OMV expects refining margins to be under pressure in coming years, possibly cooling OMV's appetite for acquisitions, Chief Executive Wolfgang Ruttenstorfer said on Thursday. The pessimistic outlook could mean OMV does not bid for a stake in Serbian refiner NIS when it comes on the market, Ruttenstorfer said, while OMV might also be prepared to work with other partners to build a planned refinery at Ceyhan, Turkey. The CEO added that acquisitions will be made selectively, only high quality refineries with the ability to offer high diesel yields will be targeted.
Our view: OMV reacted positively to the news yesterday as CEO confirmed the management cautiousness in investment decisions. The company’s stance on NIS acquisition is a bit surprising for us given that as OMV’s chances to win the tender were considered to be one of the highest among other competitors. We can imagine that the decision on NIS will be made only after the settlement of the financial plan on Ceyhan refinery. It was however previously expected that due to the size of the investment OMV will go for Turkish project together with the partners.