Vienna - Boosted by high oil prices, the Austrian oil and gas company OMV on reported record net profits of 1.64 billion euros (2.23 billion dollars) for the 2007 business year, but stayed below analyst expectations. Clean net income after minorities was up 8 per cent to 1.64 billion euros compared with 1.52 billion euros the previous year, OMV said on Tuesday. Clean earnings before interest and taxes (EBIT) was up 5 per cent to 2.38 billion euros.
Sales rose by 4 per cent to 20.04 billion euros. Dividends increased by 19 per cent to 1.25 euros per share. Analysts had put OMV's expected net profit and EBIT in the two-digit numbers.
Net income after minorities in the fourth quarter was down 1 per cent to 408 million euros due to an "exceptionally high" effective tax rate of 31 per cent, OMV said. Clean EBIT was up 23 per cent to 688 million euros compared to the same period last year.
For 2008 the company expected to continue its robust earnings trend, planning new field developments in the upstream area, optimization programmes in the downstream and further expansion of its gas and gas logistics business. OMV is a key partner in the Nabucco gas pipeline project.
OMV said modernization of Petrom, its key Romanian subsidiary, was making good progress, with further positive effects expected in 2008. In 2007, Petrom contributed 708 million dollars to OMV's EBIT, down 13 per cent compared to the previous year.
OMV continues to pursue cooperation with Hungarian competitor MOL, despite strong opposition by MOL.
"In the wake of the ongoing consolidation in Central Europe we are convinced that the merger of OMV and MOL is a proposition that would generate high levels of synergies and secure long-term value growth for shareholders of both companies," OMV CEO Wolfgang Ruttenstorfer said.
