$OMV (+0%) News

Publication of inside information pursuant to Art 17 MAR

March 3, 2025

OMV $OMV (+0%) and ADNOC have today agreed on the key commercial terms for a combination of their polyolefins businesses. This agreement provides for the combination of Borealis and Borouge under a new, jointly controlled joint venture company. The new company will provide OMV and ADNOC with a common platform for potential growth acquisitions in the polyolefins sector and will be named Borouge Group International.

OMV and ADNOC have also agreed on the key terms for a purchase of all shares in NOVA Chemicals by the joint venture company for a purchase price of USD 9.377 bn. from Nova Chemicals Holding GmbH, a wholly-owned subsidiary of Mubadala Investment Company PJSC, pursuant to a purchase agreement agreed between ADNOC and Mubadala to be entered into by ADNOC as purchaser and, subject to the satisfaction of certain regulatory and other conditions, to be transferred to a subsidiary of the new joint venture company and to result in the acquisition of NOVA Chemicals by the joint venture company.

OMV and ADNOC are expected to have equal ownership and joint control of the joint venture company. It is intended that OMV will make a capital contribution to the joint venture company (determined as of the reference date January 1, 2025) in the amount of EUR 1.608 bn, which will be reduced by dividends paid until the closing of the transaction (currently expected for 2026).

The joint venture company is to be listed on the Abu Dhabi Stock Exchange with the intention of a later listing on the Vienna Stock Exchange. The joint venture company is to have its registered office and group headquarters in Austria. ADNOC has the right to appoint the chairman of the supervisory board of the joint venture company. The Management Board is to be appointed unanimously by both parties on the basis of qualifications. In order to facilitate synergy and integration, in particular with regard to NOVA Chemicals, ADNOC is to be temporarily granted certain special rights.

The current free float shareholders of Borouge plc shall be offered shares in the new joint venture company; in the event that all such free float shareholders accept this offer, the shareholding structure of the joint venture company would be as follows: 46.94% of the shares would be held by OMV and ADNOC respectively and 6.12% of the shares would be in free float.

The acquisition of NOVA Chemicals by the joint venture company is to be financed through a bridge financing, which is subsequently to be refinanced, inter alia, through a capital increase with a currently expected volume of up to USD 4 bn, in which OMV and ADNOC are not expected to participate, thereby increasing the free float of the joint venture company.

The signing of the relevant contractual documents (in particular a framework agreement and an agreement regarding the acquisition of NOVA Chemicals by the future joint venture company) is expected to take place in the course of today.

OMV's existing dividend policy is expected to remain unchanged until the closing of the potential transaction, i.e. at least for the financial year 2025, and it is planned to review it for possible adjustments thereafter in order to continue to enable attractive distributions to shareholders.

The Potential Transaction is subject to, among other things, (i) the signing of the relevant contractual documentation (which is subject to the approval of OMV's Supervisory Board), (ii) negotiations and agreement with ADNOC on the Implementation Agreements, (iii) approvals of the Implementation Agreements by OMV's Executive Board and ADNOC's corporate bodies, and (iv) approvals (such as merger control clearances) by authorities.

Which 3 stocks would you buy in the next possible crash and why? Preferably buy and hold stocks

For me it would probably be:

$OMV (+0%)

$PG (+0,27%)

$ALV (+0,04%)

Reason: solid dividend stocks that would have a very nice dividend credit in the event of a price drop (thought of as a buy or hold)

$OMV (+0%) The new plant for sustainable aviation fuel (SAF) and renewable diesel (HVO) with a production capacity of 250,000 tons of sustainable fuels per year is scheduled to come on stream in 2028

With the EUR 750 million investment, OMV Petrom integrates the production of sustainable fuels at the Petrobrazi refinery alongside two green hydrogen plants

OMV Petrom becomes the first major producer of sustainable fuels in Southeast Europe and contributes to the energy transition

February 19, 2025

OMV Petrom, the largest integrated energy producer in Southeast Europe, has started construction of a production plant for sustainable aviation fuel (SAF) and renewable diesel (HVO) at the Petrobrazi refinery. This new plant, with an annual capacity of 250,000 tons, positions OMV Petrom as the first major producer of sustainable fuels in Southeast Europe.

Christina Verchere, CEO of OMV Petrom"Investing in the production of sustainable fuels is part of our Strategy 2030 and reflects OMV Petrom's commitment to the energy transition and the reduction of CO₂ emissions. Sustainable fuels are crucial to decarbonize transportation, especially in areas that are difficult to electrify, such as aviation. Between 2022 and 2030, we will allocate 35% of our investment budget to projects that support the energy transition in Romania and the region."

Radu Căprău, Member of the Executive Board of OMV Petrom, responsible for Refining and Marketing"Our investment strengthens the role of the Petrobrazi refinery in providing the necessary fuels for mobility - today and in the future. Building on a long tradition of operational excellence, the refinery is transforming itself to accommodate the production of sustainable fuels. At the start of this complex project, using new and innovative technologies, we are proud to be leading the way with the first plant in our region. This achievement is thanks to our highly qualified colleagues, whose expertise and commitment are crucial to our success."

