OMV Posts Smaller Adnoc Refining Loss

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OMV has reported a smaller loss from its investment in Adnoc Refining and Trading, but the affiliate's results were impacted again by problems with the residue fluid catalytic cracker (RFCC) at the Ruwais refinery. The Austrian company's loss of €5 million from Adnoc Refining and Trading in the second quarter of this year compares with a loss of €18 million in the corresponding period in 2020, OMV said in its latest earnings report. The loss reflected an ongoing "weak market environment and a one-month outage" of the RFCC unit in May. However, OMV also noted "strong support" from Adnoc Global Trading, the trading unit that started operating in late 2020. OMV and Eni agreed in 2019 to pay a combined $5.8 billion for stakes of 15% and 20% respectively in Adnoc Refining, which has a total capacity of more than 920,000 b/d. It was the first Mideast refining investment for both European companies. It's not the first time that Adnoc's Ruwais refinery had to deal with problems at its 127,000 b/d RFCC unit. The 845,000 b/d Ruwais refinery was hit by a combination of technical problems at the unit in the earlier part of 2020 along with Covid-19 related issues (IOD Nov.2'20). "The FCC plant is back in operation," said OMV CEO Rainer Seele. "I do hope that this FCC plant will now reliably run into the second half with a [positive earnings] contribution," he said.

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