OMV plans to sell a stake of up to 49% in Gas Connect Austria
October 19, 2015 - 08:00 am (CEST)
- Intended divestment of minority stake in Gas Connect Austria will strengthen OMV´s cash flow and balance sheet
- Important step towards Downstream Gas portfolio optimization
OMV, the integrated, international oil and gas company, has announced its intention to sell a stake of up to 49% in its wholly owned subsidiary Gas Connect Austria (GCA), a company that operates and constructs natural gas high-pressure pipelines in Austria.
"As a first result of the ongoing review of our Downstream Gas asset portfolio, we decided to divest a minority stake in our regulated gas transportation business in Austria. In times of a difficult oil price environment, we are taking the appropriate measures to both optimize the portfolio and strengthen the Group’s cash flow and balance sheet", said Manfred Leitner, Executive Board member responsible for Downstream. "So far, potential investors have expressed a strong interest, as the regulated business is a stable profit contributor."
OMV is currently in the process of selecting an advisor to support the transaction. The transaction is expected to be signed in the course of 2016.
Gas Connect Austria is a wholly owned subsidiary of OMV which operates an approximately 900-km-long natural gas high-pressure pipeline grid in Austria. The company is responsible for the marketing and provision of transport capacity at border points and for the transport capacity required for domestic natural gas demand. The entry and exit volume for 2014 amounts to 149 billion cubic meters. As a central hub in the European natural gas network, GCA makes a substantial contribution to the natural gas supply in Austria and other countries including Germany, France, Slovenia, Croatia, and Hungary.
With Group sales of EUR 36 bn and a workforce of around 25,500 employees in 2014, OMV Aktiengesellschaft is one of Austria´s largest listed industrial companies. In Upstream, OMV has a strong base in Romania and Austria and a balanced international portfolio. 2014 daily production stood at approximately 309,000 boe/d. In Downstream, OMV has an annual refining capacity of 17.8 mn tonnes and approximately 4,100 filling stations in 11 countries as of end of 2014. OMV operates a gas pipeline network in Austria and gas storage facilities in Austria and Germany. In 2014, gas sales volumes amounted to 114 TWh.