(Updates with shares from first paragraph.)
Nov. 9 (Bloomberg) -- OMV AG fell the most in a month in Vienna trading after central Europe’s biggest oil company reported a 20 percent drop in third-quarter profit because of a production halt in Libya.
Shares fell 3.6 percent to 24.42 euros in the Austrian capital. The stock is down 21 percent this year.
Net income excluding costs of revaluing inventories declined to 233 million euros ($322 million) from 290 million euros a year earlier, the Vienna-based company said in a statement today. That fell short of the 268.2 million-euro average estimate of 12 analysts surveyed by Bloomberg.
“The continuing political turmoil in the third quarter led to the second consecutive quarter of zero reported production from Libya,” OMV said in the statement, adding that full-year production will be below 2010 levels because of disruptions in North Africa and the Middle East.
Production in the three months ended Sept. 30 was 10 percent lower than a year earlier after output in Libya, which accounted for 10 percent of OMV’s production in 2010, was suspended. While output has recently restarted, it is “premature to give guidance on when production will be back to significant levels,” OMV said.
In Yemen, which was responsible for about 2 percent of OMV’s 2010 production, an export pipeline, which was damaged in March and put back into operation in July, now is “out of commission” again because of a subsequent attack, OMV said. The company won’t produce while the pipeline isn’t up and has “no idea” when it may be repaired, Chief Executive Officer Gerhard Roiss told reporters today.
Adjusted earnings before interest and tax fell to 581 million euros from 632 million euros a year earlier, beating the average analyst estimate of 570.2 million euros.
OMV, which has been headed by Roiss since April , announced in September that it plans to sell 1 billion euros of refining and marketing assets by 2014 to increase its focus on exploration and production.
The marketing margin environment will remain challenging this year, OMV said, while refining margins are expected to recover “somewhat.”
--Editors: Stephen Cunningham, Tony Barrett
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