Q1 2026 OMV AG Earnings Call

April 30, 2026

Speaker #1: Welcome to the OMV Results January to March 2026 conference call and webcast. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone; you will then hear an automated message advising your hand is raised.

Operator: Welcome to the OMV Results January to March 2026 conference call and webcast. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. At this time, I would like to refer you to the disclaimer, which includes our position on forward-looking statements. These forward-looking statements are based on beliefs, estimates, and assumptions currently held by and information currently available to OMV. By their nature, forward-looking statements are subject to risks and uncertainties that will or may occur in the future and are outside the control of OMV.

Operator: Welcome to the OMV Results January to March 2026 Conference Call and webcast. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. At this time, I would like to refer you to the disclaimer, which includes our position on forward-looking statements. These forward-looking statements are based on beliefs, estimates, and assumptions currently held by and information currently available to OMV. By their nature, forward-looking statements are subject to risks and uncertainties that will or may occur in the future and are outside the control of OMV.

Speaker #1: To withdraw your question, please press star 1, 1 again. Please be advised that today’s conference is being recorded. At this time, I would like to refer you to the disclaimer, which includes our position on forward-looking statements.

Speaker #1: These forward-looking statements are based on beliefs, estimates, and assumptions currently held by, and information currently available to, OMV. By their nature, forward-looking statements are subject to risks and uncertainties that will or may occur in the future and are outside the control of OMV.

Speaker #1: Therefore, recipients are cautioned not to place undue reliance on these forward-looking statements. OMV disclaims any obligation and does not intend to update these forward-looking statements to reflect actual results, revise assumptions, or expectations of future developments and events.

Operator: Therefore, recipients are cautioned not to place undue reliance on these forward-looking statements. OMV disclaims any obligation and does not intend to update these forward-looking statements to reflect actual results, revised assumptions, and expectations of future developments and events. This presentation does not contain any recommendation or invitation to buy or sell securities in OMV. I'd now like to hand the conference over to Mr. Florian Graber, Senior Vice President, Investor Relations and Sustainability. Please go ahead, Mr. Graber.

Operator: Therefore, recipients are cautioned not to place undue reliance on these forward-looking statements. OMV disclaims any obligation and does not intend to update these forward-looking statements to reflect actual results, revised assumptions, and expectations of future developments and events. This presentation does not contain any recommendation or invitation to buy or sell securities in OMV. I'd now like to hand the conference over to Mr. Florian Greger, Senior Vice President, Investor Relations and Sustainability. Please go ahead, Mr. Graber.

Speaker #1: This presentation does not contain any recommendation or invitation to buy or sell securities in OMV. I'd now like to hand the conference over to Mr. Florian Greger, Senior Vice President, Investor Relations and Sustainability, please go ahead, Mr. Greger.

Speaker #2: Thank you. Good morning, ladies and gentlemen. Welcome to OMV's earnings call for the first quarter, 2026. With me on the call are OMV's CEO, Alfred Stern, and our CFO, Reinhard Flore.

Florian Graber: Thank you. Good morning, ladies and gentlemen. Welcome to OMV's earnings call for Q1 2026. With me on the call are OMV's CEO, Alfred Stern, and our CFO, Reinhard Florey. Alfred and Reinhard will walk you through the highlights of the quarter and will discuss OMV's financial performance. Following their presentations, the two gentlemen are available to answer your questions. With that, I'll hand it over to Alfred.

Florian Greger: Thank you. Good morning, ladies and gentlemen. Welcome to OMV's Earnings Call for Q1 2026. With me on the call are OMV's CEO, Alfred Stern, and our CFO, Reinhard Florey. Alfred and Reinhard will walk you through the highlights of the quarter and will discuss OMV's financial performance. Following their presentations, the two gentlemen are available to answer your questions. With that, I'll hand it over to Alfred.

Speaker #2: Alfred and Reinhard will walk you through the highlights of the quarter and will discuss OMV's financial performance. Following their presentations, the two gentlemen are available to answer your questions.

Speaker #2: And with that, I'll hand it over to Alfred.

Speaker #3: Thank you, Florian. Ladies and gentlemen, good morning and thank you for joining us today. Let me start with the extraordinary and challenging environment being faced by global energy markets.

Alfred Stern: Thank you, Florian. Ladies and gentlemen, good morning, and thank you for joining us today. Let me start with the extraordinary and challenging environment being faced by global energy markets. The closure of the Strait of Hormuz at the end of February, following the escalation in the Middle East, has had far-reaching repercussions, not only for oil and LNG flows, but for global energy security as a whole. Our thoughts are with all those affected by the ongoing conflict, and we will continue to prioritize the safety and security of our people and assets in the region. Despite the current circumstances, we delivered a solid Clean CCS Operating Result of more than EUR 1 billion and cash flow from operations excluding net working capital of more than EUR 1.6 billion. Turning to the macro environment.

Speaker #3: The closure of the Strait of Hormuz at the end of February, following the escalation in the Middle East, has had far-reaching repercussions—not only for oil and LNG flows, but for global energy security as a whole.

Speaker #3: Our thoughts are with all those affected by the ongoing conflict, and we will continue to prioritize the safety and security of our people and assets in the region.

Speaker #3: Despite the current circumstances, we delivered a solid, clean CCS operating result of more than €1 billion and cash flow from operations excluding net working capital of more than €1.6 billion.

Speaker #3: Turning to the macro environment, international energy markets in the first quarter were characterized by extremely volatile price developments. Prior to the crisis around 20% of total oil and gas supply transited the Strait of Hormuz.

Alfred Stern: International energy markets in Q1 were characterized by extremely volatile price developments. Prior to the crisis, around 20% of total oil and gas supply transited the Strait of Hormuz. Following the closure of the Strait, the price of Dated Brent experienced a significant upward momentum. The Brent price climbed from less than $70 per barrel in January and February to over $120 per barrel by the end of March, resulting in a quarterly average above $80 per barrel. More than 25% higher than the previous quarter and 7% higher year on year. European natural gas markets have also been severely impacted. The initial reaction to the closure of the Strait was even more pronounced in early March.

Alfred Stern: International energy markets in Q1 were characterized by extremely volatile price developments. Prior to the crisis, around 20% of total oil and gas supply transited the Strait of Hormuz. Following the closure of the Strait, the price of Dated Brent experienced a significant upward momentum. The Brent price climbed from less than $70 per barrel in January and February to over $120 per barrel by the end of March, resulting in a quarterly average above $80 per barrel. More than 25% higher than the previous quarter and 7% higher year-on-year. European natural gas markets have also been severely impacted. The initial reaction to the closure of the Strait was even more pronounced in early March.

Speaker #3: Following the closure of the Strait, the price of dated brent experienced a significant upward momentum. The brent price climbed from less than $70 per barrel in January and February to over $120 per barrel by the end of March, resulting in a quarterly average above $80 per barrel.

Speaker #3: More than 25% higher than the previous quarter, and 7% higher year on year. European natural gas markets have also been severely impacted. The initial reaction to the closure of the Strait was even more pronounced in early March.

Speaker #3: Roughly 20% of LNG supply was stuck in the Persian Gulf, and Qatari volumes were offline causing the average DHE gas price to rise by 32% quarter on quarter.

Alfred Stern: Roughly 20% of LNG supply was stuck in the Persian Gulf, and Qatari volumes were offline, causing the average THE gas price to rise by 32% quarter on quarter. Despite this, the THE gas price for Q1 averaged EUR 41 per megawatt hour and was 13% below the exceptionally high prior year quarter. Refining margins were also very volatile. Market shortages caused by the conflict in the Middle East drove prices and margins higher in March. The OMV refining indicator margin averaged $13.9 per barrel and was thus at a similar level to the previous quarter, but substantially above the prior year quarter, driven by tight middle distillate and gasoline supply in the region. In chemicals, olefin and polyolefin indicator margins posted varied developments.

Alfred Stern: Roughly 20% of LNG supply was stuck in the Persian Gulf, and Qatari volumes were offline, causing the average THE gas price to rise by 32% quarter on quarter. Despite this, the THE gas price for Q1 averaged EUR 41 per MWh and was 13% below the exceptionally high prior year quarter. Refining margins were also very volatile. Market shortages caused by the conflict in the Middle East drove prices and margins higher in March. The OMV refining indicator margin averaged $13.9 per barrel and was thus at a similar level to the previous quarter, but substantially above the prior year quarter, driven by tight middle distillate and gasoline supply in the region. In chemicals, olefin and polyolefin indicator margins posted varied developments.

Speaker #3: Despite this, the DHE gas price for the first quarter averaged $41 per megawatt-hour and was 13% below the exceptionally high prior-year quarter. Refining margins were also very volatile.

Speaker #3: Market shortages caused by the conflict in the Middle East drove prices and margins higher in March. The OMV refining indicator margin averaged 13.9 dollars per barrel and was thus at a similar level to the previous quarter.

Speaker #3: But substantially above the prior-year quarter, driven by tight middle distillate and gasoline supply in the region. In Chemicals, Olefin and Polyolefin indicator margins boasted varied developments.

Speaker #3: Olefin margins declined by 17% compared to the prior-year quarter, as margins in March got squeezed due to the conflict in the Middle East. Naphtha prices rose more strongly over the course of the month than olefin contract prices set at the beginning of March.

Alfred Stern: Olefin margins declined by 17% compared to the prior year quarter as margins in March got squeezed due to the conflict in the Middle East. Naphtha prices rose more strongly over the course of the month than olefin contract prices set at the beginning of March. Polyolefin margins increased by 28% as polyolefin contract prices could be raised strongly in March, reflecting concerns regarding the security of supply following the breakout of the conflict in the Middle East. Although the extreme market volatility and ongoing conflict in the Middle East presented significant challenges, OMV achieved a solid performance and once again demonstrated resilience thanks to its integrated business model. In energy, hydrocarbon production came in 7% lower than the prior year quarter as the Middle East conflict impacted output.

Speaker #3: Polyolefin margins increased by 28%, as polyolefin contract prices could be raised strongly in March, reflecting concerns regarding the security of supply following the breakout of the conflict in the Middle East.

Speaker #3: Although the extreme market volatility and ongoing conflict in the Middle East presented significant challenges, OMV achieved a solid performance and once again demonstrated resilience thanks to its integrated business model.

Speaker #3: In Energy, hydrocarbon production came in 7% lower than the prior-year quarter as the Middle East conflict impacted output. We increased our fuel sales volumes, thereby reinforcing our position as a supplier of choice in the downstream sector.

Alfred Stern: We increased our fuel sales volumes, thereby reinforcing our position as a supplier of choice in the downstream sector. In chemicals, total polyolefin sales volumes, which included the joint ventures, decreased only slightly year on year despite logistical constraints in a challenging environment. Our Clean CCS Operating Result came in at more than EUR 1 billion, though this was down 12% year on year. A stronger chemicals result could not offset the lower energy contribution, while the fuel segment set a similar level to the prior year quarter. Clean CCS earnings per share amounted to EUR 1. Cash flow from operating activities reached almost EUR 800 million. The decrease year on year and compared to the previous quarter was predominantly attributable to the significant net working capital build of around EUR 850 million.

Speaker #3: And in chemicals, total polyolefin sales volumes which included the joint ventures decreased only slightly year on year despite logistical constraints in a challenging environment.

Speaker #3: Our clean CCS operating result came in at more than €1 billion, though this was down 12% year on year. A stronger chemicals result could not offset the lower energy contribution, while the fuel segment set a similar level to the prior-year quarter.

Speaker #3: Clean CCS earnings per share amounted to €1. Cash flow from operating activities reached almost €800 million. The decrease year on year and compared to the previous quarter was predominantly attributable to the significant net working capital build of around €850 million.

Speaker #3: Excluding net working capital effects, the operating cash flow was substantially higher than in both periods, largely driven by a higher pricing environment, while also benefiting from timing effects.

Alfred Stern: Excluding net working capital effects, the operating cash flow was substantially higher than in both periods, largely driven by a higher pricing environment while also benefiting from timing effects. Before I discuss OMV's results in more detail, I would like to turn to the Borouge International transaction, which represents one of the most significant strategic steps in OMV's history and the pivotal move in the implementation of our Strategy 2030. On 31 March, OMV and XRG, ADNOC's international investment arm, announced the successful creation of Borouge International. The combination of Borealis and Borouge and the subsequent acquisition of Nova Chemicals has resulted in the formation of the 4th-largest polyolefin player worldwide, boasting substantial scale and reach across the Americas, Europe, the Middle East, and Asia. These regions are pivotal in determining future demand growth and long-term industrial relevance.

