OMV: The Largest Oil Company You've Never Heard Ofhttp://www.fool.com/investing/dividends-income/2006/08/17/omv-the-largest-oil-company-youve-never-heard-of.aspx Stephen D. Simpson, CFA
August 17, 2006
If you know Austria's OMV (Other OTC: OMVKY.PK), you're either an amazingly diligent investor or you have some sort of ties to Central Europe. For while this company is the leading oil and gas operator in Central Europe, it seems all but unknown to most folks on this side of the world.
Well, known or not, OMV is benefiting from the same basic math as companies like ExxonMobil (NYSE: XOM ) , ConocoPhillips (NYSE: COP ) , and Total (NYSE: TOT ) -- it's good to be in the oil and gas business when the prices of oil and gas are high. In the second quarter, OMV reported that revenue rose 21%, adjusted EBIT rose 13%, and net income rose about 19%.
Repeating a not-uncommon story around the oil patch, OMV benefited from the offsetting effect of higher energy prices on lower production. Production dropped about 5% this quarter, due mostly to shortfalls from Romania, bu