OMV Group SWOT Analysis, Competitors & USP

OMV Group

Oil and Gas

Energy & Power

Moving more. Moving the future

Largest listed manufacturing company in Austria

Corporates and individuals with energy/chemical requirements

Enterprises which require petroleum products, other fuels, fertilizers, chemicals etc

An integrated international oil and gas company

Below are the Strengths in the SWOT Analysis of OMV Group:

1. OMV Group’s strong downstream operations (refining, petrochemicals etc.) in Europe, one of the largest energy consuming regions, provide it a strong platform for profitable growth
2. Takeovers of Petrom and Petrol Ofisi, construction of Gas fired power plant in Romania and Turkey, and similar diversifications and expansions of its gas operations along with integrated operations has helped OMV gain a competitive edge
3. OMV group has a strong focus on its E&P operations (through expansion to newer growth areas and several acquisitions which have resulted in higher productions), which will result in improved overall financial performance
4. OMV group, with approximately 30,000 employees has a strong market position in its home country Austria.

Here are the weaknesses in the OMV Group SWOT Analysis:

1. Overdependence on the European market makes OMV group more exposed to political, economic and business risks associated with Europe
2. OMV Group’s declining reserves (coupled with a low reserve replacement ratio) will result in low production levels, thus having a negative impact on growth potential

Following are the Opportunities in OMV Group SWOT Analysis:

1. OMV group has been developing an integrated operational model (eg. Integration of its Exploration &Production business with its Gas &Power business) which will concentrate and optimize all its business segments’ activities, thereby improving the group’s financial structure, and deliver cost benefits in the value chain
2. Strategic divestiture of operations (as selling marketing subsidiaries in Croatia & Bosnia-Herzegovina, divestment of North Sea assets and permanent closure of Arpechim refinery) for optimum utilization of resources, and effective management of capital and cost efficiency
3. OMV group’s development of the power business ( completion of heat recovery power plant in Weitendorf, Austria and construction of gas-fired power plant in Turkey) will add another revenue stream to its businesses, increasing overall profit

The threats in the SWOT Analysis of OMV Group are as mentioned:

1. Intense competition with other players in the energy sector, which have more resources and operate on a global scale, could make OMV group lose out on access to major exploration fields and new markets, thereby slowing down its growth
2. Operational hazards associated with OMV group’s businesses could lead to damages in terms of manpower & machinery, thus causing it financial losses
3. A longer economic slowdown of the Eurozone, from where OMV group derives a big portion of its revenues, would slow down the revenue growth and profits of OMV

Below are the top 4 competitors of OMV Group:

1. ExxonMobil Corporation
2. BP plc.
3. Royal Dutch Shell

4. ENI