Speaker #3: Before I discuss OMV's results in more detail, I would like to turn to the Barouche International Transaction, which represents one of the most significant strategic steps in OMV's history, and the pivotal move in the implementation of our Strategy 2030.

Speaker #3: On March 31st, OMV and XRG UpKnocks International Investment Arm announced the successful creation of Barouche International. The combination of Borealis and Barouche, and the subsequent acquisition of Nova Chemicals, has resulted in the formation of the fourth largest polyolefin player worldwide.

Speaker #3: Boasting substantial scale and reach across the Americas, Europe, the Middle East, and Asia, these regions are pivotal in determining future demand growth and long-term industrial relevance.

Speaker #3: Barouche International will be jointly owned by OMV and XRG with each holding a 50% share. To balance the shareholding, OMV injected 1.5 billion euros into the new company.

Alfred Stern: Borouge International will be jointly owned by OMV and XRG, with each holding a 50% share. To balance the shareholding, OMV injected EUR 1.5 billion into the new company. Our partnership is founded on clear governance, shared responsibilities, and most importantly, a shared ambition to create long-term value and future growth. It is also a reflection of our belief in the value of this platform, which repositions OMV's chemical segment to deliver substantial global potential. We recently also announced the executive leadership team, which unites decades of senior leadership experience across the international chemicals, commodities and refining sectors with deep commercial and operational knowledge and a proven track record of strategic execution. The combined businesses have historically delivered average pro forma EBITDA of approximately $4.5 billion, despite recent years being more challenging.

Speaker #3: Our partnership is founded on clear governance, shared responsibilities, and, most importantly, a shared ambition to create long-term value and future growth. It is also a reflection of our belief in the value of this platform, which repositions OMV's chemical segment to deliver substantial global potential.

Speaker #3: We recently also announced the executive leadership team, which unites decades of senior leadership experience across the international chemicals, commodities, and refining sectors, with deep commercial and operational knowledge and a proven track record of strategic execution.

Speaker #3: The combined businesses have historically delivered average pro forma EBITDA of approximately $4.5 billion, despite recent years being more challenging. We expect EBITDA to increase significantly and reach more than $7 billion through the cycle.

Alfred Stern: We expect EBITDA to increase significantly and reach more than EUR 7 billion through the cycle. This will represent a significant enhancement in terms of earnings quality and cash flow generation, thereby also substantially strengthening OMV's long-term value creation. It will be achieved primarily by growth projects where we see strong progress and near-term execution, but will also be supported by considerable synergies and the expected normalization of the chemicals markets. The asset usage agreement announced last month further underpins this growth path. It enables Borouge Plc to operate and market the substantial Borouge 4 volumes, which will add 1.4 million tons of polyethylene once fully online. Lastly, the new company achieved strong investment-grade credit ratings, demonstrating substantial confidence in the balance sheet and the sustainability of future cash flows. Borouge International is a leader in operational excellence.

Speaker #3: This will represent a significant enhancement in terms of earnings quality and cash flow generation, thereby also substantially strengthening OMV's long-term value creation. It will be achieved primarily by growth projects, where we see strong progress and near-term execution, but will also be supported by considerable synergies and the expected normalization of the chemicals markets.

Speaker #3: The asset usage agreement announced last month further underpins this growth path. It enables Barouche PLC to operate and market the substantial Barouche fuel volumes, which will add 1.4 million tons of polyethylene once fully online.

Speaker #3: Lastly, the new company achieved strong investment-grade credit ratings, demonstrating substantial confidence in the balance sheet and the sustainability of future cash flows. Barouche International is a leader in operational excellence.

Speaker #3: The strong results of Barouche International are also the result of the disciplined and consistent approach to managing its assets. Recent years showed that Barouche International is among the best operators in the industry, proven by both asset availability and plant utilization.

Alfred Stern: The strong results of Borouge International are also the result of the disciplined and consistent approach to managing its assets. Recent years showed that Borouge International is among the best operators in the industry, proven by both asset availability and plant utilization. The company has consistently operated at utilization levels above the industry average, supported by high asset availability and the use of advanced technologies to optimize maintenance costs and production planning. Over the past 5 years, this focus has yielded significant outcomes, bringing the pro forma average utilization rate close to 90% compared with an industry average of just over 80%. This is supported by a modern, well-maintained asset base underpinned by substantial past investments. This higher utilization rate directly translates into stronger operational leverage, better customer service levels, more resilient cash flows, and better financial outcomes through the cycle.

Speaker #3: The company has consistently operated at utilization levels above the industry average supported by high asset availability and the use of advanced technologies to optimize maintenance cycles and production planning.

Speaker #3: Over the past five years, this focus has yielded significant outcomes, bringing the pro forma average utilization rate close to 90%, compared with an index average of just over 80%.

Speaker #3: This is supported by a modern, well-maintained asset base underpinned by substantial past investments. This higher utilization rate directly translates into stronger operational leverage, better customer service levels, more resilient cash flows, and better financial outcomes through the cycle.

Speaker #3: But one thing is clear: operational excellence does not stop at the asset level; it is also founded on an unwavering commitment to health, safety, and asset integrity.

Alfred Stern: One thing also has to be clear. Operational excellence does not stop at asset level. It is also founded on an unwavering commitment to health, safety, and asset integrity. Product quality and pricing are of paramount importance to the strength of Borouge International. Borouge International's innovative positioning, consistently high quality of its products, and substantial share of specialty products in its portfolio are clearly recognized by its customers, which directly impacts commercial outcomes. Over the past 5 years, pro forma price premiums of almost 20% have been consistently achieved when compared with local market benchmarks. This is a structural advantage and not just a cyclical one. It forms a solid foundation and contributes significantly to the strength and resilience of the company's margins, which have demonstrated stability across various market conditions in previous years.

Speaker #3: Product quality and pricing are of paramount importance to the strengths of Barouche International. Barouche International's innovative positioning consistently high quality of its products and substantial share of specialty products in its portfolio are clearly recognized by its customers which directly impacts commercial outcomes.

Speaker #3: Over the past five years, pro forma price premiums of almost 20% have been consistently achieved when compared with local market benchmarks. This is a structural advantage and not just a cyclical one.

Speaker #3: It forms a solid foundation and contributes significantly to the strength and resilience of the company's margins which have demonstrated stability across various market conditions in previous years.

Speaker #3: It is crucial that this premium pricing remains consistent throughout the entire cycle, and Barouche International has consistently demonstrated its ability to maintain premiums even at the bottom of the cycle.

Alfred Stern: It is crucial that this premium pricing remains consistent throughout the entire cycle. Borouge International has consistently demonstrated its ability to maintain premiums even at the bottom of the cycle. This underscores the technological innovation capabilities and the vital function of its products, as well as substantial customer trust. This commercial strength is closely linked to the aforementioned operational excellence. Reliable supply, consistent product performance, and strong customer relationships all reinforce the ability to price sustainably at a premium. Let me turn to the historical earnings performance of Borouge International. Margins at Borouge International have been structurally higher than those of competitors, both when markets were strong and when conditions turned out to be more challenging. When comparing the pro forma EBITDA margins with those of specialty chemicals category leaders and global chemical players, the difference becomes clear.

Speaker #3: This underscores the technological innovation capabilities and the vital function of its products, as well as substantial customer trust. This commercial strength is closely linked to the aforementioned operational excellence.

Speaker #3: Reliable supply, consistent product performance, and strong customer relationships all reinforce the ability to price sustainably at a premium. Let me turn to the historical earnings performance of Barouche International.

Speaker #3: Margins at Barouche International have been structurally higher than those of competitors. Both when markets were strong and when conditions turned out to be more challenging.

Speaker #3: When comparing the pro forma EBITDA margins with those of specialty chemicals category leaders, and global chemical players, the difference becomes clear. In strong market environments, Barouche International's margins are ahead of its peer group.

Alfred Stern: In strong market environments, Borouge International's margins are ahead of its peer group. Most importantly, in weaker market conditions, EBITDA margins remain high and close to 20%, well above the broader industry level. For 2025, the margin level of Borouge International remains 2x as high as above the industry average across global chemical players. Specialty chemicals leaders were in the same ballpark despite their materially different business models. Between 2021 and 2025, Borouge International proved to be the most profitable player through the cycle. Even at the bottom of the cycle, the margin profile was comparable with the very best in the specialty chemicals industry. This performance reflects everything we have already mentioned: operational discipline and advantaged feedstock, premium product positioning based on proprietary technologies and scale. It is the core reason why this platform delivers sustainable value no matter the market environment.

Speaker #3: But most importantly, in weaker market conditions, EBITDA margins remain high and close to 20%—well above the broader industry level. For 2025, the margin level of Barouche International remained twice as high as the industry average across global chemical players.

Speaker #3: Specialty chemicals leaders were in the same ballpark despite their materially different business models. Between 2021 and 2025, Barouche International proved to be the most profitable player through the cycle.

Speaker #3: And even at the bottom of the cycle, the margin profile will be best in the specialty chemicals industry. This performance reflects everything we have already mentioned.

Speaker #3: Operational discipline, and advantaged feedstock. Premium product positioning, based on proprietary technologies. And scale. It is the core reason why this platform delivers sustainable value no matter the market environment.

Speaker #3: Let me now turn to OMV's performance in the first quarter of 2026. The clean operating result of the energy segment declined year-on-year by 21% to €723 million.

Alfred Stern: Let me now turn to OMV's performance in Q1 2026. The clean operating result of the energy segment declined year on year by 21% to EUR 723 million. The main driver of this was a lower result in exploration and production, which primarily reflected negative market effects and reduced sales volumes. In addition, the prior year quarter was supported by a positive one-time effect of EUR 48 million as a result of an arbitration award. The realized crude oil price remained virtually unchanged year on year, averaging $72 per barrel, while Brent increased by 7% to $81 per barrel. This was largely attributable to different pricing mechanisms that in some countries have a delay of 2 months. OMV's average realized natural gas price fell by 19% to EUR 31 per MWh.

Speaker #3: The main driver of this was a lower result in Exploration and Production, which primarily reflected negative market effects and reduced sales volumes. In addition, the prior-year quarter was supported by a positive one-time effect of €48 million as a result of an arbitration award.

Speaker #3: The realized crude oil price remained virtually unchanged year-on-year, averaging $72 per barrel, while Brent increased by 7% to $81 per barrel. This was largely attributable to different pricing mechanisms that in some countries have a delay of two months.

Speaker #3: OMV's average realized natural gas price fell by 19% to 31 euros per megawatt hour. The stronger decline than the European benchmark the DAG, which decreased by 13%, was mainly due to the composition of the portfolio.

Alfred Stern: The stronger decline than the European benchmark, the THE, which decreased by 13%, was mainly due to the composition of the portfolio. Hydrocarbon production declined by 7% to 288,000 barrels of oil equivalent per day. This was predominantly due to the temporary shut-ins caused by the conflict in the Middle East and natural decline in New Zealand and Romania. Production in Libya was slightly higher, which partially offset the declines elsewhere. Absolute production costs decreased as a result of various cost reduction measures. However, unit production costs rose to EUR 11.6 per barrel. This increase resulted mainly from unfavorable exchange rate effects and lower production volumes.

Speaker #3: Hydrocarbon production declined by 7% to 288,000 barrels of oil equivalent per day. This was predominantly due to the temporary shut-ins caused by the conflict in the Middle East and natural decline in New Zealand and Romania.

Speaker #3: Production in Libya was slightly higher, which partially offset the declines elsewhere. Absolute production costs decreased as a result of various cost reduction measures. However, unit production costs rose to $11.60 per barrel.

Speaker #3: This increase resulted mainly from unfavorable exchange rate effects and lower production volumes. Sales volumes decreased by 31,000 to 252,000 barrels of oil equivalent per day, to a large extent due to lower production caused by the conflict in the Middle East and the lifting schedule in other countries.

Alfred Stern: Sales volumes decreased by 31,000 to 252,000 barrels of oil equivalent per day, to a large extent due to lower production caused by the conflict in the Middle East and the lifting schedule in other countries. The gas marketing and power result decreased by EUR 30 million to EUR 72 million. The main driver of this was the missing positive effect of the arbitration award received in Q1 2025. Gas West was further impacted by a lower storage result following decreased summer-winter spreads. The contribution of Gas East rose strongly, supported by the power market deregulation in Romania, effective from July 2025. The Clean CCS Operating Result of the fuels segment remained largely constant at EUR 113 million. Substantially stronger refining indicator margins were offset by several factors.

Speaker #3: The gas marketing and power result decreased by 30 million to 72 million euros. The main driver of this was the missing positive effect of the arbitration award received in the first quarter of 2025.

Speaker #3: Gas West was further impacted by a lower storage result following decreased summer-winter spreads. The contribution of Gas East rose strongly supported by the power market deregulation in Romania effective from July 2025.

Speaker #3: The clean CCS operating result of the fuel segment remained largely constant at 113 million euros. Substantially stronger refining indicator margins were offset by several factors.

Speaker #3: Amongst them were operational one-off hedging losses amounting to around €100 million, related to equity production due to global disruptions in crude flows. Lower utilization and a lower contribution from the marketing business were also offsetting.

Alfred Stern: Amongst them were operational one-off hedging losses amounting to around EUR 100 million related to equity production due to global disruptions in crude flows. Lower utilization and a lower contribution from the marketing business were also offsetting. The European refining indicator margin more than doubled to $13.9 per barrel in the quarter. Planned shutdowns, particularly in March, limited the ability to capitalize on the high March margins. Because of these maintenance activities, the refinery utilization rate declined from 92% in the prior year quarter to 87%. The marketing business contribution declined substantially as retail performance was impacted by lower fuel unit margins due to higher oil product quotations triggered by the conflict in the Middle East. Increased fuel sales volumes could only partly offset this. The commercial business result also decreased because of lower margins.

Speaker #3: The European refining indicator margin more than doubled to $13.9 per barrel in the quarter. However, planned shutdowns, particularly in March, limited the ability to capitalize on the high March margins because of these maintenance activities.

Speaker #3: The refinery utilization rate declined from 92% in the prior-year quarter to 87%. The marketing business contribution declined substantially, as retail performance was impacted by lower fuel unit margins due to higher oil product quotations triggered by the conflict in the Middle East.

Speaker #3: Increased fuel sales volumes could only partly offset this. The commercial business result also decreased because of lower margins, though higher sales volumes and a slightly improved contribution from the aviation business mitigated this to a certain extent.

Alfred Stern: Higher sales volumes and a slightly improved contribution from the aviation business mitigated this to a certain extent. The contribution from ADNOC Refining and ADNOC Global Trading improved to EUR 7 million, mainly attributable to a better trading result. However, this was partly offset by impact resulting from the conflict in the Middle East. The clean operating result of the chemicals segment rose sharply to EUR 245 million, driven by improved polyolefin margins and the stop of Borealis depreciation. In our European business, we recorded unfavorable market effects totaling EUR 20 million, reflecting lower olefin indicator margins, partly compensated for by higher polyolefin margins. Inventory effects were positive. The utilization rate of our European crackers was stable at 91%. Nevertheless, the result of OMV-based chemicals decreased due to weaker olefin margins and lower butadiene results.

Speaker #3: The contribution from ATNOC Refining and ATNOC Global Trading improved to €7 million, mainly attributable to a better trading result. However, this was partly offset by the impact resulting from the conflict in the Middle East.

Speaker #3: The clean operating result of the chemicals segment rose sharply to 245 million euros. Driven by improved polyolefin margins and the stop of Borealis depreciation.

Speaker #3: In our European business, we recorded unfavorable market effects totaling €20 million, reflecting lower olefin indicator margins, partly compensated for by higher polyolefin margins.

Speaker #3: Inventory effects were positive. The utilization rate of our European crackers was stable at 91%. Nevertheless, the result of OMV-based Chemicals decreased due to weaker olefin margins and lower butadiene results.

Speaker #3: The contribution from Borealis, excluding Trend Ventures, rose to €223 million, to a large extent driven by the stop of depreciation. In addition, the results of Borealis-based Chemicals and Polyolefins increased.

Alfred Stern: The contribution from Borealis, excluding joint ventures, rose to EUR 223 million to a large extent, driven by the stop of depreciation. In addition, the results of Borealis-based chemicals and polyolefins increased. Borealis-based chemicals benefited from higher light feedstock advantage and positive inventory effects. The contribution of polyolefins grew because of better margins and increased sales volumes, driven by improved specialty sales volumes in the energy and mobility sector. Earnings from our joint ventures decreased by EUR 10 million, mainly due to a lower contribution from Borouge. Borouge performance was impacted by low pricing in January and February, as well as logistics disruptions and cost increases in March caused by the conflict in the Middle East. Thank you for your attention up to here, and I would like to now hand over to Reinhard.

Speaker #3: Borealis-based chemicals benefited from a higher light feedstock advantage and positive inventory effects. The contribution of polyolefins grew because of better margins and increased sales volumes, driven by improved specialty sales volumes in the energy and mobility sector.

Speaker #3: Earnings from our Trend Ventures decreased by €10 million, mainly due to a lower contribution from Borush. Borush's performance was impacted by low pricing in January and February, as well as logistics disruptions and cost increases in March caused by the conflict in the Middle East.

Speaker #3: Thank you for your attention up to here, and I would like to now hand over to Reinhard.

Speaker #2: Thanks, Alfred. Good morning and welcome also from my side. Let's turn to some more financial details of OMV's first quarter. Starting with cash flows, our first quarter operating cash flow excluding networking capital effects was very strong at 1.6 billion euros considerably higher than the previous quarter and the prior year quarter.

Reinhard Florey: Thanks, Alfred. Good morning, and welcome also from my side. Let's turn to some more financial details of OMV's Q1. Starting with cash flows, our Q1 operating cash flow, excluding net working capital effects, was very strong at EUR 1.6 billion, considerably higher than the previous quarter and the prior year quarter. The main drivers were substantially stronger refining margins and improved Gas & Power Eastern Europe contribution, as well as higher prices in fuels, which are not visible in the Clean CCS to the CCS adjustment. Cash flow further benefited from realized gas derivatives. It is important to note that the higher prices also affected net working capital with the opposite effect. Higher prices, together with increased inventory levels, led to substantial net working capital build of approximately EUR 850 million.

Speaker #2: The main drivers were substantially stronger refining margins and improved gas and power Eastern Europe contribution, as well as higher prices in fuels, which are not visible in the clean CCS optimum to the CCS adjustment.

Speaker #2: Cash flow further benefited from realized gas derivatives. It is important to note that the higher prices also affected networking capital with the opposite effect.

Speaker #2: Higher prices, together with increased inventory levels, led to a substantial net working capital build of approximately €850 million. As a result, cash flow from operating activities for the quarter was around €800 million.

Reinhard Florey: As a result, cash flow from operating activities for the quarter was around EUR 800 million. Organic cash flow from investing activities in Q1 of the year was around EUR 900 million, related to ordinary ongoing business investments and major growth projects such as Neptun Deep, the PDH plant in Belgium, the SAF HVO plants in Romania, and green hydrogen in Austria. As a result, the organic free cash flow before dividends for Q1 of 2026 came in at EUR -125 million. Our balance sheet remains very strong. The impact of the Borouge International transaction on our leverage ratio was fairly limited. It rose from 14 to 17% at the end of Q1.

Speaker #2: Organic cash flow from investing activities in the first three months of the year was around €900 million, related to ordinary ongoing business investments and major growth projects such as Neptune Deep, the PDH plant in Belgium, the SAF and HVO plants in Romania, and green hydrogen in Austria.

Speaker #2: As a result, the organic free cash flow before dividends for the first quarter of 2026 came in at minus €125 million. Our balance sheet remains very strong.

Speaker #2: The impact of the Borush international transaction on our leverage ratio was fairly limited. It rose from 14% to 17% at the end of the first quarter.

Speaker #2: This was mainly attributable to the impact of the Borealis deconsolidation on our equity and net debt, as well as the capital injection of €1.5 billion into Borush International to equalize OMV’s and Exergy’s shareholdings.

Reinhard Florey: This was mainly attributable to the impact of the Borealis deconsolidation on our equity and net debt, as well as the capital injection of EUR 1.5 billion into Borouge International to equalize OMV's and XRG's shareholdings. I think it is worth highlighting that even after this game-changing transaction, our leverage ratio remains well below the mid and long-term threshold of 30%. This reflects our commitment to maintaining a robust capital structure and healthy balance sheet. At the end of March, OMV had a cash position of EUR 3.5 billion and EUR 3.1 billion in addition in undrawn committed credit facilities. Given the significance of Borouge International transaction, I'd like to briefly explain the impact on reported numbers.

Speaker #2: I think it is worth highlighting that, even after this game-changing transaction, our leverage ratio remains well below the mid- and long-term threshold of 30%.

Speaker #2: This reflects our commitment to maintaining a robust capital structure and healthy balance sheet. At the end of March, OMV had a cash position of €3.5 billion and an additional €3.1 billion in undrawn committed credit facilities.

Speaker #2: Given the significance of Borush international transaction, I'd like to briefly explain the impact on reported numbers. Clean CCS net income amounted to 495 million euros in the first quarter of 2026.

Reinhard Florey: Clean CCS net income amounted to EUR 495 million in Q1 2026, only slightly lower compared with EUR 561 million a year before. The deconsolidation of Borealis led to a gain in the amount of EUR 886 million, which reflects the difference between the fair value and the book value of Borealis at the time of deconsolidation. This gain is recognized in net income and reported as a special item. It is not included in the Clean CCS net income or the Clean CCS result. Reported net income rose to more than EUR 1.6 billion in Q1 2026, largely impacted by the gain from deconsolidation. In the prior year quarter, we reported net income was EUR 288 million.

Speaker #2: Only slightly lower compared with the €561 million a year before. The deconsolidation of Borealis led to a gain in the amount of €886 million, which reflects the difference between the fair value and the book value of Borealis at the time of deconsolidation.

Speaker #2: This gain is recognized in net income and reported as a special item. As a result, it is not included in the clean CCS net income or the clean CCS result.

Speaker #2: Thus, reported net income rose to more than €1.6 billion in the first quarter, impacted by the gain from deconsolidation. In the prior-year quarter, reported net income was €288 million.

Speaker #2: Let me now briefly walk you through the general financial implications of the Borush international transaction going forward. In the first quarter, most financial metrics have been reported under the previous group structure, in line with the previous quarters.

Reinhard Florey: Let me now briefly walk you through the general financial implications of the Borouge International transaction going forward. In Q1, most financial metrics have been reported under the previous group structure in line with the previous quarters. This applies to the clean operating result, net income, and operating cash flow. At the same time, the balance sheet already captures the technical effects of closing. This includes the EUR 1.5 billion capital injection into Borouge International and the deconsolidation of Borealis cash balances. From Q2 2026 onwards, Borealis will be fully deconsolidated, and the new company, Borouge International, will be accounted for at equity. This means in operating result and net income, we will report OMV's share of Borouge International's net income. In operating cash flow, we will reflect dividends received from Borouge International.

Speaker #2: This applies to the clean operating result, net income, and operating cash flow. At the same time, the balance sheet already captures the technical effects of closing.

Speaker #2: This includes the €1.5 billion capital injection into Borush International and the deconsolidation of Borealis cash balances. From the second quarter 2026 onwards, Borealis will be fully deconsolidated and the new company, Borush International, will be accounted for at equity.

Speaker #2: This means, in operating result and net income, we will report OMV's share of Borush International's net income. In operating cash flow, we will reflect dividends received from Borush International.

Speaker #2: And on the balance sheet, Borush International will be shown as an equity accounted investment as it is already shown at the end of the first quarter of 2026.

Reinhard Florey: On the balance sheet, Borouge International will be shown as an equity accounted investment, as it is already shown at the end of the first quarter of 2026. This structure results in cleaner financials, stronger cash generation visibility through dividends, and a more resilient earnings profile going forward. In addition, in the appendix, we provided high-level pro forma figures for the years 2024 and 2025, which show OMV excluding Borealis and Borouge that should help you with modeling. Let me end with the outlook for this year. Recent escalations in the Middle East, including military activities and restrictions on shipping through the Strait of Hormuz, have significantly increased volatility in global energy markets. While we are constantly monitoring the latest developments, it remains difficult to predict the environment as a trajectory of the regional conflict is highly uncertain.

