Investing.com -- In Q1 2025, OMV AG (ETR: OMVV ) saw lower Energy volumes offset by a structural gain in Chemicals due to the ADNOC agreement, the company said in a statement on Tuesday.

In the Energy segment, total hydrocarbon production dropped to 310 kboe/d, down from 337 kboe/d in the fourth quarter of the year 2024.

The decline was mainly driven by a sharp reduction in natural gas output to 132 kboe/d, from 156 kboe/d, while crude oil and NGL production slipped to 178 kboe/d from 182 kboe/d.

Sales volumes also contracted, with total hydrocarbon sales falling to 282 kboe/d from 354 kboe/d in the previous quarter.

Specifically, natural gas sales volumes dropped to 112 kboe/d, from 138 kboe/d, and crude oil and NGL sales volumes decreased to 171 kboe/d, from 215 kboe/d.

This decline followed the divestment of SapuraOMV and the normalization of elevated Q4 sales, which had been bolstered by a catch-up effect in Libya and higher liftings in Norway.

OMV estimates that the volume-related impact reduced its clean Operating Result by approximately €250 million quarter-over-quarter.

Moreover, the absence of an arbitration award that had boosted Q4 results led to a further €160 million drop in the Gas, Marketing & Power clean Operating Result.

In contrast, the Chemicals division provided a cushion. On March 3, 2025, OMV signed a binding agreement with ADNOC to combine their shareholdings in Borealis and Borouge into Borouge Group International.

As a result, Borealis (excluding Borouge) was reclassified as a discontinued operation, and its depreciation charges were halted from March onwards.

This change alone had a mid double-digit million euro positive impact on Q1 clean Operating Result and is projected to add about €140 million per quarter going forward.

Meanwhile, the exclusion of Baystar from equity consolidation added a small positive contribution to the quarter.

From an operational perspective, the Chemicals unit showed robust performance. The ethylene indicator margin in Europe rose to €529/t, from €510/t in Q4, while polyethylene margins inched up to €446/t, from €440/t.

The utilization rate of European steam crackers climbed to 90%, the highest in five quarters. Polyolefin sales volumes remained solid at 1.62 million tons, down slightly from 1.68 million tons, with polyethylene volumes (excluding JVs) at 0.49 million tons and polypropylene at 0.55 million tons.

In the Fuels & Feedstock segment, OMV’s refining indicator margin improved to $6.65/bbl, up from $5.90/bbl in the fourth quarter of the year 2024. Refinery utilization hit 92%, while sales volumes fell to 3.52 million tons, from 4.10 million tons. Commercial fuel margins softened slightly, while retail margins held steady.

Macroeconomic conditions remained moderately favorable. The average Brent crude price stood at $75.73/bbl, up marginally from $74.73/bbl in Q4.

Meanwhile, natural gas prices increased, with the THE price rising to €47.88/MWh and CEGH to €48.57/MWh. The average realized natural gas price for OMV reached €38.2/MWh, a sharp climb from €30.6/MWh in the fourth quarter of the year 2024.

Conversely, the average realized crude oil price remained subdued at $72.8/bbl, compared to $71.9/bbl previously.

Despite the operational volatility, OMV noted that net working capital effects were neutral to slightly positive during the quarter.