Gas Prices Help OMV Cushion Nord Stream 2 Impairments

Zuzanna Szymanska
Friday, April 29, 2022

Austrian oil and gas group OMV reported better-than-expected first-quarter results on Friday as higher market prices and gains across all units more than offset a hit from impairments related to the discontinued Nord Stream 2 project.

OMV said its adjusted operating income grew to 2.62 billion euros ($2.76 billion), almost 15% above analysts' average forecast in a company-provided poll, and adjusted net income came in around 7% above expectations.

This was possible as sales jumped 146% to 15.83 billion euros due to booming market prices, especially for natural gas, though its unadjusted net loss widened to 1.04 billion euros due to the write-down of a Nord Stream 2 loan, OMV said.

Germany halted the Nord Stream 2 Baltic Sea gas pipeline project, designed to double the flow of Russian gas direct to Germany, as Russia formally recognized two breakaway regions in eastern Ukraine just before invading the country. 

OMV had funded Nord Stream 2 together with BASF's BASFn.DE Wintershall Dea, Uniper UN01.DE, Shell SHEL.L and Engie ENGIE.PA. Other financiers had also announced writedowns of their contributions.

($1 = 0.9492 euros)

(Reuters - Reporting by Zuzanna Szymanska/Editing by Paul Carrel)


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