Speaker #2: This structure results in cleaner financials, stronger cash generation visibility through dividends, and a more resilient earnings profile going forward. In addition, in the appendix, we provided high-level pro forma figures for the years 2024 and 2025 which show OMV excluding Borealis and Borush that should help you with modeling.

Speaker #2: Let me end with the outlook for this year. Recent escalations in the Middle East including military activities and restrictions on shipping through the Strait of Hormuz have significantly increased volatility in global energy markets.

Speaker #2: While we are constantly monitoring the latest developments, it remains difficult to predict the environment, as the trajectory of the regional conflict is highly uncertain.

Speaker #2: In light of these events, we currently forecast an average dated Brent price for 2026 of between $85 and $95 per barrel, with the average THG gas price estimated to be around €45 per megawatt hour.

Reinhard Florey: In light of these events, we currently forecast an average Dated Brent price for 2026 of between $85 and $95 per barrel. The average DAG gas price is estimated to be around EUR 45 per megawatt hour, while the OMV average realized gas price is expected to be in the region of EUR 35 to EUR 40 per megawatt hour. In energy, we expect average oil and gas production for 2026 of between 280,000 and 290,000 barrels of oil equivalent per day, reflecting the current situation in the Middle East and subject to the timing and extent of the lifting of restrictions on the shipping through the Strait of Hormuz. Unit production cost is now expected to be around $11 per barrel.

Speaker #2: While the OMV average realized gas price is expected to be in the region of €35 to €40 per megawatt hour, in Energy we expect average oil and gas production for 2026 of between 280,000 and 290,000 barrels of oil equivalent per day, reflecting the current situation in the Middle East and subject to the timing and extent of the lifting of restrictions on shipping through the Strait of Hormuz.

Speaker #2: Unit production cost is now expected to be around $11 per barrel. In fuel, the refining indicator margin is projected to be between $10 and $15 per barrel, a range that reflects current market disruptions and uncertainties.

Reinhard Florey: In fuel, the refining indicator margin is projected to be between $10 and $15 per barrel, a range that reflects current market disruptions and uncertainties. These disruptions are also leading to a significant widening of crude oil differentials to Dated Brent, which are not reflected in the OMV refining indicator margin or in the full-year sensitivities, and thus could have a material adverse impact on the fuels business. We anticipate the utilization rate of our European refineries to be above 90%, with no major maintenance turnarounds planned at our refineries in the remainder of the year. Total fuel sales volumes are expected to be higher than last year, while retail and commercial margins are projected to be below the levels seen in 2025.

Speaker #2: These disruptions are also leading to a significant widening of crude oil differentials to dated Brent which are not reflected in the OMV refining indicator margin or in the full year sensitivities and thus could have a material adverse impact on the fuel's business.

Speaker #2: We anticipate the utilization rate of our European refineries to be above 90%, with no major maintenance turnarounds planned at our refineries for the remainder of the year.

Speaker #2: Total fuel sales volumes are expected to be higher than last year, while retail and commercial margins are projected to be below the levels seen in 2025.

Speaker #2: Moreover, several European countries have implemented or are considering implementing initiatives to limit or reduce margins in the fuel business as a means of mitigating the surge in fuel prices.

Reinhard Florey: Moreover, several European countries have implemented or are considering implementing initiatives to limit or reduce margins in the fuel business as a means of mitigating the surge in fuel prices. In chemicals, we expect the ethylene indicator margin to be above EUR 550 per ton, and the propylene indicator margin to be above EUR 420 per ton. This increase reflects the current market situation in Europe with inherent supply disruptions and increases in restocking activities. The utilization rate of the olefin tracker is expected to be around 90% in 2026. There are no major turnarounds planned for the rest of the year. The clean tax rate for the full year is currently expected to be at the same level as in Q1 2026, so slightly below 50%. Thank you for your attention.

Speaker #2: In chemicals, we expect the ethylene indicator margin to be above 550 euros per tonne and the propylene indicator margin to be above 420 euros per tonne.

Speaker #2: This increase reflects the current market situation in Europe, with inherent supply disruptions and increases in restocking activities. The utilization rate of the oil fin tracker is expected to be around 90% in 2026.

Speaker #2: There are no major turnarounds planned for the rest of the year. The clean tax rate for the full year is currently expected to be at the same level as in the first quarter of 2026, so slightly below 50%.

Speaker #2: Thank you for your attention. Alfred and I will now be happy to take your questions. Thank you, Reinhard and Alfred. Let's now come to your questions.

Reinhard Florey: Alfred and I will now be happy to take your questions.

Florian Graber: Thank you, Reinhard and Alfred. Let's now come to your questions. As always, I'd ask you to limit your questions to only two at a time so that we can take as many questions as possible. You can always, of course, rejoin the queue for a follow-up. We start the Q&A session with Guy Levy from Morgan Stanley.

Florian Greger: Thank you, Reinhard and Alfred. Let's now come to your questions. As always, I'd ask you to limit your questions to only two at a time so that we can take as many questions as possible. You can always, of course, rejoin the queue for a follow-up. We start the Q&A session with Guilherme Levy from Morgan Stanley.

Speaker #2: As always, I'd ask you to limit your questions to only two at a time so that we can take as many questions as possible.

Speaker #2: You can always of course rejoin the queue for a follow-up. We start the Q&A session with Guy Lévy from Morgan Stanley.

Guy Levy: Hi, good morning.

Guilherme Levy [VP: Hi, good morning.

Speaker #3: Hi. Good morning. Thank you for taking my questions. If we could start talking a little bit about refining, perhaps if you could tell us about the refining margins that you are seeing at the moment.

Florian Graber: Hi.

Guy Levy: Thank you for taking my questions. If we could start talking a little bit about refining, perhaps if you could tell us about the refining margins that you are seeing at the moment. Also, looking at the remainder of the year, the company highlighted risks to the fuel segment on the back of the volatility of crude differentials. I wondered, what can you do in advance to hedge or protect yourself against those type of risks? Secondly, a few on refining, thinking about storage. Could you perhaps say a few words about current storage levels, your ability to procure crude over the coming months?

Florian Greger: Hi.

Guilherme Levy [VP: Thank you for taking my questions. If we could start talking a little bit about refining, perhaps if you could tell us about the refining margins that you are seeing at the moment. Also, looking at the remainder of the year, the company highlighted risks to the fuel segment on the back of the volatility of crude differentials. I wondered, what can you do in advance to hedge or protect yourself against those type of risks? Secondly, a few on refining, thinking about storage. Could you perhaps say a few words about current storage levels, your ability to procure crude over the coming months?

Speaker #3: And also, looking at the remainder of the year, the company highlighted risks to the fuel segment on the back of the volatility of crude differentials.

Speaker #3: I wondered what can you do in advance to hedge or protect yourself against those type of risks. And then secondly, a few on refining thinking about storage could you perhaps say a few words about current storage levels your ability to procure crude over the coming months if you could just remind us how much of your crude supplies come from spot transactions vis-à-vis long-term agreements that you might have.

Guy Levy: If you could just remind us how much of your crude supplies come from spot transactions vis-a-vis long-term agreements that you might have, that would be great. Thank you.

Guilherme Levy [VP: If you could just remind us how much of your crude supplies come from spot transactions vis-a-vis long-term agreements that you might have, that would be great. Thank you.

Speaker #3: That would be great. Thank you.

Speaker #1: Okay. Thank you, Guy, for your question. Let me start a little bit with the refining margins and, as you could see, right, the refining indicator margins, in particular in Europe, we saw after the closure of the Strait of Hormuz that they went up dramatically, I would say.

Alfred Stern: Okay. Thank you, Guy, for your question. Let me start a little bit with the refining margins. As you could see, right, the refining indicator margins, in particular in Europe, we saw after the closure of the Strait of Hormuz, that they went up dramatically, I would say. After some after that, some normalization happened, but continuing at a high level. We have seen April now to start at about $16 per barrel. I think there's a couple of different things I think that probably play into this. The basket of crudes and the crude pricing, of course, is quite a volatile thing.

Speaker #1: And then after some of that, some normalization happened, but continuing at a high level. We have seen April now start at about $16 per barrel. I think there are a couple of different things that probably play into this.

Speaker #1: The basket of crudes and the crude pricing of course is quite a volatile thing. At OMV we had very limited exposure physical exposure to crudes coming out of the Strait of Hormuz.

Alfred Stern: At OMV, we had a very limited physical exposure to crudes coming out of the Strait of Hormuz. Our crude baskets were more focused on other crudes, with a significant amount actually from Kazakhstan and then other crudes. Our expectation, we have now for the rest of the year, given a pretty broad range of $10 to 15 per barrel, because we see the really significant volatility on the way forward, around kind of an average assumption in that range. Maybe to the storage.

Speaker #1: Our crude baskets were more focused on other crudes, with a significant amount actually from Kazakhstan and then other crudes. So our expectation we have now for the rest of the year is given a pretty broad range of $10 to $15 per barrel, because we see a really significant volatility on the way forward around kind of an average assumption in that range.

Speaker #1: Maybe to the storage of the crudes, the storage of crudes for the production to the refineries is actually rather limited, right, to a few weeks of storage.

Alfred Stern: of the crudes, the storage of crudes for the production to the refineries is actually rather limited, right, to a few weeks of storage. As you so, if you look at our refineries, we are actually here in the Austrian refinery connected through a pipeline to the Adriatic Sea, also the refinery in Germany is connected to that pipeline. Here in Austria, we also have some equity production, which makes about 10% of the feed. In Romania, in the refinery, we are integrated with 70-plus percent into equity production from the oil production in Romania with the oils there.

Speaker #1: As you see, if you look at our refineries, we are actually here in the Austrian refinery, connected through a pipeline to the Adriatic Sea. Also, the refinery in Germany is connected to that pipeline here in Austria.

Speaker #1: We also have some equity production, which makes about 10% of the feed, and then in Romania, in the refinery, we are about integrated with 70-plus percent into equity production from the oil production in Romania.

Speaker #1: With the oils there, I don't know on hedging if Reinhard has anything to add?

Alfred Stern: I don't know on hedging if Reinhard has anything to add.

Speaker #4: Yeah, very briefly. Of course, in the downstream area we do apply some hedging in order to mitigate risks. Of course, we also need to keep some flexibility in order to take also advantages, and then we also suffered from a hedge in March—a loss of around €100 million—and that was simply due to the situation that oil that was going to be listed and transported through the Strait of Hormuz was physically not available while a hedge was on there, and therefore one leg of the hedge disappeared, which had to be covered in the situation of rising oil prices.

Reinhard Florey: Very briefly. Of course, in the downstream area, we do apply some hedging in order to mitigate risks. Of course, we also need to keep some flexibility in order to take also advantages. Then we also suffered from hedge in March, a loss of around EUR 100 million, and that was simply due to the situation that oil that was going to be lifted and transported to the Strait of Hormuz was physically not available while a hedge was on there. Therefore, one leg of the hedge disappeared, which had to be covered in the situation of rising oil prices. However, that's a not uncommon situation. On the other hand, some of the hedges also protected us from further damage.

Speaker #4: However that's not uncommon situation on the other hand some of the hedge is also protected us from further damage.

Speaker #3: And just to thank you so much. Thank you so much.

Guy Levy: Understood. Thank you very much.

Guilherme Levy [VP: Understood. Thank you very much.

Alfred Stern: Thank you, Guy, for your questions. We now move on to Michele Della Vigna, Goldman Sachs.

Florian Greger: Thank you, Guy, for your questions. We now move on to Michele Della Vigna, Goldman Sachs.

Speaker #1: Thank you, Guy, for your questions. We now move on to Michele Della Vigna, Goldman Sachs.

Speaker #5: Thank you very much, and congratulations on the very good results given the unstable situation. There were two areas I wanted to concentrate on. First of all, on Bourges, I was wondering, is there a simple way to think about how the new ownership and reported structure would affect net income.

Michele Della Vigna: Thank you very much. Congratulations on the very good results given the unstable situation. There were two areas I wanted to concentrate on. First of all, on Borouge, I was wondering, is there a simple way to think about how the new ownership and reported structure would affect net income? Let's say, how much higher or lower that would be if the new reporting structure had already been in place in Q1 for OMV. Then secondly, I wanted to ask about jet fuel availability. This is certainly a concern going into the summer. Austria actually seems to be better prepared for it than some of the other European countries. What is your view on the visibility, especially as we go into the late summer, on the availability of jet fuel and the potential for dealing with relatively low amount of inventory days?

