Earnings at part Ipic-owned OMV increase



Downstream activities lifted Vienna-based OMV’s third-quarter earnings, beating analysts’ forecasts and signalling an easing in oil and gas budget cuts.

The company, which is 25 per cent owned by Abu Dhabi’s Ipic, yesterday reported net income rose to €367 million (Dh1.46 billion), up 3 per cent on a year earlier. This excluded a €1.03bn writedown on upstream assets announced last month.

“The results were better than expected, and it was better than the other quarters this year,” said Alexandre Andlauer, a Paris-based analyst at AlphaValue. He pointed to the downstream sector, which includes refining and petrochemicals, as offering a helping hand while many other companies continue to struggle amid weak oil prices.

The price of Brent crude, the global benchmark, has dropped more than 50 per cent since last summer. OMV’s downstream earnings before interest and tax were at €402m, spiking 83 per cent on last year’s third quarter.

However, OMV is preparing for a slowdown in its downstream sector, which includes the Borouge petrochemical company in Abu Dhabi. The company said that it expected the market to decline in the fourth quarter as a result of lower seasonal demand and overcapacity in Europe.

“Everyone knows that the high refining margin seen now will come to an end – the trend will not be as strong in two to three years,” said Mr Andlauer.

He added one of the biggest surprises was the amount of positive cash flow, which increased to €524m this quarter. “Everyone looks on the cash flow generation and these figures came better than expected,” he said.

Mr Andlauer added that capital expenditure had remained almost flat from the previous quarter, unlike many of the other integrated oil companies. “That points to a signal for all [oil and gas] services that maybe the worst is over and we will start to see stabilisation,” he said.

As a result of the oil rout, there have been sharp cuts in capital investment globally, estimated at 20 to 30 per cent, or more than US$100bn.

Rainer Seele, OMV’s chief executive, said the oil price slump forced the company to further reduce its forecast. The company’s assumptions for Brent crude are $55 per barrel for next year and $70 for 2017.

lgraves@thenational.ae

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Jordan cabinet changes

In

  • Raed Mozafar Abu Al Saoud, Minister of Water and Irrigation
  • Dr Bassam Samir Al Talhouni, Minister of Justice
  • Majd Mohamed Shoueikeh, State Minister of Development of Foundation Performance
  • Azmi Mahmud Mohafaza, Minister of Education and Minister of Higher Education and Scientific Research
  • Falah Abdalla Al Ammoush, Minister of Public Works and Housing
  • Basma Moussa Ishakat, Minister of Social Development
  • Dr Ghazi Monawar Al Zein, Minister of Health
  • Ibrahim Sobhi Alshahahede, Minister of Agriculture and Minister of Environment
  • Dr Mohamed Suleiman Aburamman, Minister of Culture and Minister of Youth

Out

  • Dr Adel Issa Al Tawissi, Minister of High Education and Scientific Research
  • Hala Noaman “Basiso Lattouf”, Minister of Social Development
  • Dr Mahmud Yassin Al Sheyab, Minister of Health
  • Yahya Moussa Kasbi, Minister of Public Works and Housing
  • Nayef Hamidi Al Fayez, Minister of Environment
  • Majd Mohamed Shoueika, Minister of Public Sector Development
  • Khalid Moussa Al Huneifat, Minister of Agriculture
  • Dr Awad Abu Jarad Al Mushakiba, Minister of Justice
  • Mounir Moussa Ouwais, Minister of Water and Agriculture
  • Dr Azmi Mahmud Mohafaza, Minister of Education
  • Mokarram Mustafa Al Kaysi, Minister of Youth
  • Basma Mohamed Al Nousour, Minister of Culture
NO OTHER LAND

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Rating: 3.5/5

The specs: 2018 Mercedes-AMG C63 S Cabriolet

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Engine 4.0-litre twin-turbo V8

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Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

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APPLE IPAD MINI (A17 PRO)

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In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.

The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.

It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.

The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.

Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”

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Age: 37

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Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat