OMV AG — Interim / Quarterly Report 1998

Aug 18, 1998

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Ad-hoc | 18 August 1998 08:16

Ad hoc-Service: OMV AG OMV Interim results 1998

—————————————————————— Ad hoc-Service: OMV AG OMV Interim results 1998 Ad hoc-announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. —————————————————————————— OMV Interim Results for the Six Months ended 30 June 1998 18 % increase in net income for the period Earnings before interest and tax (EBIT) ATS 2.57 bn Income from ordinary activities ATS 2.43 bn Net income for the period ATS 1.59 bn Consolidated sales ATS 35.96 bn Cash flow from operating activities ATS 4.70 bn Although market conditions worsened significantly compared with the first six months of 1997, the Groups results were encouraging, the Executive Board of OMV said. Consolidated sales fell by 21%, from ATS 45.31 billion (bn) to ATS 35.96 bn, mainly as the impact of the declining crude oil price on Refining & Marketing (R & M) and Exploration & Production (E & P) was felt. R & M was also affected by lower trading volumes. Earnings before interest and tax (EBIT) also fell by 17%, from ATS 3.11 bn to ATS 2.57 bn. An improvement in the performance of Chemicals stood out in contrast to a decline in all other business segments. EBIT in E & P was particularly affected by weak oil prices. Overall, EBIT benefited from lower restructuring charges in the first half of 1998 compared to the first half of 1997 (1-6/98: ATS 0.39 bn; 1-6/97: ATS 0.72 bn). Income from ordinary activities after deduction of the financial items of ATS 0.14 bn stood at ATS 2.43 bn (1-6/97: ATS 2.93 bn). Following a reduction in the extraordinary result resulting in a charge of ATS 0.09 bn (1-6/97: ATS 0.66 bn) and a fall in taxes of 20% to about ATS 0.74 bn, net income for the period rose by 18% to ATS 1.59 bn (1-6/97: ATS 1.35bn). Cash flow from operating activities grew by 5%, from ATS 4.50 bn to ATS 4.70 bn. Cash earnings mainly reflected the decline in the operating profit, but this wasmore than offset by a net cash inflow in working capital. Total group assets rose by 6% to ATS 69.14 bn (31. 12. 1997: ATS 68.72 bn). The equity ratio increased slightly to 30%. Additions to fixed assets since the start of the year totaled ATS 2.81 bn (1-6/97: ATS 3.78 bn); in line with the Groups strategy, these were focused mainly in E & P, Marketing and Gas. As of 30 June net debt was ATS 1.26 bn (31. 12. 1997: ATS 3.03 bn), and the gearing ratio subsequently fell from 15% to 6%. As of 30 June the OMV Group employed 7,684 staff. This represented a decline of 7% on the first half of 1997 (1-6/97:8.288 employees). Sales and EBIT Sales EBIT in ATS million 1-6/98 1-6/97 1-6/98 1-6/97 E & P 2,145 2,872 54 417 Gas 6,545 6,196 662 806 R & M 27,458 37,727 1,265 1,362 Plastics 5,150 5,344 397 447 Chemicals 2,608 2,727 397 283 Corporate 858 784 (207) (201) Sector subtotal 44,764 55,650 2,568 3,114 less: internal (8,805) (10,338) – – sales OMV Group 35,959 45,312 2,568 3,114 Vienna, 18 August 1998 Open for more information: Please contact OMV Aktiengesellschaft, Communications, Tel.: ++43 1 404 40-1660; Fax: ++43 1 404 40-999 email: hermann.michelitsch@omv.com Investor Relations, Tel.: ++43 1 404 40-1622; Fax: ++43 1 40440-9496 email: investor.relations@omv.com Internet: www.omv.com Consolidated balance sheet as of 30 June 1998 in ATS million 30. 6. 31. 12. 1998 1997 Assets A. Fixed assets I. Intangible assets 1,203 1,194 II. Tangible assets 36,539 35,765 III.Financial assets 4,494 5,455 42,236 42,414 B. Current assets I. Inventories 6,247 6,199 II. Accounts receivable and 10,239 11,670 other assets III.Cash on hand and at banks, 7,686 5,551 securities 24,172 23,420 C. Deferred taxes 2,252 2,570 D. Prepaid expenses and 479 318 deferred charges 69,139 68,723 Stockholders equity and liabilities A. Stockholders equity I. Capital stock 2,700 2,700 II. Capital and revenue 17,891 17,073 reserves, unappropriated income III.Minority interests 312 303 20,903 20,076 B. Provisions I. Provisions for severance 11,806 11,768 payments and pensions II. Other provisions 12,700 13,129 24,506 24,897 C. Liabilities 22,481 22,387 D. Deferred income 1,249 1,363 69,139 68,723 Consolidated income statement as of 30 June 1998 in ATS million J a n u a r y t o J u n e 1998 1997 1. Sales including petroleum 45,894 55,128 excise tax 2. Petroleum excise tax (9,935) (9,816) 3. Sales excluding petroleum 35,959 45,312 excise tax 4. Inventory changes, own work accounted for in fixed 869 309 assets, other operating income 5. Expenses for materials and (24,464) (32,263) services 6a. Personnel expenses (3,265) (3,341) 6b. Expenses for severance (605) (1,036) payments and pensions 7. Depreciation(1,945) (1,946) 8. Other operating expenses (3,981) (3,921) 9. Earnings before interest and 2,568 3,114 tax (EBIT) 10. Financial income/(expenses) (141) (181) 11. Income from ordinary 2,427 2,933 activities 12. Extraordinary income/(loss) (89) (658) 13. Taxes on income (745) (930) 14. Net income for the period 1,593 1,345 According to Austrian Commercial Code; rounding differences;unaudited End of Message