Speaker #5: Let's see how much higher or lower that would be if the new reporting structure had already been in place in Q1 for OMV. And then, secondly, I wanted to ask you about jet fuel availability.

Speaker #5: This is certainly a concern going into the summer. Austria actually seems to be better prepared for it than some of the other European countries.

Speaker #5: But what is your view on the visibility, especially as we go into the late summer, on the availability of jet fuel and the potential for dealing with a relatively low amount of inventory days?

Speaker #5: Thank you.

Michele Della Vigna: Thank you.

Speaker #1: Yeah. Thank you, Michele. For your excellent and your good question. I will start with the excellent one because I can answer it and then I will ask Reinhard for help on the good question about the net income reflection.

Alfred Stern: Yeah, thank you, Michele Della Vigna, for your excellent and your good question. I will start with the excellent one because I can answer it, and then I will ask Reinhard Florey for help on the good question record about the net income reflection. Jet fuel, it is indeed like this, Michele Della Vigna, that in Austria, we. Maybe let me start different. We can say at the moment we can supply all our contract customers with jet fuel, also including the required mandate of 2% renewable fuel addition, the SAF addition. That covers the big airports, of course, in Munich, in Austria and then in Bucharest and a couple of smaller airports across that thing.

Speaker #1: Jet fuel, it is indeed like this, Michele, that in Austria we—so maybe let me start differently. We can say at the moment we can supply all our contract customers with jet fuel.

Speaker #1: Also, including the required mandate of 2% renewable fuel addition—SAF addition. And that covers the big airports, of course, in Munich, in Austria, and then in Bucharest, and a couple of smaller airports across that thing.

Speaker #1: So, our contract customers we are covered. And because we are able to actually produce about the most part of that by ourselves. In general, we do of course see, in particular in Europe, but also globally, that there is a shortage of jet fuel.

Alfred Stern: Our contract customers, we are covered, and because we are able to actually produce about the most part of that by ourself. In general, we do of course see in particular in Europe, but also globally, that there is a shortage of jet fuel. There was significant amount of jet coming out of the strait going to Asia, but also Europe heavily depends on imports of jet fuel. From a OMV perspective, we can supply and provide security of supply to all our co-contract customers. We of course try then to also maximize our business around those airports that I just mentioned before. Now for the good question.

Speaker #1: There was a significant amount of jet coming out of the Strait going to Asia, but also Europe heavily depends on imports of jet fuel. So, from an OMV perspective, we can supply and provide security of supply to all our contract customers.

Speaker #1: And we, of course, try then to also maximize our business around those airports that I just mentioned before. And now for the good question?

Reinhard Florey: Yeah, Michele, it's not so difficult. So far what we have shown in the net profit is a fully consolidated net profit of Borealis that also included the net profit of 36% of Borouge. Now, in the net profit attributable to stockholders, we of course only showed the 75% of Borealis, so 75% of that full consolidation, because 25% were minorities of ADNOC. Now the situation with Borouge International changes that we consolidate at equity, which is 50% of the net profit of Borouge International, and that consists of 50% of Borealis, so a little bit less of Borealis. 50% of Borouge, that is more than we had, and 50% of Nova, that's completely new.

Speaker #4: Yeah, Michele. It's not so difficult. So far, what we have shown in net profit is a fully consolidated net profit of Borealis. That also included the net profit of 36% of Bourges.

Speaker #4: Now, in the net profit attributable to stockholders, we of course only showed the 75% of Borealis—so 75% of that full consolidation, because 25% were minorities of ADNOC.

Speaker #4: Now the situation with Bourges International changes, in that we consolidate at equity, which is 50% of the net profit of Bourges International. And that consists of 50% of Borealis.

Speaker #4: So a little bit less of Borealis. 50% of Bourges. That is more than we had. And 50% of Nova. That's completely new. And that plays a role because what we currently see in the current environment Nova has a positive business environment at the moment so we can also expect that there is a good contribution of Nova now for the rest of the year.

Reinhard Florey: That plays a role because what we currently see in the current environment, Nova has a positive business environment at the moment, so we can also expect that there is a good contribution of Nova, now for the rest of the year.

Speaker #5: Thank you.

Michele Della Vigna: Thank you.

Speaker #3: Thank you.

Speaker #1: Thanks, Michele. And the next questions will come from Josh Stone, UBS.

Alfred Stern: Thanks, Michele. The next questions will come from Joshua Stone, UBS.

Florian Greger: Thanks, Michele. The next questions will come from Joshua Stone, UBS.

Speaker #6: Yeah. Thanks. And good morning and apologies to my voice. I seem to have lost it today. So hopefully you can bear with me. Two questions.

Joshua Stone: Yeah, thanks, good morning. Apologies for my voice. I've seems have lost it today, hopefully you can bear with me. 2 questions. 1 on chemical margin outlook. Curious what you're seeing in the US market in particular, given your now ownership of Nova, also is this a path of Basell to finally make some money? Just curious what you're thinking there. Secondly, on UAE, your net production capacity is around 50,000 barrels a day in the upstream, something like that. If you were asked to, do you think you can actually produce more from these fields? Obviously I'm asking given the headline recently about the UAE leaving OPEC. Thank you.

Speaker #6: One on chemical margin outlook. Curious what you're seeing in the US market in particular given you're now ownership of Nova. And also is this a path of base data to finally make some money?

Speaker #6: So curious what you're thinking there. And secondly on UAE. Your net production capacity is around 50,000 barrels a day in the upstream. Something like that.

Speaker #6: If you were asked to, do you think you could actually produce more from these fields? And obviously, I'm asking given the headline recently about the UAE leaving OPEC.

Speaker #6: Thank you.

Speaker #1: Yeah. Thank you, Josh. For your questions and all the best for getting better there soon. I try to answer the questions so hopefully I understood correctly.

Alfred Stern: Thank you, Joshua, for your questions and all the best for getting better the soon. I try to answer the questions, hopefully I understood everything correctly. The margins, the chemical margins in the US, as Reinhard Florey just explained, right, with Nova Chemicals being in there with 50%, then there's also Basell that was previously part in the Borealis results. These entities benefit, let's say, off the current crisis of the Middle East. What we have seen, because of the closure of the strait, right? It's not just oil and gas and oil products.

Speaker #1: So the margin—the chemical margins in the US, as Reinhard just explained, right, with Nova being in there with 50%. But then there's also base data that was previously bought in the Borealis results.

Speaker #1: These entities benefit, let's say, from the current crisis in the Middle East. What we have seen because of the closure of the Strait, right, it's not just oil and gas and oil products.

Speaker #1: It is also a significant amount of chemical products that came through there in particular also polyolefin products. But it's also been a significant amount of NAFTA.

Alfred Stern: It is also a significant amount of chemical products that came through there, in particular also polyolefin products, but it's also been a significant amount of naphtha, so chemical feedstock that has come out and mainly went to Asia for the production there. There's shortage on this and in our view, the markets of Borouge International products have switched from being somewhat long to being short now. With this, we have seen significant price increases across the globe actually, and so also in the US. The prices for the products have gone up. With this, the margins have also expanded for those products.

Speaker #1: So chemical feedstock that has come out and mainly went to Asia for the production there. So there's a shortage on this, and in our view, the markets of Bourges International products have switched from being somewhat long to being short now.

Speaker #1: And with this we have seen significant price increases across the globe actually. And so also in the US. The prices for the products have gone up.

Speaker #1: And with this the margins have also expanded for those products. And in the US in particular what I think is maybe a slightly different there is that of course US gas on Henry Hub that is also a reference for ethane pricing than that has not moved as much.

Alfred Stern: In the US in particular, what I think is maybe a slightly different there is that of course, US gas on Henry Hub, that is also a reference for ethane pricing, then that has not moved as much as gas prices in other regions. There will be some benefit of this mover, will benefit from this with better margins, but also the Baystar joint venture will be able to benefit from these better margins. There is, of course, the opportunity or the potential opportunity that global shortfall in volumes can then be supplied from some of this production. The second. I hope that answers your question.

Speaker #1: As gas prices in other regions. So there will be some benefit of this Nova will benefit from this with better margins but also the base data to adventure will be able to benefit from these better margins.

Speaker #1: And also, there is, of course, the opportunity—or the potential opportunity—that the global shortfall in volumes can then be supplied from some of these productions.

Speaker #1: The second—I hope that answers your question. The second question that you had on the production in the UAE, I would confirm that last year the average production there was about 50,000 barrels per day.

Alfred Stern: The second question that you had on the production in the UAE, I would confirm that last year, the average production there was about 50,000 barrels per day. We, of course, in March, as we reported here, this has, this was affected by the supply chain issues with lower production coming out of the asset there. At the moment, this is back online into production. How this will continue exactly, I think, is a bit volatile depending on the situation in the Middle East. Hence also our guidance for the full year of a total production between 280 and 290. Thank you, Josh, for your questions.

Speaker #1: We, of course, in March—as we reported here—this was affected by the supply chain issues, with lower production coming out of the asset there.

Speaker #1: And at the moment, this is back online into production. How this will continue exactly, I think, is a bit volatile depending on the situation in the Middle East.

Speaker #1: Hence, also, our guidance for the full year of the total production is between 280 and 290.

Speaker #3: Thank you. Thank you, Josh, for your questions. We now come to Ram Khamat from Barclays. Ram. Please go ahead.

Florian Greger: Thank you, Josh, for your questions. We now come to Ram Kamath from Barclays. Ram, please go ahead.

Alfred Stern: We now come to Ram Kamat from Barclays. Ram, please go ahead.

Speaker #7: Hi, thanks for taking my question. My question is largely on the chemicals. As polyolefin prices have recovered strongly at the end of the first quarter, and feedstock tied to polyolefin rates have also.

Ram Kamat: Hi. Thanks for taking my question. My question is largely on the chemicals. As polyolefin prices have recovered strongly at the end of the first quarter and feedstock tied to polyolefin rates have also rising. In a market where supply drives pricing and volumes are softer, how should we assess the effect on the margins? The second one, possibly on Borouge 4 ramp up, whether the current situation in the Middle East has impacted the ramp-up phase. If you can comment also on the feedstock pricing mechanism, particularly for Borouge, sure, as I understand, it would be a new price mechanism that possibly the company will be entered into with the suppliers. If you can comment on that. Thank you.

Ramachandra Kamath: Hi. Thanks for taking my question. My question is largely on the chemicals. As polyolefin prices have recovered strongly at the end of the first quarter and feedstock tied to polyolefin rates have also rising. In a market where supply drives pricing and volumes are softer, how should we assess the effect on the margins? The second one, possibly on Borouge 4 ramp up, whether the current situation in the Middle East has impacted the ramp-up phase. If you can comment also on the feedstock pricing mechanism, particularly for Borouge, sure, as I understand, it would be a new price mechanism that possibly the company will be entered into with the suppliers. If you can comment on that. Thank you.

Speaker #7: Rising. In a market where supply drives pricing and volumes are softer how should we assess the effect on the margins? And the second one possibly on Bourges for ramp up.

Speaker #7: Where the current whether the current situation in the Middle East has impacted the ramp up phase. And if you can comment also on the feedstock pricing mechanism particularly for Bourges for as I understand it would be a new price mechanism that possibly the company will be entered into with the suppliers.

Speaker #7: So if you can comment on that. Thank you.

Alfred Stern: Thank you for your question, Ram. Maybe I just start with the polyolefin price environment, or maybe let me expand this a little bit because it's an integrated supply chain, so there's olefin and polyolefin prices. What we have seen in March is that naphtha prices went up quite significantly. Feedstock prices went up significantly, while at the same time, olefin prices were then to a large degree locked in from price discussions at the beginning of the month. This has changed significantly in April because olefin prices have rised strongly in April. They have gone up by like EUR 400 to 500 per ton.

Speaker #1: Thank you for your question, Ram. Maybe I just start with the polyolefin price environment, or maybe let me expand this a little bit because it's an integrated supply chain, so there's olefin and polyolefin prices.

Speaker #1: And what we have seen in March is that NAFTA prices went up quite significantly. Feedstock prices went up significantly while at the same time olefin prices were then to a large degree locked in from price discussions at the beginning of the month.

Speaker #1: Now this has changed significantly in April because olefin prices have rised strongly in April. They have gone up by like 400 to 500 euros per ton.

