OMV Posts Surprise Profit Surge on Higher Energy Prices

Austrian oil and gas company OMV has reported an unexpected quarterly profit surge, exceeding analyst estimates. The firm's operating profit jumped 65% year-on-year to €1.71 billion ($1.97 billion), beating expectations of €1.66 billion.

The increase was largely due to price hikes across the board, which more than offset the impact of the Middle East conflict on sales. Oil companies have benefited from heightened energy-market volatility as the US-Israeli conflict with Iran triggered sharp swings in crude oil and natural gas prices.

OMV's chemicals division also performed well, reporting an adjusted operating profit of €429 million, more than double its previous year result and 22% higher than analyst estimates. The company attributed this rise to higher prices of olefins and polyolefins as well as a higher contribution from its stake in Borouge.

The firm confirmed its forecast for the full-year Brent price of between $85 and $95 a barrel, subject to shipping through the Strait of Hormuz resuming. Brent futures stood at $87.43 a barrel on Friday, following an average crude oil price of $97.80 a barrel for the April-to-June period.