Investing.com -- Shares in Austria's OMV fell 2% on Friday after the oil and gas group said a weaker chemicals business and a shortfall in Middle East crude liftings would weigh on third-quarter earnings, offsetting a surge in refining margins.
The clean operating result of OMV's chemicals business is expected to be "materially lower" than in the second quarter, mainly because of a "substantially weaker" market for Borouge International in all regions, the company said.
European polyethylene prices averaged €2,263 a tonne in the third quarter, against €2,655 in the second, and the European ethylene margin was €675 a tonne, against €813.
In energy, OMV expects a headwind of about €100 million to the clean operating result because no crude liftings took place in the Middle East and lifting schedules in other countries cut sales volumes, it said.
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That increased an underlift position, which OMV expects to recover through future liftings. Total hydrocarbon sales volumes were 225 thousand barrels of oil equivalent per day, against 242 in the second quarter.
Refining was the offset. Income from ADNOC Refining and ADNOC Global Trading is expected to rise substantially from the second quarter, mainly because of higher refinery use in a strong refining margin environment.
OMV's European refining margin indicator, based on Brent, averaged $37.50 a barrel, against $20.33 in the second quarter. OMV said retail and commercial margins are expected to be significantly lower than in the second quarter. It gave no reason.
At group level, solidarity contributions in Austria and Romania are expected to have a negative impact of between €150 million and €200 million on reported net income. OMV said they are recorded as special items, so they do not affect clean operating result or clean net income.
OMV received dividends of about €460 million from Borouge International in the quarter. It expects cash outflows of about €200 million for certificates under Germany's Fuel Emissions Trading Act, which it typically bought in the fourth quarter in previous years.
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