Alfred Stern: That is leading to a significant price expansion. The polyolefin prices, they reacted a little bit faster already in March, and the margins expanded there. Again, in beginning of April, or let me say in March also, the contract prices have gone up, which helped that situation to expand the margins. In April, we have now seen additional price increases also in polyolefins, with further expansion of the margins. At the moment, we have seen still continuing good demand, and it's more a question now of supply capability, to make sure to be able to supply the demand.

Speaker #1: And that is leading to a significant price expansion. The polyolefin prices, they reacted a little bit faster already in March, and the margins expanded there.

Speaker #1: But again in beginning of April so let me say in March also the contract prices have gone up which helped that situation to expand the margins.

Speaker #1: In April we have now seen additional price increases also in polyolefins. With further expansion of the margins the so it's at the moment we have seen still continuing good demand and it's more a question now of supply capability to make sure to be able to supply the demand we have with Bourges International they are actually in a very strong position with this.

Alfred Stern: We have with Borouge International, they are actually in a very strong position with this, with the assets distributed quite well globally and with more than 70% of their production in advantaged feedstock position. As I also presented, so this is the situation now. We will see how this is on the way forward. I do want to highlight again, I don't want to go into all the same again, but as you could see, the EBITDA margins, the margin capability of Borouge International is really exceptional.

Speaker #1: With the assets distributed quite well globally, and with more than 70% of their production in advantaged feedstock position—as I also presented—so this is the situation now.

Speaker #1: We will see how this is on the way forward. I do want to highlight again—I don't want to go into all the same again—but as you could see, the EBITDA margins, the margin capability of Bourges International, is really exceptional.

Alfred Stern: We are with Borouge International is significantly ahead of the competitors in their own field, but they are more playing from a margin level in a specialty chemical kind of margin environment. That we anticipate to continue, reason the combination of good technology platform that gives innovative products, that team that can get price premiums plus the good feedstock position. On the Borouge 4 ramp up, I can explain that throughout the year. There's multiple production assets that are there.

Speaker #1: We are with Bourges International is significantly ahead of the competitors in their own field. But they are more playing from a margin level in specialty chemical kind of margin environment.

Speaker #1: So that we anticipate to continue reason the combination of good technology platform that gives innovative products that can get price premiums plus the good feedstock position.

Speaker #1: On the Bourges for ramp up I can explain that throughout the year so there's multiple production assets that are there. And the plan has been and continues to be that throughout the year we are bringing online the different the different assets to then have all of the assets online before the end of the year.

Alfred Stern: The plan has been and continues to be that throughout the year, we are bringing online the different assets to then have all of the assets online before the end of the year. As it always with all these huge assets, there can always be some delays, but currently our plan stays the same. I can also report that the first asset, an XLPE line, has already been brought online for this.

Speaker #1: As it so is with all these huge assets, there can always be some delays, but currently our plan stays the same. And I can also report that the first asset, an XLPE line, has already been brought online for this.

Alfred Stern: On the feedstock, I want to emphasize again that about 70% of the feedstock in Borouge International is based on advantaged feedstock that will continue to be in this way, with some modification on the Borouge assets on the way forward, where there will be some adjustments, but these will be compensated with additional capacities that are coming on stream with Borouge 4 on the way forward.

Speaker #1: On the feedstock I want to emphasize again that about 70% of the feedstock in Bourges International is based on advantaged feedstock. That will continue to be in this way with some modification on the Bourges assets on the way forward where there will be some adjustments.

Speaker #1: But this will be compensated with the additional capacities that are coming on stream with Bourges for on the way forward.

Speaker #3: Thank you.

Ram Kamat: Thank you.

Ramachandra Kamath: Thank you.

Speaker #1: Thank you, Ram, for your questions. We now move to Sassi Tshilukuru from Jefferies.

Alfred Stern: Thank you, Rem, for your questions. We now move to Sasi Chilukuru from Jefferies.

Florian Greger: Thank you, Rem, for your questions. We now move to Sasi Chilukuru from Jefferies.

Sasikanth Chilukuru: Hi, thanks for taking my questions. I've got two left on these. The first was coming back to your refining margin indicator guidance. You've raised it to $10 to 15 per barrel, but now highlighted the widening of the crude oil differentials to have a material adverse impact. I was just wondering if you could quantify the level of these adverse impacts you have seen in April so far or currently. The second one was regarding the dividends from your JVs. Are you expecting any dividends from ADNOC Refining and Trading this year? From Borouge International, I was just wondering if there was any risk to that updated dividend payments and also the timing for these payments to OMV. Thanks.

Speaker #4: Hi, thanks for taking my questions. I've got two left on these. The first was coming back to your refining margin indicator guidance. You've raised it to $10 to $15 per barrel, but I've highlighted the widening of the crude oil differentials to have a material adverse impact.

Speaker #4: I was just wondering if you could quantify the level of these adverse impacts you have seen in April so far or currently. The second one was regarding the dividends from your JVs.

Speaker #4: Are you expecting any dividends from ADNOC Refining and Trading this year? And from Borouge International, I was just wondering if there was any risk to those updated dividend payments, and also the timing for these payments.

Speaker #4: To OMV. Thanks.

Alfred Stern: Sasi, thanks. I can start with the question on the dividend. In terms of the dividends from JVs, of course, we are expecting also a dividend from ADNOC Refining and specifically also ADNOC Global Trading. This is two entities where we have participations in, while we are seeing that ADNOC Refining, of course, also bears some of the burden of the conflict, we are seeing for the rest of the year rather a stabilizing development in that. ADNOC Global Trading is doing a great job and is earning very good money, and we're expecting also dividends from that side.

Speaker #1: Sassi, thanks. I can start with the question of the dividends. In terms of the dividends from JVs of course we are expecting also a dividend from Adnoc refining and specifically also Adnoc Global Trading.

Speaker #1: This is two entities where we have participations in and while we are seeing that Adnoc refining of course also bears some of the burden of the conflict.

Speaker #1: We are seeing, for the rest of the year, rather a stabilizing development in that. Whereas Adnoc Global Trading is doing a great job and is earning very good money, and we are expecting also dividends from that side.

Speaker #1: On the Bourges International dividends we have announced that the anticipated dividends were in that way that we are taking only 50% of the anticipated minimum dividend in 2026.

Alfred Stern: On the Borouge International dividends, we have announced that the anticipated dividends were in that way that we are taking only 50% of the anticipated minimum dividend in 2026. Why is that? Because the uncertainty around the situation in Middle East provided some safety measures of safeguarding the balance sheet, making sure that also this excellent rating that we have in the group stays in that way. We are not expecting that there are any further modifications to that. We are expecting, of course, the other 50%, and we are expecting that for the H2 of the year. Let me take your question on the refining indicator margins.

Speaker #1: Why is that? Because the uncertainty around the situation in the Middle East provided some safety measures or safeguarding the balance sheet making sure that also this excellent rating that we have in the group stays in that way.

Speaker #1: However we are not expecting that there are any further modifications to that. So we are expecting of course the other 50% and we are expecting that for the second half of the year.

Speaker #5: And let me take the your question on the refining indicator margins. Were as we as I described right we saw in the first quarter let's say January, February quite different than March.

Alfred Stern: As I described, right? We saw in the first quarter, let's say January, February, quite different than March. We saw a significant increase in refining indicator margins. Important, and I think that's your question then, to realize this is a very crude measure, right? To a very rough measure of taking the fuel prices. It's a little bit more complicated in reality how we see this, and the market distortions are also quite significant on the way forward.

Speaker #5: We saw a significant increase in refining indicator margins. But important and I think that's your question then do realize this is a very crude measure right?

Speaker #5: Do a very rough measure of taking the fuel prices. It's a little bit more complicated in reality how we see this and the market distortions are also quite significant on the way forward for the second quarter.

Alfred Stern: For Q2, we expect some, let's say, adverse effects, one from increased crude differentials, that will depend on how these geopolitical issues and risks continue. We do definitely see tighter supply conditions, which we of course are continuously optimizing to make sure that we get ourself in the best possible position. In addition, we do see local supply dynamics working out, and increasingly also in Europe, in particular, regulatory interventions and price caps that are affecting then also the results. For this reason, we have also left a gap of the 10 to 15 to reflect this.

Speaker #5: We expect some let's say adverse effects one from increased crude differentials that will depend on how these geopolitical issues and risks continue. We do definitely see tighter supply conditions which we of course are continuously optimizing to make sure that we get ourselves in the best possible position.

Speaker #5: In addition we do see local supply dynamics working out and increasingly also in Europe in particular regulatory interventions and price caps that are affecting then also the results.

Speaker #5: And for this reason, we have also left the gap of the 10 to 15 to reflect this, and we will, of course, be managing to optimize our result in that volatile environment.

Alfred Stern: We will of course be managing to optimize our result in that volatile environment.

Speaker #1: Thanks, Sassi. And the next questions will come from Matt Lofting, J.P. Morgan.

Florian Graber: Thanks, Sassi. The next questions will come from Matthew Lofting, JPMorgan.

Florian Greger: Thanks, Sassi. The next questions will come from Matthew Lofting, JPMorgan.

Speaker #6: Thanks for taking the questions and appreciate the update, Jens. Two things if I could. First, I mean you highlighted through the update that the strength of the balance sheet which is quite right and I guess lots of volatility but the outlook for cash flows is better net to net than was expected at the beginning of the year.

Matthew Lofting: Thanks for taking the questions, and appreciate the update, gents. Two things if I could. First, I mean, you highlighted through the update, the strength of the balance sheet, which is quite right, and I guess the loss of volatility, but the outlook, the cash flows is better net than was expected at the beginning of the year.

Matthew Lofting [Executive Director: Thanks for taking the questions, and appreciate the update, gents. Two things if I could. First, I mean, you highlighted through the update, the strength of the balance sheet, which is quite right, and I guess the loss of volatility, but the outlook, the cash flows is better net than was expected at the beginning of the year.

Matthew Lofting: Going back to the update that was provided last month on BGI and the revisions to the next steps, I just wanted to understand the thinking in terms of the feed through on the lower BGI dividend payment to OMV and that impacting, I think, the dividend that you expect to pay to your shareholders by EUR 0.6 to EUR 0.7 per share for FY 2026, and why that perhaps couldn't be protected more strongly through the higher cash flows on the rest of the business, and whether there is still scope to re-revise that view and take a more positive stance on that?

Speaker #6: So going back to the update that was provided to the last month on BGI and sort of the revisions to the next steps. I just wanted to understand the thinking in terms of the feed through on the lower BGI dividend payment to OMV and that impacting I think the dividend that you expect to pay to your shareholders by 0.6 to 0.7 euros per share for FY26.

Matthew Lofting [Executive Director: Going back to the update that was provided last month on BGI and the revisions to the next steps, I just wanted to understand the thinking in terms of the feed through on the lower BGI dividend payment to OMV and that impacting, I think, the dividend that you expect to pay to your shareholders by EUR 0.6 to EUR 0.7 per share for FY 2026, and why that perhaps couldn't be protected more strongly through the higher cash flows on the rest of the business, and whether there is still scope to re-revise that view and take a more positive stance on that?

Speaker #6: And why that perhaps couldn't be protected more strongly through the higher cash flows on the rest of the business and whether there is still scope to revise that view and take a more positive sort of stance on that.

Speaker #6: And then, second, I think there were some reports earlier this month on Austria being one of the countries that was pushing the EU to look at revised EU windfall tax measures on the energy sector in the context of the price shock.

Matthew Lofting: Then second, I think there was some reports earlier this month on Austria being one of the countries that was pushing the EU to look at revised EU windfall tax measures on the energy sector in the context of the sort of the price shock. Could you just share your understanding of the current status and situation there? Thank you.

Matthew Lofting [Executive Director: Then second, I think there was some reports earlier this month on Austria being one of the countries that was pushing the EU to look at revised EU windfall tax measures on the energy sector in the context of the sort of the price shock. Could you just share your understanding of the current status and situation there? Thank you.

Speaker #6: Could you just share your understanding of sort of the current status and situation there? Thank you.

Speaker #1: Yeah, thanks, Matt. Maybe let me take the first question regarding the outlook on dividends. The question that you raised was whether our improved outlook on cash flows would somehow put the €0.60 to €0.70—60 to 70 cents—lower dividends into question.

Alfred Stern: Yeah. Thanks, Matt. Maybe, let me take the first question regarding the outlook on dividends. The question that you raised was whether our improved outlook on cash flows would somehow put the EUR 0.60 to EUR 0.70 lower dividends into question. I would say, why not? It's too early to say. This is something where we believe that with the higher dividends that we could pay from operating cash flows. If the operating cash flows move up, then there is a part of the compensation of that EUR 0.60 to EUR 0.70 that we will miss from Borouge International.

