period. The European oil and gas sector also underperformed the overall market (FTSEurofirst 300 Oil & Gas –7.2%), with the Brent crude oil price ending 2024 lower by 4.5% compared to the start of the year. Assuming dividend reinvestment, the total shareholder return for the year was 5.4%. Measured over a ten-year period, OMV generated a better return. A EUR 100 investment in OMV stock at year-end 2014 with continuous dividend reinvestment in further OMV stock would have grown by an average annual return rate of 11.7% to EUR 301 at year-end 2024.

OMV shares: long-term performance compared with indices

Average annual increase with dividends reinvested¹

Proposed regular dividend of EUR 3.05 and additional dividend of EUR 1.70 per share for the business year 2024

On May 28, 2024, OMV’s Annual General Meeting approved a regular dividend of EUR 2.95 per share, plus an additional dividend of EUR 2.10 per share, adding up to a total per-share dividend amount of EUR 5.05 for 2023. In addition, the Annual General Meeting approved all other agenda items, including the Long-Term Incentive Plan 2024 and the Equity Deferral 2024. Supervisory Board elections were also held.

For the upcoming Annual General Meeting (to be held on May 27, 2025), the Executive Board will propose a regular dividend of EUR 3.05 per share, plus an additional dividend of EUR 1.70 per share for 2024. This represents an annual increase of the regular dividend of more than 3%. Based on the total dividend paid (regular plus additional) of EUR 4.75 per share, the dividend yield calculated using the closing price on the last trading day of 2024 amounts to 12.7%.

Dividend policy

OMV is committed to delivering an attractive and predictable shareholder return through the business cycle. According to its progressive dividend policy, OMV aims to increase its regular dividend every year or at least to maintain the level of the respective previous year.

Additional variable dividends serve as another supplementary shareholder remuneration instrument. If the leverage ratio is below 30%, OMV aims to distribute approximately 20–30% of OMV’s operating cash flow (including net working capital effects) per year to its shareholders through its regular dividend, as a priority, and, if sufficient funds are available, through the additional variable dividend. If the leverage ratio is 30% or higher, OMV’s progressive regular dividend will be maintained, but no additional dividend shall be paid.

OMV shareholder structure

OMV’s shareholder structure remained relatively unchanged in 2024 and was as follows at year-end: 43.4% free float, 31.5% Österreichische Beteiligungs AG (ÖBAG, representing the Austrian state), 24.9% ADNOCOn December 21, 2022, Abu Dhabi National Oil Company (ADNOC) announced its plan to take over the 24.9% stake in OMV Aktiengesellschaft from MPPH, subject to regulatory approvals. On February 28, 2024, following all conditions under the share purchase agreement between MPPH and ADNOC having been fulfilled, all of the 24.90% of the shares in OMV Aktiengesellschaft were transferred from MPPH to ADNOC. , 0.2% treasury and LTIP shares.

Shareholder structure

In %

An analysis of our shareholder structure carried out at the end of 2024 showed that institutional investors held 25.7% of OMV’s shares. At 35.5%, investors from the United States made up the largest regional group of institutional investors. The proportion of investors from the United Kingdom amounted to 23.5%, German shareholders made up 10.3%., and those based in Austria 6.0%. The share of investors from France was 5.9%, and Dutch investors represented 2.5%.

Geographical distribution of institutional investors

In %

OMV Aktiengesellschaft’s capital stock amounts to EUR 327,272,727 and consists of 327,272,727 no-par value bearer shares. At year-end 2024, OMV held a total of 57,329 treasury shares. The capital stock consists entirely of common shares. Due to OMV’s adherence to the one share, one vote principle, there are no classes of shares that bear special rights. A consortium agreement between the two major shareholders, ÖBAG and ADNOC, contains arrangements for coordinated action and restrictions on the transfer of shareholdings.

Environmental, Social, and Governance (ESG) performance

OMV continued to rank highly in various ESG ratings in 2024. OMV received a score of AA in the MSCI ESG Ratings assessment, placing the Company among the top seven oil and gas companies globally. OMV also maintained its Prime status in the ISS ESG rating with a score of B–. This ranks us among the top 10% of oil and gas companies in terms of ESG performance. OMV’s Sustainalytics ESG Risk Rating now stands at 29.6 (from 27.7 previously), with a confirmed medium risk rating. This puts us in the tenth percentile of the integrated oil and gas sector. OMV was also recognized by CDP with a score of B in the Climate and Water categories.

In addition to these achievements, OMV maintained its inclusion in several ESG indices. Most notably, OMV was included in the Dow Jones Sustainability™ Indices (DJSI World and DJSI Europe) for the seventh year in a row. OMV attained a score of 65 in the top 6% of its industry in S&P Global’s Corporate Sustainability Assessment (CSA), the basis of the DJSI, in 2024. The DJSI World Index represents the top 10% of the largest 2,500 companies in the S&P Global Broad Market Index based on long-term economic, environmental, and social factors. OMV is included in several MSCI sustainability indices, such as the ACWI Climate Change index. Furthermore, OMV maintained its position in the FTSE4Good Index Series, which is used by a wide variety of market participants to create and assess responsible investment funds.

Investment-grade ratings, stable outlook

OMV ratings of A– by Fitch and A3 by Moody’s were reconfirmed, both with a stable outlook, in July 2024. There were no changes to the ratings or outlook during the year.

Analyst coverage

During 2024, the total number of sell-side analysts covering OMV’s share went back up to 22, from 21 at the end of 2023. The majority of recommendations are “buy” or equivalent, with a share of 50% of all recommendations at the end of 2024, which is slightly less than at the end of the previous year. At the end of 2024, 45% of recommendations were “hold”, up from 21% a year earlier. There was one “sell” recommendation (down from four the previous year), representing a share of 5% of all recommendations. Following the share price development, the average target price for OMV stood at EUR 44 exiting 2024, down from EUR 48 at the end of 2023.

Investor Relations activities

Ensuring active, candid dialogue with the capital market is a top priority at OMV. The Investor Relations department’s mission is to provide comprehensive insights into OMV’s strategy and business operations to all capital market participants, thereby guaranteeing the equal treatment of all stakeholders. The main event of 2024 was the presentation of OMV’s updated Strategy 2030 at the Capital Markets Day held in London on June 13, where we were able to meet investors and analysts in person. The CEO and CFO presentations and the Q&A break-out session with the entire Executive Board were also broadcast as a live webcast. In addition to this, the Executive Board and the Investor Relations department strengthened and deepened relationships with analysts and investors across Europe, North America, and Asia. Over the year, OMV was present at more than 30 in-person and virtual investor conferences and roadshows, during which roughly 450 investor meetings were held.