July 8, 2020 / 8:24 AM / a month ago

OMV production falls in wake of coronavirus pandemic

The logo of Austrian oil and gas group OMV is seen at a gas station in Vienna, Austria, October 30, 2018. Picture taken October 30, 2018. REUTERS/Heinz-Peter Bader/Files

VIENNA (Reuters) - Austrian oil and gas group OMV’s second-quarter output dropped 5% compared with last year’s quarter and fell 2% from the first, largely due to lockdown measures in response to the coronavirus outbreak, disruptions in Libya and weakening demand.

Output of oil and gas decreased to 464,000 barrels of oil equivalent per day (boed) in the second quarter from 490,000 boed in last year’s period.

The group cut its 2020 production target to 440,000 boed in April from around 500,000 boed, reacting to tumbling oil demand in the wake of the coronavirus pandemic.

The refining margin - the company’s earnings from turning crude oil into fuel and petrochemical products - fell to $2.26 from $4.93 in the first quarter as demand for diesel and jet fuel dropped.

The group said it recorded a positive contribution from refining margin hedges in a mid-double digit million euros magnitude and has locked in a positive quarterly of a similar magnitude for the remaining quarters of the year.

Reporting by Kirsti Knolle, editing by Louise Heavens

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