Speaker #1: And I would say, why not? But it's too early to say. This is something where we believe that—with the higher dividends that we could pay from operating cash flows—if the operating cash flows move up, then there is a part of the compensation of that 60 to 70 cents that we will miss from Borussia International.

Speaker #1: So I wouldn't be too pessimistic to say the view of the first quarter from the beginning of the first quarter on overall OMV dividends could not improve over the time.

Alfred Stern: I wouldn't be too pessimistic to say, the view of the Q1 or from the beginning of the Q1 on overall OMV dividends could not improve over the time. Nevertheless, there will be a little bit shift, if we are lucky, from dividends coming from the BGI, which will be EUR 0.60 to 0.70 lower, to dividends coming from our operating cash flow, where we dividend out 20% to 30%. That could be a part mitigation compared to the view from the beginning of the year. Of course, the structure, as we have described it, stays exactly the same. Let me try on the windfall tax. Maybe I stick with the facts a little bit here.

Speaker #1: But nevertheless, there will be a little bit of shift, if we are lucky, from dividends coming from the BGI, which will be $0.60 to $0.70 lower, to dividends coming from our operating cash flow, where we dividend out 20 to 30 percent.

Speaker #1: And that could be a part mitigation compared to the view from the beginning of the year, but of course, the structure as we have described it stays exactly the same.

Speaker #6: And let me try on the windfall tax—maybe I stick with the facts a little bit here. Indeed, Austria was one of the signatories of a letter that was sent to Brussels. Up until this point, our information is that not more than that has actually happened—than a letter being sent. And hopefully, also in Europe, we will continue to pursue free market economy kind of principles, with the possibility to manage this difficult supply and demand situation that we have.

Alfred Stern: Indeed, Austria was one of the signatories of a letter that was sent to Brussels up until this point. Our information is that not more than that has actually happened than a letter being sent. Hopefully also, in Europe, we will continue to pursue free market economy kind of principles with the possibility to manage this difficult supply and demand situation that we have around this. At this point, I have no additional information about this.

Speaker #6: Around this so at this point I have no additional information about this.

Speaker #1: Thank you. Thanks, Matt. We now move to Oleg Galbuer from Otto BHF.

Oleg Galbur: Thank you.

Matthew Lofting [Executive Director: Thank you.

Alfred Stern: Thanks, Matt. We now move to Oleg Galbur from Oddo BHF.

Florian Greger: Thanks, Matt. We now move to Oleg Galbur from Oddo BHF.

Oleg Galbur: Good afternoon, and thank you for the presentation. I have one question which has two parts. Investors are keen to understand the overall impact of the Middle East crisis on OMV, and I hope you can help us provide them with bit more detail. Firstly, could you please update us on the current status of the oil production in the UAE and capacity utilization at Borouge, specifically, to what extent is the closure of the Strait of Hormuz affecting OMV's ability to produce, and more importantly, to sell crude oil and petrochemicals products produced in the UAE?

Speaker #7: Good afternoon, and thank you for the presentation. I have one question, which has two parts. Investors are keen to understand the overall impact of the Middle East crisis on OMV, and I hope you can help us provide them with a bit more detail.

Speaker #7: So firstly could you please update us on the current status of the oil production in the EOA and capacity utilization at Borussia specifically to what extent is the closure of the Strait of Hormuz affecting OMV's ability to produce and more importantly to sell crude oil and petrochemicals products produced in the EOA?

Speaker #7: And secondly while you mentioned that Nova Chemicals is benefiting and is expected to positively contribute to OMV's results I hope you can tell us how are Borealis results being affected by the current market environment which is characterized by significantly higher feedstock costs particularly for Borealis.

Oleg Galbur: Secondly, while you mentioned that Nova Chemicals is benefiting and is expected to positively contribute to OMV's results, I hope you can tell us how are Borealis results being affected by the current market environment, which is characterized by significantly high feedstock costs, particularly for Borealis. Thank you.

Speaker #7: Thank you.

Speaker #6: Okay, Oleg. Thank you for your question. And let me maybe pick up here and try and go through your questions. The as you say we also participate in assets in the Middle East and we are a joint venture owner in the oil production there together with ABNOC.

Alfred Stern: Okay, Oleg, thank you for your question. Let me maybe pick up here and try and go through your questions. As you say, we also participate in assets in the Middle East, and there we are a joint venture owner in the oil production there together with ADNOC. The production there was reduced in March, but it is now back in production and also then supplying the local demand there. We expect that this will also be optimized in the months before.

Speaker #6: The production there was reduced in March, but it is now back in production and also then supplying the local demand there. And we expect that this will also be optimized in the month before.

Alfred Stern: On Borealis, I can tell you that in the first quarter, Borealis had an asset utilization of high 90%, close to 100%, and continues to also be able. They had a preexisting contingency plan on exporting products in case of the waterways not being available, and they activated this mechanism, and with this in March, they were able to export more than 90% of the production in March through these alternative log-logistic channels. Sorry, more than 60%. I think I misspoke there. More than 60% through those alternative logistic channels.

Speaker #6: On Borussia, I can tell you that in the first quarter, Borussia had an asset utilization of high 90 percent, close to 100 percent.

Speaker #6: And continuous to also be able so the they had a preexisting contingency plan on exporting products in case of the waterways not being available and they activated this mechanism and with this in March they were able to export more than 90 percent of the production in March through this alternative logistics channels.

Speaker #6: And sorry, more than 60 percent—I think I misspoke here—more than 60 percent through those alternative logistics channels. The additional production volumes they put in storage for shipment then in the second quarter of this year.

Alfred Stern: The additional production volumes, they put in storage for shipment then in Q2 of this year. Of course, they will continue to maximize their production levels as well. There's alternative evacuation routes there in order to keep up and storage capability to keep up the high production levels. On Nova Chemicals and Borealis, maybe let me focus a little bit on the European market here, because also that has quite developed accordingly. There was very significant price corrections in the European market. We actually see that monomers, ethylene, propylene are quite short and that there is significant demand.

Speaker #6: And of course, they will continue to maximize their production levels as well. So there's alternative evacuation routes there in order to keep up, and storage capability to keep up the high production levels.

Speaker #6: On Nova Chemicals and Borealis maybe let me focus a little bit on the European market here. Because also that has quite has developed accordingly.

Speaker #6: There was very significant price corrections in the European market. We actually see that monomers ethylene propylene quite short and that there is significant demand.

Alfred Stern: We have seen modest price increase in ethylene and propylene in March. A significant step up of EUR 400 to 500 per ton in April now. You, I've also reported that our utilization of our crackers was about 91%, the Borealis and OMV crackers together, which is about more than 10% higher than the European average utilization rate. That's because all the crackers are either integrated into the OMV refineries or they have a light feedstock advantage on the Borealis side. That's for the olefins. Also on the polyolefins, we have seen that the contract prices have gone up.

Speaker #6: We have seen a modest price increase in ethylene and propylene in March, but then a significant step up of four to five hundred euros per ton in April now.

Speaker #6: You, I've also reported that our utilization of our crackers was about 91 percent, the Borealis and OMV crackers together. Which is about more than 10 percent higher than the European average utilization rate.

Speaker #6: That's because all the crackers are either integrated into the OMV refineries or they have a light feedstock advantage on the Borealis side. So that for the Olefins but then also on the poly Olefins we have seen that the contract prices have gone up.

Alfred Stern: We've actually seen also some closing of the gaps between spot and contract prices, which is always an indicator of tight markets. Now in April, again, the prices have gone up again, or around EUR 1,000 per ton for both polyethylene and polypropylene in the prices. That is significant increases in the prices reflecting the market tightness. We have also seen the demand levels to be good, so that Borealis and now Borouge International is able to take advantage of the better market environment.

Speaker #6: We've actually seen also some closing of the gaps between spot and contract prices, which is always an indicator of tight markets. And now, in April, again the prices have gone up around €1,000 per ton for both polyethylene and polypropylene in the prices.

Speaker #6: So that is significant increases in the prices reflecting the market tightness, and we have also seen the demand levels to be good, so that Borealis, and now Borealis International, is able to take advantage of the better market environment.

Speaker #1: Thank you very much.

Oleg Galbur: Thank you very much.

Speaker #6: Thank you Oleg. Next is Adnan Danani from RBC.

Alfred Stern: Thank you, Oleg. Next is Adnan Dhanani from RBC.

Florian Greger: Thank you, Oleg. Next is Adnan Dhanani from RBC.

Speaker #7: Hi. Thanks for taking my questions. Two for me, please. Just the first one: the European gas market. Can we just get your latest views?

Adnan Dhanani: Hi. Thanks for taking my questions. Two for me, please. Just the first one on the European gas market. Can we just get your latest views? Obviously we're now facing a second crisis in the energy market in four years, and presumably there's gonna be more focus on domestic energy security in Europe. As a major producer of gas in Europe, how do you see that opportunity set for you in the coming years? Related to that, any update on your search on Neptune Deep lookalikes? Just a question for Reinhard, maybe just on the results this morning, significant timing effects in your cash flow that benefited and drove quite a material beat versus market expectations.

Speaker #7: Obviously we're now facing a second crisis in the energy market in four years and presumably there's going to be more focus on domestic energy security in Europe.

Speaker #7: As a major producer of gas in Europe, how do you see that opportunity set for you in the coming years? And then, related to that, any update on your search on Neptune Deep look like?

Speaker #7: And then just a question for Reinhardt maybe. Just on the results this morning significant timing effects in your cash flow that benefited and drove quite a material beat versus market expectations.

Speaker #7: Just wondering what the moving parts are there and do you expect those timing effects to revert going forward? Thank you.

Adnan Dhanani: Just wondering what the moving parts are there, and do you expect those timing effects to revert going forward? Thank you.

Speaker #6: Thank you Adnan. I will start with the gas and then I will ask for help from Reinhardt on the timing effect on the cash flows.

Alfred Stern: Thank you, Adnan. I will start with the gas, and then I will ask for help from Reinhard on the timing effect on the cash flows. The gas market, indeed, it's also quite a volatile kind of market environment. We are now giving an outlook of an increased average price for THE for the German market benchmark of about EUR 45 per megawatt hour. Q1 was around EUR 41 to 42 per megawatt hour. That was, that consisted of lower January and February and then significantly increased March versus the bump that we got in March. It has come down a little bit again to EUR 45 to 46 in the beginning of April.

Speaker #6: The gas market indeed it's also quite volatile kind of market environment. We are now giving an outlook of an increased average price for THE for the German market benchmark of about 45 euro per megawatt hour.

Speaker #6: The first quarter was around 41 42 euros per megawatt hour. That was that consisted of lower January and February and then significantly increased March.

Speaker #6: Versus the bump that we got in March, it has come down a little bit again to 45, 46 in the beginning of April. But then yesterday's announcement again increased the price up.

Alfred Stern: Yesterday's announcement again increased the price again up. Very volatile situation. As you know, the Qatar LNG represented a significant amount of LNG coming to the global markets. Most of the shipment via did go to Asia, as it is a global market, we have seen a increase in the prices. We have seen here that after 24, 26, right, 26, 24, 25. 25 was slightly higher than 24 in the average annual price for the THE, now it's gone up again back to more like the 23 type of levels.

Speaker #6: So, very volatile situation, as you know. The Qatar LNG represented a significant amount of LNG coming to the global markets. Most of the shipments there did go to Asia, but as it is a global market, we have seen an increase in the prices.

Speaker #6: We have we have then seen here that after 24 26 right 26 20 sorry 24 25 25 was slightly higher than 24 in the average annual price for the THE.

Speaker #6: But now it's gone up again back to more like the 23 type of levels. European storages are on the low side. And we do see some intermittent windows where we can lock in some summer winter spread and increase the storage.

Alfred Stern: European storages are on the low side, and we do see some intermittent windows where we can lock in some winter spread and increase the storage. You have seen a little bit over the last week increases of the storage, but it's still on the low side, and we see the forward curves, they are more on the flat side to making that refilling of the storages more complicated. I see a certain risk that getting towards the winter then, that we will potentially enter with lower storage levels. If the demand then in the coming winter goes up, prices will then also strengthen in the market.

