Austria's OMV Expects EUR1.5 Billion-EUR1.8 Billion Hit as It Cuts Down on Russian Business
07 Marzo 2022 - 8:54AM
Dow Jones News
By Kim Richters
OMV AG said Saturday that it is further reviewing its activities
in Russia because of the country's war in Ukraine, which would lead
to a 1.5 billion euro to 1.8 billion euro ($1.64 billion-$1.97
billion) hit for the oil-and-gas company.
Austria-based OMV said that Russia will no longer be considered
one of the core regions of its exploration and production
portfolio, and that it won't pursue future investments in the
country.
OMV said it will review its 24.99% stake in Russian gas field
Yuzhno Russkoye, which could lead to the company divesting it. As a
result, OMV said it expects a value adjustment of between EUR500
million and EUR800 million, which will affect its operating result
in the first quarter.
The announcement comes after OMV said earlier this month that it
has called off talks with Russian gas company Gazprom to join the
Achimov project in the Urengoy gas and condensate field, and that
it was reviewing its involvement in the halted Nord Stream 2
pipeline.
On Saturday, OMV said it will also book a value adjustment
charge of EUR987 million in the first quarter because receivables
from Nord Stream 2 AG may not be recoverable.
"The war in Ukraine is a tragic and perilous situation that is
causing great suffering for many and that we view with the utmost
consternation," Chief Executive Officer Alfred Stern said.
OMV is one of a number of oil companies looking to distance
themselves from Russia since the country invaded Ukraine.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
March 07, 2022 02:39 ET (07:39 GMT)
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