x Abu Dhabi, UAEWednesday 24 January 2018

Stability in Libya gives OMV a lift

OMV, the Austrian oil and gas company partly owned by Abu Dhabi, reports a rise in profit as production in Libya and Yemen "back on stream".

OMV, the Austrian oil and gas company that is partly owned by Abu Dhabi, has boosted its third-quarter earnings as its production in Libya remained steady.

The company's net profit increased to €317 million (Dh1.49 billion), up 34 per cent compared with a year earlier, when Libya's oil sector ground to a halt during the revolution that ended Muammar Qaddafi's reign.

"In the first nine months of this year, we managed to deliver a strong operating performance with production in Libya, and also in Yemen since [the third quarter], back on stream," said Gerhard Roiss, OMV's chief executive.

Cash flow from operating activities increased 30 per cent on the year to €2.77bn.

Libya accounted for about 10 per cent of OMV's oil output at the outbreak of hostilities. Production is now back at about 90 per cent of pre-war levels, and the company expects this level to hold.

Production in Yemen also resumed after a pipeline outage interrupted exports.

OMV also operates in Kurdistan, where remuneration for oil and gas production has been patchy. Iraq's central government recently agreed to payments of US$1bn (Dh3.67bn) to international oil companies in the autonomous region.

Abu Dhabi's International Petroleum Investment Company owns a 24.9 per cent stake in OMV.