The new plant will enable OMV Petrom to integrate the production of SAF and HVO into the existing infrastructure for fuel production, storage and distribution to meet the region's demand for sustainable mobility. The project involves a total investment of EUR 750 million, of which EUR 560 million is earmarked for the construction of the SAF/HVO plant and EUR 190 million for two plants for the production of green hydrogen.

How SAF and HVO are produced and their impact on emissions

SAF (Sustainable Aviation Fuel) and HVO (Hydrogenated Vegetable Oil, also known as renewable diesel) are sustainable fuels produced by processing renewable feedstocks such as used vegetable oils and animal fats. Through advanced refinery processes using green hydrogen, these materials are converted to have similar properties to conventional kerosene and diesel. The use of these fuels enables a significant reduction in CO₂ emissions compared to traditional fossil fuels (for example, by at least 65 percent in the case of SAF and HVO).

The flexibility of the new plant makes it possible to adapt the raw materials used (used oil, animal fats) and blend the end products (SAF and HVO as well as bio-naphtha and bio-LPG) according to market requirements and the availability of raw materials.

Investments in lower-emission transportation

In addition to developing the production of sustainable fuels, OMV Petrom is expanding the network of charging stations for electric vehicles and aims to reach over 5,000 units in Romania by 2030, compared to around 900 currently.

Your opinion is welcome

The Austrian $OMV (+0%) sees 2025 as a turning point for the company, as the gas portfolio is better positioned than ever before, according to CEO Alfred Stern.

A decisive step was the arbitration case won against the Russian state-owned company $GAZPwhich enabled OMV to end its business relationship with Russia at the end of 2024. As a result, the company also stopped making payments for Russian gas.

Stern commented in an interview with CNBC that #wef2025that OMV now has a diversified gas portfolio with sources from countries such as Norwaythe USA, Italy and LNG imports.

Target of 200 units achieved

Russia turns off Austria's gas $OMV (+0%) the gas with immediate effect

Russia will stop its gas supplies to Austria from Saturday. This was announced by the Austrian energy company OMV. The partly state-owned energy and chemicals group OMV had previously been awarded 230 million euros by an arbitration court in its dispute with Russia's Gazprom. OMV therefore considers the gas supplied from Russia to be paid until this amount is reached.

In response to this, a complete halt to deliveries from Moscow is conceivable, OMV conceded.

This is now apparently happening immediately.

Earnings summary this morning 👇🏼

$BP. (+0,63%)
| BP Q3 2024 Earnings

EPS Adj 13.89C (12.67C)

Adj Net $2.27B (est $2.05B)

Oper Cash Flow $6.16B (est $6.29B)

Net Debt $24.21B (est $23.28)

Plans 1.75B Share Buyback For Third Quarter

Sees 4Q Reported Upstream Production To Be Lower Vs Q3

$OMV (+0%) | OMV AG Q3 24 Earnings:

- Clean CCS Oper Profit EU1.10B (est EU1.05B)

- Clean CCS Net Income EU346M (est EU447.8M)

- Still Sees FY Organic CAPEX About EU3.8B (est EU3.68B)

- Sees FY Avg Production 330, 000 To 350, 000 BOE/D

$NOVN (+1,78%) | Novartis Q3 24 Earnings:

- Core EPS $2.06 (est $1.94)

- Net Sales $12.82B (est 12.68B)

- Net Sales Expected To Grow By 'Double Digit'

- Raises FY Outlook

- Now Sees FY Core Oper Income Growth In High Teens

$SAN (+0,5%) | Santander Q3 24 Earnings:

- Net Income EU3.35B (est EU3.17B)

- Net Interest Income EU11.23B (est EU11.57B)

- Net Loan - Loss Provision EU2.98B (est EU3.18B)

- Confident It'll Deliver On All Targets

$HSBA (-3,49%) | HSBC Q3 24 Earnings:

- Div/Shr 10C (est 10C)

- Net Interest Income $7.64B (est $9.25B)

- Sees Div payout Ratio Target Basis of 50% for 2024

- Announces Up $3B Buy Back

$ADS (-0,46%) | Adidas is optimistic after a strong third quarter and confirms a sales increase of 7.3% to 6.4 billion euros. Demand in Europe and growth in China are driving the development, while profits increase by 73.4% to 469 million euros.

$HYQ (+2,08%) | Hypoport increases revenue by 29% to 114 million euros in the third quarter and achieves an operating profit of 3.6 million euros, which is above analysts' expectations. The upturn in real estate finance is driving growth.

$LHA (+1,64%) | Lufthansa announces a savings program to increase adjusted operating profit by EUR 1.5 billion by 2026. Adjusted profit in the third quarter of 2024 falls by 9% to EUR 1.3 billion Deutsche Lufthansa AG expects an operating profit of between EUR 1.4 billion and EUR 1.8 billion for the full year 2024, after focusing on the cost structure in the third quarter. The share is benefiting from hopes of an easing of the Middle East conflict.

$CEC (-0,51%) | Ceconomy exceeds analysts' expectations with adjusted EBIT in the upper half of the range of 290 to 310 million euros. Sales increase by 5.3% to around 22.4 billion euros in the 2023/2024 financial year

$HFG (-1,1%) | HelloFresh Group achieves currency-adjusted revenue growth of 1.9% compared to the previous year and adjusted EBITDA ("AEBITDA") of €72 million