The highlight of OMV's results was the announced sale of its UK subsidiary to Siccar Point Energy for up to US$1 billion. The deal reflects OMV's commitment to focus on material, low-cost discovered resource opportunities. The transaction strengthens OMV's balance sheet and we now expect the company to achieve cash flow neutrality next year. Cost management remains a key deliverable for the company in the current environment, with capital guidance being cut in 2016 and 2017. With legacy volumes at OMV Petrom continuing to decline this quarter, OMV has indicated an appetite for M&A, preferring deals involving low-cost, producing assets in its core remaining regions.
The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.
This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.
This Upstream Oil and Gas Reported Results Analysis report provides rapid response analysis on company quarterly results and strategy presentations. Use it to gain the upper hand with Wood Mackenzie's opinion on the latest corporate developments.
Widely used by both the energy and financial sectors, our report gives you a unique perspective on key strategic and financial challenges, as well as opportunities facing this oil and gas company.
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Company report | Nov 2016
OMV corporate - reported results analysis
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