Austria's OMV Expects EUR1.5 Billion-EUR1.8 Billion Hit as It Cuts Down on Russian Business

   By Kim Richters

OMV AG said Saturday that it is further reviewing its activities in Russia because of the country's war in Ukraine, which would lead to a 1.5 billion euro to 1.8 billion euro ($1.64 billion-$1.97 billion) hit for the oil-and-gas company.

Austria-based OMV said that Russia will no longer be considered one of the core regions of its exploration and production portfolio, and that it won't pursue future investments in the country.

OMV said it will review its 24.99% stake in Russian gas field Yuzhno Russkoye, which could lead to the company divesting it. As a result, OMV said it expects a value adjustment of between EUR500 million and EUR800 million, which will affect its operating result in the first quarter.

The announcement comes after OMV said earlier this month that it has called off talks with Russian gas company Gazprom to join the Achimov project in the Urengoy gas and condensate field, and that it was reviewing its involvement in the halted Nord Stream 2 pipeline.

On Saturday, OMV said it will also book a value adjustment charge of EUR987 million in the first quarter because receivables from Nord Stream 2 AG may not be recoverable.

"The war in Ukraine is a tragic and perilous situation that is causing great suffering for many and that we view with the utmost consternation," Chief Executive Officer Alfred Stern said.

OMV is one of a number of oil companies looking to distance themselves from Russia since the country invaded Ukraine.

Write to Kim Richters at kim.richters@wsj.com

(END) Dow Jones Newswires

March 07, 2022 02:39 ET (07:39 GMT)

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