OMV’s earnings from its 15% stake in Adnoc Refining slumped 75% to just €78mn last year, the firm disclosed in its Q4 results, with a €3mn loss for the final quarter. Reinhard Florey, OMV’s CFO, told his firm’s Q4 earnings call that “the Adnoc Refining performance was clearly deteriorating. What we have seen is that the local refining margins have clearly dropped, and the reason for that is the crowded export markets for refining businesses.”
Mr Reinhard adds that “we are seeing on the one hand more pressure from Chinese refineries while the domestic [Chinese] market, when it comes to vehicles, has been conquered by the significant pace of electric vehicles [adoption] and therefore fuels are being increasingly exported. On the other hand, we are seeing competition from refineries in India, Turkey, Pakistan etc which are processing Russian crude. All that had an impact on the global market.” (CONTINUED - 149 WORDS)