Despite the announced easing of the situation following the tensions in Iran, Alfred Stern, the chairman of the Austrian energy and chemical conglomerate OMV, does not expect a fast bounce-back in energy markets. Speaking to the “Handelsblatt” on Thursday, he stated that restoring supply chains will take weeks, and the effects will remain visible for months to come.
Stern also voiced his opposition to further regulation, even in the face of record fuel prices. He expressed his disagreement with discussions about implementing gas price caps. Furthermore, according to his view, the complaints regarding the oil industry’s supposed excessive profits seem to be a deliberate distraction. In his assessment, state levies and taxes were the most significant burden contributing to the high prices.
Regarding the establishment of the new joint venture, Borouge International, formed by OMV and the Arabian state conglomerate Adnoc, Stern emphasized proactive investment. He stated, “Even in difficult circumstances, one must take a courageous step forward, even if it means adapting to the prevailing conditions”. Stern added that synergies totaling at least $500 million annually were planned, dividends would be forthcoming, and the capital structure was robust, predicting that “Borouge International will receive a strong investment-grade credit rating”.