Speaker #6: So you have seen a little bit over the last week increases of the storage but it's still on the low side and we see the forward curves there are more on the flat side to making that refilling of the storages more complicated.

Speaker #6: And I see certain risk that, getting towards the winter, we will potentially enter with lower storage levels, and if the demand then in the coming winter goes up, prices will then also strengthen in the market.

Speaker #6: From an OMV perspective on the storage levels, Austria is here in a special situation because Austria has about, in total, about one year of storage—one year of demand storage capacity—and with this, the storage requirement is a bit lower at 35 percent.

Alfred Stern: From a OMV perspective on the storage levels, Austria is here in a special situation because Austria has about in total about 1 year of demand storage capacity. With this, the storage requirement is a bit lower at 35%. We are already above that storage requirement. From that perspective, on the way forward, we will commercially optimize what we are doing here. Then Neptune Deep. You asked, of course, here on the project, we continue to be on plan on executing on the project. As we have reported previously, the first 4 wells on the more shallow end, they have been drilled.

Speaker #6: And we are already above that storage requirement. So from that perspective on the way forward we will commercially optimize what we are doing here.

Speaker #6: And then Neptune Deep, you asked, of course here on the project we continue to be on plan on executing on the project. As we have reported previously, the first four wells on the more shallow end, they have been drilled.

Alfred Stern: We have now started the drilling on the further 6 wells on the deeper end of things and advancing also with the platform and all the things are on plan so that we are still looking at the original time plan, 2027 startup. I do think that is the right moment to come because we see the wedge of import requirements into Europe opening up year over year on the way forward. That Neptune Deep will come into a good time to improve security of supply in the market that will be priced mainly from LNG import differentials.

Speaker #6: And we have now started the drilling on the further six wells on the on the deeper end of things and advancing also with the with the platform and other things are on plan so that we are still looking at the original timeplan 2027 startup.

Speaker #6: I do think that is the right moment to come because we see the wedge of import requirements into Europe opening up year over year on the way forward.

Speaker #6: So that Neptune Deep will come into a good time to improve security of supply and the market that will be priced mainly from LNG import differentials.

Speaker #6: Yeah. And Adnan regarding timing effects in cash flow. Let me start with saying OMV has once again shown that we have a very strong and resilient cash flows.

Reinhard Florey: Adnan, regarding timing effects in cash flow, let me start with saying, OMV has once again shown that we have a very strong and resilient cash flows. We have come up with EUR 1.6 billion, a little bit above EUR 1.6 billion of operating cash flow, excluding net working capital and almost EUR 800 million of operating cash flow, including the net working capital effects. Now, the timing effects, you can more or less differentiate three different factors. One, of course, is the net working capital. This net working capital is an effect that came with the sudden increase of the prices, where we both had on the inventories, but also in the netting of the payables and receivables, a significant negative impact.

Speaker #6: We have come up with $1.6 billion, a little bit above $1.6 billion, of operating cash flow excluding net working capital, and almost $800 million of operating cash flow including the net working capital effects.

Speaker #6: Now the timing effect you can more or less differentiate three different factors. One of course is the networking capital. This networking capital is an effect that came with the sudden increase of the prices.

Speaker #6: Where we both had on the inventories but also in the netting of the payables and receivables a significant negative impact. So a build up of networking capital.

Reinhard Florey: A buildup of net working capital that negatively influenced the cash flow in Q1. However, that's a little bit of a savings account. According to the development of the prices, this will come back if prices normalize again. Therefore, I see that as a positive timing effect. On the other hand, there's a little bit of an opposite effect in the CCS in the valuation effects regarding our inventories. There we have seen a gain from the CCS in the result. That, of course, then also is visible in the cash flow. If we see then prices going down again, this time difference effect also will go away. We are talking here about EUR +250 million from the Q1.

Speaker #6: That negatively influenced the cash flow in first quarter. However that's a little bit of a savings account and according to the development of the prices this will come back if prices normalize again.

Speaker #6: So, therefore, I see that as a positive timing effect. On the other hand, there's a little bit of an opposite effect in the CCS in the valuation effects regarding our inventories.

Speaker #6: There we have seen a gain from the CCS in the result that, of course, then also is visible in the cash flow. And if we see then prices going down again, this time difference effect also will go away.

Speaker #6: We are talking here about 250 million positive from the from the first quarter. And the third element actually is gas derivatives. This is really a timing effect where we have seen a positive effect so something between 100 and 150 million in the first quarter and this over time when these derivatives then can be resolved will have the adverse effect coming a little bit over the three quarters distributed so yes it will come back but it will have a smaller impact on this.

Reinhard Florey: The third element actually is gas derivatives. This is really a timing effect where we have seen a +EUR 100 to 150 million effect in Q1. This over time, when these derivatives then can be resolved, will have the adverse effect coming a little bit over the three quarters distributed. Yes, it will come back, but it will have a smaller impact on this. In total, again, the basis cash flows have been resilient and strong, and I think this is what will also keep for the rest of the year.

Speaker #6: But in total, again, the base cash flows have been resilient and strong, and I think this is what will also continue for the rest of the year.

Speaker #6: That right there. Thank ank you.

Alfred Stern: Great. Thank you.

Adnan Dhanani: Great. Thank you.

Speaker #5: Thanks, Adnan. And now we come to Satna and Ali from HSBC.

Florian Graber: Thanks, Adnan. Now we come to Satnam Ali from HSBC.

Florian Greger: Thanks, Adnan. Now we come to Satnam Ali from HSBC.

Speaker #7: Hi there. Thanks for taking my questions. The first one I just wanted to ask. I see for the first time it looks like in your country level productions that you've grouped together the UAE and the Kurdistan region of Iraq.

Satnam Ali: Hi there. Thanks for taking my questions. The first one I just wanted to ask, I see for the first time it looks like in your country-level production split that you've grouped together the UAE and the Kurdistan region of Iraq. I just wanted to get a sense of your decision behind making that. Secondly, just overall, you know, it's been two months since the conflict started, just kind of your thoughts on what you think you've managed well and what you think you could have done better. Thank you.

Sadnan Ali: Hi there. Thanks for taking my questions. The first one I just wanted to ask, I see for the first time it looks like in your country-level production split that you've grouped together the UAE and the Kurdistan region of Iraq. I just wanted to get a sense of your decision behind making that. Secondly, just overall, you know, it's been two months since the conflict started, just kind of your thoughts on what you think you've managed well and what you think you could have done better. Thank you.

Speaker #7: I just wanted to get a sense of your decision behind making that. And secondly just overall you know it's been two months since the conflict started just kind of your thoughts on what you think you've managed well and what you think you could have done better.

Speaker #7: Thank you.

Reinhard Florey: Satnam, maybe let me start with the first question, why we grouped together Middle East. Simply because this is a region that breathes and lives with geopolitical situations in that region. If we would do that asset by asset, it would still have the same kind of volatility. Therefore, we have grouped that together. We are talking here about our assets participations in Kurdistan Region of Iraq, KRI, on the one hand side, and our participations in the SARB and in the Umm Lulu fields in Abu Dhabi. That together had a volume of around 60,000 barrels altogether. You have seen in the past, it's 50,000 from UAE, it's 10,000 from KRI.

Speaker #6: Satna maybe let me start with the first question. Why we grouped together Middle East simply because this is a region that breathes and lives with geopolitical situations in that region.

Speaker #6: So if we would do that asset by asset it would still have the same kind of volatility so therefore we have grouped that that together.

Speaker #6: We are talking here about our assets' participations in the Kurdistan Region of Iraq (KRI) on the one hand, and our participations in the SARP and in the Umm Lulu fields in Abu Dhabi.

Speaker #6: That together had a volume of around 60,000 barrels altogether and you have seen in the past it's 50,000 from UAE it's 10,000 from KRI and we still see that putting that from a region together makes more sense to look at the volatilities that we have.

Reinhard Florey: We still see that putting that from a region together makes more sense to look at the volatilities that we have. Just to give you an example, temporarily, we have been impacted in both of these regions from the Gulf War. As soon as these things is improving and being resolved, both will come back to full volumes. The real difference is KRI is gas and the Emirates volumes are oil. Otherwise, for the impact that will show with that, they are very easily connected.

Speaker #6: Just to give you an example temporarily we have been impacted in both of these regions from the Gulf War and as soon as this things is improving and being resolved both will come back to to full volumes.

Speaker #6: The real difference is KRI is gas and and the Emirates volumes are oil. Otherwise for the impact that will show with that they are very easily connected.

Speaker #4: Yeah. And let me maybe try and follow up on what we think we have done well and what we could have done better.

Alfred Stern: Yeah. Let me maybe try and follow up on what we think we have done well and what we could have done better. Maybe I think it was really timely to close on the Borouge International transaction. As we try to describe, this is transformative for OMV. It will be very important on the way forward. It is a very strong company that we put forward. If we could have done that even earlier, that would have been good. I think it's a fantastic step on the way forward that will be important for our integrated business model in the future to come.

Speaker #4: Maybe we—so I think it was really timely to close on the Baruch International transaction, and as we try to describe, this is transformative for OMV.

Speaker #4: It will be very important on the way forward. It is a very strong company that we put forward. If we had, if we could have done that even earlier, that would have been good, but I think it's a fantastic step on the way forward.

Speaker #4: That will be important for our integrated business model in the future to come. Also, we have not talked about this specifically, but I do want to remind you we have our cash flow efficiency program that we are executing on, and part of that is also our cost reduction program.

Alfred Stern: I also, we have not talked about this specifically, but I do want to remind you, we have our cash flow efficiency program that we are executing on, and part of that is also our cost reduction program. This is good online, and we continue to move forward because we believe this is still efficiency. Productivity is a key driver that we need to do on the way forward, even if prices have gone up and are higher today. On what we could have done better, I would say that that hedge that Reinhard Florey described before, where one leg was missing in the end.

Speaker #4: This is good online, and we continue to move forward because we believe this is still—efficiency, productivity is a key driver that we need to do on the way forward, even if prices have gone up and are higher today.

Speaker #4: On what we could have done better, I would say that that hedge that Reinhardt described before, where we were—one leg was missing in the end.

Speaker #4: If we had had somehow the information that the Strait would close I would have laughed to forego that that piece quite honestly. But this is this is part of our normal business and as Reinhardt said it's not unusual and was also compensated on some positive effects on the other side.

Alfred Stern: If we had had somehow the information that the Strait would close, I would have loved to forego that piece, quite honestly. This is part of our normal business, and as Reinhard said, it's not unusual and was also compensated on some positive effects on the other side. The last, but this is only half serious, quite honestly. If you remember, a few years ago, we, Borealis, divested their fertilizer business. I still think that was a very important strategic move at the time and will continue to be so because it was mainly a European focus. It was only a European-focused production for ammonia or nitrogen-based fertilizer.

Speaker #4: And and the last but this is only half serious quite honestly. If you remember a few years ago we Borealis divested their fertilizer business and and I I still think that was a very important strategic move at the time and will continue to be so because it was mainly a European focus it was only a European focused production for ammonia or nitrogen based fertilizer but at this moment of course fertilizer globally is quite short and the and the prices are high.

Alfred Stern: At this moment, of course, fertilizer globally is quite short, and the prices are high. That would be something that at this moment could be quite fun.

Speaker #4: That would be something that, at this moment, could be quite fun.

Satnam Ali: Thank you.

Sadnan Ali: Thank you.

Speaker #7: Thank you.

Speaker #5: Thanks, Satna, for your questions. We are now at the end of our conference call and would like to thank you for joining us. If you have any further questions, please contact the Investor Relations team.

Florian Graber: Thanks, Adnan, for your questions. We now are at the end of our conference call and would like to thank you for joining us. If you have any further questions, please contact the investor relations team. We will be happy to help. Goodbye and have a nice day.

Florian Greger: Thanks, Adnan, for your questions. We now are at the end of our conference call and would like to thank you for joining us. If you have any further questions, please contact the investor relations team. We will be happy to help. Goodbye and have a nice day.

Speaker #5: We will be happy to help. Goodbye and have a nice day.

Speaker #4: Thank you very much and have a great day.

Alfred Stern: Thank you very much, and have a great day.

Speaker #6: Thank you. Bye bye.

Reinhard Florey: Thank you. Bye-bye.

Operator: That concludes today's teleconference call. A replay of the call will be available for one week. The replay link is printed on the invitation or alternatively, please contact OMV's Investor Relations department directly to obtain the replay link.

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