OMV on the Capital Markets

Global equities recovered previous losses in 2023. Technological advances and a resilient US economy helped offset adverse factors such as a weak Chinese economy, the banking crisis, and tensions in the Middle East. After surging 2022 commodity prices, the energy sector lagged behind in 2023, and with it, OMV’s share price.

Financial markets

Global and European equities delivered a good recovery during 2023. With the global MSCI World Index and Europe’s STOXX 600 up close to 22% and 13% respectively according to Bloomberg, they were able to reverse the losses made a year earlier.

This recovery, however, took place under highly volatile conditions in an eventful year. Against the backdrop of the ongoing war in Ukraine, a persistently weak Chinese economy and high inflation, the banking crisis in March and the war in the Middle East were the key events shaking the markets. Overall, supportive factors fueled by rising optimism about the resilience of the US economy and boosts coming from technological advances in artificial intelligence and anti-obesity medication created a positive sentiment.

Comparing sectors, technology fared best, driven by the artificial intelligence excitement. Outside of the banking crisis, financials profited from rising interest rates. Easing concerns about a strong recession made defensive sectors lag, with the exception of health care, which found some support in the introduction of new weight loss drugs. The energy sector underperformed as the 2022 commodity price surge driven by Russian supply concerns did not re-occur.

Stock prices in the global oil and gas sector showed a bit less volatility over 2023 than the Brent crude oil benchmark price itself. Oil companies’ share prices also slumped when the banking crisis hit in March, albeit not as strongly as the commodity price. Subsequent demand concerns on the crude oil front also trickled through into the equity space, however again, not to the full extent. While the Brent crude oil price had decreased by 10% by the end of June compared to the start of the year, the FTSEurofirst 300 Oil & Gas Index had come back by only half of that. On the flip side, the supply reductions that led to the year’s high for Brent at the end of September were not fully reflected in share prices. In the final two months of the year, during which Brent oscillated from the effects of a disappointing OPEC meeting and the start of shipping disruptions in the Red Sea, corporate valuations remained relatively stable. By the end of the year, the FTSEurofirst 300 Oil & Gas Index had gained over 4% across the year, while Brent had dropped by roughly the same amount over the same period.

OMV share performance

Starting the year at EUR 48.10, OMV’s highest closing price for the whole of 2023 came on the first trading day on January 2, at EUR 49.23. The dominating theme for OMV’s share price at the start of the year was the Brent oil price, which was marked by optimism regarding growing demand in China following the end of its COVID–19 lockdown policy. This optimism was soon to be shaken, first by OPEC’s decision against a production cut in early February, and again in mid-March by the global economic concerns surrounding the banking crisis in the US, which sent OMV’s share price below EUR 40.

The share price recovered after that, driven by strong quarterly results in April and in anticipation of the record dividend to be decided at the Annual General Meeting on May 31. Following the dividend ex-date on June 6, oil demand concerns regained influence. The share price consequently reached its annual low on June 23 at EUR 37.57. Market speculation about a potential Borealis/Borouge merger in early July initiated a share price rebound that was also driven by the oil price, supported by Saudi and Russian supply cuts. This bullish phase lasted into mid-September, peaking above EUR 45.

Market woes about the oil demand development prevailed again after that, overpowering the positive influence stemming from recurring Borealis/Borouge merger speculation. The falling oil price caused by a disappointing OPEC meeting led to another share price low for OMV at around EUR 38 in mid-December, followed by a minor rebound as the oil price recovered on the back of a Red Sea oil transit pause due to Middle East tensions. OMV’s share price ended the year at EUR 39.77.

The average daily trading volume of OMV shares in 2023 was 370,377 shares (2022: 420,539). At year-end, OMV’s total market capitalization stood at EUR 13.0 bn, compared to EUR 15.7 bn at the end of 2022.

OMV share price performance 2023

In EUR

OMV’s share price declined by 17.3% across 2023, thus underperforming the wider market in Austria and Europe. The Vienna Stock Exchange’s blue chip index ATX was up by 9.9% and the FTSE Eurotop 100 Index was up by 13.2% over the same period. The European oil and gas sector also underperformed the overall market (FTSEurofirst 300 Oil & Gas +4.4%), with the Brent crude oil price being lower by 4.6% at the end of 2023 compared to the year before. Assuming dividend reinvestment, the total shareholder return for the year was –6.7%. Measured over a five-year period, OMV generated a better return. A EUR 100 investment in OMV stock at year-end 2018 with continuous dividend reinvestment in further OMV stock would have grown by an average annual return rate of 7.4% to EUR 143 at year-end 2023.

OMV shares: long-term performance compared with indices

Average annual increase with dividends reinvested¹

Proposed regular dividend of EUR 2.95 and special dividend of EUR 2.10 per share for the business year 2023

On May 31, 2023, OMV’s Annual General Meeting approved a regular dividend of EUR 2.80 per share, plus a special dividend of EUR 2.25 per share, adding up to a total per-share dividend amount of EUR 5.05 for 2022. In addition, the Annual General Meeting approved all other agenda items, including the Long-Term Incentive Plan 2023 and the Equity Deferral 2023. Supervisory Board elections were also held.

For the upcoming Annual General Meeting (to be held on May 28, 2024), the Executive Board will propose a regular dividend of EUR 2.95 per share, plus a special dividend of EUR 2.10 per share for 2023. This represents an annual increase of the regular dividend of 5%. Based on the total amount of dividends paid (regular plus special) of EUR 5.05 per share, the dividend yield calculated using the closing price on the last trading day of 2023 amounts to 12.7%.

Dividend policy

OMV is committed to delivering an attractive and predictable shareholder return through the business cycle. According to its progressive dividend policy, OMV aims to increase its regular dividend every year or at least to maintain the level of the respective previous year.

