OMV Cuts Spending, Delays Projects | Rigzone
OMV has launched measures to insulate the company’s economic stability and the secure supply of energy.
“We made provisions for every employee to work from home parallel to the national exit restrictions in movement,” Rainer Seele, Chairman of the executive board and CEO, said in a written statement.
“Employees who are critical to the business or supply security are the only ones working in the field and they are subject to stringent safety and hygiene standards – to protect them and to protect all of our partners and customers.”
The company has also taken specific steps to protect its financial position. Broadly, its board has approved an action plan of more than EUR 4 bn for the year 2020. This includes:
- Reduction of around EUR 500 mn in organic investments to below EUR 2 bn in 2020. This is a reduction of more than 20% compared with the original planned investments;
- Cutting costs by EUR 200 mn compared to 2019 (OPEX and exploration);
- Payment of the purchase price for the additional 39% share in Borealis in two tranches, where more than EUR 2 bn will not be due until the end of 2021;
- Postponing investment and acquisition projects totaling EUR 1.5 bn
“These measures will safeguard OMV’s ability to act in this challenging situation,” Seele concluded.
OMV produces and markets oil and gas, and petrochemical solutions. With group sales of EUR 23 bn and a workforce of around 20,000 employees in 2019, OMV Aktiengesellschaft is one of Austria’s largest listed industrial companies.
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