The Austrian oil and gas producer OMV recorded a 20 per cent drop in third-quarter profit, as production interruptions at its Libyan assets continue to weigh on its bottom line.
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Net income excluding costs of revaluing inventories declined to €233 million (Dh1.16 billion) from €290m in the third quarter of last year, the company said in its quarterly report yesterday.
"The first nine months of this year have been dominated by the consequences of the political turmoil in North Africa and the Middle East, which have led to major production shortages from Libya and Yemen," said OMV's chief executive officer, Gerhard Roiss.
Third-quarter earnings lagged behind forecasts, with analysts polled by Reuters predicting profits of €259m, while a Bloomberg News poll averaged at €268m. Before the outbreak of fighting in February that led to the death of Colonel Muammar Qaddafi last month, OMV produced about 33,000 barrels per day (bpd) in Libya, about a tenth of its global output.
The resulting halt in production could have cost the company almost US$500,000 (Dh1.83bn) a day in lost profit, the KBC analyst Olena Kyrylenko said at the time.
While OMV has resumed production in Libya, it has declined to give a timeframe for returning to pre-war levels.
"All future activities are dependent on a stable security situation in the country. It is therefore premature to give guidance on when production will be back to significant levels," OMV said in its quarterly report. In September, Jaap Huijskes, the OMV exploration and production head, told an investor conference in Istanbul that the company's assets in south-western Libya were "in good shape" and free of major structural damage. But a return to full production had to be preceded by rebuilding the logistical infrastructure. Attaining Libya's pre-war production would be realistic within 15 months, he said.
In Yemen, an export pipeline damaged in an insurgent attack in March is out of use again because of a subsequent attack, OMV said. Yemen accounted for about 2 per cent of the company's production last year.
Europe's largest oil and gas company is part-owned by the Abu Dhabi's International Petroleum Investment Company, a government-controlled entity that focuses on overseas investments. The company spent €327m on increasing its stake in OMV to 24.9 per cent last month. The companies together own the petrochemical company Borealis in Austria.
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The bio
Favourite book: Kane and Abel by Jeffrey Archer
Favourite quote: “The world makes way for the man who knows where he is going.” - Ralph Waldo Emerson, American essayist
Favourite Authors: Arab poet Abu At-Tayyib Al-Mutanabbi
Favourite Emirati food: Luqaimat, a deep-fried dough soaked in date syrup
Hobbies: Reading and drawing
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Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Profile
Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari
Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.
Number of employees: Over 50
Financing stage: Series B currently being finalised
Investors: Series A - Audacia Capital
Sector of operation: Transport
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Need to know
The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours.
The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.
When to go: You can climb Kili at any time of year, but the best months to ascend are January-February and September-October. Also good are July and August, if you’re tolerant of the colder weather that winter brings.
Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.
2025 Fifa Club World Cup groups
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.
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