By Nicole Lundeen
VIENNA--Austrian oil and gas company OMV AG (OMV.VI) reported
Wednesday a fall in its hydrocarbon production during the second
quarter as security issues in Libya contributed to shut-ins, while
technical problems in Kazakhstan curbed output.
Total hydrocarbon production in the second quarter totaled
297,000 barrels of oil equivalent per day, down from 311,000 boe/d
in the first quarter of 2014 and unchanged from a year earlier.
OMV said declines in Libya and Kazakhstan were partially offset
by higher production in Austria and Romania, as well as the
successful start of production at Gudrun in Norway. While gas sale
volume had increased on a quarterly basis, oil sales fell 18% due
to "significantly lower liftings mainly in Norway and Libya," said
OMV.
The production start at Gudrun and higher personnel costs in
Romania increased OMV's production costs compared with the first
quarter, the company said.
OMV added that oil price developments had a "marginally positive
impact" on the quarter.
The company said its gas and power business continues to face a
challenging market environment. Gas sales and trading volumes
increased on an annual basis to 89.15 terawatt hours, but decreased
on a quarterly basis from 131.82 terawatt hours. The increase on an
annual basis was due to higher trading volumes, OMV said. It added
that the unfavorable U.S. dollar to Turkish Lira exchange rate
resulted in a negative Turkish gas margin.
OMV's indicator refining margin increased on the quarter to
$1.92/barrel, up from $1.63/barrel in the first quarter and down
from $2.48/barrel a year ago. Planned shutdowns of the Petrobrazi
and Schwechat refinery and the sale closing of Bayernoil meant
refinery utilization rates were lower.
OMV said it had net special charges of 145 million euros ($195.7
million) in the second quarter in relation to an impairment taken
on a Kazakhstan asset after an unsuccessful field redevelopment and
a write-off of an exploration license in Tunisia.
Write to Nicole Lundeen at nicole.lundeen@wsj.com
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