October 29, 2024 [Reuters]- Austrian oil and gas group OMV reported a slightly better-than-expected third-quarter adjusted operating profit on Tuesday, as its chemicals unit’s improved performance helped offset a hit to its fuels and feedstock, and energy divisions.

The Vienna-listed company posted an operating profit adjusted for clean current cost of supply of 1.05 billion euros ($1.14 billion), down about 21% from 1.33 billion euros a year earlier.

However, it came marginally ahead of analysts’ consensus estimate of 1.04 billion euros in a company-provided poll.

Lower refining indicator margins contributed to lower earnings in the company’s fuels and feedstock division, OMV said.

A fall in contributions from ADNOC Refining, its joint venture with Abu Dhabi National Oil Company (ADNOC) (ADNOC.UL) and Italian energy major Eni, due to a weaker market environment amid lower oil prices also weighed on OMV’s earnings.

The company’s chemical arm slightly offset the negative impacts, recording a clean operating profit of 135 million euros, compared with a loss of 11 million euros a year ago.

OMV’s chemicals division, viewed as a growth engine for the company as it seeks to move away from polluting fossil fuels, produces chemicals used in gas and water pipes, car parts and medical syringes, among other things.

OMV also cut its Brent crude outlook for this year to a range of $80-85 a barrel, from a previously anticipated $85.

It also lowered its refining indicator margin for Europe to around $7 a barrel from around $8 earlier, as well as the utilization rate of European refineries to slightly below 90%, from around 90%.

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