In addition, special dividends serve as a supplementary shareholder remuneration instrument. If the leverage ratio is below 30%, OMV aims to distribute approximately 20–30% of the OMV Group’s operating cash flow (including net working capital effects) per year to its shareholders through its regular dividend, as a priority, and additionally, if sufficient funds are available, through the special dividend. If the leverage ratio is 30% or higher, OMV’s progressive regular dividend will be maintained, but no special dividend shall be paid.

OMV shareholder structure

OMV’s shareholder structure remained relatively unchanged in 2023 and was as follows at year-end: 43.4% free float, 31.5% Österreichische Beteiligungs AG (ÖBAG, representing the Austrian state), 24.9% Mubadala Petroleum and Petrochemicals Holding Company (MPPH)*On December 21, 2022, Abu Dhabi National Oil Company (ADNOC) has announced its plan to take over the 24.9% stake in OMV Aktiengesellschaft from MPPH, subject to regulatory approvals. On February 28, 2024, following all conditions under the share purchase agreement between MPPH and ADNOC having been fulfilled, all of the 24.90% of the shares in OMV Aktiengesellschaft were transferred from MPPH to ADNOC., 0.1% employee share programs, and 0.1% treasury shares.

Shareholder structure¹

In %

An analysis of our shareholder structure carried out at the end of 2023 showed that institutional investors held 27.7% of OMV’s shares. At 32.2%, investors from the United States made up the largest regional group of institutional investors. The proportion of investors from the United Kingdom amounted to 28.4%, German shareholders made up 9.6%, and those based in France 6.5%. The share of investors from Austria was 5.2%, and Norwegian investors represented 2.0%.

Geographical distribution of institutional investors

In %

OMV Aktiengesellschaft’s capital stock amounts to EUR 327,272,727 and consists of 327,272,727 no-par value bearer shares. At year-end 2023, OMV held a total of 142,007 treasury shares. The capital stock consists entirely of common shares. Due to OMV’s adherence to the one share, one vote principle, there are no classes of shares that bear special rights. A consortium agreement between the two major shareholders, ÖBAG and MPPH*On December 21, 2022, Abu Dhabi National Oil Company (ADNOC) has announced its plan to take over the 24.9% stake in OMV Aktiengesellschaft from MPPH, subject to regulatory approvals. On February 28, 2024, following all conditions under the share purchase agreement between MPPH and ADNOC having been fulfilled, all of the 24.90% of the shares in OMV Aktiengesellschaft were transferred from MPPH to ADNOC., contains arrangements for coordinated action and restrictions on the transfer of shareholdings.

Environmental, Social, and Governance (ESG) performance

OMV continued to be ranked as best in class in various ESG ratings in 2023. OMV received an AAA, the highest score, in the MSCI ESG Ratings assessment for the eleventh year in a row. This places OMV among the top 14% of oil and gas companies globally. OMV also maintained its Prime status in the ISS ESG rating with a score of B–. This ranks us among the top 10% of oil and gas companies in terms of ESG performance. OMV’s Sustainalytics ESG Risk Rating now stands at 27.7 (from 26.7 previously), with a confirmed medium risk rating. This puts us in the top eleventh percentile of the integrated oil and gas sector. OMV was also recognized by CDP with a score of A– (Leadership) in the Climate Change category for the eighth year in a row, earning us a place among the 20 best oil and gas companies in this ranking.

In addition to these outstanding achievements, OMV maintained its inclusion in several ESG indices. Most notably, OMV was included in the Dow Jones Sustainability™ Indices (DJSI World and DJSI Europe) for the sixth year in a row. OMV attained a score in the 94th percentile of its industry in S&P Global’s Corporate Sustainability Assessment (CSA), the basis of the DJSI, in 2023. The DJSI World Index represents the top 10% of the largest 2,500 companies in the S&P Global Broad Market Index based on long-term economic, environmental, and social factors. OMV was included in several other S&P indices, such as the S&P Europe 350®, which is based on the S&P Global CSA (like the DJSI). OMV is included in many MSCI indices, such as the prestigious ACWI ESG Leaders Index and the ACWI Low Carbon Leaders Index. Furthermore, OMV maintained its position in the FTSE4Good Index Series, which is used by a wide variety of market participants to create and assess responsible investment funds, and maintained its inclusion in the STOXX® Global ESG Leaders index (based on OMV’s assessment by Sustainalytics).

Investment-grade ratings, stable outlook

OMV is rated A– by Fitch and A3 by Moody’s, both with a stable outlook. There were no changes to ratings or outlook during 2023.

Analyst coverage

During 2023, the total number of sell-side analysts covering OMV’s share decreased to 21, down from 22 at the end of 2022. Deutsche Bank discontinued coverage. The majority of recommendations are “buy” or equivalent, with a share of 63% of all recommendations at the end of 2023, slightly more than at the end of the previous year. “Hold” recommendations dropped back significantly to 21% of recommendations at the end of 2023, down from 33% a year earlier. There were four “sell” recommendations (up from a single one last year), representing a share of 21% of all recommendations. Following the share price development, the average target price for OMV stood at EUR 48.00 exiting 2023, down from EUR 58.80 at the end of 2022.

Investor Relations activities

Ensuring active, candid dialogue with the capital market is a top priority at OMV. The Investor Relations department’s mission is to provide comprehensive insight into OMV’s strategy and business operations to all capital market participants, thereby guaranteeing equal treatment of all stakeholders. In 2023, the Executive Board and the Investor Relations department strengthened and deepened relationships with analysts and investors across Europe, North America, and Asia. Over the year, OMV was present at more than 30 virtual and in-person investor conferences and roadshows, during which over 500 investor meetings were held.