Austria’s oil and gas firm OMV adjusted down its Brent oil price planning assumptions to USD60/barrel real, from USD75/barrel applied before, in response to a persistent macroeconomic impact of the coronavirus pandemic.
The company also lowered its 2021 oil price forecast to USD50/barrel, while for 2022 and 2023, predictions were cut to USD 60/barrel from USD70/barrel and USD75/barrel, respectively.
For the years 2024 to 2029, Brent oil price is assumed at USD65/barrel from the previous assumption of USD75/barrel. It is estimated to decline to USD 60/barrel until 2035 and onwards.
The updated price planning assumptions are seen to result in non-cash net impairments of around EUR600 million (USD704 million) post-tax in the third-quarter results, net of minor impairment reversals. The impairments in Upstream are roughly equally ascribed to tangible assets and write-offs of exploration intangibles.
OMV is still confident in profitability amid the lower oil price environment.
