By:Ognnews

OMV expects the of petrochemical firms Borealis and Borouge agreed with Adnoc to boost its results already in the first quarter, the Austrian oil and gas group said.

After nearly two years of negotiations, Abu Dhabi National Oil Company and OMV last month agreed to merge their polyolefin businesses to create a chemicals powerhouse, Borouge Group International, with a $60 billion enterprise value.

The Vienna-based company said the positive impact from the merger on its clean operating result would be in a mid-double-digit million euro range in the first quarter, compared to the last three months of 2024.

"Going forward, the impact from the depreciation stop on the clean operating result will be around 140 million euros ($153.47 million) per quarter," OMV said.

A clean operating result is based on the current cost of supply, and excludes one-off items and short-term gains and losses from energy inventory holdings.

OMV however flagged lower sales volumes in its energy business in the first quarter due to the divestment of SapuraOMV, higher liftings in Norway and a catch-up effect in Libya.

It sees a negative impact of 250 million euros on the segment's clean operating result because of this.

"Overall first quarter will be a mixed quarter, the company still generates strong cash flow from traditional energy and fuels & feedstock businesses," Erste Group analysts said in a note to investors.

OMV also said it recorded higher average energy prices in the quarter, driven by a nearly 25 per cent rise in its average realised price for natural gas.

Average realised crude oil price rose 1.25 per cent to $72.8 per barrel, it added.