The operating profits of the Austrian OMV Group for Oil and Gas fell by 86% in the second quarter of this year.
According to Reuters, the group said that profits before interest and taxes, which exclude certain items and gains or losses from inventory, amounted to 145 million euros ($ 170 million) in Three months ending in June.
This decline is less than expected due to strict cost management and a reduction in spending plans again in response to the global economic crisis.
Analysts had expected, on average, that the company's profits would drop to 52 million euros from 1.05 billion euros a year ago, according to an opinion poll published on the company's website.
Like its competitors, the OMV was forced to act in the face of a collapse in oil and gas prices. The company turned to incurring a net loss in its exploration and production activities in the quarter, but recorded profits of 309 million euros in a downstream unit, which refines and processes oil and gas.
OMV has cut its target for spending for the second time and is currently planning to invest about 1.7 billion euros this year, compared to a previous forecast of 1.8 billion euros. >
OMV also said it expects its refining margin index for 2020 to drop to about three dollars a barrel, after a previous prediction at four dollars. Last year, the margin was $ 4.4 a barrel. The margin is declining due to declining demand for refined petroleum products such as gasoline, diesel, and jet fuel due to global travel restrictions and corporate activity turmoil.
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