Austria profits from Russian gas
(MENAFN) In a surprising turn of events, Austria has emerged as a net energy exporter for the first time in two decades, a feat attributed to its stable supplies of Russian natural gas. Amidst the backdrop of most European Union countries reducing their imports of Russian gas due to the Ukraine conflict, Austria, which relies on Russia for about 80 percent of its domestic consumption, has not only maintained but increased its purchases.
Bloomberg's recent report indicates that Austria's imports of Russian gas reached pre-conflict levels last year, with the country acquiring nearly double the amount of gas required for its economy. This strategic move allowed Austrian traders to sell over 90 terawatt hours of electricity abroad, marking a significant milestone as Austria reaps the benefits of being a net energy exporter.
This unique scenario underscores the "uneven impact" of the ongoing energy crisis. While many European countries grappled with reduced power consumption due to economic challenges and geopolitical tensions, Austria's state-owned companies, OMV and Verbund, found a silver lining. In 2023, these companies recorded increased energy sales to neighboring countries for the first time since 2003, according to the state regulator for electricity and natural gas markets.
The regulator's data reveals that exports of electricity surged by almost 9 percent to 21.62 terawatt hours, while imports witnessed a notable drop of 25 percent to 21.55 terawatt hours.
OMV, relying on Gazprom for all agreed-upon gas volumes under a long-term contract, reported significant monthly gas purchases in the last quarter of the previous year.
Despite the potential windfall taxes affecting profits, both OMV and Verbund have demonstrated financial resilience. OMV, in particular, announced dividends exceeding expectations by over 50 percent, emphasizing the economic advantages of Austria's unique energy strategy. As Verbund prepares to disclose its full-year earnings in the coming month, its prior elevation of earnings forecasts in November suggests a positive outlook for the nation's energy sector amidst the complex dynamics of the European gas market.
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