OMV Unveils New Strategy Through 2030

   By Giulia Petroni

OMV AG on Wednesday unveiled its strategy through 2030, saying it aims to progressively reduce its oil-and-gas production to focus more on its chemicals-and-materials business.

The Austrian energy major said it plans to cut production by around 20% by 2030, to eventually completely cease it for energy use by 2050.

The shift will be toward sustainable fuels, chemicals and materials, with a strong focus on circular-economy solutions in order to become net-zero for Scopes 1, 2 and 3 no emissions by later than 2050, the company said.

The chemicals-and-materials business segment will be the main growth driver, in line with increasing global growth expectations for polyolefins.

OMV said its clean CCS operating result is expected to be at least 6 billion euros ($6.58 billion) by 2030, while operating cash flow should reach more than EUR7 billion. It also plans investments of EUR3.5 billion each year to support organic growth.

In the medium-to-long term, the company said it targets a return on average capital employed of 12% or more and maintain its leverage ratio below 30%. It also aims to maintain its progressive dividend policy, reflecting the current geopolitical situation and the decision to cease all investment in Russia, which will no longer be considered a core region.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

March 16, 2022 03:12 ET (07:12 GMT)

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