Alfred Stern, the CEO of the Austrian energy and chemical conglomerate OMV, stated that despite indications of a de-escalation in the Iran conflict, he anticipates only a gradual recovery in energy markets. Speaking to the “Handelsblatt” (Thursday edition), he noted that “restoring supply chains will take weeks” and that “the effects will be noticeable for months”.
Contrary to public discussions, Stern opposed stricter regulation, stating, “I have no understanding of discussions regarding fuel price caps”. He suggested that criticism concerning the oil industry’s alleged excessive profits may simply be a deliberate diversionary tactic. In his view, the impact of state levies and taxes was the primary contributor to the high prices.
Stern also discussed the formation of Borouge International, a new joint venture between OMV and the Arabian state conglomerate Adnoc. He asserted, “One must also take bold steps forward even in difficult situations, even if this requires adapting to existing circumstances”. He detailed potential synergies of at least $500 million annually, adding that dividends would be generated and the capital structure was robust. According to Stern, “Borouge International will have a strong investment-grade credit rating”.